Agenda item

In accordance with the Public Sector Internal Audit Standards the Internal Audit Manager has prepared the attached Internal Audit Plan. It considers the areas for audit review and the availability of internal audit resources.

Members considered the Risk based Internal Audit Plan 2019/20 report, presented by Kathy Woodward.

Members asked questions, made comments and received responses as follows;

1.    Councillor Clark asked if the Internal Audit Team is based at Fenland Hall. Kathy Woodward confirmed that it is based at Fenland Hall and she operates as a Shared Service officer with the Borough Council of Kings Lynn and West Norfolk. The work is completely separate between both councils.

2.    Councillor Clark highlighted that one of the Council’s Corporate Directors will be leaving in the coming months and asked Kathy Woodward if she had any concerns over this from a risk based audit perspective. Kathy Woodward confirmed that from an audit perspective, she has no concerns. She explained that her focus is primarily on the effectiveness of the Council’s systems and as this is usually dealt with by Service Managers, she cannot see a risk in this. She added that Service Managers currently reporting to this Corporate Director will be reallocated to another member of the Corporate Management Team.

3.    Councillor Booth highlighted that Leisure Services falls under the remit of this Corporate Director and asked if resources are in place to monitor the new contract with Freedom Leisure adequately. Kathy Woodward explained that the Freedom Leisure contract is managed by a dedicated Contracts Manager who reports directly to the Head of Leisure Services. She added that the Head of Leisure Services will report into another member of the Corporate Management Team and if she believes there to be any issues with the reallocation of service areas, she will raise this.

4.    Councillor Clark stated that if the Council look to recruit a new Corporate Director this may take in excess of three months.

5.    Councillor Murphy explained that the Contracts Manager is responsible for the monitoring of both the Freedom Leisure contract and the Tivoli Contract.

6.    Peter Catchpole confirmed that the Corporate Management Team will reassess the management structure if necessary and highlighted that the current operational reporting structure works very well.

7.    Councillor Booth suggested that additional audits are carried out in relation to the Freedom Leisure contract as it is still in its infancy and contracts usually face the most issues within their first year. He asked if an audit could be carried out on a six monthly basis. Kathy Woodward explained that as the contract is new, the amount of days allocated to it is flexible. She confirmed that if further work was required, the Internal Audit Team have contingency days that could be allocated to this.

8.    Councillor Murphy explained that due to the size of Freedom Leisure, there should be little concern regarding the management of their contract with the Council.

9.    Councillor Booth asked if days allocated to the Traveller Sites audit (Appendix A of the Agenda Pack) should be reallocated to the Freedom Leisure Centre contract. Councillor Clark reiterated that Kathy Woodward has agreed to reallocate contingency days to this area if necessary.

10.Councillor Hodgson stated that the low risk rating given to Sports Development (Appendix A of the Agenda Pack) may be impacted by the closure of the Wisbech Indoor Bowls Club. He added that the Council are working hard to find a solution to this ongoing issue.

11.Councillor Clark reminded members that the closure of the Indoor Bowls Club was included in the original specification submitted by Freedom Leisure as part of the tender process.

12.Councillor Booth challenged the medium risk rating given to the monitoring of the Freedom Leisure contract and suggested that as this is a new contract, there may be an increased risk.

13.Peter Catchpole explained that the Freedom Leisure contract is subject to Key Performance Indicators (KPIs) and a Service Level Agreement (SLA). He added that the Contracts Manager regularly attends project meetings, monitors the KPIs and works closely with Freedom Leisure to ensure there are no issues. He confirmed that, if following the Council’s initial audit, there are any concerns the days allocated can be reconsidered.

14.Kathy Woodward reminded members that the Risk based Internal Audit Plan is used only as a guideline and if issues arise in any audit areas, days can be reallocated and areas reprioritised. She confirmed that any amendments to this will be bought back to the Corporate Governance Committee to provide assurance to members.

15.Councillor Butcher asked which areas are audited in relation to Sport Development. Kathy Woodward explained that this includes support and grants that are provided to schools in relation to Sport Development.

16.Councillor Butcher asked why Sport Development is considered a low risk area. Kathy Woodward confirmed that this is based on the number of transactions, the complexity of these transactions and the low level of funding this area generates.

17.Councillor Hodgson stated that in relation to the Housing Options audit (Appendix A of the Agenda Pack) he had attended the Overview and Scrutiny Panel meeting on 18 March 2019 and wanted to offer thanks to Clarion for their hard work in this service area.

18.Councillor Booth asked if any audit work has been undertaken on the Council’s new street lighting contract. Kathy Woodward confirmed that this work is ongoing at present and members will be provided with an update on this at the next meeting.

19.Councillor Booth asked if the Internal Audit Team contact the Parish Councils for their feedback on the new street lighting contract. Kathy Woodward confirmed that this is outside the remit of the Internal Audit Team.

20.Councillor Booth suggested that Parish Councils are contacted for their opinion on the street lighting contract. Councillor Clark highlighted that if the Parish Councils had any concerns, there are reporting mechanisms in place to deal with this.

21.Councillor Booth agreed but explained by carrying out a consultation, this would enable the Council to measure the success and delivery of the service to the Parish Councils and to ensure the contractors are carrying out repairs as per the SLA. Councillor Clark highlighted that this would create additional work for the Internal Audit Team and there is already a reporting mechanism in place.

Councillor Clark thanked Kathy Woodward.

The Corporate Governance Committee considered and noted the Internal Audit Plan for 2019/20.