The report of the Head of Audit is attached, marked 14.

Contact:  Ceri Pilawski (01743) 257739

59.1The Committee received the report of the Head of Audit – copy attached to the signed Minutes – which provided Members with an update of the work undertaken by Internal Audit in the two and a half months since the last report in September 2017.

59.2The Head of Audit informed the meeting that 58% of the revised plan had been completed which was in line with the target to achieve 90% delivery by year end, and which was slightly ahead of the previous year.  She reported that three good and fourteen reasonable assurance opinions had been issued together with sixteen limited and four unsatisfactory assurance opinions.  She went on to say that thirty seven final reports had been issued which contained 409 recommendations, none of which were fundamental.  The Head of Audit explained that one of the recommendations had been rejected by management in relation to lone working.

59.3The Head of Audit drew attention to the Direction of Travel set out at Paragraph 5.18 of the report which showed that the lower level assurance levels had decreased from 48% in 2016/17 to 36% year to date.  The unsatisfactory assurance opinions were listed by service area in Appendix A, Table 3 of the report.

59.4In response to a query the Section 151 Officer explained that debt recovery was the area of greatest concern, with 10 significant recommendations being identified in this area.  By directing the audit here, however, it would enable any problems to be flushed out before the new system was in place.  Once the new ERP system was in place a follow up audit would be undertaken.

59.5In response to a further query, the Section 151 Officer reported that although the Council was not at risk of losing income there was a risk of non-collection in some areas.

59.6Members were requested to advise the action they wished to follow in relation to both the limited and unsatisfactory assurance levels and the residual control environment where a recommendation had been rejected. In relation to the unsatisfactory assurance levels, Members requested management reports be presented to the Committee at its March 2018 meeting on Transport Operations Group and Highways Permits.  In relation to limited reports, commended that the Head of Audit monitor the situation and report back to Audit Committee as part of the Direction of Travel update.  If there had been no improvement then this would be followed up and escalated to Directors.  In relation to the residual control environment, Members wished the Head of Audit to report back to the managers of those areas informing them that the Audit Committee urged them to comply with the recommendation.

59.7 RESOLVED:

a)    That performance to date against the 2017/18 Audit Plan as set out in the report be noted;

b)    That the adjustments required to the 2017/18 plan to take account of changing priorities, as set out in Appendix B of the report, be endorsed.

c)     That the actions to be followed in relation to the limited and unsatisfactory areas reported and the residual control environment where a recommendation had been rejected, set out at paragraph 59.6 above, be noted.