11 - (03) 2024 10 31 IA mid-year plan update
North Ayrshire Council · 31 October 2024
Back to Audit and Scrutiny Committee — 31 October 2024 and its agenda
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NORTH AYRSHIRE COUNCIL 31 October 2024 Audit and Scrutiny Committee Title: Internal Audit Plan 2024/25: Mid-year Update Purpose: To provide an update on progress made in delivering the 2024/25 Internal Audit Plan. Recommendation: That the Committee (a) notes the current position with the 2024/25 internal audit plan, (b) approves the inclusion of seven additional audit review in 2024/25, and (c) approves the deletion or deferral of two audits for consideration as part of the 2025/26 internal audit plan. 1. Executive Summary 1.1 The current Internal Audit Plan for 2024/25 was approved by the Audit and Scrutiny Committee in March 2024. 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 2024/25 and these are detailed within this report and Appendices B and C. 2. Background 2.1 Appendix A to this report is the approved audit plan for 2024/25. For each audit additional information has been provided to show the actual activity to 30 September 2024. 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, the following audits will be deleted or deferred for consideration as part of the 2025/26 plan (Appendix B): • Agency Staff and Workers – Originally intended for Q2 of 2024, this audit was planned to review the Council’s compliance with IR35 procedures. However following consultation with People and ICT, and in order to prioritise audit resources,
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it is proposed that this audit is delayed until the new financial year, so that key risk areas around payroll and ICT can audited within the current financial year. • Community Associations – This audit was included in the long list of audits agreed by the Committee in March 2024, however work in this area was brought forward and completed as part of the 23/24 audit plan. 2.4 Using a risk-based approach and in consultation with Chief Officers in each of the Council’s directorates, seven additions to the audit plan, for completion during Q3 & Q4, are noted in Appendix C. These have been selected from the rolling long list of audits that were presented to the committee in March 2024. An updated copy of the rolling long list of audits is in included at Appendix D and future audits will be drawn down from this where capacity allows. 2.5 It should be noted that the first two quarters have been challenging due various factors, including staff turnover, sickness absence within the team and a higher-than-normal volume of unplanned audit investigations. Any further amendments to the audit plan will need to be considered within the context of available resources. 2.6 A further progress update, along with any proposed audit plan amendments will be brought to the committee for consideration in January 2025. 3. Proposals 3.1 It is proposed that the Committee: (a) notes the current position with the 2024/25 internal audit plan, as specified in Appendix A, (b) approves the deletion or deferral of two audit for consideration as part of the 2025/26 internal audit plan, and, (c) approves the inclusion of the seven additional audit reviews noted in Appendix C in 2024/25. 4. Implications/Socio-economic Duty Financial 4.1 None. Human Resources 4.2 None. Legal 4.3 None. Equality/Socio-economic 4.4 None.
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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 John McCallum, Senior Manager (Audit, Fraud, Safety, Risk and Insurance, on 01294 324607. Background Papers None.
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Internal Audit Plan 2024/25 Quarters 1 & 2 Appendix A Audit Area to Deliver in Plan Directorate / Service Planned Quarter Priority Link to Council Plan Link to Risk Registers Progress to Date Transformation and Change Management Corporate Q1 A A Sustainable Council – a Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources towards our priorities Strategic Risk Fieldwork Ongoing ICT - Environmental and Physical Security People & ICT Q1 A A Sustainable Council – a Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources towards our priorities Strategic Risk Fieldwork Ongoing ICT - Access Control People & ICT Q1 A A Sustainable Council – a Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources towards our priorities Strategic Risk To Start Aids & Adaptations HSCP Q1 B Wellbeing – to transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people Operational Risk To Start Pupil Equity Funding Education Q1 A Wellbeing – to transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people Operational Risk Fieldwork Ongoing Accounts Payable Transaction Testing Finance Q1/Q2 A A Sustainable Council – a Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources towards our priorities N/A Fieldwork Ongoing ICT - Information Security Management People & ICT Q2 A A Sustainable Council – a Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources towards our priorities Strategic Risk To Start Locality Planning Communities & Housing Q2 B Communities and Local Democracy – we will have active, inclusive and resilient communities Operational Risk To Start Community Care store HSCP Q2 A Wellbeing – to transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people N/A To Start Agency Staff & Workers People & ICT Q2 A N/A N/A Proposed deferral to 25/26 – See Appendix B Child Protection HSCP Q2 A Wellbeing – to transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people Operational Risk To Start Tenants & Residents Associations Communities & Housing Ongoing D Communities and Local Democracy – we will have active, inclusive and resilient communities N/A Complete Consultancy - Sustainability & Climate Change Place Ongoing A Climate Change – achieving net-zero by 2030 Strategic Risk Ad Hoc Consultancy - Waste Review Place Ongoing B Climate Change – achieving net-zero by 2030 N/A Ad Hoc
