URL: https://rother.moderngov.co.uk/ieDecisionDetails.aspx?ID=2011

Decision Maker: Audit Committee

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose: To report on the effectiveness of the Internal Audit Service.

Content: Throughout 2025/26, the Council’s Internal Audit Service operated in accordance with the Global Internal Audit Standards [UK Public Sector] (GIAS).  These standards required the Audit Manager (AM) to undertake periodic self-assessments of the effectiveness of Internal Audit, but they did not specify how frequently these reviews should take place.  The AM considered it beneficial for annual reviews to be carried out and for Members to receive the findings, prior to 31 March each year, so that reliance could be placed on the effectiveness of Internal Audit when reviewing the Annual Governance Statement.   The GIAS aimed to achieve consistent standards for Internal Audit and included a Quality Assurance and Improvement Programme which required both internal and external assessments.   The AM conducted the annual self-assessment of the Internal Audit function using a toolkit provided by the Chartered Institute of Internal Auditors.  A summary of the GIAS assessment outcomes was presented in Appendix A to the report.  Two areas were identified where improved conformance was required (documentation of Continuing Professional Development Activity; and feedback on the AM’s performance by the Chair), which had been incorporated into the Action Plan.  Progress on the 2025/26 Action Plan was set out in Appendix B to the report, and the proposed 2026/27 Action Plan was provided in Appendix C to the report.   An external peer assessment was required at least once every five years.  The most recent review, undertaken in February 2023 by the Head of Internal Audit at Lewes District and Eastbourne Borough Councils, was reported to the Committee in June 2023.  The review identified no significant issues and confirmed that Rother District Council’s Internal Audit function “generally conformed” to the standards.  Due to Local Government Reorganisation, no further external peer assessments were expected during the Council’s remaining lifetime.   Domain IV, Principle 12 of the GIAS required that the AM sought input from the Audit Committee and senior management when setting performance objectives, and to obtain feedback on outcomes.  The AM currently reported annually on a set of established performance measures, as identified within the report.  It was proposed that these measures continued for 2026/27, although Members might choose to amend or add to them as appropriate. After some discussion, Members chose to add a further two performance indicators from the list provided in the report, namely: Audit Assignments – Completed within planned time (target 90%); and Audit Recommendations – Percentage of outstanding audit recommendations followed up each quarter (target 100%).   The latest internal assessment and the February 2023 peer review confirmed that the Internal Audit Service continued to comply well with professional standards, with no significant areas of partial compliance. Accordingly, the AM concluded that the service generally conformed to the standards, a view supported by both the Section 151 Officer and the Monitoring Officer.   RESOLVED: That:   1)         the Review of Internal Audit 2025/26 be approved; and   2)         the existing performance indicators be adopted for 2026/27, with the addition of: Audit Assignments – Completed within planned time (target 90%); and Audit Recommendations – Percentage of outstanding audit recommendations followed up each quarter (target 100%) be agreed.

Date of Decision: March 23, 2026