Agenda item

8.1

Kayleigh Inman (Senior Finance Manager, Internal Audit) submitted the Internal Audit Annual Report 2015/16 that highlighted the work that had been undertaken by Internal Audit during the year and which supported the Council’s Annual Governance Statement (AGS). Appended to the report were (a) the Internal Audit Quality Assurance and Improvement Programme, (b) the Internal Audit Charter, (c) the Internal Audit structure, (d) the Internal Audit Post Audit Questionnaire and (e) a summary of the key actions arising from the medium-high opinion audit reports, as requested by the former Audit Committee following its consideration of the 2014/15 Annual Report.

8.2

In particular, the Senior Finance Manager (i) commented that there had been 13 audits carried out in 2015/16 that were assigned an audit opinion of high risk of failing to deliver objectives, and details of each of these had been reported to the former Audit Committee, (ii) confirmed that progress on the implementation of recommendations made on audits assigned a high and medium-high opinion, was monitored by Internal Audit and (iii) stated that, from the work undertaken by Internal Audit during that year, she was satisfied that the Council’s core systems include control arrangements which are adequate to allow the Council to conduct its business appropriately.

8.3

In response to questions from Members of the Committee, including some communicated by the Chair on behalf of Liz Stanley, the Interim Executive Director, Resources and the Senior Finance Manager (Internal Audit) indicated that:-

·         The strategy for Internal Audit work is to focus on areas of high-risk activity and part of the process for compiling Internal Audit’s annual work plan included consulting with the Council’s Executive Management Team to identify the high-risk areas.

·         Should Internal Audit encounter difficulties in securing the necessary engagement or co-operation from individual officers whilst undertaking its work, then this would be addressed via reporting the matter up through the appropriate management hierarchy.

·         Despite the reductions in staffing resources in Internal Audit, the Interim Executive Director, Resources remained satisfied that the Council’s audit controls remained robust, although he would continue to monitor this position.

8.4

RESOLVED: That:-

(A) the contents of the report now submitted on the work undertaken by Internal Audit during 2015/16, and the opinion of the Chief Audit Executive (Senior Finance Manager) in relation to the adequacy of the Council’s system of internal control, as set out in paragraphs 57 to 59 of the report, be noted;

(B) the Internal Audit Charter for 2016/17, at Appendix A of the report, be approved; and

(C) the level of detail contained in the report in relation to audits assigned a medium-high opinion, be welcomed.