Agenda item

Consideration was given to a report presented by David Webster, Head of Internal Audit, which provided a summary of Internal Audit work completed during November and December, 2016, and the key issues that had arisen therefrom.   

Performance against Key Indicators was generally positive with delivery against the amended plan on schedule.  No adverse audit opinions had been issued during the last two months.  Of the six outstanding actions from the PwC review, two were now green with the remaining four rated as amber.

Summary conclusions in all significant audit work concluded during November and December 2016 were set out in Appendix B of the report submitted together with the audits that were at draft report stage.  All assurance opinions were reasonable or substantial. 

Allegations of fraud, corruption or other irregularity were also investigated with details of significant investigations completed in the period set out in Appendix C.

The report highlighted:-

-          An Internal Audit Plan for 2016/17 had been produced in line with the UK Public Sector Internal Audit Standards

-          The Plan had been reviewed and updated at the half year

-          Although there was an overall reduction in audit days, it was still sufficient to give the required coverage

-          Despite the challenges, Internal Audit was exceeding other key performance targets and feedback on several pieces of work completed demonstrated value added by the Service

-          Management responses and action plans were in place for all recommendations made by Internal Audit during the period

-          The majority of the actions from the external review had been completed.  A new annual assessment against PSIAS had been carried out and the two remaining actions would become part of the action plan from the assessment

Veritau Ltd. had been asked to review and provide independent comment on the progress reports.  They had made a number of suggestions on presentation and highlighted areas for review but overall the report accurately reflected the work being undertaken by the Team.

Discussion ensued with the following issues raised/clarified:-

·           Development of the 2017/18 Audit Plan underway

·           Continued arrangement with Leicester City Council with regard to ICT qualified internal auditors

·           Should the monitoring of the Corporate Improvement Plan objectives/priorities be submitted to the Audit Committee?

·           Were the whistle blowing incidents stated on Appendix C fed through to the Standards and Ethics Committee?

·           There had been progress on audits since production of the report

Resolved:-  (1)  That the performance of the Internal Audit Service during November and December, 2016, and the key issues that had arisen therefrom be noted. 

(2)  That the information contained regarding the performance of Internal Audit and the actions being taken by management in respect of the performance be noted.

(3)  That the independent assurance provided by Veritau Ltd. on the report be noted.  

(4)  That discussions take place with the Assistant Chief Executive with regard to the reporting of the Corporate Improvement Plan.

(5)  That future summaries of completed audit work should include whether any recommendations relating to whistle blowing allegations had been accepted and implemented to prove validity of the actions.