Agenda item

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.  Members’ attention was drawn to the recent internal audit reports issued in respect of the following –

Rhyl High School – The H:IAS referred to the award of a medium assurance rating which was a significant improvement on the previous audit which had resulted in school representatives being brought before this committee.  Feedback from the Headteacher and Governors had been positive and the H:IAS was confident that the school would address the issues that prevented it from receiving a high assurance rating.  Members were pleased to note the positive audit report and following a proposal by Councillor David Simmons it was agreed that a letter from this committee be sent to Rhyl High School congratulating them on their achievement.

Members considered school funds generally to be a particular risk area which could be exploited and queried the mechanisms in place to safeguard against that risk.  The H:IAS advised that schools had responsibility for managing those finances and could request an audit by the Council which would be charged for.  Particular elements such as record keeping formed part of a general school’s audit.  Councillor Martyn Holland asked whether a system could be established for schools in order to help manage funds and share best practice.  It was suggested that the School Finance Managers would have a role to play in that regard.  The committee agreed with the suggestion of the Head of Finance and Assets that an item be placed on the agenda for the School Finance Managers Network to consider as a means of progressing that issue.  In response to a question from Lay Member Paul Whitham the H:IAS confirmed that guidance was available for those managing school funds and work was being undertaken to produce a simple checklist.

High inherent risk from Corporate Risk Register (DCC006) – Members were advised that this audit did not require a full audit report but had been carried out to ensure effective management and a brief summary had been issued.

Public Realm – A general audit had been carried out and work was ongoing to address particular issues identified.  Councillor Martyn Holland referred to the problems regarding the roll out of the recycling and refuse collection service in the south of the county and queried the cost of the recycling programme and whether lessons had been learnt.  He also questioned whether value for money had been achieved for the recycling programme across the whole county and the existing process for monitoring performance.  The Head of Legal and Democratic Services advised that County Council had discussed the matter at their meeting on 4 December which had been referred to the Communities Scrutiny Committee for consideration.  The Chief Executive had also advised that an investigation would be undertaken and a further report could be submitted to County Council for consideration if requested by members.  The H:IAS added that a review of refuse collection had been included in the audit plan for 2013/14.  Members also briefly referred to issues regarding Trade Waste and the H:IAS advised that an audit report on Trade Waste would be considered at the committee’s next meeting.

Data Protection & Freedom of Information – Due to the low assurance rating an escalation meeting had been held with the Chief Executive and Lead Member to discuss the action plan.  As this item was a corporate issue actions spanned a number of departments which would be addressed over the coming months.  Work was currently ongoing to develop a new Data Protection Policy.  In response to questions members were advised that the audit covered both electronic and paper records and schools had also been included within the scope of the audit.

The H:IAS also drew members’ attention to the follow up of three Internal Audit reports where actions had not been completed within the timescale agreed and provided an update on the current position.    The three areas were (1) Strategic Human Resources, (2) Home to School Transport, and (3) St. Brigid’s School.  The audits would be reported to the committee’s next meeting and members were asked to consider whether they wished to invite representatives from those areas to attend.  In the meantime Internal Audit would continue to follow up the outstanding actions to try and ensure they were progressed as soon as possible.  Members agreed to consider the findings of the reports in the first instance before deciding whether to invite any representatives to attend.

Finally members considered progress against delivery of Internal Audit’s Operational Plan 2012/13 (Appendix 1 to the report) and raised the following issues –

·         Councillor Martyn Holland referred to the audit of IT Operations Management and queried whether the issue over the storage of backup tapes had been resolved.  Officers advised that there would be negotiation of space in another office location for the tapes and progress with implementing that recommendation would be checked during follow up of the report

·         in response to a question from Lay Member Paul Whitham, the H:IAS advised that the report submitted to the Performance Scrutiny Committee in September 2012 on School Balances would be available to access via the Council’s website

·         Mr. Gwilym Bury, Wales Audit Office Representative queried whether the ten days planned for the Flood Risk Management audit was sufficient given the recent flooding incidents.  The H:IAS explained the intention to focus the audit on the management of risk for which ten days would be sufficient.  Given the other ongoing investigations in relation to the recent flooding the audit would need to be scoped to avoid any duplication.  Mr. Bury suggested that the quality of the plans in place should be examined.

RESOLVED that –

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

(b)       a letter be sent on behalf of the committee to Rhyl High School congratulating them on their positive audit report and the significant improvements made, and

 (c)       an item be placed on the agenda for the School Finance Managers Network to consider whether a system could be established for schools to help manage funds and share best practice.