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Proposed Deletions / Deferrals from the Audit Plan Appendix B Audit Area to Deliver in Plan Directorate / Service Planned Quarter Priority Summary Explanation Agency Staff & Workers People & ICT Q2 A Originally intended for Q2 of 2024, this audit was planned to review the Council’s compliance with IR35 procedures. However following consultation with People and ICT, and in order to prioritise audit resources, it is proposed that this audit is delayed until the new financial year, so that key risk areas around payroll and ICT can audited within the current financial year. It is proposed that this will now be considered for inclusion as part of the 25/26 audit plan. Community Associations Communities & Housing N/A B This audit was included in the long list of audits agreed by the Committee in March 2024, however work in this area was brought forward and completed as part of the 23/24 audit plan. Propose the removal of this audit from the current rolling long list but will be considered for future audit plans, following a risk assessment. Additions to the Internal Audit Plan 2024/25 for Quarters 3 & 4 Appendix C Audit Area to Deliver in Plan Directorate/Service Planned Quarter Priority Link to Council Plan Link to Risk Registers Income Collection Finance Q4 A A Sustainable Council – a Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources towards our priorities N/A Procurement Finance Q4 B A Sustainable Council – a Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources towards our priorities N/A Payroll Transaction Testing People & ICT Q3 A N/A N/A ICT Asset Management People & ICT Q4 A A Sustainable Council – a Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources towards our priorities Strategic Risk IJB - Transformation HSCP Q3 A N/A N/A Homelessness Communities & Housing Q4 A Wellbeing – to transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people Operational Risk Ayrshire Growth Deal Place Q4 A A Sustainable Council – a Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources towards our priorities Operational Risk
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Rolling Internal Audit Plan Appendix D These reviews will form part of the rolling plan for future audits. The plan will continue to be adjusted as the year progresses to reflect current organisational risks and issues. Ongoing risk assessments will be undertaken to determine the priority areas to include in the plan. Potential Future Audit Areas Directorate/Service Priority Link to Council Plan Link to Risk Registers Corporate Performance All B All N/A Advisory - Equalities Democratic B N/A Strategic Risk Freedom of Information Democratic B A Sustainable Council – a Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources towards our priorities Corporate Risk and Operational Risk Subject Access Requests Democratic B A Sustainable Council – a Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources towards our priorities Corporate Risk and Operational Risk Capital Monitoring Finance B A Sustainable Council – a Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources towards our priorities Strategic Risk Health & Safety Finance C N/A N/A Absence Management People & ICT A N/A N/A Agency Staff & Workers People & ICT A N/A N/A Fuel Controls Place B N/A N/A Overtime Controls in Streetscene Place B Wellbeing – to transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people Operational Risk Flood Programme Place C Climate Change – achieving net-zero by 2030 Strategic Risk and Operational Risk Advisory - Decriminalised Parking Arrangements Place C N/A N/A Shared Prosperity Fund Place C Wellbeing – to transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people Operational Risk Waste Operations – Absence & Overtime Controls Place A A Sustainable Council – a Community Wealth Building Council that is efficient and accessible, maximising investment and focusing resources towards our priorities Operational Risk Community Based Support - Young People HSCP B Communities and Local Democracy – we will have active, inclusive and resilient communities Operational Risk Care Homes - sustainability HSCP B Wellbeing – to transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people Operational Risk Financial Assessments - non- residential HSCP C Wellbeing – to transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people N/A Overtime controls in HSCP HSCP B N/A N/A Social Care Establishments HSCP C Wellbeing – to transition to a wellbeing economy, delivering prosperity, wellbeing and resilience for local people N/A Stores Controls Communities & Housing C N/A N/A Community Associations Communities & Housing B Communities and Local Democracy – we will have active, inclusive and resilient communities Operational Risk