Agenda item - Internal audit and corporate fraud progress report

Report of the Executive Director, Finance & Resources (copy attached).

1)            That the Audit & Standards Committee notes the report.

33.1      The Committee considered a report of the Executive Director, Finance & Resources that summarised the progress made against the Internal Audit and Corporate Fraud Plan, the key issues identified and action being taken and progress made by management in implementing audit recommendations.

33.2      Councillor Sykes noted that the capacity of the audit team had been reduced for a number of reasons and asked for reassurance that Internal Audit was sufficiently resourced.

33.3      The Head of Internal Audit stated that it in circumstances of diminishing resources, it was natural to reduce workloads and whilst there as a reduction in the number of audit days, he could provide assurance that the service could work effectively within those.

33.4      Councillor Druitt asked if the increase in the number of unplanned audits was due to investigation into the Mears contract, when the remaining 10% of audits would be scheduled to be completed and if there was a prioritisation system to those and if the service would have reached 100% completion if there had been no unplanned audits.

33.5      The Head of Internal Audit stated that in cases on unplanned audits, it was important to start work straight away, that the scheduling of audit work was determined by individual risk assessment and frontloaded so the 10% of audits outstanding were relatively low risk and that 100% completion was never expected as some items become redundant through the period of the audit plan and from his experience, a completion rate of 90-95% was the standard.

33.6      RESOLVED- That the Audit & Standards Committee notes the report.