Agenda item

The Committee considered a report which provided information on the work of Internal Audit during 2015/16 and its overall opinion on the Council’s system of internal control.  The report also referred to the formal review of the effectiveness of Internal Audit required to be completed in accordance with the Accounts and Audit Regulations 2015.

The key headlines from the annual report were attached at Appendix 1 to the report

The Head of Internal Audit confirmed that the Council’s system of internal control for 2015/16 was adequate and operated satisfactorily during the year.

Members were informed that two new areas to be considered for inclusion in the Council’s 2015/16 Annual Governance Statement (AGS) had been identified as: 

·      Direct Payments

·      Supporting Adults Personal Assets Team

Updates had been provided on three other Items which were included in the 2014/15 AGS:

·      Core Financial Processes – Debtors

·      Core Financial Processes – Creditors (Procure to Pay) System

·      Doncaster Markets

Members were advised that following the completion of the recent

self-assessment it was noted that a peer review on compliance was also due to the undertaken.

Concern and disappointment was expressed with regard to the lack of progression and explanation for delays on the recommendations made by Internal Audit and whether there were mechanisms in place to improve the position. It was reported that there was greater analysis now available through working closely with directorates. It was suggested that if there were any specific areas of concern these could be highlighted and the officer responsible be invited to the Audit Committee to provide an explanation.

An explanation was sought in relation to paragraph 13 of the report where 2 further areas for improvement had been identified. In respect of (1), it was stated that more thought with regard to value was needed along with more recording of decisions. In relation to (2), it was reported that not all assurance came from the audit function. Identifying management controls were a sizeable task to carry out so it was envisaged that further time was needed to be spent on identifying where assurances came from.

It was asked whether the team felt part of Team Doncaster. It was reported that good communication and conversations take place with departments and the team feel that the work they do was valued and there was no resistance from departments when issues were brought forward. This was also noted by the 100% satisfactory rate identified on page 93 of the report.

An update was requested with regard to Procure to Pay (P2P) and whether any progress had been made. Members were advised that the process was now close to conclusion. In relation to the SAPAT system there had been progress made, this remains an extensive piece of work. Further updates would be provided to Members in due course.

A further report would be presented to Committee once the work was complete. A query was made in relation to the financial risk to the Council. It was reported that the scale was unknown. It was envisaged that it would not be significant. A question was raised as to whether the Council charge a fee for the overseeing of assets. It was advised that this hadn’t been taking place but in the future the Council would consider charging appropriately for this service.

RESOLVED

(1)       to note the Internal Audit Annual Report for 2015/16, including confirmation that the Council’s system of internal control was adequate and operated satisfactorily during the year;

(2)       to support the conclusion that there was an effective Internal Audit in place for 2015/16; and

(3)       to note the Head of Internal Audit’s self-assessment that the service is compliant with the UKPSIAS.