Agenda item - Internal Audit Progress Report

Agenda item

Internal Audit Progress Report

Minutes:

The Head of the Worcestershire Internal Audit Shared Service presented the Internal Audit Progress Report to Members, which provided commentary on Internal Audit’s performance for the period 1st April to 31st August 2021, against the performance indicators agreed for the service.

 

The final full audit reports were provided for the following reviews:

 

·       Projects 2021/22

·       Council Tax 2020/21

·       Benefits 2020/21

·       Creditors 2020/21

·       Health and Safety Training Records 2020/21

·       Critical Review – use of Agency staff and consultants 2020/21

 

Members were informed that with regards to Council Tax and Non-Domestic rates, there was a clear recovery plan for any monies owed. 

 

During the presentation the following was also highlighted for Members’ attention:

 

·       Summary Dashboard:

·       Productivity (end of Q1) - 59% (against targeted 74%)

·       Overall plan delivery to date – 43% (against target >90%)

 

·       Residual 2020/21 Audits - the outcomes of which were detailed at Appendix 3. 2021/22 Audits taking place at as 31st August 2021, Project review had been finalised, Worcestershire Regulatory Services review was at draft stage report, GDPR review was at clearance stage and the following reviews had commenced and the outcomes of the reviews (listed below) would be reported to the Committee on completion:

 

·       Treasury Management

·       Procurement

·       Grants

·       Benefits

·       NNDR

 

·       Planning Applications Sec 106 agreements 2019/20 - the recommendations had now been implemented; therefore no further action was required.

 

In response to questions from Members with regards to comparing Bromsgrove to other local authorities, the Head of the Worcestershire Internal Audit Shared Service commented that it was really a question of risk profile for Bromsgrove and those risks being mitigated to the level one could expect.  Any concerns would be raised with the Section 151 officer and Members of this Committee.

 

The Head of the Worcestershire Internal Audit Shared Service further explained that the internal audit plan was formulated using risks across the authority and various intelligence in order to draw together a profile to put the internal audit programme together.  It was noted that risks changed, new risks emerged and that inevitably there had been some changes during the last 18 months due to the Covid-19 pandemic.  Officers had and were working in a hybrid way; but could and did attend in person if needed and that the clients were happy to do this.  In addition to this it was confirmed that Officers were able to audit remotely where they had direct access to systems to identify core data.

 

The Executive Director of Resources further commented that with regard to the statutory requirements for audits it was his responsibility to ensure that there were adequate control systems in place and that internal resources were also adequate and covered key risks in key financial systems.  It was confirmed that Committee Members could challenge the audit plan and timescales.

 

The Head of the Worcestershire Internal Audit Shared Service responded to questions from Members regarding the ‘Productivity’ and ‘Overall plan delivery to date’ targets.  It was stated that critical reviews had not reduced overall coverage.  However, there were a number of aspects to consider including fluctuation with staff illness and staff vacancies. Members were informed that there were so many factors feeding into productivity and that targets were operational and may fall short, which could have an effect on how the plan was delivered.  It was reiterated that it was all about judgement, ensuring that Members received the assurances expected and made aware of any potential risks to the authority.  With regards to the days detailed at Appendix 3 to the report, the metrics were not usually changed throughout the year, and were on a cumulative basis.  Officers tried to deliver against those targets, however the process may need to be amended if things changed throughout the year.

 

RESOLVED that the Internal Audit Progress Report be noted.

 

 

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