Agenda item - Internal Audit and Corporate Fraud Progress Report

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

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

27.1      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.

27.2      Diane Bushell stated that there were a number of high priority recommendations and it would be useful for the committee to know which were most concerning, information on the likely impact of non-implementation and details on any factors that had cause non-implementation. Diane asked if revised dates for implementation could be assigned where the original timescale had not been met. Furthermore, Diane noted her concern that the three school audits conducted so far had only received partial or minimal assurance and asked if more needed to be done in this area.

27.3      The Principa lAudit Manager agreed to include more narrative about risk, impact and progress on overdue high priority recommendations in future report. That would also include a red, amber, green rating and a revised implementation date. An assessment of the impact of non-implementation is possible but is more difficult. All recommendations have their priority determined by an analysis tool. The three school audit opinions were of some concern. Ten school audits would be completed by year end and there was a prioritisation system in place. Where a minimal assurance opinion was assigned, the audit team would return to the school within six months to measure the improvements made.

27.4      The Executive Director, Finance & Resources added that a new performance management system had been introduced and a suite of performance indicators that included reference to whether Internal Audit recommendations were being implemented on time.

27.5      RESOLVED- That the Audit & Standards Committee note the report.