To update the Committee about the progress of internal audit work.

The Head of Audit Services presented his report to update Members on the progress of internal audit.  The following points were made in discussion:

·         In response to a Member query the Chairman stated on behalf of the Committee that there was a requirement to periodically review all the partner organisations the Council worked with and that this could form part of the Annual Governance Statement.  The Committee requested to be advised on the extent of the arrangements, for a list of the directors for the various organisations and to be provided with a brief outline of the governance arrangements in place.  The Chief Officer Finance and Commercial stated he would provide a short report for the meeting in July and that the report would form part of the Annual Governance Statement. 

·         It was noted that Hereford Futures was not listed on page 16 Appendix A to the report when referring to the Places and Communities Directorate.

·         The Committee was advised that 22 reviews were currently at the draft stage and the results would be brought to the next meeting.

·         The Committee was reminded of the four different ratings and the target for all organisations was adequate.

·         In referring to the Agresso system Members were advised that it was not at present performing as the Council would wish.  Currently the audit team were looking into how fraud issues could arise and the weaknesses in the system.  A detailed report had been compiled and it had been recognised that 16 IT controls needed to be put in place.  The Chief Officer Finance and Commercial assured the Committee that the issues would be addressed.

·         In answer to a question the Committee was reminded that KPMG provided support and experts to provide additional advice.  Substantial work had been done on reviews and any additional issues raised could be referred to the work plan.

·         The Committee was advised that the auditors had been asked to provide the lead for the Council on Health and Safety.  Specialist advice had been requested to review the system, as some weaknesses had been found.

·         It had been recognised there was a need to improve the Council’s current business continuity plans and an action plan was being put in place in order to support the long term strategies of the Council.

·         Risk management was generally seen to be ok across the Council.  Additionally ICT generally was rated as adequate.

·         It was noted that Hoople Ltd., had made a lot of progress in a short period of time with sound processes being put in place.

·         The Committee noted that a further draft report on Amey Wye Valley had been drafted but had not been finalised as contract negotiations were on going.  Members were informed that the Director was aware of the issues.  The Chairman of the Overview and Scrutiny Committee, who was in attendance and invited to speak by the Chairman, advised that the new contract proposals were to go before the Overview and Scrutiny Committee before final agreement by Cabinet. 

·         In referring to item 21 of the report relating to cash and deposits the Committee was informed it was adequate and that there were only minor issues.

·         The Committee was informed that two detailed reports on suspected fraud had been issued.

·         The Committee was advised that a full audit plan for 2012/13 would be presented at the next meeting of the Committee.

·         In response to a question Members were advised that work on adult social care was to be deferred and that frameworki was not an area it was proposed to look at.

RESOLVED:   That the report be noted.