Agenda item

5.1

The Senior Finance Manager (Internal Audit) introduced a report presenting the Internal Audit planning methodology and programme of work for 2017/18.

5.2

The strategy for Internal Audit work was to focus on areas of high-risk activity in order to provide assurance that risk and internal control systems were being properly managed by Directors in service areas.

5.3

For 2017/18, a risk scoring approach had been implemented in order to prioritise the identified auditable areas. The use of a risk-scoring methodology was a requirement of the Public Sector Internal Audit Standard. Service Management had been asked to contribute to the planning process, however the plan and its contents were entirely the responsibility of Internal Audit.

5.4

The seven high priority areas which had not been included in the Plan had been excluded for service reasons as opposed to Internal Audit reasons. The delivery of the plan could potentially be affected by anything unplanned which may cause a need to reallocate resource.

5.5

In response to a question from a Member of the Committee as to whether the Committee would have any role in approving how Internal Audit resources were utilised, the Senior Finance Manager (Internal Audit) commented that she worked out the number of days based on how many days were worked and taking into account allowances for non-audit activity. Activity was balanced to the resources available.

5.6

Following a query from a Member of the Committee as to how many days the figure of 15% in paragraph 32 of the report represented, the Senior Finance Manager (Internal Audit) stated that she would break the plan down into days and the number of outputs to make it clearer for Members.

5.7

The Senior Finance Manager (Internal Audit) commented, in response to a question regarding whether the impact of national changes would have a knock on effect on audit plans, that it was a continuous cycle and not a static process. She met quarterly with Executive Directors and Heads of Service to look at the plan and it could be reviewed in year, if necessary.

5.8

Resolved: That the Committee endorses the programme of internal audit work, attached to the report, for 2017/18.