Agenda item

The Internal Audit Progress Report was presented for Members’ consideration. It was reported that the Worcestershire Internal Audit Shared Service (WIASS) had been recruiting to a post of auditor with the post due to be filled in November 2024. There was one long-term sickness within the service which was currently covered by agency staff and was hoped to be filled by the new appointee.

It was reported that the internal progress report contained new performance measures such as customer satisfaction. It was noted that at the time of report writing 118 productive days had been delivered against the full year plan of 328 days. As of the date of meeting 137 days had been delivered. A summary of internal audit progress and findings in this year to date was included in the report at table 4.

During consideration of the report the following points were discussed:

·       Accounting for training / development period for new internal audit staff – It was reported that within internal audit service budgets allowances were made for productivity, including time allocated within the plan for training and development of staff versus direct work in undertaking internal audit.

·       Other systems audits – It was explained that not many days out of planned budget had been delivered for other systems audits as finance audits were generally undertaken in the last two quarters of the financial year.

·       Limitations – It was explained that the inclusion of a section on the ‘limitations inherent in the work of internal audit’ was a public sector audit standards requirement. This provided a statement of eventualities that could affect internal audit work. It was noted that urgent actions requested by internal auditors of the Council that were overdue by more than a month were specifically highlighted within reports.

·       Performance Indicators for internal audit service – It was reported that the service was implementing a suite of indicators which aim to demonstrate and enhance performance of the service. It was highlighted that the productivity target, which was percentage of available time (of staff) spent on productive audit work, was 80 per cent. The figure achieved by WIASS in April 2024 was 66 per cent and the latest figure for summer 2024 was 74 per cent. It was reported that there was no overarching, consistent framework (in terms of specific targets and achievement thresholds) for measuring internal audit performance nationally.

·       The Portfolio Holder for Finance reported that the move towards setting and standardising of key performance indicators was being undertaken across Council services. It was requested that the Portfolio Holder for Performance be invited to attend the next meeting of Audit, Governance and Standards Committee in reference to discussion around performance.

·       Stakeholders for internal audit service – The Head of Internal Audit Service reported that key stakeholders for internal audit were customers, including sponsors of the internal audit. It was reported that a survey was sent after every audit assignment and the internal audit service was receiving around 50 per cent response rate. The aim was to introduce and annual internal audit survey.

·       It was explained that the Council paid internal audit service for the number of days of audit work delivered.

RESOLVED that

the Internal Audit Progress report be noted.