6
The Committee received report ES/0089 of the Leader of the Council and Cabinet Member with responsibility for Resources.
The Annual Internal Audit Report 2018/19, set out in Appendix A of the report, detailed the work undertaken by the Internal Audit Service for the year 2018/19 in accordance with the plan for the year that had been presented to both Suffolk Coastal and Waveney District Councils in March 2018. The report was presented to the Committee in accordance with its terms of reference.
The report was introduced by Councillor Cook, Assistant Cabinet Member for Resources, who noted the hard work undertaken by the Head of Internal Audit and her team and the substantial savings that had been identified through the work undertaken. He invited the Head of Internal Audit to present the report.
The Head of Internal Audit advised the Committee that she was required to give an opinion, in her annual report, on the adequacy and effectiveness of the Council's systems of governance, risk management, and internal control in the previous financial year. She referred to her opinion at section one of the Annual Internal Report at Appendix A of the report and confirmed that her opinion for 2018/19 was one of reasonable assurance.
The different ratings available were outlined and the Committee was advised that a reasonable rating was a normal one, and that it was rare for an effective assurance to be given.
The comments regarding areas to improve, particularly relating to both contract management and asset management, were brought to the Committee's attention. The Head of Internal Audit noted the improvements in these areas during 2018/19 but stated that further work was required at the time the report was written, and that it would not be prudent to give the service a clean bill of health.
The table at 3.1 of Appendix A to the report, detailing the spread of work completed, was outlined.
The Head of Internal Audit confirmed that she was PSIAS compliant; she was subject to both self-assessment as well as external assessment. She said that it was important that the Committee knew the Council's Internal Audit Service was up to standard and was confident in the experience and qualifications of its officers.
The Committee's attention was drawn to Appendix D of the Annual Internal Audit report, which outlined areas of work cancelled or deferred. The Head of Internal Audit reported that two of the pieces of work had been cancelled as they were no longer required, and the remainder of work had been deferred.
The Head of Internal Audit highlighted the 20 days in the Internal Audit plan that were at the gift of the Committee should it feel an area was required for review, including increasing scope.
The Chairman invited questions to the Head of Internal Audit.
A member of the Committee sought clarification from the Head of Internal Audit on the ratings available to her for her opinion. She defined the effective rating as being that, under testing, no concerns had been raised. Reasonable was defined as there being some specific control weaknesses but generally adequate and effective, limited was defined as controls being unlikely to provide reasonable assurance, and ineffective was defined as controls not being adequate or appropriate. She advised that this was in line with PSIAS standards and agreed to further qualify this in future reports to the Committee.
In response to another member of the Committee, in reference to the Review of Housing Benefits, the Head of Internal Audit explained that the Anglia Revenues Partnership (ARP) held the core systems for the five different sovereign councils in the ARP; the partnership delivered revenue and benefits services for the Council, but the duty and responsibility of these services remained with the Council, including the responsibility to internally audit the services provided.
It was agreed in 2017 to share out the auditing of the services provided by ARP between the sovereign councils within the partnership, as each had its own Internal Audit Service. Councillor Cook noted that he was the Council's appointee to the ARP Joint Committee, which he attended along with Mr Khan, Strategic Director and Mr Taylor, Chief Finance Officer.
It was confirmed that training on tendering processes would be part of the Council's Member Development Programme.
The Chairman expressed confidence in the Council's Internal Audit Service, noting that it was picking up issues as soon as possible. He considered the change from two councils to a single authority had been challenging and asked what impact this had on the service.
The Head of Internal Audit stated that her service was a small one and had the minimum resources available to carry out its function. She noted her responsibilities as the Council's Data Protection Officer and said that if this work was going to continue, additional resources would be requested. The Chairman asked that any need for additional resources be brought to the Committee's attention as soon as possible.
The Chairman asked for a definition of a joint review. The Audit Manager stated that this was when a review covered the two predecessor councils. Joint reviews would not be necessary now that East Suffolk Council had been created and it was confirmed that the Internal Audit Service had worked as a single team across the predecessor councils prior to their demise.
RESOLVED
That the Head of Internal Audit’s Opinion for 2018/19, as set out in Appendix A to the report, had been commented upon.