The Committee received a report (a copy of which is appended in the Minute Book) setting out the Annual internal audit report for 2025/26 based on the professional judgement of the partner from RSM acting in the capacity of Head of Internal Audit.
The Head of Internal Audit, Dan Harris of RSM introduced the report, and placed on record his thanks to officers. RSM had a good risk focused plan and there had been a lot of engagement throughout 2025/26 in order to allow them to deliver their work.
In response to questions from the Committee, the Head of Internal Audit advised that he did not feel constrained, and as an example if he felt the risk environment for LGR was getting riskier, he would have conversations directly with the Corporate Director – Finance and Resources around needing more flexibility within this year’s programme or if more audits were needed. Such conversations would be robust, and the outcome of the discussion would be reported back to the Committee.
The Committee commented that a more serious conversation would need to be had if it was felt that were capacity constraints further down the line, particularly for example the LGR preparedness report may result in follow-up and therefore add capacity requirements.
The Corporate Director – Finance and Resources advised that there was the option for flexibility, and this had been the case in the previous year where an area of serious concern was found internally, and officers had to extend the scope of the work and days carried out by RSM. LGR was difficult to scope at present but she reassured the Committee that Officers would come back to the Committee to say the scope of the Audit may need to change, and give options that would include potentially extending the commission days and work of RSM. The Head of Internal Audit advised that he was content that the programme agreed did allow enough coverage for him to give the year-end opinion and welcomed the opportunity to liaise with officers and to collectively report back to the Committee as a result of those discussions.
In response to questions from the Committee, the Head of Internal Audit advised that by and large the right reports had been brought to the right Committee throughout year, without excessive delays. It may be that the KPI’s could be enhanced next year to incorporate more specific detail as to how long and why delays occurred. In relation to more in-house reports being delivered, he advised that the reviews were scoped by RSM and the in-house team were exposed to that process to help them learn and gain knowledge of the approach, and weekly catch-ups took place. He and his management team would fully quality assure the work to ensure compliance with the standards.
Whereupon, it was
RESOLVED
that
the Committee noted, commented on and accepted the Annual internal audit report 2025/26.