Agenda item

The purpose of this report is to give an opinion on the adequacy of Surrey County Council’s control environment as a contribution to the proper, economic, efficient and effective use of resources. The report covers the audit work completed in the year from 1 April 2019 to 31 March 2020 in accordance with the Internal Audit Strategy for 2019/20.

Witnesses:

David John, Audit Manager

Russell Banks, Chief Internal Auditor

Anna D’allessandro, Director – Corporate Finance

Key points raised during the discussion:

1. The Audit Manager introduced the report and provided Members with a brief summary. Members noted that the purpose of the report was to give an opinion on the adequacy of the council’s control environment as a contribution to the proper, economic, efficient and effective use of resources. The report covered the audit work completed in the year from 1 April 2019 to 31 March 2020 in accordance with the Internal Audit Strategy for 2019/20. Officers stated that this year an overall opinion of reasonable assurance had been given which was an improvement on the previous year. Members note that Pensions Administration and Health and Safety would continue to be a focus for the service.
2. Members of the Committee stated that they were happy with the content of the report and that it was positive the council was moving in the right direction. 
3. The Committee sought further information on the situation around Pensions Administration and the actions which had been taken. The Director – Corporate Finance confirmed that the service was now within her remit and provided a brief overview. Members noted the complexity of the situation as the pension service dealt with six funds and therefore a lot of work needed to be done to make positive changes. Sonia Sharma had been engaged to act as Programme Manager and currently managed five to six different streams of work to turnaround the service. The Committee agreed to invite the Programme Manager to the next meeting to brief Members on work undertaken on Pensions Administration and the agreed approach. Further to this, Members noted that a follow up audit on Pensions Administration would likely be held in quarter four of 2021.
4. Members of the Committee had a discussion based on the details of antifraud and corruption which were outlined in the report. Officers stated that 19 allegations were not an unusually high number and that work was ongoing to ensure the services were aware of the right processes to follow when dealing with a potential antifraud or corruption situation.
5. Members noted that some internal audits had received ‘no opinion’ and asked for additional information of why no opinion was given. Officers stated that as a service, Internal Audit were doing more proactive work to support the council by providing advice to services and therefore a formal opinion would not be appropriate. Officers further stated that this would be clearer in future reports and they may potential change ‘no opinion’ to something outlining ‘advice only – no formal opinion’.
6. Members stated that it may be beneficial to better promote the work of Internal Audit internally and externally. Officers stated that this was an area being investigated by the Counter Fraud team as it would be positive for their work to raise awareness.
7. A Member of the Committee said there was a need to use clear and easy-to-understand language when explaining technical matters within the report. 

Action/Further information to note:

A22/ 20 - The Committee agreed to invite the Programme Manager to the next meeting to brief Members on work undertaken on Pensions Administration and the agreed approach.

RESOLVED:

The Audit and Governance Committee:

(i)               Noted the work undertaken and the performance of Internal Audit in 2019/20 and the resultant annual opinion of the Chief Internal Auditor; and

(ii)               Did not there were any matters that the Committee wished to draw to the attention of the Cabinet or full Council;

(iii)            Consider whether the Council’s arrangements for internal audit have proved effective during 2019/20