To consider the report.

The Chief Audit Executive, Shared Audit and Investigation Service, introduced the report that provided an update on the Shared Audit and Investigation Service activity, including progress in achieving the 2017/18 Internal Audit and Investigation Plan to 31st March 2018.

The Panel were informed that the report also contained a summary of the outcome of the external assessment of the Internal Audit Service against the CIPFA/IIA Public Sector Internal Audit Standards.  This was the first external assessment since the shared service was established in 2014 and it was a credit to the service that it scored the top level with only minor areas for improvement raised. 

There was one reported ‘red’ compliance raised regarding that the audit charters did not include the mission statement from the PSIAS as required by the revised (2017) PSIAS.  The mission statement was included in the business plan so this would be easily resolved.

During the review Cllr Brimacombe, as previous APRP chairman, the Managing Director and the Head of Finance had all been interviewed.  Panel reports and minutes had also been reviewed and an action plan had been put in place.  The findings of the review would help the shared service secure further external work.

The first part of the report looked at the Internal Audit Teams audits of key financial systems as well as the Council’s identified key strategic and key operational risks.  The overall audit opinion was “Substantially Complete and Generally Effective but with some improvements required.  93% of the audit plan had been delivered.

There had been 9 audits during the year where the opinions were improved from the draft report. This was due to additional supporting evidence being supplied to reduce concerns and compensating or mitigating controls implemented by management to address concerns raised between the draft report.

There were two audit reviews that had received the third category; debtors and housing options.  There were also 3 outstanding audits assigned the third category of audit opinion at the draft stage.

During discussion on the reports the following questions and points were raised:

·         Once approved Members should also have access to the new set of RIPA procedures and guidance.

·         It was felt that with regards to Housing Options there was insufficient detail of the issues and that the reference to the BLP should not have been included.

·         Other shared services were audited and any issues reported to the authorities.

·         Building control had been reviewed by Panel previously and its aim was to become its own company.  It may be worth reviewing again in the future.

·         It was an excellent report as it was not easy to get the top rating from CIPFA and was reassurance that the shared service was working.

·         Following recommendations from this Panel it was good to see that draft reports were either being challenged or acted upon resulting in better results.  Reports being highlighted to SMT and having a month to respond had helped.

·         It was questioned that would seeking other external work hinder the current provision and in response it was acknowledged that RBWM and Wokingham remained the key clients and they could call upon the audit team when required.

·         The action plan would be updated every 6 month and every five years there would be an external audit of the service.

·         The CIPFA finding should be published especially to show that fraud was investigated.

·         ICT audits were not obvious as system reviews would be incorporated into appropriate service reviews. The ICT systems today were in a much better position than seven years ago.

Resolved unanimously: that:

·         Members note the Shared Audit and Investigation Service RBWM activity for the financial year 2017/18 and the outcome of the external assessment by CIPFA against the Public Sector Internal Audit Standards.

·         The Panel gave their thanks to the shared service for their excellent work.