Agenda item

(To receive a report by Lucy Pledge (Head of Internal Audit and Risk Management), which provides the Committee with the 2021/22 Audit Plan and explains the reasoning why the Audit areas chosen)

Lucy Pledge (The Head of Internal Audit and Risk Management) introduced a report which provided the content of the Internal Audit Plan for 2021/22, and the reasoning for the areas chosen.

Appreciating the indication that further auditors would join the team, the Committee sought affirmation that the Internal Audit Plan was achievable. The Head of Internal Audit and Risk Management explained that she was confident that the areas within the plan, which were indicated as being 'fixed', were indeed deliverable. She added that this would be supported by an Audit Progress report to future meetings of the Audit Committee. Responding to the comment regarding recruitment, she added apprenticeship schemes would be used to build capacity and help with employee retention.

Raising the issue of the Better Care Fund, the Committee sought clarity on how this, and any other joint funded activity, was audited and if it was in the audit plan. The Head of Internal Audit and Risk Management explained that, due to the Covid-19 Pandemic, the Better Care Fund audit was postponed, but course was currently in progress. Effective Partnership governance and oversight had highlighted the Annual Governance Statement. This would result in not only the Better Care Fund being examined, but also the Greater Lincolnshire Enterprise Partnership.

The Committee asked if project value for money assessments and benefit realisation were revisited to evaluate their accuracy in practice. The Head of Internal Audit and Risk Management stated that, part of the project life cycle included a benefit realisation process. However, the annual governance statement identified the benefit realisation process as being an area requiring improvement. This would be addressed within the transformation programme. In a follow up question, the Committee sought detail on how longer term project benefits were assessed. The Executive Director – Resources noted that members of the Overview and Scrutiny Management Board shared this interest. Advising that they could potentially explore the issue further in a forthcoming meeting, he offered to feedback any such developments to the Audit Committee.

Regarding the effective management of contracts, the Committee sought officers' opinion on how effective contract management was assessed. The Head of Internal Audit and Risk Management explained that the issue was would be covered as part of the Internal Audit and the Counter Fraud Plan to consider how contracts were being delivered and managed.

Acknowledging the dramatic increase in working from home, the Committee asked, to what extent, assurances could be offered on the impact of the Council's working from home arrangements, performance and service delivery, and the control environment. The Executive Director – Resources agreed that, as the smart working agenda developed, it would be beneficial to undertake an audit then present the findings before the Committee. The Head of Internal Audit and Risk Management stated that a future report could be presented to the Audit Committee setting out the processes and controls in place over SMARTER working.  This report would likely be received at the September 2021 meeting of the Audit Committee.

RESOLVED

That the 2021/22 Internal Audit Plan be approved as laid out within the report.