Agenda item

Members are requested to consider the report of the Chief Officer (Financial Services) which provides a source of assurance that the internal control environment is operating as intended through a summary of the Internal Audit activity for the period from January to March 2023. The report highlights the incidence of any significant control failings or weaknesses.

The Senior Head of Audit, Corporate Governance and Insurance presented a report which provided a source of assurance that the internal control environment is operating as intended through a summary of the Internal Audit activity for the period from January to March 2023. The report highlights the incidence of any significant control failings or weaknesses.

Members were informed of the following points:

·  Appendix A – provided a summary of reports completed by Internal Audit during the period from 1 January 2023 to 31^st March 2023. The work of Internal Audit offers a key source of assurance to the Committee that the internal control environment is operating as intended.

·  The Internal Audit Plan had been developed in line with the Public Sector Internal Audit Standards (PSIAS). It had been reviewed and approved by the Committee.

·  Should risks and priorities change throughout the year, the profile of the plan may change but the Committee will be advised of any changes.

·  13 reports had been completed within the reporting period. It was noted that Organisational Culture is a new area for Internal Audit. Other Local authorities had also been auditing this area with varying degrees of success. It was recognised that this area was hard to achieve consistencies, the audit highlighted opportunities to use the data to identify areas requiring intervention.

·  One primary school audit resulted in a limited opinion being provided for compliance with controls. The school is to focus on the control environment. This is to be reviewed as part of the follow up audits in 2023/24.

·  Section 7 provided the Committee with a summary of audit work and other activities undertaken by Internal Audit.

·  Appendix B provided information and evidence on the arrangements in place within the Internal Audit team.

·  It was recognised the team had been undergoing a restructure and it was noted that the team had handled the challenges well. It was the view that there were resources and capacity to ensure that the plan could move forward.

·  Appendix C provided monitoring information in relation to urgent decisions.

In response to questions from Members, the Committee was provided with the following information:

·  The audit plan looked at all aspects and it was recognised there were challenges. Audit would look at all aspects for both the long and the short term.

·  It was the view that the appropriate amount of time had been given to digital transformation. However, if there were changes to be addressed the Committee would be advised.

·  Clarification was provided to the Committee in relation to Actual vs Planned Days. It was acknowledged that going forward the presentation of this type of information could be improved.

·  It was recognised that the internal audit of Organisational Culture was a new area and learning had been taken from other Local Authorities and public bodies. This was a different way for audit as culture is subjective and based on feelings and experiences. It was acknowledged that data will be used to drive future audits.

·  Satisfaction surveys had improved in the number of responses received as staff realise the importance of why the questions were being asked. The surveys have now been changed, reducing the number of questions asked with a more focussed approach to be reported in the future. It was noted there was an escalation process to Chief Officer level but as suggested by the Committee it could be escalated to Executive Board Members. This approached could be considered if felt necessary.

·  Tracking of recommendations was key to monitoring progress given the data available and implementation of changes. These could also be checked through review follow ups on audit.

·  Internal Audit are externally audited by other core cities and external consultants. The last report undertaken by Glasgow on audit functions was positive.

·  Information in relation to key decisions detailed in Appendix C, would be checked, and provided to the Committee.

·  Work was still ongoing in relation to ICT audits. In relation to the planned days this needed to be adjusted.

·  In relation to assurance mapping, more development was required in some areas. Information on this would be brought to a future meeting.

·  Work was already being undertaken to address areas of challenge in relation to the Organisational Culture audit.

RESOLVED – To:

a)  receive the Internal Audit Update Report covering the period from January to March 2023 and note the work undertaken by Internal Audit during the period covered by the report.

b)  note that there have been no limitations in scope, and nothing has arisen to compromise the independence of Internal Audit during the reporting period.

c)  Receive the report providing information relating to the Monitoring of Urgent Decisions covering the period January to March 2023.