Agenda item - Internal Audit and Corporate Fraud Plan and Strategy - 2018/19

Report of the Executive Director, Finance & Resources

1)           That the Committee approves the Internal Audit and Corporate Fraud Strategy and Annual Plan, including the Internal Audit Charter and Internal Audit Reporting and Escalation Policy.

2)           That the Committee notes the changes to the performance management arrangements for tracking actions resulting from internal audit work.

57.1      The Committee considered a report of the Executive Director, Finance & Resources that requested approval of the Internal Audit Plan 2018/19.

57.2      Councillor Sykes expressed concern that the number of overall audit days had decreased by 20% since 2016/17.

57.3      The Executive Director, Finance & Resources explained that budget savings, particularly in ‘back office’ services had been frontloaded so there was an expectation that savings targets would reduce over time. The Executive Director added that the Orbis Partnership and its scale would help services become more sustainable and opportunities for co-learning would increase productivity.

57.4      The Orbis Chief Internal Auditor stated that he was satisfied that there was sufficient staff resource to deliver the Audit Plan and provide opinion annually adding that one additional benefit of the Orbis Partnership was that in some areas, only one wider audit was necessary rather than three individual audits for the respective authorities so work could be streamlined. Furthermore, there would shortly be procurement of a new audit management system would provide greater use of data analysis and automation that would offset staff reduction.

57.5      The Chair asked if there was any risk in one Orbis Partner significantly reducing its audit budget.

57.6      The Executive Lead, Strategy, Governance & Law clarified that there were mechanisms and break clauses in the Orbis inter-authority agreement relating to adjustments to contributions and consensus to work equitably.

57.7      RESOLVED-

1)           That the Committee approves the Internal Audit and Corporate Fraud Strategy and Annual Plan, including the Internal Audit Charter and Internal Audit Reporting and Escalation Policy.

2)           That the Committee notes the changes to the performance management arrangements for tracking actions resulting from internal audit work.