Agenda item

Report of the Interim Audit Manager

The Interim Audit Manager presented the report, highlighting the four audits which had been issued since the last meeting and directing Members to the executive summaries at appendix B.  Regarding the sundry debtors audit, the audit opinion was a grade three as internal controls required significant improvement.  A number of recommendations had been made to address the weaknesses identified which would be followed up by Internal Audit within an agreed timescale.  The Interim Audit Manager referred to the revised appendix which identified a number of recommendations that had been implemented with this particular audit since the agenda was originally sent to Members.

Councillor S Sheahan referred to his request at the last meeting for an update on the review of managing the risk of fraud and corruption, and asked for further information as it was not included within the report.  The interim Audit Manager reported that the review had been undertaken and had now been passed to the Head of Finance for implementation.  The Head of Finance stated that it was currently ongoing and would report back to the Committee in due course.

Councillor S Sheahan raised concerns that there were many deadlines for follow ups that had not been met and questioned if there were any problems.  The Interim Audit Manager assured Members that there was nothing to be concerned about with regards to Internal Audit resources and  many of the follow ups were in progress with the services but not yet completed.

Councillor D Harrison raised concerns regarding the Section 106 recommendations as the original target date was September 2017 but it was still ongoing.  He also questioned whether the shared Internal Audit Service was working successfully as there were some high rated recommendations that were not meeting deadlines.  The Head of Legal and Commercial Services explained that it was the responsibility of the service area to implement the recommendations in the agreed timescale.  The Internal Audit service was responsible for reporting any weaknesses and following up recommendations.  She suggested that if Members were unhappy with the missed deadlines, they could invite the relevant officers to the meeting to discuss the matter further.  The Interim Audit Manager felt that in her opinion, the service was adequately staffed and agreed that some benefits could be gained by inviting relevant officers to the meetings.

Councillor S McKendrick felt that it was difficult for Members to see the progress of some recommendations, especially ones which were completed in between committee meetings.  The Interim Audit Manager explained that recommendations could not be reported on if the follow ups were in progress and suggested that interim updates be sent directly to Members via email.  All agreed.

Councillor S Sheahan commented that he would be happy to invite officers to the meetings if they needed some encouragement to implement the recommendations.  The Interim Audit Manager was happy to take this forward as she felt it would make officers more accountable.  The Head of Legal and Commercial Services agreed to invite the relevant director to the next meeting to discuss the Section 106 recommendations.

Councillor D Harrison asked for further information relating to how the shared Internal Audit service operated as he was not confident that there was adequate resources due to the missed deadlines.  The Head of Legal and Commercial Services reiterated that it was the responsibility of the service area to implement the recommendations. The Interim Audit Manager explained the role of Internal Audit in following up recommendations after an audit had been undertaken.

Councillor D Harrison raised concerns regarding Exchequer Services as many of the sundry debtors deadlines had been missed.  The interim Audit Manager stated that the report had only recently been finalised and referred to the revised appendix circulated to Members which included updates on agreed target dates and the progress of the recommendations, some of which had been implemented.

It was moved by Councillor V Richichi, seconded by Councillor J Clarke and

RESOLVED THAT:

The report be noted.