ITEM 13 Internal Audit Plan 2025-26 draft paper
North Lanarkshire Council · 21 May 2025
Back to IJB Performance, Finance and Audit Committee — 21 May 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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1 IJB Reporting Template REPORT Item No: 13 SUBJECT: Draft Internal Audit Plan 2025/26 TO: Integration Joint Board Performance, Finance & Audit Committee. Lead Officer for Report: Claire Ray, Chief Officer Author(s) of Report Francis Scott, Chief Officer (Audit and Risk), North Lanarkshire Council Jocelyn Lyall, Chief Internal Auditor, NHS Lanarkshire Contact details for Author(s) of Report Scott Fr@northlan.gov.uk Jocelyn.lyall2@nhs.scot DATE: 21 May 2025 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: ☒ Reviewed By: ☒ Endorsed By: ☒
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2 Chief Officer (Audit and Risk), North Lanarkshire Council and Chief Internal Auditor, NHS Lanarkshire) Chief Finance Officer Chief Officer 3. EXECUTIVE SUMMARY The Internal Audit Plan 2025/26 is designed to provide sufficient evidence to form an assessment of the overall adequacy and effectiveness of the IJB’s framework of governance, risk management and control arrangements. The planning process for 2025/2026 has taken cognisance of the Global Internal Audit Standards applicable from 1 April 2025, which require an internal audit plan that supports achievement of the organisation’s objectives. The proposed Internal Audit Plan for 2025/2026, has been designed to target the priority issues. It seeks to align to strategic risks and to reflect the evolving and complex challenges to service delivery. The Internal Audit Plan also takes account of assurances which will be provided to the IJB based on the work performed under the Internal Audit Plans of both North Lanarkshire Council and NHS Lanarkshire for 2025/2026. 4. RECOMMENDATIONS 4.1 It is recommended that the IJB PFA Committee: (1) Approve the proposed Internal Audit Plan for 2025/2026 (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 2025/2026 including the allocation of responsibilities for completion of assignments. 5. VARIATIONS TO DIRECTIONS? This section outlines if the report requires a direction to be issued to the Local Authority, the Health Board, to both, or that no direction is required
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3 6. BACKGROUND Standard 9.4 of the Global Internal Audit Standards (GIAS) set out the need to create an internal audit plan that supports achievement of the organisation’s objectives. GIAS Standard 9.4 states that ‘the Chief Audit Executive must base the internal audit plan on a documented assessment of the organisation’s strategies, objectives and risks. This assessment must be informed by input from the board and senior management, as well as the chief audit executive’s understanding of the organisation’s governance, risk management and control processes’. The internal audit plan must: • Consider the internal audit mandate and the full range of agreed to internal audit services • Specify internal audit services that support the evaluation and improvement of the organisation’s governance, risk management and control processes • Consider coverage of information technology governance, fraud risk, the effectiveness of the organisation’s compliance and ethics programmes, and other high risk areas • Identify the necessary human, financial and technological resources necessary to complete the plan • Be dynamic and updated timely in response to changes in the organisation’s business, risks, operations, programmes, systems, controls and organisational culture. • The Chief Audit Executive must review and revise the internal audit plan as necessary and communicate timely to the board and senior management: • The impact of any resource limitations no internal audit coverage • The rationale for not including an assurance engagement in a high risk area or activity in the plan 7. SUMMARY OF KEY ISSUES 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 overall independent and objective annual conclusion on the organisation’s governance, risk management, and control. It therefore includes the delivery of standard products required each year and is 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. Yes ☐ No ☒ N/A ☐
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4 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. 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. 8. CONCLUSIONS The proposed Internal Audit Plan for 2025/2026 is attached at Appendix 1 for consideration and 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 2025/2026 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 2025/2026, 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 2025/26 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 2025/2026, 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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5 9. IMPLICATIONS 9.1 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 ☒ 9.2 ASSOCIATED MEASURE(S) 9.3 FINANCIAL This paper has been reviewed by Finance: Yes X No N/A 9.4 RISK ASSESSMENT/RISK MANAGEMENT Relevant Risk Register Details Current Risk Level Risk Owner IJB 19/23 – Service Sustainability High Chief Officer IJB01/21 – Financial Challenges Very High Chief Finance Officer IJB04/21 – National set aside budget High Chief Finance Officer
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6 IJB10/21 – Ineffective Governance Arrangements Low Chief Officer Risk IJB 11/21 – Oversight of performance activity Low Chief Officer The management of risk is an integral part of the development of the Internal Audit Plan. The Internal Audit Plan 2025/2026 has also been informed by the draft Internal Audit Opinion 2024/2025 and an assessment of current and ongoing risks. 9.5 ENGAGEMENT & PARTICIPATION The Chief Officer and the Chief Financial Officer have both been consulted in respect of the preparation of the Internal Audit Plan 2025/2026. 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
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7 9.6 INEQUALITIES & FAIRER SCOTLAND DUTY EQIA Completed & Fairer Scotland Impact Assessment Form Completed and attached to report: Yes No N/A X EQIA added to website: Yes No N/A X 10. BACKGROUND PAPERS N/A 11. APPENDICES Appendix 1 – Draft internal audit plan 2025/26 CHIEF ACCOUNTABLE OFFICER (or Depute) Members seeking further information about any aspect of this report, please contact the following: Francis Scott, Chief Officer (Audit and Risk), North Lanarkshire Council) – Scott Fr@northlan.gov.uk Jocelyn Lyall, Chief Internal Auditor (NHS Lanarkshire) – Jocelyn.lyall2@nhs.scot
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Appendix 1 Internal Audit Plan 2025/26 8 Ref Audit Indicative Scope Strategic risk Days NL01-26 Audit Planning Preparation of internal audit annual plan 2025/26. Full IJB risk register considered 1 NL02-26 Audit Management Liaison with management and external audit, liaison with Chief Finance Officer and attendance at Audit Committee. N/A 7 NL03-26 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 NL04-26 Annual Report Prepare and present an annual report containing the Annual Internal Audit Opinion for 2025/2026. Full IJB risk register considered 7 NL05-26 Financial Sustainability Effective, efficient and economic use of resources to ensure financial sustainability, with a focus on transformation. Risk IJB01/21 – Financial Challenges Risk IJB04/21 – National set aside budget 20 NL06-26 Performance / Committee Effectiveness Accurate, relevant and reliable reporting to the Board, staff, the SGHSCD and the public. Risk IJB 11/21 – Oversight of performance activity Risk IJB10/21 – Ineffective Governance Arrangements 20