To receive the report of the Executive Director Resources summarising the work that the Internal Audit and Risk Management Service (ARMS) has completed for the period April to July 2018.
RECEIVED the report of the Executive Director of Resources summarising the work that the Internal Audit and Risk Management Service (ARMS) had completed for the period 1 April to 30 June 2018.
1. This was the regular progress report that Christine Webster (Head of Internal Audit) presents to the Audit & Risk Management Committee. To report to the committee how the Internal Audit Service is progressing with the delivery of the Internal Audit Plan for the year.
2. This report presented the results of where the service are up to as at 30 June 2018. The chart at 3.4 (page 16) of the report details the proportion of the audit plan at different stages.
3. 52% of the plan had been started and 3% had reached completion. The teams target is to achieve 95% of the plan to draft report stage by the end of the year.
4. There had been some changes to the plan since it was first agreed and there have been 15 new assignments added with 2 to be deferred. Annex 2 (page 24 of the1st to follow agenda) details why those changes were made.
5. There were 2 audits that had been completed and are detailed at 3.6 (page 17 of the1st to follow agenda).
6. As detailed at chart 2 (page 17 of the1st to follow agenda) a summary of managers progress with implementing agreed audit actions from audit reports. From the audit reports completed over the past 2 years (and have been brought forward), the team have tracked 96 recommendations and 25 of those led to high risk areas. Overall, 44% of the high risk recommendations have been implemented, 11% of the medium risk ones and the rest have been progressed. This meant some action had been taken but not fully progressed. The team would continue to follow those until fully implemented.
7. In terms of the Counter Fraud Service, the team achievements have been summarised at Table 2 (page 18 of the1st to follow agenda). In terms of council house recoveries, the team have an annual target of 60 and 40 temporary accommodation recoveries to achieve during the year. The team are already ahead of the profile on that and have achieved 70 council house recoveries and 10 temporary accommodation recoveries.
8. In terms of savings, the team tries to identify savings for the council which could have been lost to fraud and are already over half of their target.
9. Christine Webster also oversees the Insurance and Risk Management Service and Risk Register. The remainder of the report was about Internal Audit quality assurance measures and table 3 (page 18 of the1st to follow agenda) provides targets aimed for and the achievements to date.
10. The following issues raised in response to the report:
a. Peter Nwosu raised some questions regarding agreed timescales with managers for implementing audit recommendations. He was trying to establish how many of the high risk recommendations were overdue, where a time was agreed but actually were overdue and behind schedule. It would be useful, that for the next presented progress report, the high risk recommendations that are overdue be identified to provide a sense of the overall risk exposure the council is carrying than expected. He felt the committee should have a line of sight given that these are high risk recommendations and overdue.
ACTION: Christine Webster (Head of Internal Audit)
Christine Webster clarified:
· As part of the audit reporting process, the team agrees with managers what a suitable target is to implement audit recommendations.
· Some of the high risk recommendations will be overdue. All the ones progressed had already passed the time set to implement and were already late and these were the ones being reported as they had already reached the target dates. 44% of the high risk recommendations equated to 25 and so less than half had now been fully implemented. Some of those may have passed their target dates and the remaining 56% were now overdue and not fully implemented.
· The team knew which high risk recommendations had not been implemented and are taking these back to departmental management meetings, assurance board and are looked at on a regular basis by the team.
· The 2018/19 Audit Plan Status (page 22-23 of the1st to follow agenda) detailed the audit titles and status. Including the 15 new assignments that had been added to the plan.
AGREED to note the progress made in delivering the Audit and Risk Management Service’s 2018/19 work plan and the outcomes achieved to date.