Agenda item

To consider a report by the Chief Internal Auditor (copy enclosed) updating members on Internal Audit progress.

The Chief Internal Auditor (CIA) introduced the report (previously circulated). It was highlighted to members the dates on the report header should read January 2023. Members were updated on the Internal Audit Team’s progress in terms of its service delivery, assurance provision, reviews completed, performance and effectiveness in driving improvement.

The report provided information on work carried out by Internal Audit since the last committee meeting. It allowed the committee to monitor Internal Audit’s performance and progress as well as providing summaries of Internal Audit reports.

Confirmation that 7 Audits had been completed since the last committee meeting, all of which had received a high assurance rating. There had been six follow up reviews completed since the last update and summaries were included for information, all received a high or medium assurance ratings.

Members were guided through the table which provided details of the reports completed from the external regulators. Members were provided with details of the report status and links to access any papers.

Details of three Audit Wales reports specific to Denbighshire had been included for reference. A further list of intended work would be provided from Audit Wales at a later date.

Members heard 43% of the Internal Audit’s intended plan had been completed over the last 12 months. Due to recruitment and staffing issues over the 12 month period had impacted on the work completed. The department had been running at 66% workforce until February 2023. It was also noted 3 special investigations had been received in the last 12 months which impacted on officer’s time.

23 reviews had been completed, 17 received a high assurance (74%), 6 medium assurance (26%) and 0 no or low assurance ratings had been issued. Six out of the 7 listed follow up reviews had been completed.

The Chief Internal Auditor highlighted the audit agreed actions that have been implemented by service figure had been left blank because currently School reviews had not been entered on Verto meaning not all actions were picked up and secondly, we had noted that not all Services were updating their action status on Verto. It was stressed it had been raised as a concern of Internal Audit at a recent Senior Leadership Team meeting.

The Monitoring Officer added that along with the concerns raised by internal Audit, Strategic Planning and Performance Officers had also raised concerns with imputing actions on the system.

The Chair thanked the Chief Internal Officer for the detailed introduction.

During the discussion –  

·         The majority of the reviews not completed this year would be carried over to 2023/24. A plan would be formulated detailing the potential list of reviews hoped to be completed next year. The Annual Governance Statement would not be impacted due to the number of reviews being postponed. At least one review had been completed in each service area.

·         The priority of work for the list of reviews is completed with the Chief Internal Auditor and Heads of Service.

·         Internal Audit were satisfied that all Head Teachers had a risk assessment in place for those members of the Governing body that had not completed the DBS check. It had been raised with the HR team to discuss with all schools.

·         Throughout the year officers monitored the progress of completing reviews. All reviews that needed to be completed to provide assurance to committee were completed.  It was the responsibility of the Chief Internal Auditor to ensure those reviews were completed.

·         It was stressed the close working relationship between Section 151 Officer and the Chief Internal Officer had continued to discuss and monitor the completion of reviews to form an assurance for members.

·         The Financial Systems budget monitoring report had previously P3 action attached to it. Members heard the reason the action had exceed the 6month period had been due to the new general ledger implemented over the next 12 months. It had been agreed to be a 12 month review date.

·         Training of Internal Audit Officers would take place over the next 12 months and potentially would impact on the number of reviews completed. Members noted the issues around recruitment of officers and stressed it as an area of concern.

·         Schools had been looked at over the previous 12 months. A rolling plan had been implemented to ensure all schools in Denbighshire were audited over a 4-5 year plan. A full school audit would be completed. Estyn reviewed other areas, but did receive the reports completed by Internal Auditors.

·         The assurances that had been provided were realistic. Members heard some audits had been completed at officer request. This illustrated the open relationship between Internal Audit and other services of the authority.

·         A light touch audit in all service areas had been completed during the year. Going forward members heard the financial reviews would be split into two parts; high assurance reporting and low assurance.

·         Close working with the Monitoring Officer with all whistleblowing complaints would continue. After an initial review work would relevant departments to review areas that need addressing. Each case was reviewed on a case by case basis. The Monitoring Officer confirmed each whistleblowing complaint received was required to be consulted with the Chief Internal Auditor.

RESOLVED that, members note the Internal Audit’s progress and performance.