Agenda item

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

 

 

The Chief Internal Auditor (CIA) along with the Principal Internal Auditor introduced the report (previously circulated). 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 12 Audits had been completed since the last committee report in November 2023. The CIA emphasised how hard his team had worked to complete those audits, he stressed together with the demands of the 7 special investigations the officers were working tirelessly to complete the planned work alongside the additional audit. 11 out of the audits had received a high assurance rating and 1 medium. Details of each of the audits completed were included in the agenda report paperwork. He reminded Members they do receive each completed audit prior to the update report being presented to the committee and was happy to receive any questions via email when those report were circulated.

 

The CIA guided Members through the table of Wales Audit Office reports specific to Denbighshire County Council that were due to be undertaken in

2023/24. Members heard he produced a report for the Corporate Executive Team, Senior Leadership Team and Cabinet on all Wales Audit reports.

 

Members were guided through the details of the Estyn Visits and the other external audits completed on the authorities’ work and practices 

 

The CIA provided an update on the makeup of the department and was pleased with the progress the team were making in learning and developing skills.

Details of the programme of work and proposed audits was provided. Some of the initial programmed audits have had to be deferred due to the time auditors inputted into the seven special investigations. It was hoped 50% of the initial plan would be completed by the end of the financial year.

 

Members were guided to the performance measures section of the report. He stressed the team’s performance measures had improved over the last 3-4 months. He was pleased to report all but one performance area was exceeding target. The measure on ‘Percentage of audit agreed actions that have been implemented by schools’ had increased since last reported to the committee. It was stressed one member of the team had worked extremely hard to improve this performance area and was in regular contact with the schools in the authority.

 

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

 

During the discussion – 

·         The Chair thought it would be beneficial to share any comments the audit team circulated from Members comments and questions outside the meeting to all Members of the committee.

·         It was also agreed the information included on the external audits and reports was beneficial for Members and it was agreed to proceed to include in update reports.

·         It was disappointing to note the PLASC returns had been destroyed. Members heard training had been provided to ensure it did not happen again. It was pleasing for Members to note they were now being kept digitally and hard copies.

·         Denbighshire Leisure Limited currently had a Service Level Agreement with Denbighshire County Council this was due to cease this year. Going forward they have employed their own internal auditors. There was still the Member agreement in place and it allowed the authority to perform any audits it wished. Going forward DLL would form part of the annual audit plan.

·         Regular meetings with the Head of Education to discuss audits completed in schools and findings from each audit continued. It was difficult for officers to comment if the current restraints and financial implications would have an impact of schools.

·         Seven special investigations in one year was unheard of. The CIA stated he had never experienced that number of special investigations in one year. Going forward he hoped the number would decrease but could not say for definite, he did note the number had increased over the last two years. He stressed he would be placing some contingency in the audit plan for the next year.

·         The audit plan for the next year would be different to previous years. It would still form part of the Internal Audit Strategy due to be presented to committee in June 2024 but it would still include all the statutory elements required to produce an audit opinion.

·         The Chief Internal Auditor regularly attended Corporate Executive Team meetings to present reports and findings. The Executive team were keen to discuss any impacts on performance, impacts of governance around savings targets and how effective the authority was in delivery of those savings and would be a key focus for the internal audit team going forward.

·         Members thanked the audit team for the hard work and support provided to Denbigh High School over recent months.

·         The proposed work on blue badges involved looking at the process review to ensure the fraud risk was minimised. The proposed audit was a follow up audit to ensure all risks remained as low as possible. When completing the follow up audit, officers would look at the arrangements in place to support individual during the application stage.   

·         Members asked in the next update if the audits that had been replaced be indicated on the next update for reference. The Chief Internal Auditor confirmed he could include some of the areas which had been displaced in the next update report.

·         The Chair was pleased to note the upcoming audit due to commence on Programme and Project Management. The Chair noted the planned audit work of risk management, procurement– pretender stage and asset management and would provide members with assurance when discussing the Annual Governance Statement.

·         Members suggested that alongside the training session proposed on Internal Audit assurance ratings, information on scoping process involved to determine Internal audit.    

·         It was suggested to include the following items as areas of training – follow – up session on the committee’s self-assessment, function of audit, procurement rules and regulations and risk management.

·         There was functionality within outlook to notify the sender if the email had been received and read. When an audit was completed the initial draft report was first circulated to officers involved in the audit/ service once that report had been approved it was moved to a final version and circulated to a receipt list that was regularly.

·         The UK resettlement report the lead authority was the Home Office, a different reporting line that Welsh Government. Issues and concerns were raised through different regional working groups that both the Chief Internal Auditor and Principal Auditor attend. We do ask questions of the lead authority in which a response was required.

·         Members highlighted as part of the transformation agenda it may be worth looking at ways on introducing artificial intelligence. Officers welcomed the suggestion proposed by Members.

·         Further information would be presented to the committee in relation to the special investigations. Once investigations had been completed they would be presented to the committee in the form of a confidential report. Full compliance of each service internal audit had been involved with had been observed. Full details would be provided to the committee in due course.  

·         Members congratulated the team on the finding of £48k as part of the NFI exercise. Members suggested it may be a positive story that could share with the wider community to promote the good work the team had done.   

 

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