Decision details

Internal Audit Annual Report 2014/15

Decision Maker: Audit, Governance and Standards Committee

Decision status: Recommendations Approved

Is Key decision?: No

Is subject to call in?: No

Purpose:

To note the Head of Audit annual opinion & summary of Internal Audit work for 2014/15.

Decisions:

The Head of Audit Partnership presented the Internal Audit Annual Report 2014/15 to the Committee.  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 framework of governance, risk management and internal control;

·  A summary of the work undertaken by the Internal Audit Team that supported the opinion; and

·  A statement on conformance with the Public Sector Internal Audit Standards (the Standards) together with the results of the external quality assessment undertaken by the Institute of Internal Auditors.

 

The Head of Audit Partnership advised the Committee that he was satisfied that processes and systems across all three areas accorded with proper practice.  He had reached his conclusions independently and without any undue pressure from Officers or Members.  The external assessment had concluded that the Internal Audit Partnership was now fully conforming to the Standards.

 

In response to questions by Members, the Officers explained that:

 

·  The Internal Audit Plan needed to be flexible and reactive to the changing risks of the Council.  As the needs and priorities changed, assurance work was re-directed to ensure that it remained relevant and valuable.  The Plan was, therefore, reviewed regularly, and projects were removed, added or deferred accordingly.  As an example, the Land Charges project had been deferred until 2015/16 as changes in arrangements which were to be reviewed had not taken place.

 

·  A “weak” assurance rating generally meant that the service needed to improve to consistently provide effective controls.

 

·  In terms of the follow-up of Internal Audit recommendations, the process now was to agree dates by which actions were to be implemented rather than follow-up the whole report in one go regardless of agreements on individual recommendations.  The Internal Audit Team worked throughout the year to systematically follow-up on all agreed actions as they fell due.  The report included details of actions not yet due as at 31 March 2015.  The actions falling due after that date would be followed-up later in the year and the findings would be included in an interim report to the Committee.

 

·  The Internal Audit Team had looked at the Council’s data protection processes, and one area that was found to be undeveloped was the policy and process under which data would be shared.  The view was that the Officers could potentially inadvertently share information inappropriately for want of a clear policy and training to advise them otherwise.  Internal Audit had made a number of recommendations and these were falling due now for implementation.  The results of the follow-up would be reported back to the Committee later in the year.

 

·  In terms of emergency planning, issues relating to the lack of an asset register for emergency supplies and gaps in the security and restocking of the assets held by the Council had been resolved.

 

·  Audit work in relation to the operation of corporate credit cards had identified the need for the Council to introduce a clear procedure for the return of cards from leavers to help minimise the risk of loss from fraudulent use of ex-employees’ cards.  A procedure was now in place to ensure early notification of people leaving to enable corporate credit cards to be recovered.

 

The Committee congratulated the Head of Audit Partnership on his successful application to join the Internal Audit Standards Advisory Board as its Local Government practitioner representative, and indicated that this achievement reflected the work of the Internal Audit Team.

 

RESOLVED:

 

1.  That the Committee notes the unqualified annual opinion of the Head of Audit Partnership on the overall adequacy and effectiveness of the Council’s framework of governance, risk management and internal control, and supporting work, and that the opinion will be used to inform the Annual Governance Statement 2014/15.

 

2.  That the effectiveness of the Mid-Kent Audit Service and its conformance with the Public Sector Internal Audit Standards be noted.

 

Contact: Russell Heppleston: Email: Russell.heppleston@midkent.gov.uk Email: rich.clarke@midkent.gov.uk.

Report author: Russell Heppleston

Publication date: 04/11/2015

Date of decision: 20/07/2015

Decided: 20/07/2015 - Audit, Governance and Standards Committee

Accompanying Documents: