Issue - meetings

Report by Chief Operating Officer

20.1     The Cabinet considered a report by the Chief Operating Officer

20.2     It was RESOLVED to note the internal audit service’s opinion on the Council’s control environment

Reason

20.3     The report gives an opinion on the adequacy of East Sussex County Council’s control   environment as a contribution to the proper, economic, efficient and effective use of resources. Reasonable assurance can be provided that East Sussex County Council had in place an adequate and effective framework of governance, risk management and internal control for the period 1 April 2019 to 31 March 2020.

Report by the Chief Internal Auditor

6.1       The Committee considered a report by the Chief Internal Auditor, which presented the overall annual opinion of reasonable assurance, and set out a summary of the Internal Audit Team’s work during Quarters 3 and 4 of 2019/20.  The Audit Manager set out the work undertaken with management in respect of the two pension-related audits, and the reporting done to the Pension Board and Pension Committee. Follow up reviews will also be undertaken. The Audit Manager outlined that 90% of the Audit Plan was completed on schedule and the remainder will be worked through during quarter 1 of 2020/21. 

6.2       The Committee asked questions about:

• The Pension Administration audit and the techniques used to produce the assessment, and the risks of over- or under-payment of Fund members
• The reporting of the Pension audits to the Pension Board and Pension Committee
• Atrium, and whether it includes the County’s highways
• Social Value in procurement and its promotion to officers
• Managing Back Office Systems and SAP replacement, and whether it is done in partnership within Orbis
• Business Continuity, and whether it had coped with the pandemic
• Deferred items from 2019/20
• Adult Social Care commissioning and where the Council stands in comparison with other authorities.

6.3       Officers and Members responded:

• The Audit Team historically used an approach approved by the Pensions Regulator, but became aware of additional risks.  A new Internal Audit Strategy for the Pension Fund was agreed last year to reflect the new risks.  The Team also had access to the Pensions administration system which allowed greater interrogation of data.  Greater time was spent on the Pension Fund audit work than in previous years, and will continue with an increased number of audit days allocated to the work.  A follow up audit will be conducted and reported to the Audit Committee.  The Chief Internal Auditor confirmed that the Team’s work was focussed on the systems and processes in place, rather than identifying individual cases of over- or under-payment, but there was no indication that members of the Pension Fund did not get the payments they were entitled to. 
• Councillor Fox, as Chair of the Pension Committee, confirmed that the principal issues of concern were to do with the governance and use of data within the Pensions Administration team.  Some concerns can be addressed with additional software.  Officers will strengthen the controls, with substantial work being done by the Chief Operating Officer and Chief Finance Officer to increase resources for the pension administration function of the Fund..  Councillor Fox also highlighted the work of Data Improvement Project  that had been launched, prior to the audits commencing, which addresses some of these issues.
• Atrium is the Council’s property asset management system, and does not include the highways assets.  However, the Highways Contract re-procurement project is included in the 2020/21 Audit Plan.
• The Council won a national award for its approach to social value in procurement, and is a strong performer in the sector.  A key issue is following up with providers that they have  ...  view the full minutes text for item 6