Agenda item

Consider Report by Chief Officer Audit and Risk.  (Copy attached.)

6.1       There had been circulated copies of a report by Chief Officer Audit and Risk that informed the Audit Committee of the progress Internal Audit had made, in the first 6 months of the year to 30 September 2023, towards completing the approved Internal Audit Annual Plan 2023-24.  It also summarised the statutory obligations for Internal Audit and requirements of the Public Sector Internal Audit Standards.  The Internal Audit Annual Plan 2023-24 that was approved by the Audit Committee on 13 March 2023 set out the audit coverage for the year utilising available Internal Audit staff resources to enable the Chief Officer Audit & Risk (the Chief Audit Executive (CAE)), to provide the statutory annual Internal Audit opinion regarding the adequacy and effectiveness of governance, risk management and internal controls within the Council.  Appendix 1 of the report provided details of the half-yearly progress by Internal Audit with the delivery of its programme of work, which indicated good progress.  The programme of work for the six months from October 2023 to March 2024 based on the available resources indicated that the Internal Audit Annual Plan 2023-24 can be delivered in full.  Internal Audit assurance services were also provided to the Scottish Borders Council Pension Fund and the Scottish Borders Health and Social Care Integration Joint Board to meet their obligations.  Separate Internal Audit plans and reports were presented to their respective Management and boards/committees for assurance purposes.  The report also summarised the statutory obligations for Internal Audit and the requirements of the Public Sector Internal Audit Standards (PSIAS) with which the SBC Internal Audit function conformed.

6.2       The Chief Officer Audit and Risk summarised the report and answered Members’ questions and advised that the Chartered Institute of Internal Auditors were a global organisation that set global internal audit standards and determined that the standards needed some enhancement to improve governance and internal control.  The consultation process was useful especially in reflecting the views from smaller internal audit teams in Scottish local authorities.  Concerns were raised about the possible constrained system of performing external quality assessments every five years.  The Chief Officer Audit and Risk advised that the consultancy report on partnering was in draft form still though the distribution list for its dissemination had not yet been determined.  With regard to skills within internal audit teams, SBC had access to SLACIAG’s computer audit sub-group to cover broader IT content such as data analytics and other emerging areas.  Discussions had been taking place with Scottish Councils to share internal audit programmes and for training sessions to take place.  With regards to the scope of internal audit including external providers, the entirety of business applications were subject to audit.  IT general controls audit had a specific scope on use of business applications.  Specific audit work had been done previously on contract management with Live Borders. 

DECISION

(a)       NOTED the progress Internal Audit has made towards completing the Internal Audit Annual Plan 2023-24; and,

(b)       AGREED that the Committee was satisfied with the Performance of the Internal Audit service.