Agenda item

The Head of Internal Audit and Corporate Anti-Fraud will submit a report summarising the Internal Audit activity completed and the key issues arising for the period 1^st July to 31^st October, 2018 together with information regarding the performance of the Internal Audit function for that period.

The Head of Internal Audit and Corporate Anti-Fraud submitted a report summarising the Internal Audit activity completed and key issues arising for the period 1^st July to 31^st October, 2018 together with information regarding the performance of the Internal Audit function for that period.

The report, which was in a new style referred to in the previous item, outlined:

·         The 2018/19 Internal Audit Plan Progress detailing the audit days delivered, and assignments expected to be completed and actually completed

·         The changes to the 2018/19 Internal Audit Plan together with the reasons for the change

·         The final Internal Audit reports issued – it was noted that

o   6 reports had been finalised since the last Committee meeting.  All reports were available for Audit Committee Members on request and, in addition, an appendix to the report provided definitions of the gratings for the assurance opinion together with the recommendations made

o   One report on Communities Disabled Facilities Grants was listed with limited assurance opinion and the reasons for this were touched upon as was the action being taken to address issues identified

·         The Internal Audit reports producing a limited or no assurance opinion together with a summary of the key issues identified

·         Details and outcome of other Internal Audit activities concluded in the period which did not result in a specific assurance opinion

·         Other Internal Audit work undertaken

·         Work in progress

·         Follow up of Internal Audit Report management actions – it was noted that Internal Audit was working closely with management to closely monitor the implementation for management actions  and establish any reasons behind delays.  A table showing the status of internal audit management actions by Directorate due for completion during the period was provided

·         The Internal Audit performance indicators and performance feedback for 2018/19 – which indicated that performance remained satisfactory with the majority of final audit reports meeting or exceeding target levels.  Whilst the percentage of final audit reports being issued within 10 days was currently not meeting the target, this was due to officer availability over the summer holiday period.  It was anticipated that this would pick up through the remainder of the year

·         The Head of Internal Audit’s Internal Control Assurance Opinion which remained adequate

In the ensuing discussion the following matters were highlighted:

·         There was a discussion of the key issues identified from the Communities Disabled Facilities Grant audit and to the remedial action taken. 

·         Reference was made to, and there was a detailed discussion of, the audit of the governance arrangements for The Glassworks project together with the role of this Committee in monitoring those arrangements particularly as the project moved into phase 2. 

o   It was noted that currently the governance arrangements were judged to be fit for purpose.  Arrangements were in hand to ensure appropriate oversight by both Internal and External Audit Internal Audit.  Given the potential risks, not to mention the costs, involved it was suggested that this Committee receive information on both the informal and formal advice given on this scheme. 

o   Arising out of this discussion reference was made to the training/awareness session held immediately prior to this meeting when a report had been presented which had also been considered by the Authority’s Overview and Scrutiny Committee which also indicated that the governance arrangements were fit for purpose. 

o   It was also reported that the External Auditor’s report to the next meeting would include reference to Value for Money and would include the arrangements for The Glassworks.  The External Auditor had, as part of the opinion, to ensure that appropriate arrangements were in place and to this end regular meetings were held with both the Executive Director Core Services and with the Head of Internal Audit and Corporate-Anti Fraud

o   The Executive Director Core Services stated that the report submitted to the training/awareness session had detailed the project methodology.  In addition he commented that the Senior Management Team was tasked with reporting to Cabinet on an ongoing basis.  Reports would be available and could be submitted to this Committee to ensure transparency of the process

·         It was noted that in relation to the Analysis of Management Actions followed up, all five outstanding responses in relation to the Core Directorate had now been completed and closed

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 October 2018 be noted;

(iii)         that the progress against the Internal Audit Plan for 2018/19 for the period to the end of October 2018 be noted; and

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