Agenda item

Consideration was given to the Annual Report for 2018/19 presented by the Head of Corporate Governance and reported on the matters required by International Auditing Standards and the 2013 UK Public Sector Internal Audit Standards (Revised 2017).

The Head of Corporate Governance reported on the Internal Control Environment in place within a number of directorates at selected meetings which arises from Internal Audit work.  It was proposed to continue this process in 2019/20 and to keep this Annual Report as a summary to the Audit Committee.  The report was supported by Appendices attached to the report as follows:

Appendix 1: Annual Report and Head of Corporate Governance Opinion of the System of Internal Control for the year ended 31 March 2019 to assist the Committee’s review of the 2018/19 Annual Governance Statement (AGS) and with the future review of the Statement of Final Accounts.

Appendix 2: Internal Audit and Counter Fraud: 2018/19 Final Reports and other Outputs.

Appendix 3: Internal Audit and Counter Fraud Key Performance Indicators (KPIs): 2018/19 Achievements and 2019/20 Targets.

The 2018/19 AGS identified eight significant issues for the Council to mitigate risks during 2019.  The report supported the progress made against the issues raised in the 2017/18 AGS and demonstrated overall improvement in control and financial administration across the Council during 2018/19.

Members were informed of the change in format of the report to comply with professional standards, best practice and guidance from CIPFA. 

The summary of audits completed was highlighted as well as financial management and stability.  Members were informed of the overall systems audit, stability in key financial systems, treasury management and bank reconciliations were good, payroll had improved, adult social care had seen some improvement, no financial system had been assessed as weak and a new HR Payroll system was being developed with a key focus on data quality to migrate to the new system.  Members were informed of work on Contract Procedure Rules and Land and Property Protocols.  Members were informed that targets had been exceeded for the year.

Members asked about the aspirations for and the actions required to increase audit opinions and move to good.

Members sought and received clarification on the oversight of capital projects through the Capital Investment Programme Board.  Members were also informed of the link to Scrutiny and the Performance and Value For Money Select Committee. 

Members asked about external reviews and were informed of the CIPFA Assessment a year ago and reviews by external auditors.  Members asked about the Financial System Engagement Session and were advised that this  was a training session on the financial system with Unity on Revenue and Benefits.

Members sought and receive clarification on the calculation of direct payments and elements of recoveries.  Members also sought and received information on whether there were sufficient investigators.

Members asked how performance was achieved and were informed that training had been increased in order follow up on actions.

RESOLVED that the 2018/19 Annual Report and the continued developments in overall internal control and financial administration across the Council be noted.

NOTE:  Councillor C. Gloster entered the meeting during this item.