PAPER C


 

Committee :    RESOURCES SELECT COMMITTEE

 

Date :              19 JUNE 2002

 

Title :              INTERNAL AUDIT PLAN 2002/03

 

REPORT OF THE STRATEGIC DIRECTOR OF FINANCE AND INFORMATION AND COUNTY TREASURER







SUMMARY/PURPOSE


This report and accompanying papers set out for Members the detail of the Council’s Internal Audit Plan for the current year. Members are asked to comment on the content and balance of the Plan.


BACKGROUND


Members will be aware that the Council’s Internal Audit function is the subject of a plan which seeks to provide comprehensive coverage of the Council’s full range of activities. Its intention is to deploy audit resources in the most effective way which addresses the perceived risks which face the Council. As such, it is based on a risk assessment which takes account of a number of factors which include: materiality, the control environment, stability, sensitivity, the perceived quality of management and the vulnerability to fraud or irregularity.


The Strategic Plan (2001-2007) and the Plan for 2002/03 (circulated to Members of the Committee separately) are the result of extensive risk assessments and consultation with managers which took place during 2001. We are now in the second year of the six year Plan and the 2002/03 Plan is the tactical response to current and emerging priorities.


The Plan is an objective and independent assessment of what needs to be covered. However, this does not necessarily mean that audit resources match everything that needs to be done. It is my estimation that we are approximately one full time employee under resourced to achieve the current year’s Plan. This situation is being managed by setting priorities within the Plan which take account of risk, the expectations of the District Auditor, emerging developments such as the Comprehensive Performance Assessment and the work plans of others such as the Best Value Review Unit. The introduction to the Plan sets out the priorities for the year. Current resources will allow for delivery of 100% of levels 1 and 2 priorities, and an estimated 60% of level 3. It is hoped to improve on this by productivity improvements in the coming months.


There are further developments which Members should be aware of. These include the further development of the Section’s management system (APACE), including the full implementation of its risk modelling function. This involves a systematic and fully documented assessment of risk of some 200 areas within the Plan. There is also a need to liaise even more closely with the District Auditor and his staff to ensure that the maximum benefit is achieved from the total audit resource both internal and external.




CONCLUSION


The attached Plan sets out the work programme for Internal Audit in the current year (and its strategic focus for the period 2001-2007). Members are asked to comment on the Plan.



Contact Point : Bob Streets ☎  3622




JOHN PULSFORD

Strategic Director for Finance and

Information and County Treasurer