Agenda item - Review of the Effectiveness of the System of Internal Audit

Report of the Head of Internal Audit (copy attached). 

(1)  That the Head of Internal Audit’s self-assessment including the proposal to accept the council’s current arrangements for the two areas of partial compliance (see paragraph 6 & appendix 1) be noted.

(2)  That the implications for the Annual Governance be noted.

10.1    The Committee considered a report of the Head of Internal Audit which detailed the results of a self-assessment of the system of Internal Audit against the UK Public Sector Internal Audit Standards by the Head of Internal Audit.  The process should also be considered as part of the wider annual review of the council’s governance arrangements and production of the Annual Governance Statement.  Appendix one to the report set out compliance with the Public Sector Internal Audit Standards and the Local Government Application Note – Self Assessment Summary.  The report was presented by the Head of Internal Audit.

10.2    The Head of Internal Audit referred Members to paragraph 6.2 of the report which detailed two areas where compliance with International Public Sector Internal Audit Standards was partial. 

10.3    In relation to paragraph 6.2, Councillor Druitt questioned whether it was a good system to have the Executive Director of Finance & Resources appointing the Head of Internal Audit.  The Interim Executive Director of Finance & Resources replied that it was entirely appropriate.  The Chair stressed that the Committee members would be fully involved in recruitment procedures.

10.4    Dr Horne referred to the three priorities set out in paragraph 6.3.  He asked that members be updated about these priorities outside the committee meeting before September.   The Head of Internal Audit reported that there was an implementation rate of 87% for high priority recommendations.  There were 40 to 50 high priority cases a year.  There had been six recommendations this year that had not been implemented.  Two related to IT issues.  There would be a tracking system in place in the next couple of weeks.

10.5    Diane Bushell asked if all recommendations were referred to the Executive Leadership Team (ELT).  The Head of Internal Audit replied that high priority recommendations were referred to ELT.

10.6    RESOLVED -

(1)  That the Head of Internal Audit’s self-assessment including the proposal to accept the council’s current arrangements for the two areas of partial compliance) be noted.  (see paragraph 6 and appendix 1 to the report)

(2)  That the implications for the Annual Governance Statement be noted.