2026-06-04-MIJB-A&R-Item-5.7-Midlothian-Integration-Joint-Board-Internal-Audit-Annual-Assurance-Report-202526-Report
Midlothian Council · 4 June 2026
Back to Midlothian Integration Joint Board - Audit and Risk Committee — 4 June 2026 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Midlothian IJB Audit and Risk Committee 4 June 2025 at 2pm Midlothian Health and Social Care Integration Joint Board Internal Audit Annual Assurance Report 2025/26 Executive summary The purpose of this report is to present the Internal Audit Annual Assurance Report 2025/26 for the Midlothian Health and Social Care Integration Joint Board (MIJB) which includes the Chief Internal Auditor’s independent assurance opinion on the adequacy of MIJB's overall control environment for the year ended 31 March 2026. The MIJB Audit and Risk Committee is therefore asked to: Consider the Midlothian Health and Social Care Integration Joint Board Internal Audit Annual Assurance Report 2025/26 (Appendix 1), which sets out the findings and conclusions arising from all Internal Audit work for the year to 31 March 2026, consider the assurances contained therein, and provide any commentary thereon. # Item number: Agenda number
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Midlothian Integration Joint Board Report Midlothian Health and Social Care Integration Joint Board Internal Audit Annual Assurance Report 2025/26 1 Purpose 1.1 The purpose of this report is to present the Internal Audit Annual Assurance Report 2025/26 for the Midlothian Health and Social Care Integration Joint Board (MIJB) which includes the Chief Internal Auditor’s independent assurance opinion on the adequacy of the arrangements for governance, risk management and internal control by the MIJB of the delegated resources. 2 Recommendations 2.1 Members of the MIJB Audit and Risk Committee are asked to: Consider the MIJB Internal Audit Annual Assurance Report 2025/26 (Appendix 1), which sets out the findings and conclusions arising from all Internal Audit work carried out for the year to 31 March 2026, consider the assurances contained therein, and provide any commentary thereon. 3 Background and main report 3.1 The Midlothian Integration Joint Board (MIJB), established as a separate legal entity as required by the Act, is responsible for the strategic planning and commissioning of a wide range of integrated health and social care services across the Midlothian partnership area, based on resources which have been delegated to it by the partners, Midlothian Council and NHS Lothian. 3.2 The MIJB is therefore expected to operate under public sector good practice governance arrangements which are proportionate to its transactions and responsibilities to ensure the achievement of the objectives of Integration. The establishment of robust Risk Management and Audit arrangements is one of the key components of good governance and will be critical to the capacity of the MIJB to function effectively. 3.3 The Global Internal Audit Standards (GIAS) UK Public Sector Application Note states that a chief audit executive must prepare an overall conclusion at the level of the organisation about the effective governance, risk management and/or control at least annually in support of wider governance reporting, mindful of any specific sector obligations or processes. 3.4 To meet the requirements of GIAS, the Internal Audit Annual Assurance Report 2025/26 (Appendix 1) includes the Chief Internal Auditor’s annual opinion, provides details of the Internal Audit activity and performance during the year to fulfil its role,
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Midlothian Integration Joint Board and summarises the outcomes of assessments of the Internal Audit service against the GIAS. 3.5 The MIJB Internal Audit Annual Assurance Report 2025/26 (Appendix 1) includes the MIJB Chief Internal Auditor’s independent and objective opinion regarding the adequacy and effectiveness of governance, risk management and internal control within the MIJB to fulfil the statutory role of Internal Audit. 3.6 The Report provides assurances in relation to the MIJB’s corporate governance framework that is a key component in underpinning delivery of the MIJB’s strategic priorities and has been used to inform the Chief Officer’s Annual Governance Statement 2025/26. 3.7 In addition to its own governance arrangements, the MIJB places reliance on the governance arrangements adopted by NHS Lothian and Midlothian Council, the partners. Where appropriate, existing mechanisms embedded within both NHS Lothian and Midlothian Council have been used to provide assurance to the MIJB. When appropriate these reports are presented to the Audit & Governance Committee to aid the understanding of the governance arrangements in place in the partner organisations. 4 Directions 4.1 There are no Directions implications arising from this report. 5 Equalities Implications 5.1 There are no direct equalities implications arising from this report. 6 Resource Implications 6.1 There is a commitment to provide Internal Audit resource to the Midlothian Health and Social Care Integration Joint Board (MIJB) for review of the adequacy of the arrangements for risk management, governance and control by the MIJB of the delegated resources. 6.2 Internal Audit service is provided by Midlothian Council’s Internal Audit team, which has a shared service arrangement with East Lothian Council including the appointed Chief Internal Auditor (from January 2023). This is also supported by specific resource from the NHS Lothian Internal Audit team reporting to the Chief Internal Auditor. The staff who performed the MIJB Internal Audit work hold relevant professional qualifications and have the necessary experience, knowledge, skills and competencies. 6.3 The Midlothian Internal Audit Annual Plan 2025/26 approved by the MIJB Audit and Risk Committee in March 2025 was based on the assumption that Midlothian Council’s Internal Audit function provides 30 days and NHS Lothian Internal Audit team provides 30 days to support the delivery of the Plan. A summary of the Internal Audit work that was undertaken during the year that supports the annual opinion is stated in Appendix 1.
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Midlothian Integration Joint Board 7 Risk 7.1 The GIAS as amended by the UK Public Sector Application Note require Internal Audit to evaluate the effectiveness of the MIJB’s Risk Management arrangements. Key components of the audit planning process include a clear understanding of the MIJB’s functions, associated risks, and potential range and breadth of audit areas for inclusion within the Plan to provide the audit opinion. Internal Audit work carried out has been risk-based and, where appropriate, has tested the management of risk by the MIJB of the delegated resources. 7.2 Internal Audit provides assurance to MIJB Management, Audit and Risk Committee and the Board on the adequacy and effectiveness of internal controls and governance within the MIJB, including risk management, and to highlight good practice and recommend improvements. 7.3 It is anticipated that improvements in the management and mitigation of risks will arise as a direct result of MIJB Management implementing the Internal Audit recommendations. 8 Involving people 8.1 The MIJB Chief Officer, Chief Finance Officer and Integration Manager have received the MIJB Internal Audit Annual Assurance Report 2025/26 that sets out the work of Internal Audit and independent opinion on the adequacy and effectiveness of the governance, risk management and internal controls to assist them in discharging their roles and responsibilities. The MIJB Chief Officer will consider the Internal Audit findings and conclusions detailed in the above Report when completing the MIJB’s Annual Governance Statement 2025/26. 9 Background Papers 9.1 Midlothian IJB Internal Audit Annual Plan 2025/26 (approved by the MIJB Audit and Risk Committee in March 2025) AUTHOR’S NAME Duncan Stainbank DESIGNATION MIJB Chief Internal Auditor CONTACT INFO DATE 26 May 2026