Agenda item

Consider a report by Chief Officer Audit & Risk on progress Internal Audit has made during the first half of the year towards completing the Annual Plan 2020/21 and an outline of performance.  (Copy attached)

4.1       With reference to paragraph 7 of the Minute of 9 March 2020, there had been circulated copies of a report by the Chief Officer Audit & Risk to inform of the progress Internal Audit had made, in the first 6 months of the year to 30 September 2020, towards completing the Internal Audit Annual Plan 2020/21.  It also summarised the statutory obligations for Internal Audit and requirements of the Public Sector Internal Audit Standards (PSIAS). The Internal Audit Annual Plan 2020/21 that was approved by the Audit and Scrutiny Committee on 9 March 2020, set out the audit coverage for the year utilising available Internal Audit staff resources to enable the Chief Officer Audit and Risk (the Council’s Chief Audit Executive (CAE)), to provide the statutory annual Internal Audit opinion regarding the adequacy and effectiveness of internal control within the Council.  Internal Audit assurance services and annual opinions were also provided to the Scottish Borders Pension Fund Board and Committee, and the Scottish Borders Health and Social Care Integration Joint Board to meet their obligations.  Appendix 1 to the report provided details of the half-yearly progress by Internal Audit with the delivery of its programme of work.  Internal Audit had made good progress in the first half of the year, despite the COVID-19 pandemic response, though amendments to the Internal Audit Plan 2020/21 required approval by the Committee.  At the 23 June 2020 meeting, the Chief Officer Audit & Risk had advised members that, due to the effects of the COVID-19 emergency response, the Internal Audit Annual Plan 2020/21 had been re-assessed in terms of potential changes i.e. add audits to cover new risks, re-schedule medium risk audits to later in the current year, and defer low risk cyclical audits to a future year.  The report listed the proposed Audits to be deferred to 2021/22.The revised Internal Audit Annual Plan 2020/21 (Appendix 1) was now being presented for approval. 

4.2       The Chief Officer Audit & Risk, Jill Stacey, answered Members’ questions and provided more information, in particular about any implications of the audits being deferred.  Ms Stacey accepted it was unusual to have a significant change in the audit plan but she was aware that many other Local Authorities were in a similar position.  She assured Members that this was a risk-based Internal Audit Plan and in each case, there had been good engagement with Management about the deferral.  In some of the services concerned deferral of the audit aligned with strategies relating to the FF24 programme.  She agreed that the deferrals may put pressure on capacity to carry out audits in 2021/22 although some of the scheduled audits were cyclical rather than risk based.  Although some work may have to be realigned she did not expect there to be a significant impact.  

DECISION

AGREED to note the progress Internal Audit had made towards completing the Internal Audit Annual Plan 2020/21, to confirm that it was satisfied with the Performance of the Internal Audit service, and to approve the revisions to the Internal Audit Annual Plan 2020/21.