Agenda item

Internal Audit Annual Report and Opinion 2018-19

To consider a report by the Chief Officer (Financial Services) which brings to the attention of the Committee the annual Internal Audit opinion and basis of the Internal Audit assurance for 2018/19.

 

 

(Report attached)

 

Minutes:

The Chief Officer - Financial Services submitted a report which drew to the attention of the Committee the annual internal audit opinion and basis of the internal audit assurance for 2018/19.

 

The report provided a summary the work undertaken by Internal Audit during the year and delivered an overall conclusion; that on the basis of the audit work undertaken during the 2018/19 financial year, the internal control environment (including the key financial systems, risk and governance) was well established and operating effectively in practice.

 

The Head of Audit said a satisfactory overall opinion was provided for 2018/19, based on the audit work detailed within the submitted report. The work undertaken to support this opinion had been conducted in accordance with an established methodology that promotes quality and conformance with the International Standards for the Professional Practice of Internal Auditing.

 

Commenting on Internal Audit Performance Members queried if sufficient resources had been available to achieve delivery of the Internal Audit opinion.

 

The Head of Internal Audit confirmed that resources had been appropriate, sufficient and effectively deployed to achieve the necessary audit coverage.

 

Referring to Customer Satisfaction Questionnaires, Members queried how many questionnaires had been returned.

 

Members were informed that 39 questionnaires had been returned (a response rate of 38%), with an overall average score of 4.58 out of 5.

 

It was the view of Members that feedback, in the form of a questionnaire was an essential part of monitoring and that it would be desirable for the return rate to be increased.

 

It was agreed that the Chair writes to all Directors requesting that they ensure that all questionnaires are returned following individual audits in their areas of responsibility.

 

Referring to Procurement and Contracts, Members queried how the Social Value objectives of the new Procurement Strategy were to be delivered and in particular how they would be measured.

 

Members were informed that specific questions on Social Value were included in the Audit Plan 2019/20 but more information about the Council’s approach to Social Value was required.

 

The Head of Democratic Services advised Members that the Annual Assurance report on Procurement Policy and Practices scheduled for later in the Municipal year would provide clarity to this issue, but it may be appropriate for Members to receive a brief report earlier to enable early input from the Committee to the way in which social value will be assessed and monitored. 

 

Referring to the table of completed Audit Reviews, it was noted that Commercial Rents had an audit opinion of “Limited” Members queried what actions would arise on an opinion of limited.

 

Members were informed that an opinion of limited would trigger a follow up audit after a period of six months.

 

The Chair thanked Ms McDonald, the Head of Internal Audit for her attendance and contributions, he also announced that today’s meeting would be the final occasion Ms McDonald would be attending as the Head of Internal Audit.

 

In paying tribute the Chair praised Ms McDonald for her excellent, professional and diligent work that she had undertaken and that her advice to the Committee would be greatly missed.

 

Members joined the Chair in expressing their thanks and best wishes to Ms McDonald in her new role.

 

RESOLVED –

 

(i)  To receive the Annual Internal Audit Report and Opinion for 2018/19 and note the opinion given. In particular:

 

·  that on the basis of the audit work undertaken during the 2018/19 financial year, the internal control environment (including the key financial systems, risk and governance) was well established and operating effectively in practice

·  a satisfactory overall opinion was provided for 2018/19, based on the audit work detailed within the submitted report

·  that the work undertaken to support the opinion had been conducted in accordance with an established methodology that promotes quality and conformance with the International Standards for the Professional Practice of Internal Auditing

 

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

 

(iii)  That the Chair be requested to write to all Directors asking that they ensure that all questionnaires are returned following individual audits in their areas of responsibility

 

(iv)  That a report be prepared for the November meeting of this Committee explaining the governance arrangements that are being/have been established to ensure that the Social Value objectives of the new Procurement Strategy are delivered. 

 

Supporting documents: