To present the proposed internal audit plan for 2023/24 and internal audit charter to the Audit and Governance Committee for discussion and approval.

The Assistant Director, South West Audit Partnership (SWAP), introduced the report, drew attention to the ‘Internal Audit Plan 2023-23 and Internal Audit Charter’ paper (Appendix 1 to the report), and highlighted the following:

i.             the factors that had influenced the proposed internal audit plan;

ii.            the intended coverage of the key corporate objectives and risks, under the headings of ‘environmental’, ‘economy’, and ‘community’, as well as core assurance areas;

iii.          risk coverage missing from the plan included ‘Ash Dieback (Chalara)’;

iv.          the 2023/24 internal audit programme of work would be equivalent to 900 days;

v.           details of those jobs in progress or scheduled; and

vi.          the pipeline of the next assignments to be undertaken.

In response to questions:

1.           The Assistant Director said that matters such as Ash Dieback did not align easily with internal audit work but it was understood that the council had arrangements in place to mitigate this risk; the Chairperson noted that this featured as risk CRR.67 in the Corporate Risk Register.  The Director of Resources and Assurance commented on the role of Balfour Beatty Living Places in terms of the public realm and the handling of potential risks on behalf of the council, and suggested that a paper could be provided to committee members.

2.           With reference made to a risk identified in the ‘Report on Internal Audit Activity, Quarter 4 2022/23’ (agenda page 26), the Assistant Director said that there was no intention currently to look at ‘Waste Collection Vehicles’ specifically.  The Director of Resources and Assurance advised that the council was undertaking a procurement process to appoint a new contractor to handle waste collection services.  The Assistant Director confirmed that ‘Waste Strategy / Contract’ was identified in the pipeline, and this risk could be considered in that piece of work.

3.           The Assistant Director said that the audit assignments in progress or scheduled were informed by professional judgement rather than prioritisation.  Some committee members suggested that consideration should be given to prioritisation.

4.           With attention drawn to matters outlined in the ‘Auditor’s Annual Report on Herefordshire Council 2021/22’ (agenda page 283) in relation to the ‘Hereford City Centre Transport Package’, the Assistant Director said that the status of priority actions that followed from the investigation would be reported to the committee.

5.           With reference made to the Internal Audit Charter (agenda pages 55 – 57), the Assistant Director advised that SWAP had a number of internal quality review processes and an external quality review was undertaken every three years; the last review in 2021 found SWAP to be compliant with the required standards.  It was noted that the charter promoted independence and objectivity.

Resolved: That

a)      the internal audit plan and pipeline of future work to ensure there is sufficient coverage and delivery to give an annual opinion be approved; and

b)      the internal audit charter be approved.

Action(s)

2023/24-002   That a paper on Ash Dieback, particularly in relation to the role of Balfour Beatty Living Places in handling potential risks, be provided to committee members.