10. 2023 11 14 IA mid-year plan update
North Ayrshire Council · 14 November 2023
Back to Audit and Scrutiny Committee — 14 November 2023 and its agenda
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NORTH AYRSHIRE COUNCIL 14 November 2023 Audit and Scrutiny Committee Title: Internal Audit Plan 2023/24: Mid-year Update Purpose: To provide an update on progress made in delivering the 2023/24 Internal Audit Plan. Recommendation: That the Committee (a) notes the current position with the 2023/24 internal audit plan, (b) approves the inclusion of one additional audit review in 2023/24, and (c) approves the deletion or deferral of four audits for consideration as part of the 2024/25 internal audit plan. 1. Executive Summary 1.1 The current Internal Audit Plan for 2023/24 was approved by the Audit and Scrutiny Committee in March 2023. The plan sets out the areas of work which Internal Audit intends to cover during the year. 1.2 The Public Sector Internal Audit Standards (PSIAS) recognise that it is good practice to regularly review and adjust the plan, as necessary, in response to changes in the organisation’s business, risks, operations, programmes, systems and controls. 1.3 Some amendments are proposed to the internal audit plan for 2023/24 and these are detailed within this report and Appendix 1. 2. Background 2.1 Appendix 1 to this report is the approved audit plan for 2023/2024. For each audit, additional information has been provided to show the actual activity to 30 September 2023 and, for competed audits, dates when the final report was published and reported to the Audit and Scrutiny Committee. 2.2 In line with good practice, the plan should be reviewed during the year in light of experience gained from audit work carried out, emerging risks to the Council and the changing environment in which audit work is carried out. 2.3 With Committee approval, a review of aids and adaptations is proposed for inclusion in the 2023/24 internal audit plan. During consultation with the service it was highlighted that a number of improvements to the processes and procedures have been
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implemented following the previous review in 2020/21, and this would benefit from a timely review by internal audit to ensure new controls are operating as intended. 2.4 With Committee approval, the following audits will be deleted or deferred for consideration as part of the 2024/25 plan: • Pupil Equity Funding – this audit was originally scheduled for quarter four of 2023/24. The service highlighted a number of additional controls which have been implemented as part of the year end reporting process, and therefore this review would be best carried out in early 2024/25 when the year end process can be included in the scope. • Self-Directed Support – a learning review has been carried out within the service and an action plan is being implemented following recommendations made as part of the review. The internal audit review is being deferred to allow current progress to continue within the service. • Employability – detailed audit work commenced in July 2023 and it was identified that the risks which were present at the initial audit planning phase in January 2023 were now significantly reduced. The review would therefore not represent a good use of internal audit or service resource. • ICT information security management – significant internal audit work is continuing to be carried out around the cyber security framework, with the framework being used as the source of the audit testing to ensure compliance. This is leading to new areas of coverage around cyber security which is taking longer to complete than anticipated. It is proposed to defer information security management to 2024/25 to allow the remaining 2022/23 and 2023/24 reviews to be completed in full. 2.5 It should be noted that the remainder of the internal audit plan for 2023/24 remains challenging. Due to limited resource and capacity within the team to accommodate any additional reviews, any further amendments will need to be considered within the context of available resources. 3. Proposals 3.1 It is proposed that the Committee (a) notes the current position with the 2023/24 internal audit plan, (b) approves the inclusion of one additional audit review in 2023/24, and (b) approves the deletion or deferral of four audits for consideration as part of the 2024/25 internal audit plan. 4. Implications/Socio-economic Duty Financial 4.1 None. Human Resources 4.2 None.
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Legal 4.3 None. Equality/Socio-economic 4.4 None. Climate Change and Carbon 4.5 None. Key Priorities 4.6 The work of Internal Audit helps to support the efficient delivery of the strategic priorities within the Council Plan 2023-2028. Community Wealth Building 4.7 None. 5. Consultation 5.1 The relevant Services are consulted on Internal Audit findings during each audit assignment. Services have also been consulted on the proposed changes to the internal audit plan. Mark Boyd Head of Service (Finance) For further information please contact Laura Miller, Senior Manager (Audit, Fraud, Safety and Risk), on 01294 324524. Background Papers None.
