Agenda item

The Head of Internal Audit presented a report which provided an update on the work carried out by Internal Audit for the period August to December 2016, shown in the context of the audit plan for the year. The report also included performance information and details on the implementation of internal audit recommendations.

A summary of the main points from each of key areas were provided within paragraphs 4 to 14 of the report.

As there were no amendments or additions to the report, Members were afforded the opportunity to make comments and ask questions. A comment was made about the Council not spending all voluntary sector grants and a question raised about the outcomes of this work. More information was also asked about the Adult Education Board investigation highlighted at page 54 of the report. It was recalled that Members had flagged up issues around the Voluntary Sector Funding and a report could be provided to Members on this issue as required. In relation to the Adult Education Board, this had been raised as a specific issue as anomalies had been identified by the Service Manager with regard to claims that the training had not been provided although a claim for payment had been submitted by the training provider. It was reported that negotiations were on-going to reach a satisfactory settlement.

A member raised an issue with regard to ICT equipment and the apparent lack of control of an inventory. It was reported that an inventory in some cases was not as complete as the ICT service would like it to be and when the Council were subjected to the power surge the inventory was found to be unsatisfactory. However, there had been a lot of work carried out in relation to laptop utilisation and it was envisaged this would be extended for other devices used by Council staff.

A query was raised with regard to non-major outstanding recommendations highlighted at page 45 of the report and whether it was thought these were still outstanding. In response, it was reported that there were around 100 outstanding but this needed to be seen in the context of these issues being a low level risk category and the Council were not exposed to significant risk. It was also noted that further discussions were scheduled to take place on the issues within the next few weeks with directors and members would be updated on the outcomes.

With regard to Procure to Pay and confirmation orders, it was asked whether there was anything else the Council needed to do with regard to this process. It was reported that the procedure followed was working effectively and a reduction in confirmation order numbers was achieved. Members were advised that details could be provided within the Annual audit report.

The Chair asked what responses had been received from management in relation to Aiming High Processes and Systems Audit highlighted on page 44 of the report. In response, it was stated that this issue had been raised by new leadership which had resulted in immediate actions in change of responsibilities. It was noted that Internal Audit felt comfortable with the actions on this matter. It was hoped that this issue would have been resolved by December but it was advised there would be more time required to address certain issues. Although concern had been raised, it was pleasing to see that immediate action had been taken.

            RESOLVED that:-

(1)          the minor changes to the original audit plan be noted;

(2)          the internal audit work completed within the period be noted;

(3)          the progress made by officers in implementing previous audit recommendations be noted; and

(4)          the information relating to Internal Audit’s performance in the period be noted.