ITEM 11 Internal Audit Plan 2024 2025
North Lanarkshire Council · 22 May 2024
Back to IJB Performance, Finance and Audit Committee — 22 May 2024 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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1 REPORT Item No: 11 SUBJECT: Internal Audit Plan 2024/2025 TO: IJB Performance, Finance and Audit Committee Lead Officer for Report: Ross McGuffie, Chief Officer NL HSCP Author(s) of Report Ken Adamson, Chief Officer (Audit and Risk) (North Lanarkshire Council) Jocelyn Lyall, Chief Internal Auditor (NHS Lanarkshire) DATE: 22 May 2024 1. PURPOSE OF REPORT This paper is coming to the IJB PFA for: For Approval: ☒ For Endorsement: ☐ To Note: ☐ 2. ROUTE TO THE BOARD This paper has been: Prepared By: Chief Officer (Audit and Risk) (North Lanarkshire Council) and Chief Internal Auditor (NHS Lanarkshire) ☒ Reviewed By: Chief Finance Officer ☒ Endorsed By: Chief Officer ☒
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2 3. RECOMMENDATIONS It is recommended that the IJB PFA Committee: (1) Approve the proposed Internal Audit Plan for 2024/2025 (Appendix 1); (2) Approve the recommendation by the Chief Financial Officer that the joint working arrangements between the North Lanarkshire Council (NLC) and NHS Lanarkshire (NHSL) Internal Audit teams continue in order to deliver the IJB Internal Audit Service; and (3) Approve the delegation of authority to the Chief Finance Officer to agree with the Chief Officer (Audit and Risk) (NLC) and the Chief Internal Auditor (NHSL) the scope of the audit assignments in the Internal Audit Plan for 2024/2025 including the allocation of responsibilities for completion of assignments. 4. VARIATIONS TO DIRECTIONS? 5. BACKGROUND/SUMMARY OF KEY ISSUES Public Sector Internal Audit Standards set out the need to establish risk based plans to determine the priorities of the internal audit activity, consistent with the organisation’s goals. The Internal Audit Plan is designed to provide the Chief Officer (Audit and Risk) of North Lanarkshire Council (NLC) and the Chief Internal Auditor of NHS Lanarkshire (NHSL) with sufficient evidence to form an opinion on the adequacy and effectiveness of internal controls. It therefore includes the delivery of standard products required each year and is further based on professional judgement of audit need based on the IJB’s risk environment. In addition, account is taken of assurance which can be provided to the IJB based on work performed under the Internal Audit Plans of both parties. The Internal Audit Plan describes how the available resources will be utilised during the year. The Integrated Resource Advisory Group (IRAG) Finance Guidance states that it is the responsibility of the IJB to establish adequate and proportionate internal audit arrangements. This will include a review of the adequacy of the arrangements for risk management, governance, and control of the delegated resources. Yes ☐ No ☒ N/A ☐
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3 A joint internal audit arrangement is in place for the North Lanarkshire IJB with input from Internal Audit teams at both NLC and NHSL. The internal audit programme of work and the annual Internal Audit Opinion are therefore delivered jointly by the Chief Officer (Audit and Risk) of NLC and the Chief Internal Auditor of NHSL. 6. CONCLUSIONS The proposed Internal Audit Plan for 2024/2025 is attached at Appendix 1 for approval. The Committee is asked to delegate authority to the Chief Financial Officer to agree with the Chief Officer (Audit and Risk) of NLC and the Chief Internal Auditor of NHSL the scope of the audit assignments in the Internal Audit Plan for 2024/2025 including the allocation of responsibilities for the completion of assignments. Internal Audit Plan 2024/2025 The Internal Audit Plan aims to reflect the key objective of the Internal Audit service to deliver a programme of work that informs the annual Internal Audit opinion on the overall adequacy and effectiveness of an organisation’s framework of governance, risk management and control arrangements. The Internal Audit Plan also takes account of assurances which will be provided to the IJB based on work performed under the Internal Audit Plans of both NLC and NHSL for 2024/2025. The proposed Internal Audit Plan for 2024/2025, which totals 60 days, is attached as an appendix for approval. We have reviewed the extant strategic risks of the organisation and we have consulted the Chief Officer and Chief Finance Officer to ensure the substantive audit assignments in 2024/25 add maximum value. The IJB’s Internal Auditors will flexibly adjust the plan as required if risks change throughout the year Of the 60 days available, 27 days relate to standard audit deliverables namely audit planning, audit management, the provision of the annual internal audit report and the follow-up of previously agreed actions. Progress reports will be presented to the PFA Committee during the year. The Committee is asked to delegate authority to the Chief Financial Officer to finalise the Internal Audit Plan for 2024/2025, including the scope of the proposed internal audit reviews and the allocation of responsibilities for completion of assignments. The Chief Officer and the Chief Financial Officer will consult with both partners.
