Decision details

The committee considered the Internal Audit annual report for 2013/14, as presented by Ruth Lowry, chief internal auditor. 

The report summarised the work of the Internal Audit Service during 2013/14 and the key themes arising in relation to internal control, governance and risk management across the council.

The opinion given in the report confirmed that only limited assurance could be given overall that the council operated generally sound systems of internal control.

The committee noted that there were some weaknesses in the council's systems' design and inconsistent application of controls which put the achievement of its objectives at risk and, in particular, significant weaknesses in the council's governance were revealed during the year.

The chief internal auditor commented that after a number of years in which management and staff resources had been reduced, services restructured, and operating process redesigned, it was unsurprising that the council's control framework now required more focussed management attention. A number of high profile issues had also impacted on the audit plan during the course of the year. These included the suspension and departure of the former Chief Executives of both the council and One Connect Limited (OCL) and a number of other matters relating to the Council's strategic partnership with BT PLC which had resulted in the return of many key services to the Council.

The committee was advised that the report had built on the matters reported in previous years which remained relevant, and matters which had been subject to discussions throughout 2013/14.

The assurance given in previous years was discussed. The chief internal auditor pointed to a gradual deterioration over recent years of the level of assurance she has been able to provide, and to the previously even spread between substantial full assurance and limited/ nil assurance.  That balance had now tipped and only limited/ nil assurance had been provided over the majority of control systems for 2013/14.

Members were reminded that feedback and assurances had been received from the executive directors for Children and Young People and Adult Services Health and Wellbeing in March 2014 on some of these areas.

Officers responded to questions raised by the committee in relation to the action being taken to raise the level of assurance awarded to a number of service areas. Officers also responded to questions raised in relation to the payments made to the former Chief Executive Officer of OCL.

Resolved: That the internal audit annual report to the authority for 2013/14 as set out at Appendix A to the report now presented be noted.