Agenda item

To consider the report of the Senior Head of Internal Audit, Corporate Governance & Insurance which sets out the annual opinion of the Head of Audit and provides a source of assurance that the internal control environment is operating as intended through a summary of the Internal Audit activity for the 2022/23 Internal Audit plan. The report also highlights the incidence of any significant control failings or weaknesses

The report of Senior Head of Internal Audit, Corporate Governance & Insurance set out the annual opinion of the Senior Head of Internal Audit and provided a source of assurance that the internal control environment is well established and operating effectively in practice through a summary of the Internal Audit activity for the 2022/23 Internal Audit plan.

Members were provided with the following information:

·  It was noted that Appendix C of the submitted report provided a list of work completed by Internal Audit for 2022/23.

·  It was acknowledged that the service had been through a challenging year and had undergone a restructure with key officer posts changing.

·   The Senior Head of Internal Audit assured the Members that he was confident in the assurances within the report that support the annual opinion.

·  Members noted that the opinion remained satisfactory, and this was a testament to the work of officers across the organisation in challenging circumstances.

·  During the year the Service had identified areas of opportunity and weakness which could be improved. It was noted that there were also positives to be drawn on from the audits and highlighted at the last meeting in relation to the work being undertaken around culture of the organisation.

·  Appendix B of the report summarised Internal Audit resources and the quality assurance and improvement plan for 2022-23. It was noted that there was an external inspection of these areas and it had received certification since 1998. It was the view that this showed the effectiveness of the service to deliver a good quality management system and product and deliver in line with the standards required.

·  Excellent feedback had been received in relation to the questionnaires raised at the conclusion of the audit process. The Service was looking to streamline and simplify the feedback, to encourage greater feedback in the future. It was also noted that excellent feedback had been provided informally through the audit process which gave the confidence to say that the service was well respected and valued across the organisation for the positive and constructive challenge that the service offered.

·  The Senior Head of Internal Audit took the opportunity to thank the new Chair of the Committee, and the previous Chair and all the Members who sat on the Committee during the year for their constructive challenge. He also thanked officers from across the authority for engaging in the internal audit process, and it was recognised that this was not easy when resources were stretched, but there had been positive engagement to complete the planned work. Thanks, were also given to the Internal Audit and Corporate Governance team for their work to support the delivery of the opinion.

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

·  Clarification was provided on the table in relation to the recommendation tracker and reasons why some actions had not been progressed. It was noted that the service would be undertaking a sampling process over the coming year, but the onus was on departments and services to update the recommendations. It was the view of the Committee that this needed to be reinforced and for the Committee to be assured that they had been completed and advised of any risks due to actions not being completed.

·  It was noted that fraud awareness training was not mandatory, but the service does communicate particular areas where relevant and they are actively promoting and providing training in relation to fraud in key risk areas, for example bank mandate.

·  It was advised that there were no issues in relation to cyber security to be reported at this point from the review.

·  In relation to the Adult and Health Debt Recovery, it was advised this was in relation to debt of service users and their payments for their care. The Chair suggested that this issue should be directed to the Chair of the relevant Scrutiny Board to be looked into.

·  It was noted that the Corporate Governance and Audit Committee Members are a key part of the governance and challenge for the process used by the Council and that the challenge offered by the committee helps to safeguard the independence of the internal audit function. The Senior Head of Audit has direct reporting lines up to Chief Executive level. Members of the Committee were informed that officers in senior posts in the organisation do have to complete a register of interests’ declaration annually.

·  It was noted in relation to schools, the Council had an effective risk-based audit planning process.

RESOLVED – To note the opinion given and the content of the report. In particular:

a) That, based on the audit work undertaken for the 2022/23 Internal Audit plan, the internal control environment (including the key financial systems, risk and governance) is well established and operating effectively in practice.

b) A satisfactory overall opinion is provided for 2022/23, based on the audit work detailed within the report.

c) That the work undertaken to support the opinion has been conducted in accordance with an established methodology that promotes quality and conformance with the International Standards for the Professional Practice of Internal Auditing (IPPF).

The Committee also resolved 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.

Cllr Dowson joined the meeting at 10:40 at the start of this item.