Agenda item

The Annual Report of the Head of Internal Audit and the Annual Counter Fraud Report were presented to the Committee.

The purpose of the Annual Report was to provide Members with a summary of internal audit work undertaken in 2021/22 and provide an opinion on the overall adequacy and effectiveness of the Council’s framework of governance, risk management and internal control. An annual report setting out counter fraud activity and performance was also included.

The annual report was attached the Appendix 1 to the submitted report.   It included a summary of findings from recently finalised audit work as well as the status of agreed audit actions.

The Auditor commented that in some cases progress had not been made within agreed timescales and where appropriate the target implementation date for those actions was extended.  Where targets were six months beyond the deadline, detailed reasons were provided in the submitted report.  

The report also included details of Veritau’s Quality Assurance and Improvement Programme (QAIP).   This included ongoing quality assurance arrangements and activities, annual self-assessment, external assessments at least once every five years, as well as an annual survey of senior management in each client organisation.

Veritau also provided a counter fraud service to the Council.  An annual report setting out counter fraud activity and performance was attached as Appendix 2 to the submitted report. 

In relation to further audit work on a number of allegations made by former Executive Members, the Auditor was asked whether that work had been concluded.  The Auditor confirmed that the audit field work was complete and the draft report was currently with management.  It was possible that further work might be required.  Once management had agreed the report it would be presented to the Corporate Affairs and Audit Committee, unless there was any referral to Standards Committee, which would take priority.

In light of weaknesses in governance arrangements identified recently by the External Auditors, the Chair asked how the Internal Auditor had provided an opinion of substantial assurance in relation to a report on an audit of Governance Arrangements published in September 2021.    The Internal Auditor explained that on the scope of the work undertaken for that particular audit, he was happy to provide an opinion of substantial assurance.  There were areas where the Council did need to improve but there was no conflict in being able to give substantial assurance to one audit, whilst also addressing those other areas where he was not able to give substantial assurance.

AGREED as follows that the:

1.     results of internal audit work and counter fraud work undertaken was received and noted.

2.     opinion of the Head of Internal Audit on the adequacy and effectiveness of the Council’s framework of governance, risk management and internal control was noted.

3.     significant control issues identified by internal audit which were considered relevant to the preparation of the Council’s Annual Governance Statement were noted.

4.     outcome of the Quality Assurance and Improvement Programme and the confirmation that the internal audit service conformed with the Public Sector Internal Audit Standards was noted.