Agenda item

The Head of Internal Audit and Corporate Anti-Fraud will submit a report providing a summary of the Internal Audit Activity completed and key issues arising from it for the period 1^st November, to 31^st December, 2018.

The Head of Internal Audit and Corporate Anti-Fraud submitted a report providing a summary of the Internal Audit Activity completed and key issues arising from it for the period 1^st November to 31^st December, 2018.

The report, which was presented by Mrs L Booth, Audit Manager, outlined:

·         The progress of the internal audit plan up to the end of December analysed by the number of plan assignments producing a report and audit days delivered by the Directorate/Service

·         There was a variance of four assignments completed against those planned but these were in the draft stage and meetings were scheduled with officers to discuss outcomes

·         There had been no amendments to the Internal Audit Plan over the period

·         One audit had been finalised since the last meeting and copies of all final reports were available upon request.  A summary of assurances and the number and categorisation of recommendations included in the report was outlined and an Appendix to the report included the definitions of the grading for the assurance opinion together with the recommendations

·         A summary of the key issues included in audit reports finalised during the period providing a Limited or No Assurance was provided

·         Details were provided of the outcome of other Internal Audit activities concluded not producing a specific assurance opinion

·         Tables detailed the other Internal Audit Work undertaken as well as work in progress

·         Information on the status of internal audit management actions by directorate due for completion was provided.  It was pleasing to note that officers were actively engaging with the service and this was demonstrated by improving statistics

·         Details of Internal Audit performance against Performance Indicators indicated that performance was exceeding target levels with only the percentage of final audit reports being issued within 10 days currently not meeting the agreed target.  This was largely due to officer availability during the summer period and this would be picked up through the remainder of the year

·         Based on the audits reported during the period ah overall adequate assurance was considered to be appropriate and this had remained the same in the two previous quarters

In the ensuing discussion particular reference was made to the following:

·         There was some concern at the lack of management response in relation to reports for Maintained Schools.  It was noted that a meeting had been scheduled with the Executive Director (People) who was following this matter up.  Arising out of this reference was made to the responsibilities of Governing Bodies in this respect and, in the light of this, to the action that the Authority could take if Governing Bodies failed to act appropriately

·         It was noted that the number of audit days delivered was lower than anticipated in respect of the external clients which was a cause of some concern.  The reasons for this were highlighted and appropriate action would be taken

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 December, 2018 be noted;

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

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