Agenda item

To consider the 2022/23 Internal Audit and Investigation Plan - Quarter 2 Progress Update (to 30 September 2022).

The Committee received the 2022/23 Internal Audit and Investigation Quarter 2 Progress Report (activity to 30 September 2022).

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

·       The Head of Internal Audit and Investigations highlighted the Council’s key corporate risks as of September.  The team was not resourced to be able to audit all of those risks every year.  Those being undertaken this year were annotated with a progress update. 

·       Overall, the Audit Plan was on track to be delivered.  There were two financial audits which were key to feeding into the Head of Internal Audit’s opinion; financial resilience and compliance with the CIPFA financial management code and; financial management.

·       A treasury management audit had now been programmed for Q4.

·       There were no new Category 3 or 4 audits.

·       With regards to investigations, work in Q2 had concentrated on the National Fraud Data Matching Initiative.  The remaining two datasets around payroll and creditors were now complete. 

·       Work had also been undertaken around empty homes and Covid grants.

·       In August an initial RIPA inspection and then a more detailed inspection had been carried out.  Positive feedback had been received and RIPA procedures were considered to be comprehensive.

·       Two audit reports showing as being in draft in the report, had now been finalised.

·       Councillor Maher questioned why Risk 3 Workforce and Risk 4 Uncontrolled Development, were not being audited that year and was informed that there was a need for prioritisation due to resource levels.  The Head of Internal Audit and Investigations attended leadership meetings and discussed with senior officers which areas should be focused on.

·       Councillor Kaiser noted that there was £16.5million of debt over 30 days.  The Assistant Director Finance commented that some of this could be with other public bodies, which reduced the risk.  Work was being undertaken around the debtors service.  Members would be provided with a breakdown of the £16.5million.

·       In response to a question from Councillor Kaiser, the Assistant Director Finance indicated that the collection of council tax and business rates remained on track currently.

·       Mike Drake questioned whether there was a programme over three years during which all risk areas were covered, but the riskier areas were audited each year.  He went on to note that there a number of outstanding new actions which had not been closed.  He suggested the inclusion of a management comment on how risk concerns were being addressed.  The Head of Internal Audit and Investigations commented that there was a move away from a three year Audit Plan as the situation was constantly changing.  The Council now had an annual plan.  There was always a focus on key corporate risks and the Committee reviewed the Plan before it was finalised.

·       The Head of Internal Audit and Investigations agreed to check if there were any overdue high risk concerns.

·       Councillor Burgess queried what awareness and training was provided to staff regarding fraud.  The Assistant Director Governance commented that there was some but more needed to be done,

·       Councillor Gee commented that the return on community assets was not visible on the Council’s website.  She questioned whether Internal Audit would ever review whether assets were under utilised.  The Director Place and Growth commented that the Strategic Growth and Asset Board looked at all assets and understanding the level of need.  He would be happy for the visibility of community assets to be audited.

·       Councillor Kaiser referred to a delay in charges for deferred care payments.  He questioned what was meant by ‘alternative recovery methods are being sought.’  The Assistant Director Finance agreed to feed back on this matter.

·       Members were assured that there was not a high level of unallocated payments.

RESOLVED:  That the 2022/23 Internal Audit and Investigation Quarter 2 Progress Report (activity to 30 September 2022) be noted.