Agenda item

To consider a report on the work completed by the Internal Audit Service during the period April to October 2015 and associated performance issues.

By way of a report by the Internal Audit and Risk Manager (a copy of which is appended in the Minute Book) the Panel received details on the work completed by the Internal Audit Service during the period April to October 2015, together with associated performance issues.

The Panel was informed of key issues that had impacted on the work of the service including that no IT audit reviews had been completed in the period.  This was due to the IT audit contract that ended in January 2015 not being re-let. The Internal Audit and Risk Manager had decided not to re-let the contract on account of uncertainty as to which authority would be the employing authority for the IT service under the shared services project and the work to examine options for developing an alternative internal audit service delivery model. 

The Council had since become the employing authority for IT staff and responsible for the delivery of IT services to the three Councils.  However, the Internal Audit Service had been considered for inclusion in phase two of the shared service project and the Internal Audit and Risk Manager had led on reviewing alternative service delivery options for internal audit across the three partner Council’s. As yet no decision had been taken as to the preferred method of delivery.

It was reported that once the shared service decision was known, and if it was appropriate to do so, contractors would be appointed to undertake IT audit reviews during the current financial year. This would leave the option available to seek a longer term partner from 2016/17 onwards who would not only provide IT audit services but also provide advice on developing an alternative service delivery model.

Whilst the lack of IT audit was a concern, the Panel had been informed that some of the risks associated with the lack of audit reviews had been mitigated by the Cabinet Office renewing the Council’s Public Services Network (PSN) compliance certificate.  Therefore the Council had demonstrated that its infrastructure was sufficiently secure and that its connection to the PSN did not present an unacceptable risk to the security of the network.

Having referred to the debts that remain uncollected through the accounts receivable process and the risk that debts might not be pursued, recovered or might become time–barred, the Panel had been assured that the Head of Resources was aware of the matter and was undertaking work to resolve the issue.

The Panel expressed concern at the declining service delivery target for ‘complete audit fieldwork by date stated on the audit brief’, currently at 33%.  It was explained that due to the variable hour contracts that the Internal Audit Team worked, it was difficult to reschedule meetings cancelled at short notice and this was impacting upon the target.  It was further explained that the Head of Resources had emailed Managers to explain the importance of these meetings and would be closely monitoring progress, looking to see an improvement by the time the Annual Report of the Internal Audit Service was presented to the Panel.  Subsequently the Panel tasked the Head of Resources to improve the declining service delivery target and that progress be reported to the next meeting of the Panel.  Whereupon it was

RESOLVED

that the Panel:

  i.  notes the Internal Audit and Risk Managers ‘adequate assurance’ opinion over the internal control environment and system of internal control;

  ii.  notes that whilst no IT audit reviews had been completed in the financial year to date, the assurance that could be obtained from the Council obtaining Public Sector Network compliance;

  iii.  notes that a replacement audit actions monitoring system was to be purchased; and

  iv.  tasks the Head of Resources to improve the declining service delivery target regarding ‘complete audit fieldwork by date stated on the audit brief’ and that progress be reported to the next meeting of the Panel.