Agenda item

The Committee considered a report of the Chief Internal Auditor and Corporate Fraud Manager which provided the Chief Internal Auditor and Corporate Fund Manager’s assurance opinion on the adequacy and effectiveness of the Council’s internal control environment and presented the Annual Internal Audit Report for 2019/20 (for copy see file of Minutes).

The Chief Internal Auditor and Corporate Fraud Manager confirmed that he had given a moderate overall assurance opinion for 2019/20.  He noted that normally he would state no issues that would qualify that opinion, however, in light of COViD-19 pandemic his opinion was qualified, in terms of the impact upon the Council, with the opinion based upon the work undertaken prior to emergency measure being implemented.  He noted the additional strain on processes and control measures since implantation of emergency measure and as the situation was changing it was not yet possible to quantify the additional risk from the short term measures or the overall impact on the framework of governance and risk management.  He added the 2020/21 Audit Plan had been changed to reflect COViD-19 and referred to areas that would be addressed in terms of improvement, such as companies’ governance.

In response to a question from Mr C Robinson asked as regards the risks associated with working from home and maintaining the levels of control and supervision, the Chief Internal Auditor and Corporate Fraud Manager noted there were risks, however, the position was not hugely exposed.  He noted that a large amount of testing over the next 6-12 months would help ensure the controls remained in place.  Mr C Robinson noted he felt that would be an area to focus on, the ability to operate the controls already in place being key.

Councillor O Temple asked as regards the risks associated with the sudden influx of monies relating to COViD-19 and the need to pass that money on quickly and asked if a historic review would look back at this issue in terms of value for money. 

The Chief Internal Auditor and Corporate Fraud Manager noted that there was work set out within the Internal Audit Plan for 2021 to cover issues regarding business grants, Area Action Partnership community funding and all of the funding that had to go out at speed.  He noted he had been consulted by the Head of Finance and Transactional Services at the time to illustrate what controls were in place and the Chief Internal Auditor and Corporate Fraud Manager had mentioned the areas he would then wish to come back and carry out historical reviews.  He added that the Fraud Team were working proactively as regards carrying out checks in terms of the grants mentioned.  Councillor O Temple noted those historic reviews would come back to Committee and thanked the Chief Internal Auditor and Corporate Fraud Manager.

Mr M Kirkham, Partner, Mazars - External Auditors asked as regards the areas of weakness that stemmed from the ineffectiveness of internal controls and what the opinion of the Chief Internal Auditor and Corporate Fraud Manager was in terms of the numbers within the Statement of Accounts, to be considered by the Committee at Item 13.  The Chief Internal Auditor and Corporate Fraud Manager noted he did not feel that there was a material impact on the Statement of Accounts, and he did not feel there was any need for concern.

Resolved:

(i)   That the content of the Annual Internal Audit Report for 2019/2020 at Appendix 2 be noted;

(ii) That the overall ‘moderate’ opinion provided on the adequacy and effectiveness of the Council’s internal control environment for

2019/2020 be noted.