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 January to 31^st March, 2019 and providing information regarding the performance of the Internal Audit Function during that period.

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 January to 31^st March, 2019 and providing information regarding the performance of the Internal Audit function during that period.

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

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

·         There was a variance of six assignments completed against those planned but five were in draft report stage and meetings were scheduled with officers to discuss outcomes.  Since writing the report one response had been received and a revised date had been agreed in respect of another 

·         There had been one addition to the plan over the period which related to the Glassworks Phase II Governance Review

·         Four audits 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

·         Information was provided on the following up of Internal Audit Report management actions together with a summary of work in progress

·         Information on the status of internal audit management actions by directorate/maintained schools 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.  Reference was also made to the delay in receiving appropriate and timely responses in relation to maintained schools and discussions were ongoing to address this matter

·         Details of Internal Audit performance against Performance Indicators indicated that performance was exceeding target

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

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

·         There was a discussion of the issues identified following the audit commissioned in relation to exclusion activities undertaken on behalf of the Authority by Springwell Learning Community and particularly as this related to decisions about the outsourcing of provision, the quality of that provision and whether or not contractual responsibilities were being fulfilled.  Work was ongoing to address issues identified.  The Executive Director Core Services stated that he would ask the Executive Director (People) to provide an update report detailing whether or not the issues identified as well as the management arrangements was impacting on the service provision

·         Arising out of the above, reference was made to the fact that Springwell was an Academy within the Springwell Academy Trust and reference was also made to the financial value of the contract the Local Authority had with that Academy

·         It was noted that the follow up visit to four sites within the Place Directorate in relation to cash collection arrangements had not revealed any significant issues.  It was anticipated that as the Authority moved increasingly to a cashless system the problems associated with cash collection would reduce

·         The Head of Internal Audit and Corporate Anti-Fraud commended that whilst the formal feedback report from the Corporate Peer Review had not been received, the early draft had recognised that the Authority had astute and sound financial management as well as a long track record of excellent financial management.  The Service Director Finance had also been praised for the way in which the service was managed.  In addition, Governance , including the support for the Audit Committee arrangements, had been recognised as being good and overall, the Council had been seen as well performing.  Once received, the full  report would be circulated to all Members of the Council and to Independent Members on the Audit Committee

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 March, 2019 be noted;

(iii)         that the progress against the Internal Audit Plan for 2018/19 for the period to the end of March, 2019 be noted; and

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