This report presents the annual assurance report of the Chief Auditor required by the Accounts and Audit Regulations and the Public Sector Internal Audit Standards.

The Committee considered a report setting out at Appendix 1 the Internal Audit Annual Assurance Report of the Chief Auditor, as required by the Accounts and Audit regulations and the Public Sector Internal Audit Standards.  The report gave the Chief Auditor’s opinion on the overall adequacy and effectiveness of the organisation’s governance arrangements, risk management and internal control environment, drawing attention to any issues particularly relevant to the preparation of the Annual Governance Statement.  It also set out key themes arising from the work of the Audit Team during the 2022/2023 financial year, and compared the audit work undertaken with that planned, summarising the performance of the Internal Audit function against its performance measures and targets.

The report explained that, based on the work completed during the year, the Chief Auditor had concluded, that whilst no assurance could ever be absolute, he could give ‘Reasonable Assurance’ that arrangements to secure governance, risk management and internal control were in place in 2022/23.  The basis for the assurance opinion was set out in section 2 of the Annual Assurance report and the key areas for improvement identified during the audit work were set out in section 4.  The opinion did not imply that Internal Audit had reviewed all risks relating to the organisation and assurances should also be taken from other appropriate sources.

The Committee noted that management responses within 15 days of Internal Audit issuing a draft report had fallen from 46% in 2021/22 to 39% in 2022/23.  Managers were expected to meet the 15-day target on at least 75% of occasions where a draft report had been received.  

Resolved:   

(1)           That the assurance opinion given by the Chief Auditor and the issues raised in the annual report be noted;

(2)           That Assistant Directors be advised that the Committee expected that there would be a significant improvement in responding to Internal Audit draft reports within 15 days in 2023/24, compared with the disappointing 39% response-rate achieved in 2022/23 within the target timescale.