Agenda item

To present the report of the Head of Audit and Risk.

The report of the Head of Internal Audit and Risk which provided an update on Internal Audit’s latest progress with regard to service delivery, assurance provision, and reviews completed was presented for the Committee’s consideration.

The Head of Audit and Risk reported as follows –

•           That four Internal Audit reports were finalised during the period three of which resulted in a Substantial Assurance rating – these were in relation to the Education Improvement Grant 2017/18; Pupil Development Grant 2017/18 and Highways Maintenance Contract Monitoring. The fourth review relating to the School Uniform Grant 2017/18 produced a Reasonable Assurance rating. Although one moderate risk was raised on the Highways Maintenance Contract Monitoring review relating to the need to maintain a contract register, overall the controls in place to monitor highway maintenance contracts were deemed to be effective thereby providing substantial assurance.

•           That six reports with a Limited Assurance rating are scheduled for a follow-up review as detailed in paragraph 16 of the report. Four Follow-up reviews are currently underway – Sundry Debtors; Child Care Court Orders under the PLO; Corporate Procurement Framework and the Council’s Preparation for GDPR – these have a planned reporting date of the Audit Committee’s December meeting.

•           That a detailed report of all outstanding recommendations and issues/risks is provided separately on the agenda.

•           That progress has been slow in delivering the Internal Audit Operational Plan for 2018/19 due mainly to two vacancies and a long-term sickness absence. However, two new Senior Internal Auditors have recently commenced in post meaning that for the first time since August, 2017 the Internal Audit Service is fully staffed.

•           That as well as undertaking follow-up work, the Service is engaged in a Primary Schools Thematic Review primarily focused on income collection as well as work in relation to the Gypsies and Travellers (Requirements of the Housing (Wales) Act 2014. In addition, the Service is involved in the National Fraud Initiative biennial exercise and is providing data for the data matching exercise; it also will shortly be commencing work on the cyber security review.

•           That the Internal Audit Operational Plan 2018/19 will be updated to reflect the Senior Leadership Team’s latest review of the Corporate Risk Register which took place on 10 September; the updated version will be presented to the Committee’s December meeting.

•           That in order to ensure objectivity and independence, the Risk Management audit will be undertaken by the Council’s Insurers in the form of an independent health check as it would not be appropriate for the Internal Audit Service to conduct the audit given the Head of Audit’s oversight responsibility for Risk Management.

•           That there is currently a resource shortfall of 77 days on the Operational Plan – however it is anticipated that the recent review of the Corporate Risk Register and the de-escalation of specific risks will result in changes to the Plan with some reviews being taken out thereby reducing the commitments and bringing the shortfall down.

The Committee noted the information presented and was satisfied with the progress made taking assurance from the update provided.

It was resolved to accept and to note the progress to date by Internal Audit in terms of service delivery, assurance provision, reviews completed and its performance and effectiveness in driving improvement.

NO ADDITIONAL ACTION WAS PROPOSED