Issue - meetings

Report by Chief Operating Officer

18.1     The Cabinet considered a report by the Chief Operating Officer.

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

Reason

18.3     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 2016 to 31 March 2017

Report by the Chief Operating Officer

7.1       The Chief Internal Auditor introduced the report which provided an overview of the work of the Internal Audit Service over 2016/17, and results of the audits undertaken in Quarter 4.  He confirmed that he was able to give the Committee ‘reasonable assurance’ of the effectiveness of the Council’s control environment.

7.2       The Senior Audit Manager highlighted that there were no audits below ‘partial assurance’ other than in schools, and pointed out an error in Appendix 2, in that the Pension Fund has assets of £2,344M against liabilities of £2,885M, representing a funding level of 81.2%.   

7.3       The Committee discussed the development of the schools’ audit programme, from a risk-based approach to a randomised selection by an external partner (Mazars) leading to follow up by the Internal Audit team if necessary.  The programme of training for Headteachers, bursars and business managers was highlighted, and its effectiveness assessed.

7.4       The Committee highlighted concerns regarding paragraph 5.4 of Appendix 1, and the follow up on the Compliance with Standing Orders and Direct Payments audits.  The Chief Operating Officer set out that the issues had been subject to detailed follow up with the relevant managers, and that the process of ensuring compliance with the original findings had led to further issues being identified, which were also being addressed.

7.5       The Committee RESOLVED to (1) note the report;

(2) confirm that there are no significant control issues that should be included in the Council’s annual governance statement for 2016/17; and

(3) confirm that the Council’s system for internal audit has proved effective during 2016/17.