The report of the Audit Service Manager is attached marked 10.

Contact: Ceri Pilawski (01743) 257739

87.1The Committee received the report of the Audit Service Manager – copy attached to the signed Minutes – which provided Members with the proposed risk based Internal Audit Plan for 2016/17.  The Audit Service Manager drew attention to the summarised Internal Audit Plan set out at Appendix A and confirmed that 1,270 days had been planned for Shropshire Council audit work and 200 days for external clients.

87.2The Audit Service Manager reported that all fundamental system audit reviews, except for the Payroll System, would now be done on a cyclical basis after considering the risk profile for each area.  She confirmed that the contingency for fraud investigations was being maintained at 200 days to reflect current activity levels.  Turning to schools, the Audit Service Manager explained that secondary schools were to be reviewed every four years with an alternative approach being taken for primary schools who were being asked to complete a self-assessment on a rolling five year basis.  This would be used to determine any further auditing requirements.

87.3It was confirmed that assurances could be sought from individual Managers for those areas of high priority for which no provision had been made in the plan, set out at Appendix C.  In response to a query, the Audit Service Manager explained how decisions had been reached as to which areas of high priority to take out of the plan.

87.4In response to a query, the Audit Service Manager explained that it was financially beneficial to the Council and to the other organisations to undertake third party audit work due to economies of scale.  She confirmed that the service was generating sufficient income to cover costs in respect of third party work.

87.5RESOLVED:

        To endorse the approach taken to create the proposed Internal Audit Plan for 2016/17 and to approve its adoption.