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4 7. IMPLICATIONS 7.1 NATIONAL OUTCOMES Link(s) to National Health and Wellbeing Outcomes People are able to look after and improve their own health and wellbeing and live in good health for longer ☒ People, including those with disabilities or long-term conditions, or who are frail, are able to live, as far as reasonable practicable, independently and at home or in a homely setting in their community ☒ People who use Health and Social Care Services have positive experiences of those services, and have dignity respected ☒ Health and Social Care Services are centred on helping to maintain or improve the quality of life of people who use those services ☒ Health and Social Care Services contribute to reducing health inequalities ☒ People who use Health and Social Care Services are safe from harm ☒ People who work in Health and Social Care Services feel engaged with the work they do and are supported to continuously improve the information, support, care and treatment they provide ☒ Resources are used effectively and efficiently in the provision of Health and Social Care Services ☒ 7.2 ASSOCIATED MEASURE(S) The Performance, Finance and Audit Committee and both partners are required to ensure effective governance arrangements are in place. 7.3 FINANCIAL This paper has been reviewed by Finance: Yes No N/A 7.4 RISK ASSESSMENT/RISK MANAGEMENT The management of risk is an integral part of the development of the Internal Audit Plan. The Internal Audit Plan 2024/2025 has also been informed by the draft Internal Audit Opinion 2023/2024 and an assessment of current and ongoing risks. 7.5 ENGAGEMENT & PARTICIPATION The Chief Officer and the Chief Financial Officer have both been consulted in respect of the preparation of the Internal Audit Plan 2024/2025.
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5 Please tick the engagement and participation objectives that link(s) with this piece of work and provide further details on the engagement and participation that was undertaken. Objectives Further details ☐ Involve stakeholders in the development work aimed at achieving the national outcomes N/A ☐ Provide stakeholders with information on how to get involved N/A ☐ Ensure a diverse range of engagement and participation and opportunities are in place to suit different needs N/A ☐ Measure how well we involve community stakeholders in the planning, design and delivery of our services N/A ☐ Provide regular feedback on how stakeholder engagement and participation is shaping and influencing service development and delivery N/A ☐ Provide support to enable stakeholder representatives to participate meaningfully and confidently at meetings N/A ☐ Develop participation guidelines to ensure a common understanding and set of expectations for both stakeholders and partnership staff N/A ☐ Support engagement planning and participation in localities, taking account of other engagement activity and local plans across the Community Planning Partnership N/A 7.6 INEQUALITIES & FAIRER SCOTLAND DUTY EQIA Completed & Fairer Scotland Impact Assessment Form Completed and attached to report: Yes No N/A
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6 EQIA added to website: Yes No N/A 8. BACKGROUND PAPERS None. 9. APPENDICES Appendix 1– Internal audit plan 2024/25 CHIEF FINANCE OFFICER Members seeking further information about any aspect of this report, please contact the following: Ken Adamson, Chief Officer (Audit and Risk) (North Lanarkshire Council) - adamsonk@northlan.gov.uk Jocelyn Lyall, Chief Internal Auditor (NHS Lanarkshire) – Jocelyn.lyall2@nhs.scot
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7 Appendix 1 Internal Audit Plan 2024/25 Ref Audit Indicative Scope Strategic risk Days Target Audit Committee NL01-25 Audit Planning Agreeing audit universe and preparation of internal audit annual plan. Full IJB risk register considered 2 May 2024 NL02-25 Audit Management Liaison with management, liaison with Chief Finance Officer and attendance at Audit Committee. N/A 10 Ongoing NL03-25 Audit Follow Up Review of progress made by management in implementing those actions committed to in response to previously agreed Internal Audit recommendations. N/A 5 December 2024 NL04-25 Annual Report Preparation for Annual Report including assistance with completion of IJB governance self-assessment checklist. Full IJB risk register considered 10 June 2024 NL05-25 Governance arrangements Review of governance arrangements with reference to the Blueprint for Good Governance in NHS Scotland. IJB.10.21 Ineffective governance arrangements 13 October 2024 NL06-25 Strategy Review of the content and implementation of the Strategic Commissioning Plan, including assessing the adequacy and effectiveness of arrangements for monitoring of delivery and performance reporting. IJB.19.2023 Service Sustainability IJB.11.21 Oversight of performance activity 20 March 2025