Agenda item

This report sets out the draft Internal Plan for 2020/21 and the basis on which the plan has been prepared. 

Wards Affected:                             Contact Officer:

All wards                                            Michael Bradley

                                                            Head of Audit and Investigations

                                                            Email: Michael.Bradley@brent.gov.uk

                                                            Tel:     0208 937 6526

The Committee received a report from Michael Bradley (Head of Internal Audit and Investigations) which set out the draft Internal Audit Plan for 2020/21, and provided the basis on which the plan had been prepared.

The Committee noted that development of the Plan had been based on an assessment of departmental and corporate risks and had been designed to provide assurance on the adequacy of the Council’s governance, risk management and internal control framework.  In addition, the report had also provided details on the planned allocation of investigation resources.  Whilst the budget for the contracted element of the Internal Audit service had been reduced by £100k for 2020/21, reducing the number of audit day’s available from1070 to 920, provision had still been made for:

·                Provision of assurance on high-risk areas (including major financial systems) via a risk-based auditing approach (78%);

·                Schools audit coverage via 10 establishment visits (7%)

·                Follow up reviews to monitor implementation of audit recommendations (7%); and

·                An element of contingency to enable the service to provide ad hoc advice and to respond to management requests for support (8%)

Although noting members concerns at the reduction in audit days available and need to ensure any impact on delivery of the Plan, especially in relation to the identification and assurance on high level risks, continued to be monitored, the committee were advised that officers remained confident the resources available would allow the continued provision of effective and meaningful assurance via the Plan.

In addition to the Annual Audit Plan, the report also detailed the Council’s Counter Fraud Plan 2020/21, which set out how the resources of the Investigation and Counter Fraud team would be targeted, focussed around the Council’s anti-fraud policies.  Whilst noting the more generic nature of work undertaken and split between reactive and proactive activity, the committee welcomed the specific focus outlined around fraud awareness activity and training.

David Ewart (Chair) highlighted the importance of the Plan and invited comments and feedback from the Committee on its content.  The committee noted the breakdown of proposed activity between the cross cutting and departmental focussed reviews with the following issues highlighted in relation to the items identified within the Plan:

·                Audit 1 (Contract Management) – Having noted the intention to include a cross cutting review in relation to contract management it was suggested that specific concerns highlighted in relation to the performance of the garden waste contract could be included as part of the same review.

·                Audit 46 (Gifts & Hospitality) – Members welcomed the inclusion of a review focussed around the process for registering and recording gifts and hospitality;

·                Comments were also sought from Grant Thornton (External Auditors) on the draft Audit Plan who supported what they felt to be the comprehensive nature of the risk based approach on which it had been based.

As no further issues were raised, David Ewart (Chair) thanked officers for the update and it was RESOLVED to approve the content of the 2020/21 Internal Audit Plan (as set out in Appendix 1 of the report).