Agenda item

Further to Minute No. 5 of the meeting held on the 2^nd June, 2021, the Head of Internal Audit, Anti-Fraud and Assurance submitted his finalised Annual Report prepared in accordance with the updated Public Sector Internal Audit Standards.  The report provided his opinion on the overall adequacy and effectiveness of the Authority’s Framework of Governance, Risk and Internal Control based on the work undertaken by Internal Audit for 2020/21.

In order to comply with these Standards, the report provided:

·         An opinion on the overall adequacy and effectiveness of the Authority’s framework of governance, risk management and control

·         A summary of the audit work undertaken to formulate the opinion

·         Details of key control issues identified which could be used to inform the Annual Governance Statement (AGS)

·         The extent to which the work of other review or audit bodies had been relied upon.

Appendices to the report provided a summary of Internal Audit reports for the year, details and outcome of other Audit Activities concluded in the period, agreed Management Actions and Financial Year End Performance Indicators 2020/21.

The report indicated that based on the overall results of Internal Audit work undertaken to date, together with the management’s implementation of recommendations, the opinion given was a reasonable (positive) assurance.  This was based on an agreed programme of risk-based audit coverage and input which had enabled a valid assurance opinion to be provided. 

There was clearly a positive culture within the Council to explore where control and governance improvements could be made and it was important that this culture remained and focussed on maintaining an appropriate, risk based and effective framework of controls as the Council continued to respond to and recover from the Covid 19 pandemic and also as work continued towards Barnsley 2030.

It was noted that the key results of all completed audits reported throughout the year were summarised within this report and that the Committee had been made aware of progress in the implementation of agreed management actions.

The current Audit Plan, therefore, focussed on supporting management to consider the approach to controls in the context of the impact of Covid 19.

The Head of Internal Audit, Anti-Fraud and Assurance gave a brief resume of the way in which he weighted the outcomes of audits in order to provide his assurance opinion.  In addition, there was another piece of work which the Committee would receive shortly on a wider governance assurance process which would link developments on the risk management system and would create an approach where there would be a greater emphasis on organisational learning and improvement.  

In the ensuing discussion, the following matters were highlighted:

·         There was a discussion of whether or not Value for Money actions/recommendations should be included within the report.  The Head of Internal Audit, Anti-Fraud and Assurance commented on the role of Internal Audit particularly within the context of efficiency savings/control improvements and it was felt, therefore, that this demonstrated the Service contributed significantly to achieving and demonstrating Value for Money.  He then commented on the reasons for not undertaking specific VFM studies given that these were often in quite specialised technical areas.  A suggestion was made that a statement should be considered for inclusion within the document on the position with regard to Value for Money given its current significance for local government

·         Arising out of the above, the Service Director Finance commented that he had led a wider review on the Councils position with regard to Value for Money arrangements and the outcome of this would be brought to a future meeting

·         Comments were made about the publication in August of a National Audit Office document relating to climate change and on what Audit Committees should be doing to challenge and assist management in managing such risks.  The Head of Internal Audit, Anti-Fraud and Assurance stated that he was to attend an SMT meeting in the near future at which a challenge would be made as to whether the current Strategic Risks still the right ones and whether or not, in the light of this report and the significant importance of climate change, this should be included as a Strategic Risk.  The Service Director Regeneration and Culture commented that this whole area was within the remit of the Head of Strategic Housing and it would be useful to bring a report on this whole issue so that Members could have a greater understanding of the breadth of what the Council was doing as an organisation to understand and address climate change.  She also then gave a brief resume of current initiatives being undertaken and made reference to the Sustainable Energy Action Plan, the commissioning of work from the Carbon Trust and the launch last Friday of the Positive Climate Partnership

·         The Audit Manager reminded Members that as part of the Internal Audit Plan for the following year, a piece of work was to be undertaken with the Executive Director Place and his staff on Zero Carbon and Green Homes initiatives.  This was due to commence in quarter 3

·         It was noted that the next meeting scheduled for the 13^th October, 2021 was a training/workshop session at which the Committee would look at and review its Terms of Reference.  It was suggested that as part of that review it might be appropriate to consider how Members could monitor initiatives/strategies and how it expected Executive Directors to report to the Committee in the future

RESOLVED:-

(i)        that the assurance opinion provided by the Head of Internal Audit, Anti-Fraud and Assurance on the adequacy and effectiveness of the Authority’s framework of governance, risk management and control be noted; and

(ii)       that the key issues arising from the work of Internal Audit in the context of the Annual Governance Statement be noted.