To update Members on the work status and bring to their attention any key internal control issues.

The Chief Internal Auditor informed the Committee of the key issues in the Annual Governance Statement at Appendix 1 to the report advising that considerable action was taking place and that it was expected that by the next meeting of the Committee the issues would be cleared.

Regarding Appendix 2 item 40 – this item has been considered for some time and it was agreed to put this as part of the inventory audit by Audit Services.  The Chief Internal Auditor to agree the scope of the audit with the client and a report to be brought back to the next meeting. 

The Chairman informed the Committee that after examining Appendix 2 to the report at the briefing meeting he had requested that officers, when dealing with the follow up to resolutions and recommendations, to no longer refer to any of the previous officers that had been dealing with the item as it was no longer relevant.

In discussion the Committee made the following points on the Audit Services Assurance report:

• Items 41 and 47 of Appendix 2 be closed and removed from the schedule. 
• Item 42 Appendix 2 – had a completion date of 30 June, however, now into September and still not completed.  Director of Resources to speak with the Monitoring Officer on this matter.
• Item 67, 92, 96, 111 and 114 of Appendix 3 – to be closed.
• Items 89 and 90 Appendix 3 – to receive updates at the next meeting.
• Item 108 Appendix 3 – Members enquired as to when the letter would be circulated giving details of the recommendations.  The Director apologised to the Committee for the delay and would ensure that it was brought to the next meeting.

Points made by the Chief Internal Auditor:

• Advised the Committee regarding Item 113 of Appendix 3 that comments had been received from the JMT, but in addition Members needed to consider the proposed revisions to the financial procedure rules, which would be presented to Cabinet and Council.  A report would be presented to the Committee following Council approval of the revisions. 
• In referring to page 6 of the report – Fundamental Systems – this would form part of the next report to the Committee.
• Advised the Committee that there was an unsatisfactory audit report on car park income and the Chairman had received a copy of the report.  The anomalies were due to new officers in post and inadequate procedure notes in place.  A thorough check was carried out for fraud with none detected.  The Head of Service has worked with staff to provide comprehensive procedure notes which are now in place. 
• Regarding Governance and anti fraud the National Fraud Initiative 2010 is in progress, members will be kept informed of progress.
• Establishments the committee was advised that reports were in draft with the clients and there would be a follow up at the next meeting.
• Funding – page 7 paragraph 11 of the report.  Six recommendations were partly completed and five not completed, following the audit visit assurance has been provided by the head of service that all recommendations have been actioned.

RESOLVED: That the report be noted.