The report of the Audit Service Manager is attached marked 5.

Contact:  Ceri Pilawski (01743) 257739

82.1The Committee received the report of the Audit Service Manager – copy attached to the signed Minutes – which provided Members with an update of work undertaken by Internal Audit in the three months since the last report in November 2015 and summarised progress against the Internal Audit Plan.

82.2The Audit Service Manager informed the meeting that 79% of the revised plan had been completed which was in line with the target of 90% by year end.  She reported that eight good and reasonable assurance opinions had been issued together with nine limited and one unsatisfactory assurance opinion.  She went on to say that eighteen final reports had been issued which contained 249 recommendations, none of which were fundamental.

82.3The Audit Service Manager reported that some minor revisions to the plan had been proposed taking it from 1,939 days down to 1,932 days.  She explained that the Council was still undergoing significant change in its operational approach so increased risk levels were inevitable however the situation was being monitored closely.  She then drew attention to the limited assurance levels in Adult and Commissioning Services and the continuing lower assurance levels in Children’s Services and Customer Involvement which were considered to be low risk and were not expected to affect the overall year end opinion.  The direction of travel for ICT issues remained a cause for concern.

82.4Turning to the Council’s Direction of Travel in relation to the control environment, the Audit Service Manager reported that there had been an increased number of lower level assurances, 49% compared to 36% the previous year.

82.5In response to a query it was confirmed that increased reputational risk was taken into account along with the overall strategic risks as reputational risks could increase within a particular service area whilst there was so much change happening and more risks being taken.  The Audit Service Manager explained that the recommendations made in the final reports were discussed and agreed with Management.  The Audit Service Manager went on to answer a number of queries from Members of the Committee in relation to how limited assurances were followed up and how managers performance was checked.

82.6RESOLVED:

        A.   To note the performance to date against the 2015/16 Audit Plan set out in the report.

        B.   To note the adjustments required to the 2015/16 plan to take account of changing priorities set out in Appendix B to the report.