Agenda item

Agenda item

Internal Audit Progress Report 2016/17 and Audit Plan 2017/18

Minutes:

The Committee gave consideration to the report and appendices (at pages 15 - 44) as jointly-delivered and summarised by the Interim Chief Finance Officer (Section 151 Officer) and Audit Manager at CW Audit Services, Mr Anand Persaud, which should be read together with these minutes as a composite document.

 

The Interim Chief Finance Officer reiterated that Members at the previous meeting of the Committee (held on 31 January) resolved to award the contract for Internal Audit Services. He added that the Internal Audit Plan for 2017/18 consisted of 273 days of work to be charged at 250 days, in addition to a one-off payment of £3,000 to off-set the contract letting process. This was said to represent good value for the Council.

 

Internal Audit Progress Report 2016/17 (“the Report”)

 

The Audit Manager summarised the contents of the Report in turn (at pages 16 - 30).

 

He highlighted that since the last Report in January 2017, one full review for 2016/17 Debtors had been completed and awarded full assurance representing a significantly marked improvement from the previous year. He stated that five reviews were ongoing. The Audit Manager added that further assurances had been received on 27 April from the Interim Corporate Resources Manager that all recommendations in relation to Health and Safety (‘High Risk’ outstanding issues, Part 4 of the Report at pages 19 - 20) had since been implemented. It was said that there were still a relatively high number of 33 outstanding recommendations which required attention.

 

Councillor J Kaufman enquired into the revised and, or, past deadlines or no update having been provided in respect of the following recommendations:

 

(a)       15/16 Main Accounting (at page 20);

(b)       15/16 Housing Register and Allocations (at page 21);

(c)       13/14 Equalities (at page 22); and

(d)       15/16 Council Tax and Business Rates (at pages 26 - 27).

 

The Interim Chief Finance Officer and Audit Manager jointly-advised, accordingly:

 

(a)       This head of work had not yet been completed due to a pre-requisite to remove the IT infrastructure allowing remote systems access to former Council employees. The issue was said to be under the current joint-consideration and investigation by the new IT Manager, Finance Accountancy Manager and Senior HR Advisor;

(b)       An update was to be circulated to Members in due course;

(c)       The necessary workforce profile data had since been captured as part of the Investors in People (IiP) assessment in December 2016; and

(d)       All recommendations subsisted on the Report until resolved and, or, removed by the Internal Auditor.

 

The Chair requested that an update be circulated to Members on the revised deadlines, the reasons therefor and any additional commentary in respect of the outstanding recommendations aforementioned in the Report.

 

With reference to recommendation ‘14/15 Private Sector Housing/Disabled Facilities Grants’ (at page 22), Councillor G A Boulter requested that ‘31/10/16’ be corrected to ‘31/10/17’.

 

Councillor J W Boyce stated that under clear targets to be set by management, the Council should aspire to have no ‘critical’ (1), ‘high’ (2) or ‘medium’ (3) recommendations outstanding for more than 6 months and no recommendations outstanding for more than 12 months.

 

Operational Internal Audit Plan 2017/18 (“the Plan”)

 

The Audit Manager summarised the contents of the plan in turn (at pages 31 - 44).

 

Councillor J W Boyce enquired as to how the Internal Audit Progress Report (2016/17) was to inform and flow into the Operational Internal Audit Plan (2017/18).

 

The Audit Manager advised that the Plan for 2017/18 would allow for the Internal Auditors (IA’s) to follow up any outstanding reviews and, or, recommendations from 2016/17 (‘Follow Up / Contingency’, Part 5 of the Plan at page 40). This was said to include the ability of IA’s to come into the Council and investigate accordingly.

 

The Chair moved the recommendations en bloc as set out at paragraph 2 of the report (at page 15).

 

The Vice-Chair seconded the recommendations.

 

UNANIMOUSLY RESOLVED THAT:

 

(i)     The Internal Audit Progress Report for 2016/17 (at Appendix 1) be noted; and

(ii)    The Operational Internal Audit Plan for 2017/18 (at Appendix 2) be approved.

Supporting documents: