To consider the 2025/26 Internal Audit Plan (DFP/07/2526)

Director of Finance and Procurement, Mike Rea introduced the report and presented the Internal Audit Plan for 2025/26.

Members were advised that the report included a review of fundamental financial systems to provide assurance to the Authority, the Director of Finance & Procurement, and the External Auditors that appropriate financial administration and internal control standards had been met. It was noted that 40 audit days had been allocated to complete this work.

Additionally, it was reported that a further 38 audit days had been assigned to five strategic reviews for 2025/26 which had been agreed by Internal Audit and the Strategic Leadership Team (SLT). Members noted that the remaining audit days would cover contingency work, including investigations, advice and assistance, a follow-up of previous audit recommendations, and audit management.

Councillor Page referred to Appendix A and raised the importance of Business Continuity, questioning whether it was subject to regular minor reviews in addition to the proposed Audit plan scheduled for next year, which would scrutinise the Authority’s Business Continuity. Chief Fire Officer, Nick Searle, clarified that the current audit focused on internal Business Continuity. He confirmed that in the event of an incident, such as a loss of power at Service Headquarters, a Business Continuity team was in place, with departmental champions who regularly conducted exercises. Members were advised that Business Continuity arrangements were subject to ongoing scrutiny across all departments.

Councillor Makinson referred to Item 5 in Appendix A, questioning the need for continued focus on cash management processes, given the limited extent of cash handling within the Service. Mike Rea explained that this was a new area of focus following the Service’s lead role in International Search and Rescue (UKISAR) deployments with the Foreign, Commonwealth & Development Office. In such deployments, cash would be provided in advance, requiring the establishment of new processes and secure storage. Mike Rea assured Members that Internal Audit would review the internal controls to ensure proper oversight of cash inflows and outflows.

The Chief Fire Officer added that, as lead for UKISAR, the Service may be deployed anywhere globally, often requiring the use of US dollars or other local cash equivalents, making robust cash management essential.

Councillor McManus queried the inclusion of a section on the implementation of previous audit recommendations in Appendix A, asking whether this was a new addition and expressing concern about not having previously been aware of any backlog. Mike Rea clarified that previous audit recommendations were reviewed on an ongoing basis. It was noted that the accounting team regularly contacted audit leads for updates, which were then shared with Internal Audit for verification. It was highlighted that this process covered both current and prior year recommendations.

Jonathan Brookman, the lead Internal Auditor advised that some recommendations were closed throughout the year following assessment of the information submitted by managers. It was also noted that Internal Audit determined whether the action taken was sufficient to close the recommendation or if further work was required.

Councillor Bell requested that, when reporting back on the year-end report, reference to be made regarding the standards set out by the Fire Standards Board under Audit and Governance to demonstrate compliance.

RESOLVED that Members;

a)            any comments or opinions they might have on the proposed audit plan be considered; and

b)            the 2025/26 Internal Audit Plan be approved.