Agenda item

Internal Audit Update Report

To update the Committee on progress with the Audit Plan, January 2015 to May 2015 (report of the Audit and Risk Manager (Audit Lincolnshire) and Finance Manager (SHDC) enclosed)

Minutes:

Consideration was given to the joint report of the Head of Audit and Risk Management (Audit Lincolnshire) and the Finance Manager, which updated the Committee on progress with the Audit Plan January 2015 to May 2015.

 

Members noted that the purpose of the report was to:

 

·         Advise of progress being made with the 2014/15 and 2015/16 Audit Plan;

·         Provide details of the audit work during the period;

·         Provide details of the current position with agreed management actions in respect of previously issued reports;

·         Update the committee on any changes to the 2015/16 Audit Plan and any other matters that may be relevant to the Governance and Audit Committee role

 

Work was progressing on the remaining audits from the 2014/15 plan.  The annual report summarised the status of audits at draft or final report stage.  The following three audits were currently being finalised, were scheduled to be completed by the end of June 2015, and would be reported together with the 2015/16 planned work in future:  ICT Strategy and projects; ICT Software; and ICT Disaster Recovery follow up.

 

The following audit work had been completed and a final report issued:

 

Some improvement needed

 

·         Health and Safety

·         Housing in Multiple Occupation

·         Gas Safety Management

·         Key Controls testing – Accounts Receivable

·         Voids Management Payroll

·         CPBS Governance and Performance

·         Budget Preparation and MTFS

·         Bank Reconciliation


Major improvement needed

 

·         HRA Business Plan follow up

·         Information Governance follow up

 

The following 2015/16 audits were currently in progress:

 

·         ICT Strategy and project (2014/15 brought forward)

·         ICT Software (2014/15 brought forward)

·         ICT Disaster Recovery follow up (2014/15 brought forward)

·         Housing benefit subsidy testing

 

Audits at Draft Report Stage:

 

·         ICT Mobile working (with SHDC management)

·         ICT Security (with CPBS management)

·         Partnerships (with SHDC management)

·         Plant, Property and Equipment (with management/officers)

·         Housing Benefits (final clearance with CPBS and SHDC officers)

·         Accounts Payable (awaiting final management response)

·         Council Tax (awaiting final management response)

·         NNDR (awaiting final management response)

 

The following issues were raised:

 

·         Appendix 2, HRA Business Plan follow up – ‘As part of revised governance arrangements, the Governance and Audit Committee were tasked with undertaking a review of the draft HRA Estimates and Business Plan.  However, whilst an improvement, this is not a dedicated HRA group who would be able to provide regular and more detailed scrutiny’ – Had this task been undertaken?

o   This task had been deferred , but was currently being considered by the Corporate Management Team.

 

·         Appendix 2, HRA Business Plan follow-up – ‘Strategic and operational risks were to be updated following a recommendation in the previous review of the HRA Business Plan.  This was to ensure the risks around the delivery of the business plan were recorded and regularly reviewed.  This was reported as implemented within the audit recommendations tracker but this review found that risks relating to the HRA business plan are not included in the operational risk register.  This was highlighted to the Housing Landlord Manager who said that this was an oversight and is currently addressing this.  However, we did find that risks and sensitivities are included in an appendix which forms part of the HRA estimates presented to Members annually’ – had this been undertaken?

o   Internal Audit advised that clarification would be provided and members updated.

 

AGREED:

 

a)    That the report be noted; and

 

b)      That responses be provided to committee members on the issues raised.

Supporting documents: