Agenda item

The Committee considered a report of the Chief Internal Auditor and Corporate Fraud Manager which informed members of the work carried out by Internal Audit during the period January to March 2014 ( for copy see file of Minutes).

The Chief Internal Auditor and Corporate Fraud Manager advised that 68% of reviews were complete to date so the service were well on the way to achieve the 90% target.  He added that no draft reports were outstanding from management and 100% of recommendations had been accepted by management.  This figure was up from 97% last quarter and the aim was to hit 100% in future.  He informed the Committee that 532 actions had been raised and 91% had been implemented.  This figure was way in excess of the CIPFA benchmarking data of 70-80%.  He concluded that 2 audits had now been finalised.

The Corporate Director, Resources commented that the current performance figures show how much Internal Audit had been improved and said that credit should also be given to service grouping management teams.  They have encouraged their service delivery by advising where there are weaknesses.  The profile of the Audit Committee had been raised with regular reports to full Council and holding senior officers to account.

With regards to the banking contract, the Corporate Director, Resources advised that the current contract with the Co-operative bank runs until March 2016 but that a new procurement exercise is well underway to secure a new provider.  A preferred bidder would be nominated by November, allowing the authority ample time for the transition process.  The Chief Internal Auditor and Corporate Fraud Manager said that since Internal Audit were involved with the Banking Contract team they had recommended some improvements to controls.

Members discussed in detail the social responsibility of the new contract and whether the new bank would consider raising awareness levels in schools about credit ratings, credit cards and money management.  Members were concerned that it was a fine line balancing act between a reputational risk to the Council and the commercial aspect of why the new bank would win the contract.  The External Auditor added that through the Social Value Act, Mazars offer training and work for young people in the Audit process.

The Chairman thanked all staff involved in the Internal Audit process and the Corporate Director, Resources for his guidance.

Resolved:

1.         The amendments made to the 2013/14 Annual Audit Plan be noted.

2.         Work undertaken by Internal Audit during the quarter ended December 2013 be noted.

3.         Progress made by service managers in responding to the work of Internal Audit be noted.