Agenda item

The IAM introduced the report and informed Members that 150 days of programmed work had been completed. She added that one audit report was still in draft, though there was no reason to expect that the assurance gradings or recommendations would change following response from management. It was noted that appendix 1 provided an overview of all assurance gradings, with executive summaries provided in appendix 2. The IAM stated that the one limited assurance grading had been given across the Consortium and related to the Counter-fraud and Corruption audit, which had been undertaken as a result of new guidance issued.

Questions and Discussion

       i.          Cllr C Cushing asked for clarification of the precise risks that the Committee and Council should focus on addressing. The IAM replied that this would apply to the wider framework for Counter-fraud and Corruption, covering all types of risk to consider whether the necessary policies were in place and training was adequate. She added that the audit suggested that the Council could be more proactive in seeking to address these issues. Cllr C Cushing followed-up by asking whether a simple tightening up of policies and procedures would mitigate the risks, or whether there were more specific actions that should be taken. The IAM replied that actions would be based on the updated guidance to provide greater oversight of the risk associated with fraud and corruption.

      ii.          The Chairman referred to the limited assurance and asked whether the IAM would be comfortable improving the assurance grading, once the necessary actions were complete. The IAM confirmed that subject to a follow-up procedure and evidence of the recommendations being implemented, she would be comfortable to improve the assurance grading, relative to the actions taken.

     iii.          The IAM reported that the Waste Management audit had also been completed, with a reasonable assurance grading and three important recommendations raised. She added that whilst the Consortium did not cover KLWNBC, information had been sought to provide assurance on the partnership working arrangements. ICT Change Control and Patch Management work has also resulted in two important recommendations, which related to standardisation of policies and procedures, and ensuring that changes were documented.

    iv.          The IAM reported that annual key controls work had been completed which highlighted a theme amongst reconciliations, which management had agreed to address.

      v.          It was reported that the draft assurance review of the Environmental Charter had shown very promising work with input from external consultants, which would be shared across the Consortium as best practice. The IAM suggested that a project board should be established to monitor key milestones.

    vi.          The Chairman referred to seeking assurances from Serco to ensure contractual compliance, and noted that the Overview & Scrutiny Committee had made similar recommendations, which suggested the issue was being given significant attention. He noted that there were no substantive assurances given throughout the year, and asked whether this should be a goal of management. The IAM replied that whilst management should aspire to receive substantial assurances, some areas audited would have been in a developmental stage and could not be expected to achieve this. She added that reasonable assurance ratings were still positive and should not be seen as a concern. In response to a question from Cllr C Cushing, it was confirmed that all Councils within the Consortium had the same assurance gradings, and Members should be comforted that NNDC was in a relatively good position.

RESOLVED

To note the Internal Audit progress within the period covered by the report.