Issue - meetings

To receive a report from the Internal Audit Manager.

The Internal Audit Manager outlined the Annual Internal Audit Plan 2021-22 which demonstrated how the authority would fulfil its statutory and professional requirements to maintain an adequate and effective system of internal audit of its accounting records and of its system of internal control in accordance with proper internal audit practices.

She reported that the plan was risk based and had been reviewed and reprioritised and, in view of the ongoing pandemic, focus had been given to COVID-19 related workstreams around response and recovery, emerging risks across service delivery, whilst also auditing higher risk areas that align with Spelthorne’s corporate priorities, and that Group Heads and managers had been consulted and this had helped shape the plan. She explained that Appendix 2 summarised the follow up work recently undertaken in relation to the agreed audit recommendations previously issued and sets out what is open (outstanding) or closed.

In response to questions the Internal Audit Manager explained that the audit team were advised that external auditors may come in to work with the Housing Benefits Manager and were waiting to hear if this would go ahead before arranging to do the internal audit to avoid a clash. She advised that the external auditors had confirmed they would complete their work in April, so the internal audit team had just started their work to ensure it was complete prior to the external audit.

The Committee queried how the internal audit team agree the terms of reference for non-service audits, such as climate change, commercial assets and investment and property investment. The Internal Audit Manager explained that they would set out the key scoping areas, the key risk considerations and encouraged managers to participate to identify specific risks.

In response to further questions the Internal Audit Manager informed the Committee that members would be invited to be involved in agreeing the terms of reference for non-service audits, including the budget setting process, if she thought it would be useful and appropriate to do so, but stressed that members must be mindful not to direct the work of internal audit. 

The Chairman proposed a motion for suitable members to be involved in setting the terms of reference of wider audits, where appropriate, without compromising the work, independence or objectivity of internal audit. The proposal was seconded by Councillor Sexton and agreed by the Committee.

Resolved to;

1.    approve the annual internal audit plan for 2021/22;

2.    note the update summary on the 2020/21 audit workplan; and

3.    that suitable members are to be involved in setting the terms of reference of wider audits, where appropriate, without compromising the work, independence, or objectivity of internal audit.