Report of the Audit Service Manager is attached marked 11.

Contact:  Ceri Pilawski (01743) 252027

17.1The Committee received the report of the Audit Service Manager (copy attached to the signed Minutes), which provided Members with details of the work undertaken by Internal Audit for the year ended 31 March 2015.  It also reported on progress against the Annual Audit Plan and contributed to the review of the effectiveness of the Internal Audit team as required by the Accounts and Audit Regulations 2011 6(3).

17.2The Audit Service Manager reported that the revised plan and been delivered in excess of the 90% delivery target.  2,060 days had been provided in the plan however this figure had been revised to 2,147 days.  In total, 141 final reports were issued in 2014/15.  Ninety good or reasonable assurances were made (64%), which was a reduction of 11% on the previous year.  This was offset by an 11% increase in limited (11) and unsatisfactory (40) opinions which accounted for 36% in total compared to 25% last year.

17.3The Audit Service Manager confirmed that the number of fundamental recommendations had fallen from 18 to 6 compared to last year.  Seven recommendations had been rejected by management, the reasons for rejection in 3 of the cases were not accepted and it was considered that the identified risks were not being managed or mitigated.  No fundamental recommendations had been rejected.

17.4The Audit Service Manager explained that she had qualified her overall opinion due to the significance of the ICT Infrastructure control issues identified.  A further paper was requested in relation to the unsatisfactory assurance given for the sales ledger. 

17.5In response to a query the Section 151 Officer explained that the audit for ip&e had been done early in the process but it was hoped when a further review was undertaken it would no longer be unsatisfactory.

17.6    RESOLVED: 

a)      That performanceagainst the AuditPlan for the year ended 31 March 2015 be noted.

b)      To note that the systemof internal control was operatingeffectivelyand could be reliedupon when consideringtheAnnual GovernanceStatementfor2014/15.

c)       To note theAudit Service Manager’squalified year end opiniononthe Council’s         internal control environmentfor2014/15on the basisofthe work undertakenand    managementresponses received.