Agenda item

To receive a report on the Internal Audit Plan 2025/26 and the Internal Audit Charter.

Mr D Harris, Partner, RSM, was in attendance for consideration of this item.

A report by the Corporate Director – Finance and Resources was submitted (a copy of which is appended in the Minute Book) setting out the Internal Audit Plan for 2025/26.

By way of introduction, the Corporate Director – Finance and Resources reported that the Audit Plan had been prepared by RSM following discussions with Senior Leadership Team and taking into account the Corporate Risk Register.

Mr D Harris, Partner, RSM UK outlined the methodology he had used to draft the Internal Audit Plan for 2025/26 which included a planned meeting with Heads of Service, reviewing previous audit coverage, the outcomes from the Local Government Association Peer Review, discussions with the in-house Internal Audit Team and RSM’s own guidance and knowledge of the sector from both local government and private clients. Attention was drawn to audit coverage since 2022/23 through to what was being proposed to 2027/28 and the Internal Audit Charter which set out the purpose, mandate, authority, role and responsibilities for the internal audit service for Huntingdonshire. In terms of the Audit Plan for 2025/26, of the 23 areas proposed, 12 were linked to the Council’s Risk Register. In his concluding remarks, Mr D Harris stated that the proposed Audit Plan would be kept under review throughout the year with the flexibility to amend during the course of the year if required.

In response to a question raised by Councillor N Wells, Mr D Harris reported that he and his team at RSM were actively engaging with the in-house Internal Audit Team and would be helping with the production of an Internal Audit manual which set out matters such as sample sizing, testing and the use of data analytics whilst also providing support to upskill the in-house team as well as supervising and mentoring them in their roles.

Having received a response to a question raised by Councillor J A Gray querying the correlation and differences between sections 1 and 2 of RSM’s report a further question was then raised on how confident Mr D Harris was in terms of delivering the proposed Audit Plan. Mr D Harris responded that in the 18 years he had worked for RSM, he had never failed to deliver an Internal Audit Plan for any of his clients and that his team comprised of 40-45 Internal Auditors covering the East of England area with access to 220 Internal Auditors nationally. He also advised that he had access to specialist environmental and ICT auditors and drew attention to the importance of building effective working relationships with not only the in-house Internal Audit Team but with the Council’s Senior Management Team, Heads of Service and Service Managers.

Other matters that were discussed and responded to at the meeting included the current level of full time equivalent resources available within the in-house Internal Audit Team,  the hybrid approach that was being adopted in the interim to deliver the Internal Audit function, whether reviewing Health and Safety once every four years was deemed appropriate and clarity on the term “Board” that was referred to in the Internal Audit Charter. Mr D Harris undertook to provide further detail on the latter and incorporate this within the Internal Audit Charter.

Whereupon, it was

RESOLVED

that the Committee receive, note and accept the Internal Audit Plan for 2025/26.