Agenda item

Minutes:

Mandy Marples presented the Internal Audit Annual Report for 2017/18. The Chief Audit Executive had reached an overall opinion, as based on work undertaken throughout the year, that there was currently a ‘satisfactory system of internal control’ at the Council. Findings had indicated that on the whole, controls were satisfactory and management had accepted all of the issues raised within audit reports and had implemented recommendations as required.

 

The opinion had been arrived at by having regard for the following:-

 

1.    The level of coverage provided by Internal Audit was considered adequate.

 

2.    Regular meetings had been held with the Monitoring Officer to discuss emerging issues, risk, governance and the control environment at the Council.

 

3.    All of the issues raised within the internal audit reports had been accepted.

 

4.    A significant piece of work had been undertaken by the Council to improve its anti-fraud and corruption framework. This work principally addressed the issues raised by an audit assignment in this area.

 

5.    Internal Audit has also been involved in the Council’s Anti-Fraud group

throughout the year and had observed the progress made against actions

deriving from this work. Further work in relation to improving the Council’s data matching had also commenced.

 

6.    Following the restructure of the Corporate Leadership Team last year, there was still uncertainties as to whether the change in the role of the S151 Officer had been effective and this role would continue to be reviewed.

 

7.    Of the 29 assignments that had been significantly completed, 7 attracted a

'Comprehensive' rating and 15 a 'Reasonable' assurance rating. Of the

remaining 7, an assurance rating wasn’t applicable to 1 assignment and 6

attracted a 'Limited' assurance rating.

 

8.    The number of control issues formally raised by Internal Audit from the audit assignments completed during 2017/18 as summarised in the report.

 

Committee were advised that CMAP were themselves subjected to an external quality assessment every 5 years to ensure that their activity conformed to the Definition of Internal Auditing and Standards and whether or not they were satisfactorily applying the Code of Ethics.

 

An initial assessment had been undertaken in early 2017 and some opportunities for further improvement and development were identified.  An update on this position has been given in September 2017 and CMAP were found to be conforming as per the regulations.

 

During the year, 29 pieces of audit work had been completed with 7 receiving a ‘comprehensive’ assessment, 16 a ‘reasonable’ assessment and only 6 receiving a ‘Limited’ assurance.  In relation to the recommendations, 59% had been implemented during 2017/18 with the remaining recommendations being implemented in accordance with agreed dates as appropriate.

 

To conclude, Committee Members were advised that by the end of the 2017/18 year, 92% of the Audit Plan had been completed against a target of 90%.

 

RESOLVED

that the 2017/18 Annual Report of Internal Audit and the Internal Audit Opinion that supports it, be received and approved.

 

Reason:

To approve the Annual Report as part of the documentation supporting the Annual Governance Statement.

Supporting documents: