Agenda item

Report of the Head of Audit and Risk Management to inform the Committee of the work undertaken by the Internal Audit Service for the second quarter 2008/09 and reports outstanding from 2007/08.

Anne Woods, Head of Internal Audit and Risk Management, presented the report on the work undertaken by the Internal Audit Service for the second quarter 2008/09 and reports outstanding for 2007/08. The Committee was advised that the average time taken to complete investigations had fallen to 13.5 weeks and that the average length of staff suspensions had fallen to around 70 days.

In response to an enquiry from the Committee, it was confirmed that the report covered only audits that had been completed, and did not cover work that was still ongoing. A separate report on an ongoing investigation could be added to the Committee agenda if a specific request from members were received by the Chair in advance of the meeting, and there was also the facility for raising items under Urgent Business after the agenda had been circulated. In response to a query from the Committee regarding the position related to the Council’s investments in Icelandic banks, the Chief Financial Officer reported that the Council’s treasury management function formed part of the annual audit plan and were audited on an annual basis; the 2007/08 audit had recorded substantial assurance for this area. The Chief Financial Officer reported that a review of this area had been commissioned; once the review was complete and it had been established how the findings were to be formally reported, the Committee would be provided with a further update.

The Chair asked how, when the risk registers were updated, confirmation was obtained that the risk registers had been properly and effectively monitored over the previous quarter. It was confirmed that the adequacy of the controls in place were reviewed on a quarterly basis by Internal Audit, and that any concerns were then addressed with the appropriate management. Additionally, a sample of the risk registers were tested throughout the year, and key controls were tested to ensure their effectiveness as part of the annual audit programme. The Committee requested that a report on the audit processes regarding the key risk relating to child protection be presented at the next meeting of the Committee.

The Committee expressed concerns regarding the implementation rates for priority 1 recommendations made in 2006/07 and 2007/08, and agreed that further action should be taken.  It was agreed that all recommendations, priorities 1, 2 and 3, outstanding from 2005/06 should be implemented by 31 December 2008, with all recommendations outstanding from 2006/07 implemented by 31 March 2009. The Committee agreed that where there was failure to implement outstanding recommendations by these deadlines, the appropriate Heads of Service should be required to attend Audit Committee to explain why recommendations had not been implemented. It was further suggested that the Chair of the Audit Committee raise this issue with Cabinet members.

RESOLVED

i)                    That the audit coverage and progress during the second quarter 2008/09 and on the reports outstanding from 2007/08 be noted.

ii)                  That the progress and responses received in respect of outstanding audit recommendations be noted.

iii)                That services be required to implement all outstanding audit recommendations from 2005/06 by 31 December 2008, and to implement all outstanding audit recommendations from 2006/07 by 31 March 2009. Where these deadlines were not met, the appropriate Heads of Service would be required to attend Audit Committee to explain why recommendations had not been implemented.