Agenda item

Report of the Shared Internal Audit Service (SIAS) which provides details on the progress made by SIAS in delivering the Council’s Annual Audit Plan for 2022/23 as at 15 June 2022.

Report of the Shared Internal Audit Service (SIAS) which provided details on the progress made by SIAS in delivering the Council’s Annual Audit Plan for 2022/23 as at 15 June 2022.

The following points were raised and discussed:

•At paragraph 2.2, the table detailed all the finalised audits since the last committee meeting in March 2022. A total of 6 completed projects were reported, 1 with substantial assurance and 5 with reasonable assurance opinions.

•At paragraph 2.3, the table detailed the status of the one remaining outstanding audit for the Council’s 2021/22 audit plan.  The draft report had been issued and was due to be finalised.

•At paragraph 2.5, as a reminder to the committee in relation to 2022/23 audit plan, SIAS would deliver all audits prioritised as ‘High’ in the approved Plan and would deliver at least ten projects prioritised as ‘Medium’.

•Paragraph 2.6 referred to Appendix B which outlined this year’s audit plan and highlighted the two audits that were proposed for approval by the committee as the medium priority audits for quarter 3. The committee were requested to confirm the approval of the two further audits, these being Revenues Discounts and Exemptions and Grounds Maintenance Contract Management.

•At paragraph 2.8, no new high priority recommendations had been raised as a result of the work completed and reported in the table at paragraph 2.2. Currently there were no outstanding high priority recommendations.

•At paragraph 2.9, it highlighted that there were no medium priority recommendations due for follow up during this cycle.  In respect of the two outstanding medium priority recommendations, the revised implementation dates were not yet due. However updates were sought from officers and in relation to the payroll recommendation the new leaver form was being developed and was expected to be working by 30 September 2022. In relation to the Council website recommendation, work on the project was continuing and progress was being made.

•At paragraph 2.11, it outlined any proposed plan amendments. There was one minor plan amendment that had been agreed with management within this reporting period. This reflects the change of three days to be moved from the 2021/22 carry forward budget to the 2022/23 Housing Maintenance Contract Mobilisation Audit to ensure a comprehensive scope.

•At paragraph 2.13, SIAS provided an update on performance indicators as at 15 June 2022. Billable days were 12%, projects to draft report were 4%. There were no client satisfaction surveys being returned and no high priority recommendation being made.

•Members asked what planned days were? SIAS stated that it was a measure used to benchmark where they felt they should be during the year and where they were at present.

•Members stated that as the Council were waiting on two additional audit days, should the Council consider an audit around budgetary control as there will be additional pressure on finances both through inflation and also through energy costs. SIAS confirmed that they do have a budgetary control audit in their audits for consideration for quarter 4 which will be discussed with the S151 officer.  In terms of whether the budget being set correctly, an in year monitoring of the budget would have to be set rather than budgetary control.

•Members asked if other clients or local authorities were putting in additional assurance and audits around finances in light of the current environment.  SIAS stated that budgetary control or budget setting were not featuring much in other SIAS client audit plans. This was not because it was not important but because SIAS do the budget setting on a more cyclical basis. Generally the systems such as integrated planning are going to be unchanged, however the risks will be different.

•Members asked if there was any value in bringing budgetary control forward to midway through the year because if the Council get to the end of the year and budgetary control was an issue it could be too late.  SIAS stated that it would be beneficial and be more useful to identify problems. SIAS will discuss this with the Section 151 Officer and get the assurance if there were any concerns about how the Council was managing their budget.

RESOLVED

(unanimous)

(1)   The committee noted the Internal Audit Progress Report for the period to 15 June 2022.

(2)   The committee noted the implementation status of internal audit recommendations and the management update.

(3)   The committee approved the two Medium Priority audits to be undertaken in quarter 3 2022.