Agenda item

The Internal Audit (IA) Service Manager presented the report which provided summary information on all IA work covered in relation to the 2018/19 Quarter 3 IA Plan, together with assurance levels in this respect.

It was reported that since the last IA progress report to CMT and the Audit Committee, four assurance reviews had concluded, four consultancy reviews were finalised, one grant claim was certified and three follow up reviews had also been finalised.

Key assurance reviews finalised included Emergency Duty Team which received a no assurance opinion, Cyber Security and the Positive Behaviour Support team received a limited assurance and the Youth Offending Service received a reasonable assurance opinion over the management of key risks.

It was reported that positive action had been proposed by management to assess all of the high and medium risk recommendations raised within each respective reviews. It was also reported that the team was operating at a good pace with new staff and further recruitment underway.

Officers provided the Committee with details of the Cyber Security audit which was evaluated against the Cyber Essentials criteria. The review was performed by a specialist IT auditor from Mazars with oversight from the Council’s IA management team. The Committee was informed that an IT auditor had now been appointed to the IA team.

It was noted that a follow up review was scheduled to be carried out on Early Years Centres. In July 2018, IA gave Early Years a no assurance opinion and raised 3 high and 5 medium risk recommendations. Members asked for clarification on the progress of this and it was confirmed that following a meeting with the relevant Service Manager, implementation for some of the recommendations had been extended to 31 March 2019. As a result, the follow-up would commence in early April 2019.

It was highlighted that a consultancy review of Introduction of Universal Credit (UC) had concluded within the quarter and a significant amount of work had been undertaken to ensure that the Council was prepared for the introduction of UC. The review found that satisfactory, interim measures were in place but a greater focus needed to be on establishing sustainable long term measures. During the Social Care, Housing and Public Health’s Policy Overview Committee’s review into Universal Credit, it was highlighted that a leaflet entitled “Your Guide to Universal Credit” was published giving residents the wrong information about making claims. Officers informed the Committee communications in relation to UC formed part of the review and improvement actions had been identified. Further, the Deputy Director of Exchequer & Business Assurance Services (Acting) agreed to review the aforementioned leaflet and take corrective action if required.

Officers drew Members attention to the 2018/19 Quarter 4 IA Plan, which was circulated to the Committee (in advance of this meeting) and agreed by the Chair on the 21st January 2019.

Following recent changes in staffing, Members were assured that independence would be maintained during audit processes and results and action would be reported to the relevant bodies. Although lack of resource had been a challenge, the Deputy Director of Exchequer & Business Assurance Services (Acting) reiterated that this was as a result of successfully appointing good people and training them up well. Members were pleased with the progress of the successful appointments to a number of IA vacancies. It was confirmed that IA resourcing would still be outsourced to Mazars until the end of the financial year.

RESOLVED –

1)         That the Internal Audit Progress Report for 2018/19 Quarter 3 be noted and approval be given to the Quarter 4 Internal Audit Plan for 2018/19.

2)         That the Committee noted that the coverage, performance and results of Business Assurance Internal Audit activity within this quarter.