The report of the Head of Internal Audit and Risk Management is enclosed.

Consideration was given to a report of the Deputy Chief Executive and City Treasurer and the Head of Audit and Risk Management that sets out areas of proposed audit coverage for the year and the delivery of this plan will be reported to SMT and Audit Committee as part of regular audit reporting. The Committee was informed that the plan focuses on the first six months of the year and an update will be presented to the Audit Committee and the Senior Management Team in September to confirm the areas of planned focus through to March 2022.

The Committee was advised on some of the some of the key area within the 2021/22 plan that includes:

·                     the ongoing Covid19 recovery and response including the requirements of

Government for assurance over programmes funded through grants;

financial challenges and related budget savings required to be delivered by

 the Council;

·                     organisational change including the further development of health and care

partnerships and the ‘supercharging of the Manchester Local Care

Organisation; as well as the re-integration of the Northwards ALMO into

the Council;

·                     organisational development and improvement programmes including the

Future Council programme, Race Review and the Better Outcomes Better

Lives programme across adult services; and

·                     Change activity including major capital projects, ICT investment and

workforce development.

The Chair invited members of the Committee ask questions/ comment on the report.

A member referred to the impact of covid on the audit plan and how the priority of audit work has changed as a result. Officers were asked what audit work would have been included under normal circumstances and was there any potential risk identified as a result of particular audit work not being included in the plan. Officers were also asked what will be the focus of the plan in the final six months of the municipal year.

It was reported that the plan would have included core systems work, development, probity work and assurance mapping with a focus on Children’s Services and Adult Services.

Members discussed the approach to audit recommendations, in particular those

recommendations that remain overdue for 12 months. The suggestion was made that the current period should be increased to 18 months to allow sufficient time for outstanding recommendations to be implemented or where necessary follow up work before being submitted to the Audit Committee. Reference was also made to the integration of Northwards Housing (ALMO) and the importance of ensuring that there is capacity to undertake internal audit of not only the process of integration but also the organisation itself.

The Committee was informed that the proposal to increase the implementation period up to 18 months would be taken on board. With reference to the Northwards Housing it was reported that discussions were ongoing regarding the continuity of the current outsourced provision during the period of transition. The ongoing audit of the organisational aspects such as repairs and maintenance did need to continue. The second half of the Audit Plan from September would address how the audit function could be best applied.

A member of the Committee made reference to the time provided by the external audit providers for Northwards Housing and the comparison of the time to be allocated by the internal audit function. Officers were asked for this information be included in the audit plan report to be submitted in September including what areas of the ALMO service were to be audited.

A member asked for more detail regarding the assurance title on the areas of focus in the audit plan in view of the size of the areas of service involved.

The Committee was informed that the second half of the year had not been scoped at this point and further breakdown and detail would be identified as the year progressed for inclusion in the Audit Plan report in September.

A member referred to the work identified for the next six months and asked if there is a broader area work on assurance mapping on connecting that work to the risk register.

The Committee was informed that assurance mapping would develop more as the year progresses and this would become more apparent over the next twelve months.

Decision

The Committee approved the Annual Internal Audit Plan for 2021/22, subject to the amendment of the period of time allocated for overdue recommendations be increased from 12 months to 18 months.