Agenda item

Liverpool City Region Combined Authority Internal Audit Plan and Charter 2019-20

The purpose of this report is to provide the Audit and Governance Committee with the Internal Audit Plan of work and Internal Audit Charter for 2019-20.

Minutes:

The Committee considered the report of the Head of Internal Audit which set out the Internal Audit Plan of work and the Internal Audit Charter for 2019-20.

 

Laura Williams, Head of Internal Audit, informed Members that the proposed plan of internal audit work in respect of the LCR Combined Authority for 2019-20 was presented for their consideration. Furthermore, in the interests of transparency, the planned internal audit work for Merseytravel was also contained in the report.

 

It was reported that the Internal Audit Plan was a key requirement of the Public Sector Internal Audit Standard. Recognising that the Combined Authority was undertaking increased business the Plan was reflective of the changing risk landscape of the organisation.

 

The Committees attention was drawn to Appendix One of the report now submitted which set out that 1377 audit days had been identified  for 2019/20, this included 60 days provided by Salford Council’s Internal Audit Services for the provision of technical ICT audit. Members were informed that this projection was more prescriptive than previous audit plans and outlined the audit work to be delivered for the Combined Authority and Merseytravel during 2019-20.

 

Section 5 of Appendix One provided details of a number of Corporate Systems which were provided by Merseytravel to both Merseytravel and the Combined Authority. Members were informed that the monitoring of these systems and the audit findings would be reported to them during 2019-20.

 

Section 6 of Appendix One highlighted that there were a number of systems which were specific to the activities of the Combined Authority and included Adult Education Budget, Housing First, Single Investment Fund, Mayoral Projects, Households into Work and Local Enterprise Partnership (LEP). Section 7 set out specific systems related to the activity of Merseytravel, which would were within the remit of the Merseytravel Audit, Risk and Governance Board and would not routinely be reported to this Committee.

 

Section 8 summarised the performance indicators which would be used to measure the delivery of the Internal Audit Plan. The performance indicators had been identified to ensure that the service was developing quality and effectiveness as part of the Quality Assurance and Improvement Programme (QAIP). The Committee was informed that the Audit Plan used a risk-based approach to ensure the consideration of risk was prominent across both organisations.

 

The Committee was advised that the annual Audit Charter set out the role of internal audit and there had been no significant changes to the Charter.

 

Councillor D Long welcomed the Internal Audit Plan and in doing so sought clarity on the 16 days allocated for CIPFA business for Merseytravel when there had been no such allocated for Combined Authority CIPFA business. Furthermore, he also sought confirmation that given the large scale of the Adult Education Budget programme would the audit days allocated by sufficient.

The Committee was informed that the 16 audit days allocated for CIPFA business would cut across both Merseytravel and the Combined Authority due to the Internal Audit Team providing the services to both organisations. With regards to the Audit days allocated for the Adult Education Budget programme, Members were advised that the 16 audit days was anticipated to be sufficient.

 

Councillor P Murphy referred to the operation of the Internal Audit Team and it conducting work for both Merseytravel and the Combined Authority. She sought clarity on whether the increased activity had been fully budgeted.  

 

Members of the Committee were informed that there had been a significant increase in Combined Authority activity and the Audit Plan had reflected this. It was recognised that to support the work of the Combined Authority additional resource was required and there had been a recent appointment to support this.

 

RESOLVED – That:-

 

(i)                 the Internal Audit Plan 2019-20 be approved; and

 

(ii)               the Internal Audit Charter 2019-20 be approved.

 

 

Supporting documents: