Report to:                    Audit Committee 

Date:                           28 March 2025

By:                               Chief Operating Officer

Title of report:              Internal Audit Progress Report – Quarter 3 (01/10/24 – 31/12/24)

Purpose of report:       To provide the Audit Committee with an update on all internal audit and counter fraud activity completed during the quarter, including a summary of all key findings. To also provide an update on the performance of the internal audit service during the period.  

RECOMMENDATIONS: Audit Committee is recommended to note the report and consider any further action required in response to the issues raised.

1. Background

1.1       This progress report covers work completed between 1 October 2024 and 31 December 2024.

2.         Supporting Information

2.1       The current annual plan for internal audit is contained within the Internal Audit Strategy and Annual Plan 2024-25 which was approved by Audit Committee on 28 March 2024.

3.       Conclusion and Recommendations

3.1 Key audit findings from final reports issued during Quarter 3 are summarised in Annexe A.

3.2 Overall, of the 9 audits finalised during the quarter in which a formal audit opinion was given, 1 received an audit opinion of ‘substantial assurance’ and 8 received ‘reasonable assurance’ (including 1 school). There were no partial or minimal assurance opinions.

Graph to show assurance levels of formal audits completed in Quarter 2

*No opinion – typically, this tends to be proactive advice and support activity where, due to the advisory nature of the audit work, provision of formal assurance-based opinions is not appropriate.  It also includes grant certification work.

3.3       Although the same range of internal audit opinions is issued for all audit assignments (where an opinion is relevant), it is necessary to also consider the level of risk associated with each area under review when drawing an opinion on the Council’s overall control environment.  Taking into account these considerations, the Chief Internal Auditor continues to be able to provide assurance that the Council has in place an effective framework of governance, risk management and internal control. 

3.4       The overall conclusion above has, therefore, been drawn based on all audit work completed in the year to date and considers the management response to audit findings and the level of progress in subsequent implementation. As at the end of the quarter, 14/15 (93.3%) of high priority actions had been implemented. Full implementation was not achieved as a result one action having only been partially implemented; further detail regarding this is provided at 3.1 of the report at Annexe A.

3.5       Progress against performance targets (focussing on a range of areas relating to the internal audit service) can also be found in Annexe A (section 5). All but one of these are rated as on target (green). The one area relates to action tracking, as above. 

ROS PARKER

Chief Operating Officer

Contact Officers:        Russell Banks, Orbis Chief Internal Auditor, Tel: 07824 362739,

Nigel Chilcott, Audit Manager, Tel: 07557 541803

BACKGROUND DOCUMENTS:

Internal Audit Strategy and Annual Plan 2024/25