Issue - meetings

Report by the Chief Operating Officer.

48.1     The Committee considered a report by the Chief Operating Officer, presented by the Audit Manager. 

48.2     The Committee asked questions about the datacentre move to Redhill and the contingencies for a power outage at that facility.  The Audit Manager confirmed that there was a backup centre in Eastbourne and that he would provide further details of the Redhill powercut procedures.  The Chief Internal Auditor confirmed he would also seek assurance from his Surrey colleagues.

48.3     In respect of the audit of Ordinary Residence the Audit Manager clarified the final recommendation and the need for clear communication with service users about their responsibility to inform the local authority when a move is complete.

48.4     The Committee asked questions about the implementation of recommendations of the audit of Special Educational Needs and Disabilities Budget Management.  The Audit Manager and Chief Internal Auditor set out the general process of determining recommendations, which involves engaging the management of the relevant service and allowing them an opportunity to develop solutions to resolve issues identified during the audit.  This assists with the implementation of those recommendations.  The Audit Manager also explained that follow up audits were only carried out as a matter of course in cases of partial or minimal assurance.  The Committee also explored the role of health partners and how to ensure proper financial provision is made for health-related elements of any agreed care plan.  It was set out that on occasions a decision is made in the best interests of the child and family, and the finances are arranged retrospectively.   

48.5     The Committee discussed the audit of Academy Transition Arrangements.  The Audit Manager confirmed that the Children’s Services department had to take the pressure on its resources into account carefully when mapping out the capacity to support the conversion process.  The Audit Manager also confirmed that he would report back on situations where schools have had a deficit on conversion.  The Committee recommended instigating the charging policy promptly.            

48.6     The Committee recommended careful drafting of public reports, with particular reference to the investigation of the theft of cash from a deposit box in a children’s home.  The Chief Internal Auditor confirmed that whenever their work identified any potential criminal activity they inform the Police, who then prioritise it according to their resources.  The Chief Executive reassured the Committee that the matter had been looked at very carefully. 

48.7     The Committee welcomed the individual school audits all of which were reasonable or substantial assurance, which was attributed to the training for headteachers, bursers and business managers arranged by the Internal Audit team.  

48.8     The Committee RESOLVED to confirm that there were no actions that should be taken in relation issues raised in the audits carried out during Quarter 3, or new or emerging risks for consideration for inclusion in the internal audit plan.

Report by the Chief Internal Auditor.

32.1     The Chief Internal Auditor introduced report and explained the background to the items covered by recommendation 3 of the report. In particular, the need to carry out an external assessment of the Internal Audit function under the Public Sector Internal Audit Standards (PSIAS), which it is proposed to be carried out by South West Audit Partnership (SWAP). The Committee is also being asked to approve:

·          The updated performance indicators (appendix 3);

·          A revised Internal Audit Charter, which is very similar to the existing Charter but has been updated for use across the Orbis partnership (appendix 4); and

·          An Orbis Internal Audit reporting and escalation policy which formalises existing processes (appendix 5).

32.2     The Committee asked if the South West Audit Partnership (SWAP) were able to provide an independent approach to the external assessment, as they are a local authority organisation. The Chief Internal Auditor explained that the selection process had carefully considered how best to undertake the external assessment and the preferred approach was to carry out a self-assessment with independent validation by SWAP. SWAP has experience of carrying out such assessments and complies with professional standards.

32.3     The Committee discussed the outcomes of the internal audits undertaken during quarter 2 (appendix 1) and made the following comments.

Procurement Cards (P-Cards)

32.4     The Committee commented that the number of cases of inappropriate use appeared quite low and asked whether the Council get better value from this expenditure. The Chief Internal Auditor explained that it was not possible to review all the transactions due to the large volume, but a representative sample was examined. Overall, the scale of potential inappropriate activity was low given the value of transactions. Some of the transactions were referred back to the departments concerned, to check that the transaction or use of the card was reasonable. Departments can then refer any inappropriate transactions back to the Internal Audit team for investigation. 

32.5     The Chief Operating Officer outlined that an analysis of the value for money of expenditure on P-Cards had been undertaken as part of a previous audit, and a procurement analysis of low value ‘tail end’ expenditure had been carried out. The savings and costs avoided are monitored through a procurement annual report to the Corporate Management Team and performance indicator monitoring.

Bankline

32.6     The Committee asked if the business continuity arrangements and improvements in control had been implemented. The Senior Audit Manager responded that at the time of writing a follow up to the audit had not been undertaken, but there were no high risk recommendations that required action. The Chief Internal Auditor outlined that the Internal Audit Team would not usually immediately follow up audits that achieved a ‘substantial’ or ‘reasonable’ assurance opinion (where there are medium of low risk recommendations), but will check to see if the agreed actions arising from the audit have been implemented and report back to Committee.

Follow up of audit recommendations

32.7     The Committee asked for clarification on which audit recommendations will be followed up and  ...  view the full minutes text for item 32

Report by the Chief Internal Auditor.

20.1     The Senior Audit Manager introduced the report. He confirmed that the Orbis Chief Internal Auditor continues to be able to provide reasonable assurance that the Council has in

place an effective framework of governance, risk management and internal control. During the reporting period, the Internal Audit Service has moved from using range of five audit opinions (full, substantial, partial, minimal and no assurance), to a range of four opinions (substantial, reasonable, partial and minimal assurance). All audits undertaken in the quarter, apart from one, have received an opinion of either substantial or reasonable assurance.

20.2     One audit received an opinion of partial assurance, which was the audit of Adecco who operate a manged service to provide temporary agency staff to the Council. An action plan for improvement has been agreed, and a follow up audit will be conducted later in the year. An update will also be included in the report on the Council’s use of agency staff at the November Scrutiny Committee meeting.

20.3     During the quarter the Internal Audit Service completed two follow up reviews of Microsite management and the ContrOCC system, which have improved to achieve an opinion of substantial assurance. The Internal Audit Service also met all performance targets during the period.

20.4     The Committee RESOLVED to note progress report and performance, and had no further comments on audits or risks.