Decision details

The Committee considered the Internal Audit annual report for 2014/15. 

The report summarised the work of the Internal Audit Service during 2014/15 and the key themes arising in relation to internal control, governance and risk management across the council.

The Committee was informed that the Head of Internal Audit could provide no overall assurance for 2014/15. The level of assurance provided had gradually deteriorated since 2010 and in light of the exceptional circumstances of the last two years, which were expected to continue into 2015/16, the Internal Audit Service had been unable to complete a risk-based programme of work in 2014/15 to support an opinion on the council's overall framework of governance, risk management and control.

It was noted that at the Management Team's request internal audit work during 2014/15 had been directed towards re-assessing key areas of control weaknesses and following up the actions agreed by management to improve controls across a number of systems and services identified in earlier years' reviews. A senior member of the team had also been seconded out of the Internal Audit Service from September 2014 onwards to support management in assessing the actions taken in key risk areas.

This work having been undertaken, the Head of Internal Audit was able to provide substantial assurance that, with only one exception, appropriate efforts had been made to rectify the controls over all areas of high and moderate risk. Substantial assurance had also been provided that the controls over two high risk financial systems – general ledger and treasury management – as well as the payroll and central accounts payable systems, were adequately designed and operating effectively.

Council officers and the External Auditor responded to questions raised by the Committee in relation to the gradual deterioration in the level of assurance provided by the Head of Internal Audit, the targeted work on behalf of the Council's Management Team and the effects and implications of the Council's transformation programme and general downsizing, as well as the support and training that would be made available to the new Heads of Service.

Resolved: That the Internal Audit annual report to the authority for 2014/15, as set out at Appendix 'A' to the report now presented, be noted.