Agenda item

Report of the Corporate Director Resources (Section 151 Officer). Presented by the Audit and Risk Manager.

The Corporate Director Resources submitted a report detailing the agreement of the Internal Audit Charter for the Audit and Risk Management Section, ensuring compliance with the Public Sector Internal Audit Standards (PSIAS) and the associated Chartered Institute of Public Finance and Accountancy (CIPFA) Local Government Application Note.

The Audit and Risk Manager introduced the report. She explained that the Charter set out the purpose of Internal Audit and the level of authority within the Council and its overall responsibilities. It also included the Code of Ethics, relating to the conduct of the Internal Audit team.

She brought the committee’s attention to the changes being made this year, including the change in title of the Head of Governance to include her responsibility as Head of Governance and Business Support, as well as the role of Chief Internal Auditor being passed on to the Audit and Risk Manager, as well as other minor changes to wording.

Councillor Moon asked what risks the Audit team had identified with the rising costs of living and what actions they had considered to mitigate this.

The Corporate Director Resources explained that the Medium Term Financial Plan (MTFP) was set out to include a five-year forecast, into which underlying assumptions were built in. The council was already experiencing the effects of the rise in cost of living, and that they would see a worsening position relating to inflation in October 2022 when the MTFP  was next presented to Cabinet. However, the Finance Team were alert to these potentials, and they had been picked up on strategic risk registers. She told members that they were watching the situation and were cautious of making difficult decisions too early, and were hopeful for a multi-year settlement in December which would aid medium term financial planning.

Councillor A Turner asked about whether adaptations had been made to risk management with more staff working from home.

The Corporate Director Resources explained that during the pandemic, the hybrid-working approach had been largely imposed on the council but had been taken on board quickly. She explained that the council was still adapting to and learning the best way to approach hybrid working going forward. No changes had been made so far to terms and conditions but conversations were happening with staff to figure out the appropriate approach and balance with service delivery being the priority. Changes would need to be made regarding insurance and equipment needed to work from home, but that this was a continuing discussion.

Councillor Longton asked how risk assessments and the Audit Plan reflected the risks associated with the new Local Plan and gave examples of the risks he felt would fall on the council.

The Audit and Risk Manager explained that during the operational risk workshops, the Head of Planning Services would identify any risks that were relevant to his service. He had not identified any severe risks in regard to the Local Plan, but she would seek clarification.  The Corporate Director Resources also explained to members that the full review of the Local Plan had only just opened and so that was the most likely reason why any risks had yet to be identified. She also went on to explain that historically the risks identified had tended to be around the cost of the plan, delays and the potential for not meeting deadlines and problems at the Inspector’s examination stage rather than those mentioned by the councillor.

The committee approved the Internal Audit Charter and Code of Ethics.