To comment on the report.

The Panel considered the 2016/17 Shared Audit and Investigation Service Annual Report and Self-Assessment of Compliance with the Public Sector Internal Audit Standards.

The Panel were informed that the overall audit opinion, which was largely a reflection of the system and procedural controls against the identified risks and mitigating treatment measures, for the audits that had been completed and a final report issued. The overall opinion was that they were “Substantially Complete and Generally Effective but with some improvements required”.

Based on the above and taking into account other sources of assurance, including External Audit, most key controls are in place and are operating effectively, with the majority of residual risks being reduced to an acceptable level. A small number of exceptions were identified and these had been summarised in the body of the report.

The Panel were informed that the number of audits receiving the highest audit opinion (complete and effective) had increased from 3 to 8.  Following the recommendation from the Panel managers were now given one month to addresses any issues raised before the final audit opinion was issues; one area had successfully used this.

The Panel were informed that paragraph 19 of the report showed other areas of work that Corporate Investigations had been involved with and it was highlighted that the New Homes Bonus Grant Scheme had helped bring 109 properties back into use.

The Vice-Chairman commented that on agenda page 22 under paragraph 7 the second bullet point had been repeated as the last bullet point.  He also mentioned that the report showed that the Shared Audit and Investigation Service had been able to increase its caseload and exceed its revenue target; he questioned if this had imposed any strain on the services ability to operate. 

In response the Panel were informed that the service had an income target of £70k per year and this had been exceeded with the additional funds being shared between the two authorities.  If the external offer was to be expanded, which was a vision, then additional resources may be required to prevent the service being stretched. 

The vice-Chairman also asked if the increase in audits being awarded the highest opinion was due to the on months grace they now had.  The Panel were informed that one audit opinion had been changed due to the additional month.

Cllr E Wilson said that given the recent events in London should there be a audit of fire safety for the boroughs estate and if polices are being adhered to.  The Panel were informed that fire safety surveys had been carried out and that adherence to policies could be scheduled.

Cllr L Evans mentioned that there was no audit of planning and the Panel were informed that this was because the audit plan was based on key financial processes and key risks.

(Cllr Carroll joined the meeting)

Cllr E Wilson asked if managers challenged audit opinions and it was confirmed that they did. 

Cllr Da Costa asked when the reports deadline was and was informed that it went to the end of the financial year and that there was a requirement to give an overall audit opinion.

With regards to the audits that received an overall audit opinion of 3 Cllr Da Costa mentioned that there were 8 receiving this opinion but only 4 were mentioned.  The Panel were informed that page 28 listed the audits and that four had already been reported.

Cllr Da Costa also asked how the team were judged to be successful and was informed that this was via meeting the audit plan and work covered by the investigations team covered in paragraph 18 of the report. 

Cllr E Wilson asked that with regards to ICT security if joiners and leavers access to our systems.  The Panel were informed that this was covered as part of the payroll audit and ICT audits.

The Chairman mentioned that 49% of the council’s expenditure was going out due to outsourcing and asked how this would be audited.  The Panel were informed that with regards to delivering differently in children’s and adult services it was written in the contract that our auditors would be used.

Resolved unanimously: that the A&PRP note the Shared Audit and Investigation Service activity for the financial year ended 31 March 2017, progress in achieving the 2016/17 Internal Audit Plan and note the outcome of the self-assessment of the Shared Internal Audit Service against the PSIAS.