Agenda item

REPORT OF THE SHARED INTERNAL AUDIT SERVICE

To receive the SIAS Annual Assurance Statement and Annual Report 2023-24.

RESOLVED: That the Finance, Audit and Risk 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 Shared Internal Audit Service Audit Charter for 2024/25.

(4)   Received management assurance that the scope and resources for internal audit were not subject to inappropriate limitations in 2023/24.

REASON FOR DECISION: Toenable the Committee to be provided with the ails the Shared Internal Audit Service’s overall opinion on the adequacy and effectiveness of North Herts Council’s framework of governance, risk management and control.

Audio recording – 38 minutes 32 seconds

The Head of Assurance presented the report entitled ‘SIAS Annual Assurance Statement and Internal Audit Annual Report 2023-24’ and highlighted that:

·       An annual assurance opinion is issued every year based on the internal audit work plan, this was approved by the Committee each March and updates on the delivery of the internal audit plan were given to the Committee four times per year.

·       Each individual audit in the internal audit plan receives an audit opinion, and the year-end report confirms the overall assurance opinion for the Council. This year the assurance opinion was reasonable overall assurance.

·       There had been three limited assurance opinions this year and three high priority recommendation, however these did not affect the overall assurance opinion.

·       The Council has a strong culture around implementing its high priority recommendations and these were highlighted on page 79 of the report.

·       SIAS confirmed their independence as required by the Public Sector Internal Audit Standards and confirmed that the scope and resources for internal audit were not subject to inappropriate limitations in 2023/24.

·       SIAS are required to complete a self-assessment review under the Public Sector Internal Audit Standards (PSIAS), the result was ‘generally conforms’ the highest possible rating. Every five year an external assessment was required by the PSIAS.

·       SIAS were required by the PSIAS to report any non-conformances to the Committee. There were two non-conformances and these related to the shared service arrangements.

·       The Committee were required to approve the audit charter in appendix D of the report. The audit charter was owned and approved by the Committee on behalf of the authority as part of their role to support good governance and the roles and responsibilities of  internal audit.

·       The audit charter was prepared adhering to the Global Internal Audit Standards.

The Service Director – Resources provided management assurances that the scope and resources for internal audit were not subject to inappropriate limitations in 2023/24. SIAS were encouraged to look at areas of concern to ensure the maximum value for the Council.

In response to a question from Councillor Paul Ward, the Head of Assurance advised that assurance on the implementation status and completion of reported high priority recommendations comes from responsible Officers accounting for this in a public report and Member forum. Periodic reviews were untaken of the evidence and if required the auditors would revisit those areas, to confirm implementation.

Councillor Vijaiya Poopalasingham proposed and Councillor Daniel Wright-Mason seconded and, following a vote, it was:

RESOLVED: That the Finance, Audit and Risk 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 Shared Internal Audit Service Audit Charter for 2024/25.

(4)   Received management assurance that the scope and resources for internal audit were not subject to inappropriate limitations in 2023/24.

REASON FOR DECISION: Toenable the Committee to be provided with the ails the Shared Internal Audit Service’s overall opinion on the adequacy and effectiveness of North Herts Council’s framework of governance, risk management and control.