Agenda item - Internal Audit update (including amended audit plan)

Report of the Executive Director, Finance & Resources (copy attached).

1)           That the Audit & Standards Committee notes the audits that have been carried out to date.

2)           That the Committee approves the proposed changes to the audit plan.

45.1      The Committee considered a report of the Executive Director, Finance & Resources that summarised audits that had been carried out to date and proposed changes to the audit plan.

45.2      Diane Bushell noted that an unplanned audit of emergency accommodation had been carried out following concerns raised by a member of the public that had found required improvements. Diane asked if the council inspected emergency accommodation and if the fault would have been found had it not been reported by a member of the public.

45.3      The Head of Internal Audit clarified that emergency accommodation was due to be considered in the 2017/18 Plan and had been brought forward in response to the concerns reported. The council did inspect its accommodation however there were issues regarding the length of time it took for problems to be rectified. Furthermore, the audit had uncovered issues relating to the procurement of contracts that would be revisited.

45.4      Councillor Sykes stated that he understood that agreement had been reached with Mears that they would contribute funding to the council for  a Quantity Surveyor post and asked if that had happened. Councillor Sykes asked how issues raised by members of the public were balanced with the requirement to complete the plan.

45.5      The Head of Internal Audit confirmed that the council now employed a Quantity Surveyor for responsive repairs that was funded through the Mears partnership. Furthermore, a review of the partnership agreement was underway and the outcome reported to a future meeting. In relation to reports from members of the public, the Head of Internal Audit explained that this was balanced on a case by case basis with an element of contingency within the audit plan for such matters. Any decision upon whether to proceed with investigation was based upon a risk assessment of the issue or area of concern raised.

45.6      Councillor Druitt noted his surprise that City Parks had been deleted from the audit plan as there would likely be significant changes to the service in coming months. Councillor Druitt asked if the deleted Housing Repairs- Capital Programme (general) audit related to Mears Ltd. 

45.7      The Head of Internal Audit stated that the audit plan broadly related to those issues on the Risk Register and to expenditure and Parks may be included in the following 2018/19 year. An audit on the Mears Housing Repairs and Capital Programme had been brought forward to the 2016/17 Plan and the 2017/18 work would be a specific review of housing repairs capital works.

45.8      Dr Horne asked if it was expected that the Audit Plan for 2016/17 would be delivered to schedule.

45.9      The Head of Internal Audit confirmed that it was expected for 90-95% of the Plan to be delivered. A completion rate of 100% was never expected as some items became redundant through the period of the audit plan and in his experience, a completion rate of 90-95% was standard.

45.10   RESOLVED-

1)           That the Audit & Standards Committee notes the audits that have been carried out to date.

2)           That the Committee approves the proposed changes to the audit plan.