Agenda item

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

 

A report by the Head of Internal Audit, which provided an update on Internal Audit’s latest progress in terms of its service delivery, assurance provision, reviews completed, performance and effectiveness in driving improvement, had been circulated previously.

 

The report provided an update on the following:-

 

·       delivery of our Assurance Plan for 2013/14 (Appendix 1)

·       recent Internal Audit (IA) reports issued (Appendix 2)

·       management’s response to issues we have raised (Appendix 3)

·       IA’s performance (Appendix 4)

 

Details pertaining to the delivery of the Internal Audit Assurance Plan 2013/14 had been included in the report and Appendix 1 provided a breakdown of the work undertaken during 2013/14, compared to the Internal Audit Strategy. It included assurance scores and number of issues raised for the completed reviews, definitions used to form the audit assurance and the ratings used to assess the risk-levels for issues raised.

 

Following the service move tendering for external contracts, IT problems, implementing EDRMS and working on special investigations, IA had prioritised projects deemed as ‘Essential Assurance’ to ensure completion to at least draft report stage by the 31^st March, 2014.  Some projects would be deferred until after the 1^st April, 2014 and form part of next year’s assurance work.

 

The final IA reports issued since January, 2014 had been included in Appendix 2.  Executive summary reports and action plans had been provided, together with, details of the colours for assurance ratings.  Management’s response to issues raised by IA had been summarised, and Appendix 3 detailed the follow up reviews completed since the previous report, including full details of the response to the Procurement of Construction Services follow up.

 

The HIA explained that IA measured its performance in two key areas:-

 

·     Provision of ‘Essential Assurance’

·     ‘Customer Standards’

 

Appendix 4 detailed IA’s performance to date for 2013/14.  IA were on target to deliver 100% of ‘Essential Assurance’ projects by the 31^st March, 2014, and were expected to achieve 100% on all ‘Customer Standards’ with two exceptions:-

·                 one project had been given 8 working days’ notice of a project commencement rather than the required 10 days.

·                 one project, due to work pressures, had been issued a draft report after 14 days rather than the agreed 10 days.  The delay had been approved rather than compromise the quality of the draft report.

 

The HIA explained that a further more detailed plan, based on the Freedom and Flexibility Structure, would be submitted to the May, 2014 meeting of the Committee.

 

In response to concerns raised by Councillor P.C. Duffy, the HIA explained that the school themed visits in respect of physical security/health & safety, procurement, safeguarding and School Fund management had been postponed due to excessive workloads.  However, they were scheduled to be undertaken as a matter of urgency.

 

Members considered the following final IA reports, as included in Appendix 2, and Management’s response to issues raised by IA in Appendix 3:-

 

Procurement of Construction Services:- The HIA explained that this was a follow up report requested by the Committee, and that progress had not been as prompt as anticipated and this would be pursued.

 

Mr P. Whitham endorsed concerns expressed by Councillor G.M. Kensler that staff employed in posts on a temporary basis, or in an acting capacity, had not always ensured that action plans were rolled out and could be viewed as a risk.  The HIA agreed to examine concerns raised by Councillor G.M. Kensler that Denbighshire did not maintain a corporate contracts register which could be used to address or resolve disputes with any of its contractors.

 

Concerns were expressed regarding the number of completion dates which had not been met, and to delays in updating and revising Contract Procurement Rules (CPRs) and Financial Regulations which may have expedited the failure to implement changes and actions.  The HLDS confirmed that the CPs had been forwarded to the respective services for comments and were now being processed by the Legal Department prior to being forwarded for approval by the respective officers and Committees.

 

The HIA informed Members that a further follow up report on Procurement of Construction Services would be submitted in July, 2014.

 

Blessed Edward Jones RC High School:-

 

In response to concerns expressed by Councillor B. Blakeley, the HIA confirmed that vast improvements had taken place within the school and particular reference was made to the significance of the implementation school’s financial recovery plan.  The Committee highlighted the importance of the financial stewardship of the school and the role of the Clerk to the Governing Body.

 

Members agreed that the Committee receive a follow up report on the school in July, 2014 which should include details of the Action Plan.

 

Financial Payments to Care Leavers:-

 

The HIA explained that concerns had been expressed by the Head of Service regarding the number of cash payments being made, and the Chair expressed concern that the budget within the service had been expended prematurely.

 

Mr P. Whitham invited attention to reference having been made to the current payment process being unstainable and the need for a review, and a decision being required for payment administration, and questioned if the examples provided related to the Freedoms and Flexibilities process.  During the ensuing discussion, the HIA agreed that a further progress report in respect of Financial Payments to Care Leavers be submitted to the Committee following the completion of the scheduled programme of work.

 

RESOLVED – that Corporate Governance Committee:-

 

(a)        receives and notes Internal Audit’s progress and performance in   2013/14.

(b)        notes the recent Internal Audit reports issued and follow ups carried out.

(c)        agrees that further update reports be submitted in respect of:-

-      Procurement of Construction Services

-      Blessed Edward Jones RC High School

-      Financial Payments to Care Leavers

(d)        requests that the Head of Internal Audit examines issues raised pertaining to the maintenance of a corporate contracts register.