Agenda item
INTERNAL AUDIT REPORT 2022-23
To receive the Internal Audit Report 2022-23 (copy enclosed).
Minutes:
The Lead Member for
Finance, Performance and Strategic Assets introduced the Internal Audit Annual
Report to the committee (previously circulated). She emphasised the real effort
that had been made by the audit team under difficult circumstances over the last
12 months.
The Chief Internal
Auditor guided members through the report. The annual report was an example of
good practice under the adopted standard of the Public Sector Internal Audit
Standards. Those standards required an annual report on Internal Audit to feed
into the statutory Annual Governance Statement.
The report
encompassed the work of the audit team for the previous year and provided
details of the work carried out by the auditors. He apologised to members
stating the overall opinion had not been included/ He explained his opinion was
submitted as part of the Annual Governance Statement which was to be presented
at the July committee meeting. Since the publication of the papers an amended
report had been circulated to members highlighting the change. For clarity the
Chief Internal Auditor read out his overall opinion as follows:
‘The Chief Internal
Auditor’s opinion is that the council’s governance, risk management and
internal control arrangements in the areas audited continue to operate satisfactorily.
While the scope of assurance work was reduced due to the staff issues and three
investigations, reasonable assurance can be given that there have been no major
weaknesses noted in relation to the internal control systems operating within
the Council.’
It was reiterated
to members the team dynamics during the last 12 months. The team had been
operating without a full complement for the majority of the year. He also
stressed the work that had been involved in completing the three special investigations.
It was unprecedented to have 3 in one year. Both these points had impacted on
the amount of planned audits completed from the original plan presented to
committee last year.
Members heard 43%
of the proposed work had been completed. 74% of the work carried out received a
high assurance, 26% received a medium assurance with no low or no assurance
ratings being issued. 3 advisory pieces of work had been completed, all of
which were satisfactory. 7 follow up pieces of work had been included on the programme
of work, the team had completed 6 of the follow up reviews.
Fraud and the
manner in which way it was managed by the authority continued to be reviewed.
Fraud was managed by senior officers within the council and any concerns was
initially investigated by the service and then internal audit for assistance.
The service should then report back to internal audit with the findings. Over
the last 12 months he confirmed he had not received any reports of fraud.
Every 2 years the
authority was required to carry out a piece of work for the National Fraud
Initiative, which looked at matching data. The most recent report conducted had
been provided to members at the time of completion. Details of the procedure of
matching data was provided.
The audit team had
performance indicators which included the draft report being issued in 10
working days and the final report being produced 5 days following agreement of
the draft report.
An area the team
had addressed that needed improving was the questionnaires following an audit
being returned. The team had looked at the form to make easier to navigate and
use. Hoping that would see an increase in returned questionnaires to the team.
The Chair thanked
the Chief Internal Auditor for the detailed introduction. The following points
were discussed further:
·
Whistleblowing
complaints were received by the Monitoring Officer who in turn shared any information
with the Chief Internal Auditor to decide the best way forward. At that point
it was looked at what internal audit can and should do and what can be farm
out.
·
A number
of audits had been carried forward. If any of the risks are still noted or
become a greater risk they will be get moved up the priority list. It was hoped
this next year the majority of audits would be completed. It would be a combination
of work carried over and those listed on 2023/4 programme of works. Audits in
all services during the year are conducted, regular meetings with heads of service
to prioritise the order of work took place.
·
The majority
of the work in relation to the special investigation work had been completed in
the office. Both special investigations resulting from whistleblowing, audits
were conducted on site.
·
Audit
had looked at the relationship arrangements between the authority and Betsi Cadwaladar University
Health Board and were confident the relationship with the board was still
effective. Once all investigations had been completed of the Health Board,
internal audit could ensure it has the correct assurance. Officers of the
authority had determined the risk associated to each area on the Corporate Risk
register. Members stressed their concern that the assurance related to CRR00021 on the Corporate Risk register was
green, High assurance. It was stressed the assurance was in relation to the communication
between the two bodies not on the performance of the health board.
·
Members
noted the no low or no assurance audits completed. It was stressed that based
on the work that had been completed that was the case. Working process are in
place for all audits, all reports are presented to the Chief Internal Auditor
before completion.
·
In
relation to some of the matching data fraud, it was often the case that other
authorities completed the final work, depending if fraud was evident in a given
authority.
·
Confirmation
that the counter fraud strategy and fraud response plan were due to be reviewed
in the next 12 months. Members asked that those findings be shared as part of
the internal audit update. Members were pleased to hear working with other
local authorities to review best practices was taking place.
RESOLVED that members note and comment on the Chief
Internal Auditor’s annual report and overall opinion.
Supporting documents:
- Report - Internal Audit Annual Report 2022-23, item 9. PDF 210 KB
- Appendix 1 - Internal Audit Annual Report 2022-23 V.1, item 9. PDF 546 KB