Agenda item

Consider a report by Chief Officer Audit & Risk on proposed strategic direction to deliver Internal Audit assurance and support services to the Council, the Pension Fund, SB Cares and the Health and Social Care Integration Joint Board, and on proposed Internal Audit programme of work 2019/20 to enable preparation of the annual opinions on the adequacy of each organisation’s overall control environment.  (Copies attached).

10.1     With reference to paragraph 8 of the Minute of 19 March 2018, there had been circulated a report by the Chief Officer Audit and Risk seeking approval to the proposed Internal Audit Strategy and Internal Audit Plan 2019/20 to enable the preparation of the annual opinions on the adequacy of the overall control environment for Scottish Borders Council, SB Cares, Scottish Borders Pension Fund, and Scottish Borders Health and Social Care Integration Joint Board.  Ms Stacey explained that the Internal Audit function followed the professional standards as set out in Public Sector Internal Audit Standards (PSIAS) effective 1 April 2013 (updated 2017) which required the establishment of risk based plans to determine the priorities of the Internal Audit activity and that these plans were sufficiently flexible to reflect the changing risks and priorities pertaining to each organisation.  The Internal Audit function also included the requirement to provide senior management and members with independent and objective assurance which was designed to add value and improve the organisation’s operation. In addition, the Chief Officer Audit and Risk was also required to prepare an Internal Audit annual opinion on the adequacy of the organisation’s overall control environment.  The background to the Internal Audit Strategy was set out in Appendix 1 to the report.  Ms Stacey explained that the Internal Audit Annual Plan 2019/20, detailed in Appendix 2, set out the range and breadth of audit areas and sufficient work within the audit programme of work to enable the Chief Officer Audit and Risk to prepare an Internal Audit annual opinion.  Key components of the audit planning process included a clear understanding of the organisation’s functions, associated risks, and assurance framework.  There were staff and other resources currently in place to achieve the Internal Audit Annual Plan 2019/20 and to meet its objectives.  

10.2     The Committee discussed the report and Ms Stacey advised that there had not been significant changes in terms of the Internal Audit Strategy with the compliance of the code of ethics being more explicit and confirmed that the proposed coverage in the Internal Audit Annual Plan would enable assurance to be provided to the Committee and Corporate Management Team though the plan should be considered to be flexible and will be periodically reviewed, and amended as required, to reflect any new arrangements or changing risks and priorities.  In response to a question on any changes from previous years on consultancy work, Ms Stacey advised that Internal Audit has increasingly been involved as a ‘critical friend’ in various change and transformation projects on request by members of Corporate Management Team whilst maintaining clarity on the statutory role of Internal Audit to fulfil its provision of independent and objective assurance as has been reflected in the Internal Audit Strategy. 

DECISION

AGREED:-

(a)       the Internal Audit Strategy as detailed in Appendix 1 to the report; and

(b)       the Internal Audit Annual Plan 2019/20 detailed in Appendix 2 to the report.

MEMBER

Ms Barnett left the meeting during consideration of the above item