To update members on the progress of internal audit work and to bring to their attention any key internal control issues arising from work recently completed. To enable the committee to monitor performance of the internal audit team against the approved plan.

To be assured that the level and range of activity within the proposed revised annual internal audit plan is sufficient to provide assurance over the council’s corporate governance arrangements and provides appropriate coverage of key business activities, associated risks and risk management processes.

SWAP presented the report and highlighted:

·        Three audits had been completed; 2 were at report stage and that 9 were in progress.

·        An additional audit in connection with commissioning and value for money – BBLP had also been completed.

Procurement Cards

Following a query from a member of the committee, the corporate finance manager confirmed that an email reminder had been sent out to 130 people who possessed a procurement card as this was the most appropriate way to undertake the action.   A sharepoint site had now been set up for procurement card holders to upload receipts.    There were other controls in place which included testing by the team.   Spend had always been monitored but receipts had not been checked. 

If there was a failure to follow the appropriate processes, the advice from internal audit had been to monitor the situation for 3 months and if there were persistent offenders then the appropriate HR process should be followed.  It was also noted that the relevant line manager would be notified at an early stage.  It was noted that the maximum per month that could be spent was £15k with a single item maximum of £5k.  Any extraordinary spend would also be highlighted.

It was confirmed that managers are trained and do understand their financial responsibility.  

Commissioning and Value for Money – BBLP

The number of recommendations and findings in connection with the commissioning and value for value – BBLP audit did not necessarily correlate with the findings of the external consultant report which had been presented to Cabinet on 24 September 2020.   SWAP confirmed that they had seen the draft external consultant’s report.  It was noted that there were links between the two reports and that Cabinet would be monitoring the improvement plan in six months’ time.    SWAP indicated that there could be a request at some point from the Chief Finance Officer as to the progress on the implementation of the external consultant’s recommendations. 

As it was approaching the 3 hour time limit on public meetings, it was agreed that meeting would continue to 1.45 pm but that the Energy from Waste item and the work programme would be deferred to the meeting due to be held on 14 October 2020.

Following a query from a member of the committee, it was explained that due to Covid-19 there had been delay with regard to the decision in connection with the contract extension.   However, it was confirmed that this decision would be completed in an appropriate fashion by the November 2020 deadline.   The chief finance officer reminded the committee, that Cabinet had considered a performance report in connection with BBLP. 

In response to a query from a member of the committee, it was agreed that the chairperson and solicitor to the council would consider requesting that the General Scrutiny Committee scrutinise the council’s preparedness for Brexit as it was a risk to the council.   It was noted that the critical details were still awaited from government. 

Revised internal audit plan  ...  view the full minutes text for item 10