Agenda item

A report by the Service Director of Finance is attached along with an appendix from the South West Audit Partnership.

The Committee considered the report of Michael Hudson, Service Director of Finance, and Internal Audit on the most recent quarterly update for 2012/13.

The report summarised (i) the outcomes of audits completed during the period, (ii) the results and outcomes of follow-up reviews carried out during the period, and (iii) an update on the delivery of the 2012/13 Internal Audit Plan.

Dave Hill, Group Audit Manager, South West Audit Partnership, led the Committee through the main points of the report.  The Service had started 118 audits – 87 had been completed or were in final report stage, 14 were in draft and 18 were in progress.  17 audits related to audits carried forward from 2011/12 of which 15 were complete and 2 deferred.  He also explained that based on the work completed to date in the current financial year, that risks were generally well managed and the systems on internal control were working effectively. Management responded positively to Internal Audit suggestions for improvements and corrective action was often taken quickly wherever it was possible or practical.

Dave Hill explained that by removing the schools audit work from the performance figures there had been significant improvements in the number of final reports being issued within 10 working days of a discussion of the draft report, up from 24% to 70%.  However, it was clear that there was still work to be done to improve the figure further.

Members in considering the report in detail raised the following points:

•      the audit of Adoption and Fostering Services being deferred.  It was noted that this Service had been subject to (i) a recent Ofsted Inspection, the results of which were still awaited, (ii) was being overseen by an Improvement Board; and (iii) a Safeguarding Scrutiny Task Group was in place.  The Leader of the Council, Councillor Jane Scott expressed a concern that this Service had recently and was currently being subjected to many reviews and to have a further review, an Audit of the service, was slightly excessive, especially as the Service was due a follow up adoption diagnostic by an external agency around July 2013. Dave Hill explained that for these very reasons the audit was deferred, particularly as any improvement plan would need to be implemented prior to any scoping for an audit of the service.  

•      The audit for Continuing Health Care being deferred for reasons explained in the report and rescheduled for inclusion within the Audit Plan for 2013/14.

•      The audit for Helped to Live at Home being deferred for reasons detailed in the report and rescheduled for inclusion in the Audit Plan for 2013/14.

•      The Service Director, Finance explained that the outcome for the Audit for Procurement and Contract Management produced advice rather than a report for this service.

•      The audit for two core cross-cutting audits for (i) Financial Procedure Rules and Contract Standing Orders and (ii) Partnerships received a partial opinion.  It was explained that these two reviews would be followed up in 6 to 9 months to ascertain whether the final report recommendations had been implemented.

•       It was noted that when the final report had been issued to a Service, that this was not the end of the issue.  Dave Hill explained that there was a follow up procedure.  Recommendations that received a priority 4 and 5 would be followed up by Internal Audit to make sure that action was being taken to implement the report recommendations and those recommendations that received a priority 1, 2 and 3 would be for internal managers to follow up and implement report recommendations.

The Chairman thanked the Service Director of Finance and Internal Audit for the information provided to Members which allowed for a full debate and targeted questions to be asked.

Resolved:

a)    That the findings from the Internal Audit’s audits to date be noted

b)    That the changes to the audit plan, set out in paragraph 6 of the report relating to the deferral of certain audits be confirmed.