Agenda item - Internal audit annual report and opinion 2014-15

Report of Head of Internal Audit (copy attached).

(1)            That the report be noted.

15.1    The Committee considered a report of the Head of Internal Audit.  Appendix 1 summarised the work carried out by internal audit and the corporate fraud team, including the Head of Internal Audit’s annual opinion for 2014/15.    The report was presented by the Head of Internal Audit.

15.2    The Head of Internal Audit reported that Section 2 of the Annual Report set out the Annual Opinion.  This stated that in the opinion of the Head of Internal Audit, reasonable assurance could be provided on the overall effectiveness of the council’s control environment for the year ended 31 March 2015, but only limited assurance on the effectiveness of the council’s purchasing and contract management practices.

15.3    Councillor Sykes considered the report to be excellent and a great improvement.  He stressed the importance of focusing on all important issues not just one or two of the most important matters.  

15.4    Diane Bushell referred to paragraph 3.5 of the Annual Report.  This stated that ‘the consistent number of high priority recommendations made over the past three years would suggest that the control environment has neither improved or declined significantly.’  She considered that the control environment should be expected to improve.

15.5    Simon Mathers, Ernst & Young stated that there had been significant improvements made to the council’s payroll system.  This had been a great success in recent years and a ‘big win’ in improving the control environment.  The Head of Internal Audit agreed that payroll systems was a good example of where the council was instrumental in making changes.  There was a high level of support from the Executive Leadership Team, senior managers and the committee.   

15.6    RESOLVED -

(1)            That the report be noted.