Agenda item

Internal Audit Update Report June to October 2018

To consider a report by the Chief Officer (Financial Services) which provides a summary of the Internal Audit activity for the period June to October 2018 and highlight the incidence of any significant control failings or weaknesses.

 

The report also presents the options available for conducting external assessments of the Internal Audit function against the Public Sector Internal Audit Standards.

 

(Report attached)

 

Minutes:

The Chief Finance Officer submitted a report which provided a summary of the Internal Audit activity for the period June to October 2018 and to highlight any significant failings or weaknesses.

 

The report also presented the options available to supplement the five yearly external assessment of the Internal Audit Function against the Public Sector Internal Audit Standards.

 

In considering the report Members sought further assurance about resources available to the Head of Internal Audit to complete the audit plan and whether the reported reduction in staff will have an impact on the Audit Plan for next year. 

 

The Head of Internal Audit confirmed that there will be sufficient resources to enable her to issue an evidenced based opinion for 2018/19 and to formulate a robust Internal Audit Plan for 2019/20.

 

Members queried the use of ‘Memo issued’ terminology in the update report.

 

The Head of Internal Audit confirmed that this was used where the Internal Audit team were keeping a watching brief on an issue or that the amount of audit coverage undertaken was not sufficient to enable an evidence based opinion to be provided

 

Members raised specific queries in respect to the In-House Fostering, Special Guardianship and Leaving Care Payments Follow Up Audit.

 

The Head of Internal Audit confirmed that whilst progress had been made by Children and Families there remained some aspects of the agreed action plan that had not been progressed and it was for this reason that the assurance opinion had not yet increased.

 

Members welcomed and noted the recommendations arising from the Use of Resources Audit report to committee in September 2017 had been progressed. It was the Committee’s view that the acceptable use policy and the training associated with it be applicable to Elected Members as well as Officers.

 

Discussion took place in relation to the frequency of the external review of Internal Audit against the Public Sector Internal Audit Standards.  In noting that the standards require that this be undertaken no less than every 5 years (with the last undertaken in Leeds in 2016), Members considered the arrangements for the next external assessment.

 

Members were supportive of the suggestion that the next external assessment should take the form of a self-assessment undertaken by Internal Audit with this being validated by an independent third party.

 

 

Members noted that the return of individual audit questionnaires provided a source of opinion on the Internal Audit teams work.  In reviewing this it was noted that there had been a reduction in the proportion of questionnaires being returned at the conclusion of audits. 

 

RESOLVED –

 

 

(i)  To receive the Internal Audit Update Report covering the period from June to October 2018 and note the work undertaken by Internal Audit during the period covered by the report.

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

(iii)  In relation to the 5 yearly external assessment of the Internal Audit function required by the Public Sector Internal Audit Standards, that the next external assessment to take the form of a self-assessment undertaken by Internal Audit with this being validated by an independent third party.

 

(iv)  To support of the suggestion made by the Head of Internal Audit that she writes on an annual basis to receive an opinion from Directors in relation to Internal Audit’s work. 

 

(v)  That the Chair, on behalf of the Committee be requested write to the Director of Resources and Housing to seek his support in ensuring individual audit questionnaires were routinely completed

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