Agenda item

For the Corporate Committee to review and approve the Internal Audit strategy, the Annual Internal Audit Plan for 2013/14 and the Internal Audit Charter.

The Committee received the report on the annual internal audit plan and strategy 2013/14, and internal audit charter.

In response to questions regarding the possibility of conducting an urgent review into the processes within CYPS, in light of the recent judicial review in respect of the use of section 47 powers, and on when an audit of Legal Services had last been undertaken, it was reported that while internal audit could provide assurance around the systems and processes in place, this was a technical area which would require a more specific technical review. The Chief Executive advised that he was commissioning a practice review, and that the existing quality assurance and case-file audit work would be intensified. It was further confirmed that the Head of Legal Services was committed to a thorough review in respect of the legal aspects of this issue, and would note the concerns of the Committee. The most recent audit of legal service had been undertaken two years ago, but it was emphasised that this covered systems and processes, rather than the content of decisions.  It was confirmed that under statutory guidance, responsibility for section 47 belonged to the Cabinet Member for Children’s Services and Director of Children’s Services; while this did not limit the ability of Members to raise any questions and concerns, it was important to note that this was an area tightly governed by regulation.

In response to concerns raised by Cllr Whyte with regard to a specific issue relating to legal advice associated with a disciplinary hearing, it was agreed that Cllr Whyte would supply details of this issue to the Chief Executive outside the meeting.

In response to a question about the auditing of the coroners’ service, it was noted that a review had been undertaken of the coroners’ service and the mortuary in the previous year and the findings reported to the Committee. It was confirmed that for other areas of joint responsibility between local authorities, one authority would be the lead auditor, and the other authorities would support them in this role.

The Committee asked about discretionary funds in respect of welfare, in response to which it was confirmed that each discretionary funding area was included in the audit plan. The new arrangements under the Welfare Reform Act were included in the audit plan, as these were issues where significant changes were taking place, and involved substantial amounts of money and high levels of accountability. Areas where the local authority was taking on greater responsibility, for example around Council Tax Benefit, were also covered by the audit plan.

The Head of Audit and Risk Management advised that the Public Sector Internal Audit Standards did not differ significantly from the previous standards and 2006 CIPFA Code of Practice, except in that there was the requirement to have a charter and arrangements for avoiding conflicts of interest arising from the Head of Audit and Risk Management having responsibility for any non-audit activities.

The Committee asked about the auditing of Alexandra Palace and Homes for Haringey. It was confirmed that Alexandra Palace had its own internal and external auditors and that the Section 151 Officer, who had overall responsibility and accountability in respect of the Palace, had the ability to ask the Council’s internal audit service to look into any aspects relating to the Palace, were they to have any concerns with regard to the audit arrangements in place. The Section 151 Officer confirmed that she monitored the internal and external audit work for Alexandra Palace, along with progress regarding the implementation of any recommendations, and advised that she would not hesitate to seek further assurance from the Council’s internal audit service in the event of any concerns. The Section 151 Officer assured the Committee that she was satisfied with the audit arrangements in respect of Alexandra Palace.

It was noted that Homes for Haringey engaged the same internal audit service as the Council, and that their audit arrangements were overseen by the Homes for Haringey Finance and Audit Committee, reporting into the Homes for Haringey Board. The Head of Audit and Risk Management confirmed that the auditing of Homes for Haringey was managed by means of a formal contractual arrangement between Homes for Haringey and Deloitte and Touche, but it was noted that as an ALMO, they had the option to use a different auditor to the Council.

It was noted that separation of audit responsibility between the local authority and ALMO was required in accordance with legislation, but that Members could take some assurance from the fact the same internal audit service was currently engaged by both organisations. Members were further advised that audit information relating to Homes for Haringey would still be available to the Council, in the event that Homes for Haringey were to decide to use a different internal auditor from the Council. Grant Thornton advised that any significant issues relating to Homes for Haringey would also be picked up by the Council’s external auditors as part of their audit work in relation to the Group Accounts.  

In response to a question regarding the auditing of the North London Waste Authority, particularly with regards to value for money, it was confirmed by the Section 151 Officer that as a best-value authority, the NLWA was subject to external audit, including value for money, in the same way as other organisations. Reports of the auditor were monitored by the NLWA Board.

RESOLVED

i)             That the Internal Audit Strategy be approved.

ii)            That the Annual Internal Audit Plan for 2013/14 be approved.

iii)           That the Internal Audit Charter be approved.