Agenda item

To consider Item 9

The Internal Audit Manager firstly thanked officers for their support during the year as most of the audits had been undertaken remotely and required officers to provide information through emails and more meetings than normal. All enquiries were responded to promptly which enabled the work to be completed in good time.

The Internal Audit Manager advised Members that this report outlined the internal audit work undertaken by the Internal Audit Service for the year ending 31 March 2021 and provided the Chief Internal Auditor’s opinion on the adequacy of the control environment. In accordance with the Accounts and Audit Regulations, the Authority must maintain an adequate and effective internal audit service in accordance with proper internal audit practices. The Chartered Institute of Public Finance and Accountancy (CIPFA) Public Sector Internal Audit Standards (PSIA’s) sets out proper practice for internal audit and requires the Chief Internal Auditor to provide an annual report to those charged with governance which should include an opinion on the overall adequacies of the internal control environment.

It should be noted that internal audit was not responsible for the control system, it was management’s responsibility to develop and maintain the internal control framework and to ensure compliance. It was the responsibility of Internal Audit to form an independent opinion on the adequacy of the system of internal control based on the work undertaken.

For the year 20/21 the Chief Internal Auditor’s opinion was of reasonable assurance. This was based on the work undertaken and that no material weaknesses in the overall control framework were found. The Authority had continued to demonstrate a robust and effective internal control and risk management environment. It should be further noted that the Chief Internal Auditor’s opinion does not imply that internal audit had reviewed all risks relating to the Authority. The opinion that was given was based on the work undertaken this year which was summarised in Appendices 1 and 2.

A Member asked if there were areas that Internal Audit could not address because of Covid-19 and if so, would they revisit them in future and was advised by the Internal Audit Manager, that Covid-19 had not impacted the audit work undertaken.

A Member asked if in future there would be an audit for environmental management and was advised by the Internal Audit Manager that as part of the internal audit planning process, along with the Director of Finance and Assets, they would look at key risks being faced by the Authority. if Internal Audit was concerned about the environment, this would be factored in.

The Director of Finance and Assets advised Members that it was a very real concern and climate change and sustainability were obviously something the Authority had a vested interest in especially regarding responding to flooding and wildfires. As a key action, he would be putting together an environmental strategy which would pull together all the work the Authority was currently doing, all the work it wanted to do in the future, and how it could influence its communities to improve sustainability.

The Deputy Chief Fire Officer advised Members that there were two aspects to the environmental work. One was an environmental strategy which would be brought to this Committee, and secondly, the response to environmental emergencies which was fully captured in the Authority’s Public Safety Plan. The Service was very well prepared from an operational perspective.

RESOLVED –

That the contents of the Annual Audit Report be reviewed and noted by Members.