Agenda item

This interim report summarises the work of Internal Audit during the first six months of 2013/14.  The purpose of this report is to enable the Committee to consider the activities of Internal Audit during the six month period to 30 September 2013 and determine whether there are any matters that they wish to draw to the attention of the Cabinet and/or the County Council. 

Declarations of Interest:

None.

Witnesses:

Sue Lewry-Jones, Chief Internal Auditor

Diane Mackay, Audit Performance Manager

David John, Audit Performance Manager

Key Points Raised During the Discussion

1.    Chief Internal Auditor introduced the report, explaining that it was a summary of activity within the Internal Audit function, rather than a summary of Audit findings.  She confirmed that Internal Audit was on track to meet the Annual Audit Plan.  The Chief Internal Auditor suggested that the increased proportion of ‘effective’ audit opinions and ‘green’ assessments of Management Actions showed real improvement as a result of audit focus.

2.    Members questioned whether the increase in ‘effective’ audit opinions was because the Council was improving or because the auditors were getting softer.  The Chief Internal Auditor stated that she cautiously felt that the Council was improving.  The Audit Plan was based on identifying areas of risk.  She pointed out that two reports since the end of September 2013 had been found to need major improvements and the full-year results could not yet be forecast.  However, if the full-year results still showed an increased proportion of ‘effective’ audit opinions, Members may wish to challenge whether the Audit Plan was focussed on the right areas.  Officers also pointed out that an audit is only a snapshot in time and can only provide a certain amount of reassurance.

3.    Members suggested that the percentage of audit days spent on key financial statements had been low during the first half of 2013/14.  The Chief Internal Auditor confirmed that most financial systems were tested during the second final quarter of the year so she was not uncomfortable with the current statistics. 

4.    In response to a query about the marking up of pot holes and the lack of follow-up, the Audit Performance Manager informed the Committee that a report was going to Environment & Transport Select Committee on changes to timescales for dealing with pot holes. 

5.    Members asked whether there was any difference in the management style since Kier took over the Highways contract.  The Audit Performance Manager suggested that the handling of the contract was largely the same although there is a different name.  The IT system was improving but it was a slow process.

6.    There was a question regarding the possibility of a follow-up audit of gully cleaning.  The Audit Performance Manager confirmed that a report was going to Environment & Transport Select Committee shortly which picked up on this issue and that Internal Audit would address it when it next looks at the contract.  However, she had heard that there had been improvements. 

7.    In relation to the Transport for Education Management Action Plan (MAP), a Member asked why the production of clear written procedures for SEN staff had been delayed until after data cleansing had been completed.  Officers explained that the data cleansing was already underway and, since the same staff would be involved in producing the written procedures, they had prioritised the data cleansing.  There was concern at the explanation of resource constraints preventing SEN officers from being present at SEN transport reviews.  It was agreed that the Audit & Governance Committee should receive a further report on the Transport for Education MAP in March 2014, inviting officers from the service to attend (Recommendation Tracker ref: A38/13).  The Chairman also agreed to write about his concerns to the Chairman and Vice-Chairman of the Children and Education Select Committee, asking them to monitor the situation (Recommendation Tracker ref: A39/13).

8.    A Member queried why tree stumps were left behind when a tree was removed.  The Audit Performance Manager informed the Committee that Council policy is to leave the stumps as they stop people from parking on the verges.  The Chairman agreed to ask the relevant Cabinet Member about the policy (Recommendation Tracker re: A40/13).

Actions/Further Information to be Provided:

      i.        Audit & Governance Committee to receive a further report on the Transport for Education MAP in March 2014, inviting officers from the service to attend the meeting.

     ii.        The Chairman agreed to write about his concerns with regard to the Transport for Education MAP to the Chairman and Vice-Chairman of the Children and Education Select Committee, asking them to monitor the situation.

    iii.        The Chairman agreed to write to the Cabinet Member for Transport, Highways and the Environment to query the Council’s policy on tree stumps.

Resolved:

To NOTE the report and raise matters with Cabinet Member and Select Committee Chairmen as discussed above.

Next Steps:

The Chief Internal Auditor’s Annual Report for 2013/14 would be presented to the Committee in May 2014.