Agenda item

To examine the progress made between 13 September 2022 and 07 November 2022 in relation to the completion of the Internal Audit Plan for 2022/2023 including an update on Internal Audit Recommendations (report of the Head of Internal Audit enclosed).

Consideration was given to the report of the Head of Internal Audit to examine the progress made between 13 September 2022 and 7 November 2022 in relation to the completion of the Internal Audit Plan for 2022/2023 including an update on Internal Audit Recommendations.

Assurance Lincolnshire had replaced TIAA as South Holland District Council’ internal auditors from October 2022. The Acting Principal, Assurance Lincolnshire introduced the report to the Committee which included an update on the following points:

• key messages: two audits had been carried out; 41% of the annual plan had been completed;
• assurances: two reviews had been completed;
• work in progress: five audits were in progress; three of which executed by TIAA would come forward to the Committee through Assurance Lincolnshire.
• matters of interest to Audit Committee members;
• audit plan progress to date;
• changes to the original plan;
• status of audit recommendations;

Members considered the report and made the following comments:

• Members referred to the Housing Benefit cases examined and asked in overall percentage terms, what size the 62 sample cases had represented. 
  • The Acting Principal, Assurance Lincolnshire stated that the work was completed for external audit who decided the sample size to be audited and selected the sample. Should errors become apparent, a larger sample size may be investigated.

• Members requested the prioritisation of audits on both Leisure provision and the South Holland Centre before the end of the current administration. Should the planned Leisure audit be delayed, it would need to be prioritised for the beginning of the next audit cycle.
  • The Assistant Director – Finance had enquired whether Assurance Lincolnshire could accommodate the deferred Leisure audit before the end of the municipal year. The matter would be pursued with the Internal Audit Manager to ascertain whether this would be possible.

• Members referred to page 10 of Appendix A and sought clarification of ‘fieldwork underway’ for the Car Parks and Markets audit.
  • The Assistant Director – Finance responded that the report was due to be submitted imminently by T.I.A.A. and should come forward to the 19 January 2023 Governance and Audit Committee meeting.

• The Performance on Key Indicators for ‘percentage of recommendations agreed’ on page 7 of the report was set at 100%. Had Assurance Lincolnshire expected the target to be challenged by services?
  • The Acting Principal, Assurance Lincolnshire stated the target was standard and it was rare that recommendations were not agreed.

• Members noted the rescheduled SH2202 Human Resources audit on page 16 of the report and reiterated that requested extensions required the responsible officer to seek approval by the Governance and Audit Committee.

• Members commented on the content and format of the report:
  • Members requested that the Progress Report on Internal Audit Activity and the update on Internal Audit Recommendations come forward to the Committee as separate reports;
  • in general, contextual narratives were required throughout the report to enable the Committee to understand the current position and track progress;
  • detailed information was required for the Assurance review narratives: recommendations and action to be taken needed to be specified;  
  • the Committee would decide at a future meeting whether any further delay in the delivery of Recommendation 1 of the Private Sector Housing DFGs required an update to be provided by responsible officers/Northgate team.
  • members requested feedback on the handover/transition between T.I.A.A. and Assurance Lincolnshire;
    • The Assistant Director – Finance acknowledged the short transition period leading up the first report from the new internal auditors however feedback would enhance future iterations. A change of provider at the start of a financial year would have been preferred.

AGREED:

That the information detailed within the report be noted.