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.

South West Audit Partnership (SWAP) presented the report and highlighted that since the last update to committee 7 audits had been completed, 6 audits were at report stage and 7 audits in progress.  For the audits completed 3 audits were assessed as reasonable assurance, one as partial assurance, and three were advisory audit reports.

The savings targets internal audit had result in a partial assurance with 2 priority 2 findings.    SWAP confirmed that 6 savings targets had been looked at and these were 1 (adults and communities directorate); 1 (children and families directorate), 2 (economy and place), 1 (corporate support centre) and 1 (centrally held budget).  The savings target in children and families directorate was not going to be achieved and SWAP could not say what the impact that then had on the corporate risk register.  

The biggest challenge for SWAP was trying to balance the continuation of the work outlined within the internal audit plan and supporting the council with Covid-19 activities.   The council had paid out significant amounts of money and SWAP looked at the controls in place.   SWAP acknowledged that officers had been accommodating so that SWAP could continue their work but there had been some disruption to their activities. 

The committee praised the work of the teams in connection with the speed at which the money received from government had been passed to those who qualified.  It was acknowledged that there was a risk as there were very sophisticated frauds.   The council and SWAP used their access to various databases in order to check for fraudulent activity.    These steps were taken in order to minimise the risk but there was some inherent risk that monies may have been paid to fraudulent recipients. 

It was noted that the chief finance officer and SWAP would be discussing the internal audit plan for 2020/21 to consider the areas of high risk and which audits will not be completed.   The committee would be updated when audits would not be continued.

RESOLVED that:

(a)             performance against the approved plan was reviewed and any areas for improvement identified; and

(b)              assurances provided were considered and the recommendations which the report makes, and comments were provided as necessary.