Agenda item

Consideration was given to a report which gave Members an update of progress, by the Audit partner, against the 2016/17 annual programmes agreed by the Audit Committee in March 2016.

The report further provided details of the audit work undertaken during the period; the current position with agreed management actions in respect of previously issued reports; and details of other audit activity relevant to the Committee. 

The report advised on two audits having been completed during the period; namely Traded Services, receiving substantial assurance, and NNDR City of Lincoln Review, receiving high assurance.  The outcomes of each audit were outlined to Members in detail, together with the in-year amendments which had been made to the Plan

The report further advised of the 6 audits currently in progress, 1 being at draft stage and 5 being work in progress.  The internal auditor offered a further update advising that 3 were now in draft stage.   Members were referred to the audit plan schedule table contained in Appendix 2 of the report for more detail.  Good progress had been made in implementing audit recommendations, there were currently 11 overdue, five of which were high priority.  A further three findings had been updated with revised dates.  Members were referred to Appendices 3 and 6 of the report for further detail. Finally, other significant audit work undertaken during the period and going forward was also shared with Members, including information regarding forthcoming changes to Public Sector Internal Audit Standards (PSIAS).

Debate ensued and the Committee congratulated Officers on the Collection Rates achieved in respect of NNDR.

In response to Members’ questions Officers advised that the Service Transformation Audit had been cancelled as the internal governance now operated through one single board.  The operation of the Commercial Activity had been reviewed and management had been of the view that the service transformation audit would have resulted in duplication.  

In response to Members’ concerns as to where assurance was being taken from currently in the absence of the planned audit, Officers advised that assurance was received through the individual audits on individual projects.  Project Management and Decision Making had both received substantial assurance the previous year.

It was accepted that this one single Board, the Entrepreneurial Board, would have to be audited going forward.

The Internal Auditor further advised that both Trading Services and Commercial Activity had recently been audited and offered further sources of assurance.

Members requested that more detail be provided in the future around amendments to the Audit Plan and that they be kept informed of changes and progression made with the single board.

Referring to Appendix 6, outstanding recommendations, concern was expressed that a number of actions had the comment “officer unavailable for update” assigned to them.

The Committee requested that this document be updated and re-circulated by e-mail, in advance of the next meeting.

The Financial Services Manager verbally updated the Committee in regard to her outstanding action detailed in Appendix 6.  It was noted that the guidance notes had been completed and were currently in draft form awaiting the Financial Services Manager’s review.

Concern was also expressed that the Phase 1 and 2 Development Management Audits had been cancelled.  The Chairman requested that this be re-instated and made the following proposal which was duly seconded:

“That the Head of Internal Audit take the lead in a comprehensive audit of the Council’s planning services as a priority for the work in the coming year and it be scoped in the fourth quarter of the current year being reported to the meeting on the 14 March and to be completed and reported to the Committee by not later than the end of the 2^nd quarter of next year.”

The Chairman further added that the concerns which existed to-date differed from those which had been held the previous year, when the peer review had been undertaken.  The service was a key one for the Council not only from a service delivery aspect, but also from a public perception aspect.

Following the earlier debate it was also proposed and seconded that Internal Audit be requested to include in their 17/18 Audit Plan, an Audit of the Entrepreneurial Board.  It was further requested that the scope and detail of the work to be undertaken in relation to this Audit be reported to a future Chairs Briefing.

On that basis it was: -

RESOLVED that the information contained within report GA.41 16/17 be received, noted and accepted subject to the following: -

(a)     that the Head of Internal Audit take the lead in a comprehensive audit of the Council’s planning services as a priority for the work for in the coming year.  The work be scoped in the fourth quarter of the current year, being reported to the meeting on the 14 March, and to be completed and reported to the Committee by not later than the end of the 2^nd quarter of next year.”; and

(b)     An Audit of the Entrepreneurial Board be included in the 17/18 Audit Plan and the scope and detail of the work to be undertaken in relation to this Audit be reported to a future Chairs Briefing in the first instance.