Agenda item - Internal Audit Progress Report

Report of the Executive Director, Finance & Resources

1)            That the Committee notes the report and considers any further action required in response to the issues raised.

56.1      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.

56.2      Councillor Wealls noted that only 6 of the previously agreed 15 audit actions for the Online Banking System had been implemented that was of some concern given its critical importance.

56.3      The Principal Audit Manager agreed that the area was one of crucial importance however; some of the solutions were dependent on the implementation of system upgrades by the council’s bank being completed. The Executive Director, Finance & Resources concurred, adding that pressure would be maintained on the bank to implement the upgrade.

56.4      Referring to page 83 of the agenda, Councillor Sykes observed that Direct Payments were of high importance and an issue the committee should monitor closely.

56.5      Referring to page 77 of the agenda, Diane Bushell noted that there were a number of high priority actions outstanding for Building System Access Controls and asked whether this meant the council were in breach of the Data Protection Act.

56.6      The Principal Audit Manager replied that the council were not in contravention of the Data Protection Act however; the principles of the Act did include principles pertaining to the protection of personal information. The Principal Audit Manager added that significant work had been undertaken by IT&D to disable officer logins however; some services used third-party systems that were more difficult to control and monitor and there was more work to be done in this area.

56.7      Diane Bushell asked if Value for Money (VfM) tests had been conducted as part of the review of the Strategic Construction Contract.

56.8      The Principal Audit Manager explained that VfM tests were identified in internal procurement rules and would be a key focus of re-procurement going forward.

56.9      Diane Bushell asked for assurance there would be no gaps in communications as part of the transition to new external auditors.

56.10   The Executive Director, Finance & Resources replied that auditors were risk averse and were very aware of their professional liabilities and he was therefore very confident the transition would be handled effectively. The Associate Partner, Ernst & Young agreed with the statement adding that such a transition was a common arrangement and he could provide assurance that it would be handled effectively and EY would certainly complete this year’s audit to timeline.

56.11   RESOLVED- That the Committee notes the report and considers any further action required in response to the issues raised.