To receive a report from the Internal Audit Manager, Assurance Lincolnshire.

Matthew Waller, Internal Audit Manager, Assurance Lincolnshire presented Members with the Audit Planning Update and Progress Report as at March 2023.

The report set out the Proposed Internal Audit Plan for 2023/2024 and detailed the activities to be audited and the indicative scope for each audit.  The draft plan had been presented to Committee to give Members an opportunity to comment on the plan and the priorities that Internal Audit had established.

The Internal Audit Manager highlighted that the audit plan delivered assurance within agreed resources and confirmed that for 2023/24 this was 175 days.  Where necessary, the Plan was amended throughout the year to reflect changing assurance needs.

Members were referred to Appendices A to D, pages 44 to 50 of the Agenda refers that provided details of:

·       Auditable Activities;

·       How the draft plan achieved the requirements of the Board and Head of Internal Audit;

·       Internal Audit’s Working Protocols and Performance, and

·       Internal Audit’s Quality Assurance Framework.

Members were invited to put their comments and questions forward.

·       A Member referred to the Green Homes Grants and asked for clarification whether this was a key area to be checked, to include what monies had been claimed, the quality of services that had been delivered and any review process would pick up on areas of concern. The Internal Audit Manager advised Members that the team focussed its time on key issues.  However, if Members wished for further information on the Green Homes Grants more details could be requested from management to agree to undertake this specific piece of work.

·       A Member noted within the report it stated that the fees had been increased to align with the costs or resources provided in carrying out the work and reflected the rates included within the current agreement, following which it was queried how this was proportioned for the three councils across the Partnership.  The Internal Audit Manager confirmed that each council had its own audit plan and agreed number of days and assured Members that ELDC was getting adequate coverage.  The Section 151 Officer added that whilst the Partnership was mentioned in the report, the systems across the three councils were separate, however were similar for ease of auditing and this was an efficient way of providing resources and reduced demand on officers’ time.

Following a brief discussion, a Member asked for clarification as to whether the internal audit fees had been increased.  The Internal Audit Manager confirmed that there was no increase in the fees for 2023/24 and the report would be amended accordingly.

·       A Member highlighted that in recent years as many as 225 days had been allocated to internal audit and was concerned over such a large reduction for 2023/24.  The Internal Audit Manager advised Members that the team no longer undertook housing benefit subsidy work on behalf of the Council’s external auditors, which would have reduced the total number by approximately 25 days.

·       A Member referred to the ICT Area to be agreed for key areas of focus for ICT reviews and considered that the network down times should be an indicator for why this needed to be an area of focus, particularly on the operational side and not just on risk management.  It was further considered that it needed to be fed into the ICT Strategy and be part of the IT service lifecycle and asked to see the terms of reference before the ICT Area was agreed.  The Internal Audit Manager responded that he welcomed feedback and the team would gather intelligence and focus on what mattered.

·       In relation to Health and Safety as an area to be considered, a Member highlighted that CORP004 on the Risk Register, page 114 of the Agenda refers, stated that ‘Health and Safety is included within Internal Audit’s Annual Audit Plan.  The audit undertaken in 2021 demonstrated a substantial level of assurance.’  Therefore, the report needed amending accordingly.

·       A Member referred to the audit areas that were rated red in both areas of internal audit risk and assurance map rag rating and asked for assurance that these would be dealt with first.  The Internal Audit Manager advised Members that he was working with the Senior Leadership Team and would discuss this further.

No further comments of questions were received.

Following which it was,

RESOLVED:

That the ELDC Draft 2023/24 Internal Audit Plan be noted.