Fife NHS Board
Audit Committee – 20 March 2014
INTERNAL AUDIT ANNUAL PLAN 2014/15
INTRODUCTION
1.
The purpose of this paper is to seek approval for the Annual Internal Audit Plan for
2014/15 (Appendix 1), which commences on 1 May 2014 within the context of the
updated Strategic Annual Plan 2014-19 (Appendix 2).
BACKGROUND
2.
The plan is designed to provide the Chief Internal Auditor with sufficient evidence to
form an opinion on the adequacy and effectiveness of internal controls. This opinion is
one of the assurance sources required by the Accountable Officer in his annual review
of internal controls and also informs the considerations of the Audit Committee and
Board prior to finalising the Governance Statement.
3.
The Scottish Public Finance Manual requires NHSScotland to follow the Public Sector
Internal Audit Standards. Section 2010 states that ‘The chief audit executive must
establish risk-based plans to determine the priorities of the internal audit activity,
consistent with the organisation’s goals’. In addition, Section 2010.A1 states that ‘The
internal audit activity’s plan of engagements must be based on a documented risk
assessment, undertaken at least annually. The input of senior management and the
board must be considered in this process’ and Section 2010.A2 states that ‘The chief
audit executive must identify and consider the expectations of senior management, the
board and other stakeholders for internal audit opinions and other conclusions.’
PLANNING PROCESS
4.
The planning process is shown in detail in Appendix 4 with further details on the
selection and delivery of departmental reviews being given in Appendix 3. Whilst the
planning process remains largely unchanged from previous years, we have updated the
Audit Universe to ensure that it reflects the 2020 vision which will be a significant
influence on the Board’s objectives during the period of the strategic plan, as well as
taking into account the findings of the Francis, Keogh and Berwick reviews and the
recently issued ‘Governance for Quality Healthcare in Scotland’.
5.
Following Audit Committee consideration and approval of this plan, detailed discussions
with be held with responsible Directors to refine audit scopes and agree timings,
following which detailed assignment plans for each audit are agreed with the
responsible director and with the Director of Finance before each audit is commenced.
In addition, the Chief Internal Auditor and Regional Audit Manager meet monthly to
discuss progress, resources and achievement of service targets. Progress on
achievement of the plan and the outcomes of audit assignments are reported to each
Audit Committee.
Fife NHS Board
Audit Committee – 20 March 2014
PLAN
6.
The draft operational plan for 2014/15 has been designed to target the priority issues
identified by the Audit Risk Assessment, summarised as follows:
Days
%
65
9
Accountability and Assurance
70
11
Risk Management
25
4
Health Planning
65
9
Clinical Governance
105
16
20
3
Financial Assurance
35
5
Capital Investment
30
4
Transaction Systems
65
9
65
9
Departmental Reviews
140
21
Total Audit Days
685
Audit Process
Corporate Governance
Staff Governance
Financial Governance
Information Governance
RECOMMENDATION
7.
The Audit Committee is asked to
 approve the 2014/2015 Annual Internal Audit Plan.
A Gaskin BSc ACA
Chief Internal Auditor