Agenda item

The Committee considered the report of the Head of Audit Partnership setting out details of the work of the Internal Audit Team over the financial year 2012/13 and the opinion of the Head of Audit Partnership on the overall adequacy and effectiveness of the Council’s control environment, in the context of the Annual Governance Statement.  It was noted that:-

·  It was the opinion of the Head of Audit Partnership that substantial reliance could be placed on the overall adequacy and effectiveness of the Council’s framework of governance, risk management and control.  This opinion covered the period from 1 April 2012 to date.  The opinion on the control environment was principally formed through the results of Internal Audit work during the financial year.

·  The original audit plan showed thirty six projects, but this was reduced to thirty four to acknowledge that a post within the Internal Audit Team was vacant for two months. The equivalent of thirty two significant audit projects was completed between April 2012 and March 2013 which represented the delivery of 94% of the adjusted audit plan. 

·  The work of the Internal Audit Team had established that for the majority (95%) of the areas examined (where an assurance opinion was given), satisfactory controls were in place at the time of the original audit.  Where weaknesses had been identified, the appropriate Head of Service had since agreed the action to be taken to rectify those weaknesses.

The Committee asked a number of questions of the Officers relating to, inter alia:-

The implications, if any, of the recent management restructure which had resulted in the Head of Audit Partnership now reporting to the Director of Environment and Shared Services;

The procedures relating to the use of corporate credit cards;

The outcome of the investigations undertaken on a reciprocal basis at Tunbridge Wells Borough Council in relation to an Officer grievance and concerns that a Planning Officer had been conducting unauthorised private work;

The outcome of an investigation into a suspected security breach by a Maidstone Borough Council Benefits Officer;

The timescales for the completion of action plans to address Internal Audit recommendations;

The robustness of the procedures relating to the cancellation of parking tickets;

The action taken in response to the identification of errors in the administration of the Parish Services Scheme;

The robustness of the ICT disaster recovery plan in the context of the ICT shared service; and

The results of the annual survey of Chief Executives/Directors and Heads of Service across the four-way Internal Audit Partnership to ascertain levels of satisfaction with the quality of the Internal Audit service provided.

The Head of Audit Partnership informed the Committee that Ms Jennifer Daughtry, Audit Manager, would be leaving the Council to take up an appointment elsewhere.

RESOLVED:

1.  That the Head of Audit Partnership’s opinion that substantial reliance can be placed on the overall adequacy and effectiveness of the Council’s framework of governance, risk management and control be noted.

2.  That the results of the work of the Internal Audit Team over the period April 2012 to March 2013, as shown in the report of the Head of Audit Partnership and the Appendices to the report, and that this is the prime evidence source for the Head of Audit Partnership’s opinion be noted.

3.  That it be agreed that the summary of the Internal Audit work and the other matters referred to in the report of the Head of Audit Partnership support “the opinion” and that the report can be used to inform the Annual Governance Statement for 2012/13.

4.  That the improvements in control that occur as a result of the audit process be noted.

5.  That the Committee is satisfied that the Council’s Internal Audit service is effective.

6.  That Ms Daughtry be thanked for her significant contribution to the work of the Internal Audit Team over the years.

Note:  Councillor Butler entered the meeting during consideration of this report (6.50 p.m.) and Councillor Yates reverted to being a Visiting Member.