Agenda item

Internal Audit Plan 2017/18

To approve the Internal Audit Plan for 2017/18.

Minutes:

The Committee considered a report setting out the underlying principles applied in the Internal Audit planning process and sought approval of the Internal Audit Plan for 2017/18. The report also clarified the responsibilities for risk management.

 

The Audit Plan had been developed in consultation with the Directors, Chief Officers, Group Accountants and IT Officers.

 

The key change for  2017/18 audits would be the approach to school audits, the current approach of auditing schools on a rota every three years could not be achieved going forward given the pressures on resources. Instead schools who were currently on the rota to be audited in the next financial year would be risk assessed to determine whether the audit was necessary. The risk assessment would look at the schools statement of financial values, a self assessment completed by the school and the most recent OFSTED report. The Director of CYPL had requested that any schools on the rota who had poor OFSTED ratings would need to be audited. There was a number of schools who had achieved limited assurance in 2016/17 audits had been included in the 2017/18 plan and would be followed up.

 

The Audit Plan contained a breakdown of the audits both Council wide and in each Directorate, amounting to 555 days in total.

 

As a result of the Member’s questions and comments the following points were made:

 

·         Academies were excluded from being audited.

·         Schools were only required to undertake audits themselves for private funds.

·         It was estimated that half the schools on the rota for 2017/18 would need to be audited following the risk assessment. If there was more then the plan and audit priorities would need to be revaluated.

·         Less time would be spend in individually auditing schools but more themed audits had been requested by senior management going forward. This would include personal education plans and pupil premium.

·         Concerns were raised about reducing the number of schools being audited as this was the biggest area of audit concern within the Council.

·         Many Local Authorities didn’t audit individual schools, as this approach was not wanted. The new approach would be monitored over the next year and if there were any issues then the approach would be reviewed.

·         Even though Ranelagh was an academy, they would be included in a cross cutting audit on their SEN Unit. Assurance needed to be sought that finances had been used appropriately within these units.

·         The Governing Body had the overall responsibility to monitor and challenge the process of the school. It was suggested that early input and support be given to the Governing Bodies.

·         There was no mechanism where schools could be required to present audited accounts. This was currently only a requirement for academies.

·         It was suggested that auditing of schools could be offered as a chargeable service.

·         Not all schools personal education plan and pupil premiums would be audited, these would be a sample of schools which would be agreed with the Education Authority.

·         Coral Reef and Binfield Learning Village were currently being audited under the 2016/17 audit plan.

·         Even though the SEN unit would no longer be part of Great Hollands, the audit would look at how finances were used at the unit historically.

 

At the last Governance and Audit Committee in January 2017, it was requested that further information clarifying the risk responsibilities in the council be provided to the Committee.  These responsibilities were set out in the Accounts and Audit Regulations 2015. The role of the Governance and Audit Committee was set out in the committees terms of reference and were consistent with the CIPFA guidance.

 

The report also expanded on the purpose and role of the risk register and set out the process of reviewing and monitoring .

 

As a result of the Member’s questions and comments the following points were made:

 

·         The Risk Register attached at appendix 2 of the report mapped the proposed audits to address strategic risks on the register.

·         The Strategic Risk register had been agreed by the Committee in January 2017.

·         The five red risk ratings on the register at appendix 2 related only to the Strategic Risk register. There would be other red risks within individual project and directorate risk registers.

·         The Strategic Risk Management Group was an officer group and was chaired by Stuart McKellar, this  met quarterly. CMT reviewed the Strategic Risk register on a six monthly basis and  the weekly CMT agenda linked to the risk register.

·         The Strategic Risk register was only one element of the risk management framework. Every council report included a comment on risk and QSRs also included risk management.

·         There were factors out of the councils control in the risk surrounding the safeguarding of vulnerable adults and children. This was a reputational risk and the red indicator was a combination of impact and likelihood for the Council, as the Council held ultimate responsibility for safeguarding.

 

RESOLVED that the Committee:

 

1          APPROVE the Internal Audit Plan for 2017/18 attached at Appendix 1.

 

2          NOTE for information on risk management responsibilities.

Supporting documents:

 

Contact Information

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Email: committee@bracknell-forest.gov.uk