Agenda item

To report the progress against the Internal Audit Plan 2020-21 for the period 1 April 20, including planned work until 30 September 20 and the resulting level of assurance and to provide an update to members on the resourcing issues of the Internal Audit Team

Members considered the Internal Audit Plan 2020 -21 Progress Report Q2, presented by Kathy Woodward.

Kathy Woodward confirmed that when the committee met in August 2020, they agreed to a shortened audit plan due to the Covid 19 pandemic and resourcing of the Internal Audit Team was discussed. She added that since that meeting a restructure proposal has been submitted and agreed by the Staff Committee, which included reinstating the Audit Manager to a full-time role and to also appoint a full-time Apprentice Auditor. Kathy Woodward explained that the restructure will provide a greater resilience to the team and the organisation. The Apprentice Auditor will gain a qualification and the post will last 2 years, but it is hoped that the post will be retained beyond that time. The staffing proposals will enable more days in the audit plan going forward and greater scope to support the Corporate Governance Committee    with its changing role in overseeing the Corporate Investment Strategy. Kathy Woodward explained that the current Section 113 sharing arrangements with the Borough Council of Kings Lynn and West Norfolk would also be terminated.

Kathy Woodward explained that work recommenced on the Audit Plan in September and highlighted the audits carried out since that time and those currently being undertaken. She explained that within the report she has

outlined the additional support that has been given during the first six months of the year considering the Covid 19 pandemic, which included work dealing with the discretionary grant scheme, small business grants and the test and trace isolation payments. Other work has been carried out regarding providing information for the Overview and Scrutiny ARP Review group, helping with the Care and Repair DFG grants scheme which was a request of the County Council as well as work in connection with the National Fraud Initiative

Kathy Woodward informed members that a positive audit report has been received from the DVLA regarding works carried out in conjunction with the councils abandoned vehicle process.

Members asked question, made comments and received responses as follows:

·         Councillor Clark stated that he is very pleased that the Audit Team will be receiving an additional resource and it provides an excellent opportunity for somebody to undertake the role.

·         Councillor Booth congratulated Kathy Woodward for her work regarding the restructure of the Audit Team and added that it will be important to ensure the new starter once trained is retained in post going forward.

·         Councillor Booth referred to the report and highlighted the recommendations at Appendix A and stated that there are three reports with medium recommendations but there are no themes shown or any detail in the boxes. Kathy Woodward explained that the audits shown are those which are conducted by our partner authorities from ARP     and the reason there have been no themes added is because there are so many but she agreed to provide a summary of those recommendations and what they relate to, outside of this report due to the number. Councillor Booth stated that he agrees with that information and would welcome the detail.

·         Councillor Booth referred to 3.4 of the report and questioned whether we are content with the prioritisation given to the next tranche of areas to be reviewed. Kathy Woodward stated that of those listed in 3.4, two of them are financial system audits which are always deemed as high risk, waste and recycling is also a high risk area and has to be audited every two years, CCTV and Street Scene Enforcement are on the list due to the  significant changes in operational models which occurred last year and the Traveller Site Rents and Repairs and income Debt Management Review are overdue audits from last year. Kathy Woodward explained that the other area of high risk is payroll which is always looked at after Christmas.

·         Councillor Wicks complimented Kathy Woodward for the work, which was carried out for the ARP Review Group, as it was very beneficial.

·         Councillor Wicks asked whether the changes that took place regarding the CCTV partnership working with Peterborough will have an impact on the level of work required. Kathy Woodward explained that it will increase the work in terms of background research and making sure all areas are covered but there is a template model in place, and the amount of time allocated has been increased in the plan by 2 days to cover that work.

·         Peter Catchpole explained that he had met with Kathy, as he had concerns as to whether we would be able to carry out sufficient audit work in order for her to be able to give an audit opinion at the next year end, which is important for both internal and external purposes and Kathy has provided that assurance that this will be achievable.

Corporate Governance Committee considered and noted the activity and performance of the internal audit function.