To provide an update on the progress made in implementing agreed internal audit actions due to be introduced during the year ending 30 October 2016.
Contact:D Harwood 388115
Minutes:
Further to Minute No. 29 of the meeting held on the 27 September 2016 and by way of a report by the Internal Audit and Risk Manager (a copy of which is appended in the Minute Book) the Committee was presented with an update of the current position with regard to the implementation of agreed audit actions, for the year ending 30 November 2016, in light of Members concerns raised previously.
Contained within the published report were performance details for the year ending 31 October 2016. Due to the deadline for the publication of the agenda, it was not possible to include performance details in respect of the year ending November 2016, which was subsequently tabled at the meeting.
The Corporate Management Team had agreed that 100% of internal audit actions should be introduced on time. The Committee had previously expressed concerns on a number of occasions, including the meeting in September 2016, at the declining percentage of agreed internal audit actions implemented on time.
In response to a question it was explained that once the draft Internal Audit report had been issued the implementation dates for the audit actions were agreed with the relevant Officer. It was only with the agreement of Internal Audit that the implementation date could subsequently be amended, the reason needed to be appropriately justified by the Officer responsible for that audit action. Performance information was prepared from the 4action system and it was explained that it was the responsibility of Managers to access and update the system with details of the action taken, although reminders were issued by the Internal Audit Team.
The Committee discussed options on how best to progress the matter so the number of audit actions improved.
It was accepted that the audit actions were taken seriously by Managers. However, there needed to be consequences if audit actions were not introduced by the agreed date as well as consideration as to how the matter was incorporated into the daily working pattern of Managers.
The Committee had previously suggested, and considered again, whether Heads of Service with outstanding audit actions should attend meetings to provide an explanation. The Committee were reminded that if this was to happen questioning needed to focus on the reasons for the audit action being overdue rather than the audit action itself.
The Committee wanted a strong message conveyed to the Corporate Management Team to express the disappointment of the Committee at the continued decline in the percentage of agreed internal audit actions implemented on time. At the invitation of the Chairman, the Executive Councillor for Strategic Resources addressed the Committee to confirm that he would discuss the matter with the Managing Director to convey the sentiments of the Committee, which was supported by the Leader.
The Committee agreed that rather than Heads of Service attend a meeting to justify any outstanding audit actions, it was considered more appropriate for the Managing Director or either of the Corporate Directors to attend.
A request was made that an additional column be added to the report to indicate how long an internal audit action had been overdue. One view being whether it was a matter that more actions were being implemented, but taking longer to implement.
In conclusion the Committee acknowledged that there might be good reasons for the non-implementation of internal audit actions, especially given the ever-changing priorities the Council was currently experiencing. However, the matter needed to be addressed and it was
RESOLVED
i. that the Corporate Governance Committee notes the report, and
ii. that the Managing Director or one of the Corporate Directors attends a future Corporate Governance Committee meeting to explain the declining percentage of agreed internal audit actions implemented on time.
At the conclusion of the above agenda item, the Leader, Councillor R Howe and the Executive Councillor for Strategic Resources, Councillor J A Gray left the room and did not return to the meeting.
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