Agenda item

SIAS ANNUAL ASSURANCE STATEMENT AND INTERNAL AUDIT ANNUAL REPORT 2022/23

REPORT OF THE SHARED INTERNAL AUDIT SERVICE

 

To receive the SIAS Annual Assurance Statement and Annual Report 2022-2023.

Decision:

RESOLVED: That the Committee:

 

(1)   Noted the Annual Assurance Statement and Internal Audit Annual Report.

 

(2)   Noted the results of the self-assessment required by the Public Sector Internal Audit Standards (PSIAS) and the Quality assurance and Improvement Programme (QAIP).

 

(3)   Approved the SIAS Audit Charter for 2023/24.

 

(4)   Received management assurances that the scope and resources for internal audit were not subject to inappropriate limitations in 2022/23.

 

REASON FOR DECISIONS: To update the Committee on the Annual Assurance Statement and Internal Audit Annual Report 2022/23.

 

Minutes:

Audio recording 23 minutes 29 seconds

 

The Head of Shared Internal Audit Service presented the report entitled ‘SIAS Annual Assurance statement and Internal Audit Annual Report 2022/23’ and drew attention to the following, that:

 

·       An annual Audit Plan was set in March 2022, and this set out the work for the year 2022/23.

·       Throughout the year, progress reports of the Audit Plan were produced along with copies of the audits coming out of the plan issued to FAR Committee Members, and at the end of the year the Public Sector Internal Audit Standards required an assurance opinion based on the work in the plan.

·       Appendix B showed the ‘Definitions of Assurance and Recommendation Priority Levels’, however there were some definitions missing as the Appendix from the previous year had been used, rather than an updated version.

·       North Herts Council had received a ‘Reasonable’ overall assurance, with very few Councils likely to achieve the top assurance category of Substantial.

·       NHC had no Section 114 Notices and stator recommendations, for example and was thus unlikely to have a ‘Limited’ overall assurance opinion.

·       It was a standard requirement that we noted the outcome of our self-assessment against the Public Sector Internal Audit Standards. The 2022/23 year was assessed as generally conforms, which was the highest category.

·       The Public Sector Internal Audit Standards requires that internal audit has an external quality assessment every 5 years, this was completed in 2021 and concluded the Council generally conformed.

·       The Standard assured to the Committee that they had an internal audit service that met standards and delivered.

·       The Committee was requested to approve the SIAS Internal Audit Charter, effectively a constitution for internal audit, which set out the audit’s rights and responsibilities and approval was important for the Committee and internal audit’s role in the broader governance structure.

·       There was confirmation that no limitations or restriction on the scope of SIAS work had occurred and that SIAS remained independent and requested that the Service Director – Resources confirmed that matter.

 

The Service Director – Resources confirmed that no limitations or restriction had been placed on SIAS and that SIAS remained independent.

 

The following Members asked questions:

 

·       Councillor Tom Plater

·       Councillor Terry Hone

 

In response to questions the Head of Shared Internal Audit Service stated that:

 

·       The individual audit for the Parking Strategy was not an area of particular risk and would have been replaced by a higher risk project.

·       The reference to personal gain would also include political gain and can be amended to reflect this.

·       Members can view implementation of internal audit recommendations at the Council using Pentana.

 

In response to questions the Service Director- Resources stated that:

 

·       The Parking Strategy was likely to happen next year, although had been planned.

·       The Climate Emergency, listed under the Critical and High Priority Recommendations related to an additional resource.

·       A written response on the progress of the Critical and High Priority Recommendations would be sent.

 

Councillor Tom Plater proposed, and Councillor Terry Hone seconded and, following a vote, it was:

 

RESOLVED: That the Committee:

 

(1)   Noted the Annual Assurance Statement and Internal Audit Annual Report.

 

(2)   Noted the results of the self-assessment required by the Public Sector Internal Audit Standards (PSIAS) and the Quality assurance and Improvement Programme (QAIP).

 

(3)   Approved the SIAS Audit Charter for 2023/24.

 

(4)   Received management assurances that the scope and resources for internal audit were not subject to inappropriate limitations in 2022/23.

 

REASON FOR DECISIONS: To update the Committee on the Annual Assurance Statement and Internal Audit Annual Report 2022/23.

 

Supporting documents: