Agenda item

Ruth Lowry, chief internal auditor, presented the internal audit progress report for the nine months to 31 December 2013.

The report summarised the main issues emerging from the internal audit work completed to date. The report also set out the work performed against the annual audit plan for the year and the assurance assessment provided where work had been completed, including work to assess progress against management's agreed action plans.

The report highlighted the key issues impacting on the audit plan including the suspension and departure of the former chief executive and a number of matters relating to the council's strategic partnership with BT plc.

It was noted that whilst the Internal Audit Service was itself experiencing difficulties in completing the audit programme as planned, a number of service areas were likewise experiencing delays in implementing the actions agreed as necessary to improve internal controls. Examples of the delays identified during the year to date included the following, which arose from areas that the Internal Audit Service regarded as being of high or moderate risk and most of which had been given either limited or nil assurance:

·  Actions relating to initial assessments of direct payments to vulnerable adults and in particular to ensure compliance with the council's responsibilities under the Mental Capacity Act;

·  The use by staff of assessment tools for adults social care to ensure the objective and efficient calculation of individual service user budgets;

·  Action to support the operation of the Working Together With Troubled Families programme, data management in particular and the need to obtain access to data from different organisations, and the requirement to identify initial needs and track performance;

·  Actions supporting the children's social care case file audit process;

·  Actions to track the high priority ('starred') recommendations for children's social care made by Independent Reviewing Officers;

·  Action to ensure that a regular review of allowances is undertaken to ensure the needs of the adopted and fostered children and their families continue to be met.

The committee raised concern at the delays in implementing the actions agreed and requested that the Executive Directors responsible for the service areas concerned be invited to present progress reports to the next meeting of the committee on 31 March 2014.

The committee also raised concern at the controls in place in relation to Oracle HR/ Payroll and expenses systems which had been given limited and nil assurance respectively.  They endorsed the view set out in the report that there was a need to establish more closely the council's expectations of its managers, and to ensure that the council's Oracle HR/ Payroll and expenses systems and other systems were operated more effectively to meet the council's requirements. 

Resolved:  That: 

i)  The Executive Director of Adult Services, Health and Wellbeing and the Executive Director of Children and Young People be invited to attend the next meeting of the committee on the 31 March 2014 to present progress reports on the actions taken to improve internal controls in each of their respective service areas listed above.

ii)  The internal audit progress report for the nine months to 31 December 2013 as now presented be noted.