To consider the report.

The Panel considered the report that summarised the Shared Audit and

Investigation Service (SAIS) activity and outlined the progress in achieving the

2015/16 Audit and Counter Fraud Plans. It also provided a summary of the outcome of a self-assessment of the Internal Audit Service against the CIPFA/IIA Public Sector Internal Audit Standards (PSIAS).

It was reported that over 92% of the audit plan had been achieved with work not being undertaken being offset by additional work being added to the plan.  The income target had been over-achieved and thus funds had been returned to both local authorities.

(Cllr Dr Evans joined the meeting)

There had been three audit reviews receiving the third category of audit opinion (Range of Risk Mitigation Controls is incomplete and risks are not effectively mitigated) and Management Action Plans had been agreed for each review.  The three areas were debtors, health and safety and commissioning; follow-up audit reviews would be undertaken.

In response to questions the Panel was informed that the number of audits / results undertaken each year varied therefore it was difficult to benchmark against other councils.  The audit process had been changed and an initial report was provided to Managers who were then given an additional month to take corrective actions before the final audit opinion was given.  The Chairman recommended that there should be a KPI of the number of managers that challenged a grading that was less than 1.   Cllr E Wilson mentioned that when setting any targets they should be able to reassure the public that appropriate processes are being followed.

Cllr Jones commented that given the nature of the areas being audited it was important to make sure we did not have audit opinions of 3 /4 rather than being overly concerned about getting opinions of 1.

Concern was raised that there were outstanding actions and it was agreed that the appropriate corporate directors would investigate why action plans had not been signed off by managers.   Cllr Wilson requested that a report be sent to the Panel once they were approved.

Cllr Dr Evans asked if as well as looking at risks did we also look at lessons learnt and was informed that both risks and lessons learnt were part of the process and that training was given but there was no depositary of lessons learnt.  The Panel was informed that all audits went through the relevant line management, strategic directors and statutory officers and thus as directorates they would look at lessons learnt.

Cllr Smith mentioned that the key progress of the Shared Audit and Investigation Service during 2015/16 bullet points on page 18 required more detail and that the potential financial savings identified in paragraph 22 could do with more context being added.

Cllr Dr Evans asked if the report / audit findings went to O&S Panels and was informed that they did not as it was the role of this Panel; however they would be added to business plans that did go to O&S Panels.

Resolved unanimously: that the Panel note the Shared Audit and Investigation Service activity for the financial year ended 31 March 2016, progress in achieving the 2015/16 Internal Audit Plan and note the outcome of the self-assessment of the Shared Internal Audit Service against the PSIAS.