Agenda item

Officers presented the Internal Audit Progress Report. Since the last Audit Committee meeting, 10 reports had been finalised: two substantial assurance; four reasonable assurance; one advisory review in relation to Organisation Culture; one limited assurance; and two no assurance reports.

The limited assurance report was around performance information. This was a known area of improvement and it was part of the digital strategy and digital programme, looking at performance indicators, and developing a dashboard for CMT level. Services had KPIs in place, but they were not aligned with the objectives of the service or the Council’s strategic objectives. KPIs had not been reviewed or monitored consistently.

Members asked about the process of reprioritising workload when new managers requested internal audits. Officers explained the process, emphasising flexibility and the importance of obtaining necessary information. If items were being added to the plan, this was positive as people were engaging. If items were requested to come off of the plan, this would be challenged where appropriate.

Members asked about the impact of zero-based budgeting. Officers noted that outcomes from zero-based budgeting were monitored and influenced the internal audit plan.

The no assurance reports were around SEND Data Quality and Uninspected B&Bs. Members asked for more detail on these. SEND Data Quality was added to the plan because there were concerns around significant overspends against the agreed targets with the Council's Dedicated Schools Grant Safety Valve. Ongoing work had since improved processes. On B&Bs, insufficient evidence of checks had led to no assurance. This did not necessarily mean that those checks had not been completed. Efforts were ongoing to address this. It was noted that a lot of B&Bs were used to house residents in temporary accommodation. It would be ensured during follow-ups that any recommendations were implemented.

Members asked and officers clarified that they developed a plan for the full year, and officers were roughly where they would expect to be at this point in the year (Quarter 1). It tended to get busier at year-end. Officer tried to bring things forward into Quarters 2 and 3. In terms of ratings, there were not usually as many limited and no assurance reports, however, this may be because there had been more focus on risk areas and a lot of work had been done on the risk register and increasing risk awareness.

Members asked and officers further clarified that the audits were prioritised by the risk register and ratings within it. It was the role of Internal Audit to provide assurance to the Committee that there were controls in place. Officers would also consider if there were things coming out from other Councils or if KPIs were being missed. There were a lot of different elements involved.

Officers noted that they had included a paper on the new internal audit standards. These were new global standards and would create more oversight for the Audit Committee. More guidance was expected on the public sector focus.

Further to this, Members asked when they could expect a full explanation of how this applied to Hillingdon and how it would affect Members’ role as an Audit Committee. The paper listed essential conditions which were things that the Audit Committee were required to do. More public sector guidance was expected in September/ October and so it as hoped that by November officers would be able to give more guidance on the rules and regulations.

RESOLVED: That the Audit Committee noted the IA Progress since the last Committee meeting and the new Global Internal Audit Standards