The Head of Audit Partnership introduced the Annual Internal Audit Report and Opinion 2018/19.  In accordance with the Public Sector Internal Audit Standards, the report included:

·  The annual opinion of the Head of Audit Partnership on the overall adequacy and effectiveness of the Council’s internal control, governance and risk management;

·  A summary of the work undertaken by Mid-Kent Audit that supported the opinion; and

·  A statement on conformance with the Public Sector Internal Audit Standards.

It was noted that:

·  The Head of Audit Partnership was satisfied from the audit work completed that the Council could place assurance on the system of control in operation during 2018/19; that the corporate governance framework complied in all significant respects with the best practice guidance issued by CIPFA/SOLACE; and that the Council’s risk management processes were effective.  The Head of Audit Partnership had reached his conclusions independently and without any undue pressure from Officers or Members.

·  Some assurance projects had been removed from the 2018/19 audit plan or rescheduled/delayed, but this had not affected the overall opinion.  Executive summaries of the findings of the planned 2018/19 assurance projects completed so far had been provided, but the full reports could be made available upon request.  In terms of following up actions, the actions marked as overdue stemmed chiefly from three specific projects reported originally as part of the 2017/18 audit programme: Emergency Planning, Contract Management and Animal Welfare Control.  Updates would be provided as part of the interim reporting later in the year, but the Head of Audit Partnership was satisfied in the context of the overall opinion that there were no undue threats to the Council in relation to the progress on these matters.

·  The report detailed other audit service work carried out throughout the year including three counter fraud and corruption investigations, one of which resulted in a former member of staff receiving a Police caution; and the completion of three independent reviews commissioned by Kent’s Safeguarding Boards.  The report also provided an update on progress towards completing the 2019/20 audit and assurance plan.

·  All Internal Audit services were required to seek an external quality assessment at least every five years.  The Audit Partnership’s most recent such assessment was by the Institute of Internal Auditors in the spring of 2015.  A suitably qualified assessor would be appointed this autumn with a view to a report being submitted to Members in the spring of 2020.

Members thanked the Head of Audit Partnership for a very comprehensive summary of the activities of the Internal Audit team during 2018/19 and thanked the team for its work and achievements in terms of professional development.  They also thanked the Director of Finance and Business Improvement and the Procurement team for the progress made in improving contract management across the Council.

In response to questions:

The Head of Audit Partnership advised the Committee that:

·  The way in which audit reports with weak assurance ratings were dealt with differed at each of the four partner authorities.  The update on the  ...  view the full minutes text for item 19