The Audit and Standards Committee of Wyre Borough Council met on Tuesday, 11 June 2024, to discuss several key issues, including the effectiveness of the Audit Committee, the Internal Audit Strategy and Audit Plan Priorities for 2024/25, and the status of the Statement of Accounts. The committee approved the Internal Audit Strategy and Audit Plan Priorities for 2024/25 and recommended the updated terms of reference to Full Council.

Internal Audit Strategy and Audit Plan Priorities 2024/25

The committee reviewed and approved the Internal Audit Strategy and Audit Plan Priorities for 2024/25. The Audit and Risk Manager explained that the strategy outlines how the internal audit service will be developed and delivered, its strategic aims and objectives, and its responsibility for identifying key risks. The annual risk-based audit plan will be flexible and responsive to emerging risks, with quarterly reviews to adjust priorities as needed. The plan will be executed by the in-house team and Lancashire County Council’s Internal Audit Team to facilitate the flexible retirement of the Audit and Risk Manager.

Questions were raised about the increased audit fee from Lancashire County Council, the replacement of the Audit and Risk Manager, and the Head of Internal Audit signing off on several grants. The committee resolved to approve the strategy and plan.

Annual Review of Audit and Standards Committee's Terms of Reference

The committee considered the annual review of its Terms of Reference in line with best practice guidance from the Chartered Institute of Public Finance and Accountancy (CIPFA). The Audit and Risk Manager noted that the terms had been updated to reflect the amalgamation of the Audit and Standards Committees, which was agreed by Full Council in May 2023. The committee resolved to recommend the updated terms of reference to Full Council.

Statement of Accounts Update

Stuart Kenny, the External Auditor from Deloitte, provided a verbal update on the status of the Statement of Accounts. He indicated that Deloitte aims to sign the opinion for the 2020/21 financial statements by the end of the week, pending receipt of the management representation letter. Kenny highlighted the backlog of unsigned audit opinions within local government and discussed proposed changes by the Department for Levelling Up, Housing and Communities (DLUHC) and the National Audit Office (NAO) to address this issue. He explained that a backstop arrangement would require all open accounts up to 2022/23 to be audited and signed by September 2024, potentially resulting in several disclaimer opinions.

Annual Review of the Internal Audit Charter

The committee reviewed and agreed on the Internal Audit Charter and Code of Ethics to ensure compliance with the Public Sector Internal Audit Standards (PSIAS). The Audit, Risk and Performance Lead highlighted three changes since the last review: the use of Lancashire County Council’s Internal Audit Service, the recent restructure of the Senior Leadership Team, and the renaming of the committee to the Audit and Standards Committee. Future changes to Global Internal Audit Standards may necessitate further updates before the next scheduled review in February 2025.

Review of Audit Committee Effectiveness

The discussion on the Review of Audit Committee Effectiveness was deferred to the next meeting as only one member had completed the self-assessment questionnaire. The Audit and Risk Manager emphasized the importance of the questionnaire and clarified that it was mandatory. The committee agreed to recirculate the questionnaire with a set deadline, offering individual 1-2-1 sessions if needed.

Unaudited Local Authority Accounts - Letter from the Minister for Local Government

The committee noted a letter from the Minister for Local Government to the Chair of the Levelling Up, Housing and Communities Committee regarding unaudited local authority accounts.

Periodic Private Discussion with Chief Internal Auditor

Following the formal meeting, committee members held a private discussion with the Chief Internal Auditor, as provided for in the committee’s work programme.

For more detailed information, you can refer to the printed minutes of the meeting.