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NORTH AYRSHIRE COUNCIL INTERNAL AUDIT PLAN 2023-24 PROGRESS REPORT at Quarter 2 Key Corporate Systems Audit Objective Current Progress @ 30/09/23 Reported to Audit and Scrutiny Accounts payable Review controls in place within a sample of services around their use of Procurement Cards Scheduled Q4 Financial resilience and viability Review the arrangements and assumptions around medium and long term financial plans and strategies, tested against the CIPFA Financial Management Code Complete 14/11/2023 Other Systems Audit Objective Current Progress @ 30/09/23 Reported to Audit and Scrutiny HR/Payroll systems Review the controls within the Education network for leavers and movers Work in progress Capital Monitoring Examine the effectiveness of the Council's capital monitoring arrangements Scheduled Q4 HR/Payroll policies and procedures Review the Council's workforce planning arrangements Scheduled Q3 Supply teachers Review new system and associated procedure notes for the management and booking of supply teachers Work in progress Pupil Equity Funding/ Closing the Attainment Gap Review a sample of schools and ensure PEF spending is in accordance with plans, and there is a clear link between spend and closing the attainment gap Propose to defer for consideration in 2024/25 Transformation and Change Management Review the Council's approach to transformation and its progress with best value Scheduled Q3 Self-Directed Support Review the use of 'Self Directed Support' to provide assurance that appropriate controls are in place and operating effectively Propose to defer for consideration in 2024/25 Aids & Adaptations Review the implementation of additional controls identified through the previous internal audit review of aids and adaptations in 2020/21 Propose adding to the plan and schedule Q4 Carers Act Review progress with the delivery of the requirements of the Carers (Scotland) Act 2016 Complete 14/11/2023 Community based support - Adults Review controls in relation to Community based support, with a particular focus on Adults Work in progress Integration Joint Board audit days Carry out audit work as agreed by the Performance and Audit Committee of the North Ayrshire Integration Joint Board Work in progress Employability Review of European monies to ensure controls are in place for the full drawdown of ESF prior to the final closure of the programmes Propose for deletion due to reduction in risk iPayImpact Review the controls around the collection of income through the new iPayImpact online payment system for schools Scheduled Q3 Housing - rental income and arrears Examine a range of controls within Housing with a focus on the processes for the management of rent arrears Scheduled Q4 Property Asset Management Review the Council's property asset management arrangements focussing on the Property Lifecycle Investment fund Scheduled Q3 Waste Consultancy assignment - participation in an advisory capacity in the comprehensive review of Waste Management Scheduled Q3 Sustainability & Climate Change Consultancy assignment - provide real-time advice and feedback on the 4th Environmental Sustainability & Climate Change Strategy Work in progress ICT Auditing Audit Objective Current Progress @ 30/09/23 Reported to Audit and Scrutiny ICT - information security management Utilising the Scottish Government's cyber resilience framework, review controls around information security management Propose to defer for consideration in 2024/25 ICT - access control Utilising the Scottish Government's cyber resilience framework, review controls around access Scheduled Q4 ICT - environmental and physical security Utilising the Scottish Government's cyber resilience framework, review controls around physical and environmental security Scheduled Q4 ICT - business continuity Utilising the Scottish Government's cyber resilience framework, review controls around business continuity in the event of a cyber incident Work in progress
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Governance Audit Objective Current Progress @ 30/09/23 Reported to Audit and Scrutiny Code of Corporate Governance Review aspects of the Council's arrangements for completion of the Delivering Good Governance Framework Scheduled Q3 Ayrshire Growth Deal Review the arrangements in North Ayrshire Council in relation to the Ayrshire Growth Deal revenue projects Work in progress Community Planning Community keyholding arrangements Work in progress Regularity Audits Audit Objective Current Progress @ 30/09/23 Reported to Audit and Scrutiny Accounts Payable Transaction Testing Use data analysis software to interrogate the Accounts Payable system and examine any anomalies which arise. Work in progress - Q2 complete, Q4 scheduled 14/11/2023 Payroll Transaction Testing Use data analysis software to interrogate the HR/Payroll system and examine any anomalies which arise. Scheduled Q3 Early Years Centres Review financial and other controls within the Council's stand alone Early Years Centres Scheduled Q3 Following the Public Pound Audit Objective Current Progress @ 30/09/23 Community Funding Examine the controls around funding support provided by the Council to a range of community groups Scheduled Q3 Regeneration Delivery Plan and Funding Review of Place-based investment programmes and funding streams Scheduled Q4 Community Councils Annual audit of Community Councils accounts' to ensure Council funding is used in accordance with the Council's Scheme of Administration. Ongoing Tenants and Residents Associations Annual audit of the accounts of various Tenants and Residents Associations Complete Other Work Audit Objective Current Progress @ 30/09/23 Prior year audit work Finalising audits from the 2022-23 audit plan that were not fully complete by the end of March 2023 Ongoing Audit consultancy: ad-hoc advice Providing advice to council services in response to ad-hoc queries Ongoing Audit consultancy: project work Participating in project work to support developments in other council services Ongoing Follow-up Follow up of previous audit reports to ensure that appropriate action has been taken Ongoing Audit planning and monitoring Preparing audit plans and monitoring progress and performance against plans Ongoing Audit and Scrutiny Committee Supporting the Council's Audit and Scrutiny Committee by preparing reports, attending meetings and delivering training for elected members as required Ongoing Governance documents Review of governance documents (e.g. Codes of Financial Practice) Ongoing Development of the Audit service Carry out developmental work to further enhance the efficiency of the audit section Ongoing Internal Audit self-assessment against PSIAS Undertake a quality assurance programme for Internal Audit in line with the requirements of the Public Sector Internal Audit Standards (PSIAS) Ongoing Annual Accounts Work in relation to the Council's annual accounts for preparing the Annual Governance Statement Ongoing Contingencies & Investigations Audit Objective Current Progress @ 30/09/23 Non-Fraud Investigations Time allocated for unplanned non-fraud investigations arising during the year As required