Issue - meetings

FSD17035

The Sub-Committee considered a report setting out the Internal Audit Plan for 2017-18.  The purpose of the Internal Audit Plan was to:

§  Optimise the use of audit resources available, given that these were limited,

§  Identify the key risks facing the Council in achieving its objectives and to determine the corresponding level of audit resources,

§  Ensure effective audit coverage of high risk areas and a mechanism to provide Members, Governors, Head Teachers and senior managers with an overall opinion on the auditable areas and the overall control environment,

§  Add value and support to senior management in providing effective control and identifying opportunities for improvement,

§  Support the Council’s nominated Section 151 Officer,

§  Deliver an internal audit service which met the requirements of the Accounts & Audit Regulations 2015,

§  Review Value for Money arrangements for designated audits in the plan where possible, as approved by Members of the Audit Sub-Committee,

§  Allow flexibility to take on fraud and investigation work and participate in any proactive work,

§  Assist External Audit in forming an opinion on the annual audit of the financial statements by placing reliance on the work of Internal Audit.

The Internal Audit Plan 2017-18 included the following audits of designated fundamental systems where key financial controls needed to be covered to allow an opinion on the overall control environment as part of the statutory Annual Governance Statement.  These systems included debtors, creditors, payroll, NNDR, pensions, council tax, housing benefit and council tax reduction, treasury management, parking, cash and banking, main accounting system/revenue budgetary control, temporary accommodation and procurement.

The Head of Internal Audit introduced the report, highlighting that in comparison to the previous year, Internal Audit were proposing that the audit coverage for 2017/18 slightly decrease from 811 days to 800 days.

The Committee were informed that as in 2016-2017, forty days had been allocated to the auditing of commissioning and that discussions had already been undertaken with the Director of Commissioning to agree the best use of audit time. The Internal Audit Plan (IAP) had been risk assessed to ensure that all high risk auditable areas would be covered.

Members noted that the total planned coverage of 800 days included:

·  core system audits;

·  operational audits across the directorates;

·   Bromley controlled schools;

·   a total of 80 days for fraud and investigative work;

·   39 days for work in progress carried forward from 2016/17 split to the three directorates;

·   provision for advice and support;

Seventy days contingency time was allocated to the three directorates to cover unplanned work such as management requests or further testing that may be required in the event of initial field work indicating major findings. 

Members were reminded that a methodology had been agreed for Internal Audit to use in assessing VFM arrangements for designated areas covered in the Audit Plan. The basis of using the VFM methodology was agreed by members of the Committee, this involved the scoring of VFM arrangements in a range of 1-4; 1 equated to not met,  ...  view the full minutes text for item 33