The report of the Head of Audit is attached.

Contact: Ceri Pilawski (01743) 257739

(a)  The Committee received the report of the Head of Audit (copy attached to the signed minutes) which provided Members with an update of work undertaken by Internal Audit in the final two months of 2021/22 since the previous update at the 22 February 2022 Audit Committee meeting.

      The Head of Audit introduced and amplified her report.  She advised Members that 97% of the revised Plan had been completed and the team had achieved the target to deliver a minimum of 90% of the revised annual plan by the year end.  She went on to report that 14 final reports had been issued, details of which were set out in paragraph 8.4 of the report.  One good, six reasonable, four limited and three unsatisfactory assurance opinions had been issued.  The 14 final reports contained 110 recommendations, two of which were fundamental and set out at paragraph 8.10 of the report and related to IT Business Administration and Microsoft arrangements.

      The Head of Audit drew attention to table 3 (Appendix A) which set out the unsatisfactory and limited assurance opinions issued.  In response to Members concerns around these unsatisfactory and limited assurance opinions, it was confirmed that a management report would be requested for the November meeting to allow the relevant manager to provide assurance to the Committee that the recommendations were being implemented.

      Concern was also raised in relation to the unsatisfactory audit opinion issued for the Dog Warden’s follow up audit for which a fundamental recommendation was made.  In response, the Head of Audit explained that the Committee could request the relevant manager to attend a future meeting to seek assurance that improvements were being made.  She stated that this would be followed up and reported back but if it moved into Limited a follow up audit would not necessarily be undertaken.

      RESOLVED:                                                                                   

      i)  That performance against the 2021/22 Audit Plan be noted.

ii)  To request a management report for the 24 November 2022 Audit Committee meeting in respect of the activity completed against the action plans for the following areas:

·                Information Security Management

·                IT Code of Practice

·                Legacy Infrastructure and Systems

·                IT Business Administration Follow-up

·                Microsoft Management Arrangements

b)    The Committee received the report of the Head of Audit (copy attached to the signed minutes) which provided Members with details of the work undertaken by Internal Audit for the year ended 31 March 2022.   The Head of Audit confirmed that she could offer ‘limited assurance’ on the Council’s framework for governance, risk and internal control in her end of year opinion.

      The Head of Audit introduced and amplified her report.  She reported that 47 reports had been issued (set out in Appendix A, tables 2 and 3) and 389 recommendations made.  The Head of Audit drew attention to the revisions made to the audit plan throughout the year and she confirmed that the service had been free from interference.  She also explained that although business continuity plans had been in place the whole year which impacted on resources, this did not affect her opinion.

      The Head of Audit reported that there were still a number of unsatisfactory assurances for which recommendations had been agreed by management.  The total number of fundamental recommendations had increased by 3% compared to the previous year, although the numbers were still low.

      The Head of Audit drew attention to the counter fraud activities supported by Internal Audit (paragraph 8.12) along with those activities which added value (8.13), and any other matters which were taken into account (8.17) and which all helped the Head of Audit to reach her opinion.  Finally, the Head of Audit drew attention to her conclusion set out at paragraph 8.20.

      The Head of Audit reported that the Internal Audit team had been shortlisted by the Institute of Internal Auditors for two awards, Outstanding Internal Audit Team in the Public Sector, and Inspirational Leader, and although they did not win, they were very happy to be shortlisted.

In response to concerns that the recommendation set out at paragraph 3.3 needed to be strengthened, the Chairman confirmed that he was satisfied that Managers would carry out the agreed actions in respect of the recommendations made to address any weaknesses and suggested improvements.  The Head of Audit explained that her opinion was based on the work that had been undertaken and that there was a willingness from Managers to improve.

The Chairman took considerable comfort in the fact that the performance of the Council’s Internal Audit demonstrated compliance with the PSIAS and that there were no areas of significant concern.  He congratulated the team on being shortlisted considering the prestigious company.

      RESOLVED:

i)That performance against the Audit Plan for the year ended 31 March 2022 be noted.

ii)To note that Internal Audit have evaluated the effectiveness of the Council’s risk management, control and governance processes, considering public sector internal auditing standards or guidance, the results of which can be used when considering the internal control environment and the Annual Governance Statement for 2021/22.

iii)To note and support the Head of Audit’s limited assurance, year-end opinion, that the Council’s framework for governance, risk management and internal control is sound and working effectively for 2021/22 based on the work undertaken and management responses received.