The Chief Internal Auditor presented his Annual Report and Opinion on the System of Internal Control 2013/2014. The Accounts and Audit Regulations required that a local authority “shall maintain an adequate and effective system of internal audit” and, in order to meet the statutory requirements the Internal Audit Section has conducted audits to review the operation of the internal audit control systems. The work had been conducted in accordance with professional standards set by the Audit Practices Board, CIPFA and Institute of Internal Auditors.

He commented that significant attention had also been paid to risks in Performance Management, Anti-Fraud and Corruption, Corporate Governance, Risk Management, ICT Systems and Service Delivery. The Internal Audit Plan for 2013/2014 had been approved by the Committee on 19 March 2013 (minute 56 refers) and had been compiled on a risk assessment basis that included consideration of the sensitivity and complexity of all risks identified.

He was pleased to report that significant steps had been taken during the year to develop and implement more effective control and governance arrangements and embed an organisational infrastructure to serve the organisation more effectively and prevent a recurrence of previously reported control and governance issues. This had been acknowledged by the LGA Improvement Board and the Chief Internal Auditor reported that his overall opinion was that ‘Assurance can be given that there is a substantially sound system of internal control, designed to meet the Council’s objectives, and that controls are generally being applied consistently’. In response to comments from Members as to how Wirral now compared to its peer authorities, he suggested that as a general guide, Wirral would likely sit within a middle 60%. However, the audit opinion represented a significant and marked improvement from last year.

Resolved –

(1)  That the report be noted.

(2)  That the thanks of the Committee be accorded to the Internal Audit team for the exceptional quality of the work undertaken and for the clarity and conciseness of the reports presented to the Committee.