Issue - meetings

To consider the Shared Audit and Investigation Service Annual Report 2015-16.

Members received the Shared Audit and Investigation Service Annual Report 2015-16.  The report provided the Service Manager Shared Audit and Investigation Service’s opinion on the Council’s governance, risk management and internal control arrangements.

During the discussion of this item the following points were made:

·         The Internal Audit Team had undertaken audits of key financial systems (in order to compliment the work of External Audit), in addition to focusing on the Council’s identified key risks, as set out in the Corporate Risk Register.  The overall audit opinion was that they were “Substantially Complete and Generally Effective but with some improvements required”.

·         91.3% of the Internal Audit Plan had been achieved with the reviews at draft report stage or completed.  The remainder consisted of audit reviews with in progress fieldwork and which were targeted to be completed early in the 2016/17 financial year.

·         Both the Internal Audit and Investigation teams were undertaking work on behalf of other local authorities.  Councillor Whittle asked how resources were allocated across the local authorities.  Catherine Hickman indicated that there was an Internal Audit Plan in place and that auditors were allocated as appropriate to the audits being undertaken.

·         Areas of key progress made by the Shared Audit and Investigation Service were highlighted.

·         An opinion of ‘3’ (Range of Risk Mitigation Controls is incomplete and risks are not effectively mitigated) had been issued with regards to audits on Health and Safety (CRR), Creditors, Debtors and Adult Social Care - Personal Budgets.

·         The Committee discussed the Creditors audit in detail.  Management had commissioned a third party company to review controls around duplicate payments made to suppliers.  Rob Stubbs indicated that the third party had software which could be used to identify any duplicate payments made which could then be recouped.  Very little had been identified so far.  Further development of the Council’s WISER system would help reduce this in future.

·         A management response remained outstanding in respect of the Housing Rents audit.

·         Contingency days had been used to respond to Management requests in respect of the following: School Admissions, Bus Operators Grant Certification, BACS/CHAPS and Repairs & Renewal Grant Certification.

·         The Investigations Team had identified total potential financial savings of £429,836 which was comprised of £322,336 of actual overpayments that were potentially recoverable and £107,500 of notional savings.  Councillor Lee requested that the Committee be updated on recovered financial savings in future.

·         Members were informed that an action plan detailing areas that required work to fully comply with CIPFA/IIA’s new ‘Public Sector Internal Audit Standards’, had been developed.  At present the Internal Audit Team ‘generally conformed. ‘

RESOLVED:  That

1)  the Shared Audit and Investigation Service Annual Report 2015-16 be noted.

2)  the Committee be updated on recovered financial savings in future.