Agenda item

Report of the Shared Internal Audit Service (SIAS) which details the overall opinion on the adequacy and effectiveness of Welwyn Hatfield Borough Council’s control environment.

Report of the Shared Internal Audit Service (SIAS) which details the overall opinion on the adequacy and effectiveness of Welwyn Hatfield Borough Council’s control environment.

The following points were raised and discussed:

•    It is a requirement for SIAS to be externally assessed every 5 years. It had be confirmed that the assessment was deferred from November 2020 and will take place no later than May 2021, this had been deferred due to the COVID-19 pandemic.

•    There were two audits that were not finalised in the report (Agresso System and Homelessness Reduction Act) the outcome of these have not been taken into account for the overall assurance opinion for the Council.

•    Section 2.7 indicated SIAS’s general group performance with PSIAS (Public Sector Internal Audit Standards) that was based on their internal assessment. Generally conformance was the highest rating they could receive from PSIAS but there are two areas of deliberate non-conformance (same items every year).

•    Overall Assurance Opinions for financial and non-financial systems were “satisfactory” which is a good level of assurance across the year.

•    There were 8 projects that were delivered with “good” assurance, 12 with “satisfactory” assurance.

•    No limited assurance opinions this year in 2019/20. Did not raise high priority recommendation which is fantastic for the Council.

•    There was exceptional performance at Welwyn Hatfield Council up to 31 March 2020 – delivered 100% of days.

M.Chalkley thanked his audit team at SIAS, Officers, Heads of Services and Corporate Directors at the Council who fully engaged with the audit process and made it possible to deliver the plan by the end of the year and achieve this outcome.

Members congratulated SIAS on achieving 100% outcome. They also thanked Officers, Heads of Services and Corporate Directors at Welwyn Hatfield Council to help deliver the plan by the end of the year.

Question asked by Councillor S.Markiewicz in regards to the two audits that were not signed off. Audit for Agresso system – Has it been drafted but not signed off? Is that the status and is that the reason why you believe the assurance level will remain unchanged from prior year?

M.Chalkley from SIAS responded saying it is in draft, unfortunately during the period of 31 March to end of May, our partner BDO were working on this and they were some updates required to the report. The auditor responsible was absent at the time. Members were assured that the audit would have been finalised by the time this report had been written had that period of absence not taken place. There is nothing in the report that would have affected the overall assurance opinion.

RESOLVED:

(1)     The Annual Assurance Statement and Internal Audit Annual Report were noted.

(2)     The results of the self-assessment required by the Public Sector Internal Audit Standards (PSIAS) and the Quality Assurance and Improvement Programme (QAIP) were noted.

(3)     The SIAS Audit Charter 2020/21 was accepted.

(4)     Seek management assurance that the scope and resources for internal audit were not subject to inappropriate limitations in 2019/20. It should be noted that management confirmed this was the case during the meeting.