Agenda item

The Head of Internal Audit and Corporate Anti-Fraud will submit a report presenting a comprehensive overview of the key activities and findings of Internal Audit based on the Division’s work for the whole of the final quarter and to the end of June, 2017 being the first quarter of the 2017/18 audit year.

The Head of Internal Audit and Corporate Anti-Fraud submitted a report providing a comprehensive overview of the key activities and findings of Internal Audit based on the Division’s work covering the whole of the final quarter and to the end of June 2017 being the first quarter of the 2017/18 audit year.

The report covered:

·         The issues arising from completed Internal Audit work in the period

·         Matters that had required investigation

·         An opinion on the ongoing overall assurance Internal Audit was able to provide based on the work undertaken regarding the adequacy and effectiveness of the Authority’s internal control environment

·         Progress on the delivery of the Internal Audit Plan for the period up to the end of the first quarter of 2017/18

·         Details of Internal Audit’s performance for the quarter utilising performance indicators

Internal Audit work undertaken during the period did not identify any fundamental recommendations. 

Internal control assurance opinion overall remained adequate based on the results of the work undertaken during the quarter.

Of the 10 recommendations followed up, 30% had been implemented by the original target date, 30% had been implemented after the original target date and 40% had not been implemented, with revised implementation dates being agreed by management.

The Audit Manager reported that a number of audits were currently being undertaken, five were being finalised and work was commencing on a further six. 

In relation to the Audit Plan, actual days delivered were 33 (8%) below that planned at the end of the quarter.

Quarterly performance of the function was generally satisfactory but the Performance Indicators relating to chargeable time was slightly below profile.  This was mainly due to the bedding in of newly appointed staff, parameter issues with the audit system MKI and additional training not previously programmed into the plan.

In the ensuing discussion, and in response to detailed questioning, the following matters were highlighted:

·         Reference was made to feedback questionnaire.  Whilst these were not obligatory, feedback on the service was welcomed and encouraged.  Most comments received were constructive.  Work was being undertaken on developing the feedback system by either email or an online system.  Feedback was also to be sought from audit sponsors

·         There was a discussion of the implications on audit days of External Clients and particular reference was made to the recent addition of the Northern College as a client

·         Arising out of the above, reference was made to the work undertaken in relation to Subsidiary Companies.  The Head of Internal Audit and Corporate Anti-Fraud reported that no other work was planned.  The Service Director Finance stated that the Authority had not been undertaking group accounts; however, this was now a requirement of the External Auditors so would be undertaken in the future.

RESOLVED

(i)            that the issues arising from the completed internal audit work for the period along with the responses received from management be noted;

(ii)          that the assurance opinion on the adequacy and effectiveness of the Authority’s Internal Control Framework based on the work of Internal Audit in the period to the end of June 2017 be noted;

(iii)         that the progress against the Internal Audit Plan for 2016/17 for the period to the end of June, 2017 be noted; and

(iv)         that the performance of the Internal Audit Division for the first quarter be noted.