Agenda item

To consider a report by the Head of Internal Audit (copy enclosed) which provides an update on the latest progress of the Internal Audit Service in terms of its service delivery, assurance provision, reviews completed, performance and effectiveness in driving improvement.

9.50am – 10.05am

The Head of Internal Audit Services (H:IAS) submitted a report (previously circulated) updating members on the latest progress of the Internal Audit Service in terms of service delivery, assurance provision, reviews completed, performance and effectiveness in driving improvement.

The H:IAS highlighted particular areas of the report as follows –

• progress in delivering the Internal Audit Strategy for 2012/13
• recent internal audit reports issued in respect of Ysgol Dinas Bran, Llangollen and Welsh Government – Adult Community Learning Provision 2011 – 12
• management response to issues raised by Internal Audit, and
• Internal Audit performance and key measures.

Members noted the good progress made against the Internal Audit Strategy and the need to revise the Strategy as appropriate in order to reflect the Council’s changing priorities.  The committee was also pleased to note the two positive audit reports received since their last meeting showing a high assurance rating.  The H:IAS advised of a number of audit reports which were close to completion which would be circulated to committee members shortly.  In terms of management’s response to issues raised by Internal Audit there were currently no actions outstanding or exceeding the three month deadline and the system was working well.  Finally reference was made to the key measures which were currently on target for completion.

During consideration of the report the H:IAS clarified particular issues in response to members’ questions thereon, particularly regarding the status and remit of various audit assignments.  The committee also discussed a number of specific issues with the H:IAS as follows –

• members considered the six high risks in the Corporate Risk Register and the H:IAS reported upon progress of work in those individual areas.  He reminded members that the Register would be updated on a regular basis and Internal Audit would assess whether the risks were being robustly managed and addressed.  The following two risks were discussed in more detail –

-          the risk that strategic ICT infrastructure did not enable improvement and support change – the Wales Audit Office had undertaken some work on the ICT Strategy which would reduce the amount of work required from Internal Audit Services

-          the risk that the time and effort invested in collaboration was disproportionate to the benefits realised – members highlighted the importance of this piece of work and concerns that some initial areas of collaborative working had ceased, and the need to ensure that collaboration was relevant and appropriate.  The H:IAS explained that Internal Audit work was usually planned three months in advance with no start date allocated for this audit as yet.  He was aware that some services had undertaken self assessments on collaborative working which could be utilised.  It was explained that the earlier collaborative projects had been initiated without the robust processes which had since been introduced under the Partnership Framework.  New projects required a business case and assessment by the Collaboration Board.  The Wales Audit Office Representative (AV) added that it was important to ensure clarity and mapping of processes for partnership arrangements and how they were managed

• with regard to Home to School Transport (a collaboration service between Denbighshire and Conwy) the H:IAS explained that Internal Audit had been asked to look at the service with Conwy’s Audit Team because of financial issues identified in Conwy.  He assured the committee that Denbighshire’s Home to School Transport service was good and that any problems identified had been in Conwy’s area.  In response to questions the H:IAS confirmed that any financial difficulties experienced by Conwy would not impact on Denbighshire and that the final audit report would be publicly available.  It was noted that there had been some negative publicity regarding Conwy’s service and concerns were expressed that Denbighshire’s reputation might suffer by association once the report was published.  In order to mitigate the potential for negative publicity it was suggested that a press release or similar approach might prove useful and that members be issued with a briefing paper.  It was also suggested that service performance be taken into account when the merits of collaboration were being assessed.  The H:IAS agreed to raise the management of those issues directly with the Joint Head of Highways and Infrastructure and advised of the intention to submit the final audit report to Conwy’s Audit Committee on 25 September.  Accordingly members agreed it would be timely for this committee to consider the report at their meeting on 26 September

• reference was made to the impact of welfare reform on the county and the Audit Manager confirmed that work had been carried out in Revenues and Benefits in that regard.  The Heads of Revenues & Benefits and Finance & Assets had been attending meetings of the Area Member Groups to share statistical information and discuss the impact on each area.  Such information was available to all members.

Finally the H:IAS advised that any issues members wished to raise should be brought to the attention of Internal Audit or the relevant service area to look into in the first instance.

RESOLVED that –

(a)       subject to members’ comments above, the progress report on the Internal Audit Service be received and noted, and

(b)   the final audit report on the Home to School Transport service be submitted to the committee’s next meeting on 26 September, 2012.