Item 3: Internal Audit Reporting

3.1 INTERNAL AUDIT REPORTS
Members considered the New Legislation internal audit report from the 2023/24 internal audit plan. CRobertson highlighted a number of key points as detailed within the report.

In discussion the following matters were raised:
• Members questioned whether the single point of entry would include non-policing-specific legislation. CRobertson confirmed horizon scanning was undertaken and testing showed that a broad look was taken. ACC Wendy Middelton (ACCMiddleton) further assured the Committee that horizon scanning is undertaken internally, and policing division will work with Scottish Government so will receive early indication of anything that will have a big impact.
• Members noted the focus was primarily on financial impacts but encouraged Police Scotland to look at wider impacts and provide insights that only they can. ACCMiddleton confirmed the main driver was financial, to enable Police Scotland to articulate costs of new legislation and to provide feedback on the cumulative financial impact. Nevertheless, monthly meetings of the Legislation Oversight Group with Scottish Government continue, where Police Scotland can influence, have discussions on delivery, and track legislation from consultation through process. CRobertson confirmed BDO looked at the cumulative impact of legislation and were assured there were plans to evaluate.

The Committee RESOLVED to:
• NOTE the report.

3.2 INTERNAL AUDIT ANNUAL PLAN
Members considered the report which sought approval for the proposed internal audit plan 2024/25. CRobertson highlighted a number of key points as detailed within the report.

In discussion the following matters were raised:
• JMcNellis highlighted that Internal Audit is a core function of SPA therefore robust planning discussions had taken place.
• Members questioned whether BDO look at what is topical in other public bodies, and CRobertson confirmed they are cognisant of what other auditors are undertaking and what is currently relevant. Members were assured that contingency days would allow for any other relevant work.

The Committee RESOLVED to:
• APPROVE the Annual Internal Audit Plan.

3.3 EXTERNAL AUDIT PLAN 2023/24
Members considered the External Audit Plan which provided an overview of the planned scope and timing of the statutory audit of the SPA. Joanne Brown (JBrown) introduced the report and Rebecca Lister highlighted a number of key points as detailed within the report.

In discussion the following matters were raised:
• Members sought clarity on whether the materiality threshold is reviewed annual and heard it would be assessed each year as part of planning. JBrown advised that a benchmark of 2% is operated across public sector entities but it would likely sit around 1.7% dependent on circumstances.
• Members questioned why there might be additional costs to the SPA for the audit work of pensions. JBrown advised that the initial fee was based on standard public sector bodies, but Police Scotland pensions are more complex.

The Committee RESOLVED to:
• NOTE the report.