The Chief Internal Auditor, Mark Niblock, introduced his report that identified and evaluated the performance of the Internal Audit Service and included details of issues arising from the actual work undertaken during the period 1 January 2018 to 28 February 2018. Three items of note were brought to Members attention:

• Human Resources – HMRC IR35 (Deemed Employment)
• Key Corporate Contracts
• General Data Protection Regulations (GDPR)

The Chief Internal Auditor informed that internal audit were pleased to report that controls were firmly in place to ensure the correct status for employment type for contractors ensuring compliance with HMRC IR35 regulations. Internal audit were also able to confirm that the Council had complied with all legal requirements and as well as its own Contract Procedure Rules leading to the determination of the final partner for the Wirral Growth Company. With regard to GDPR, the Chief Internal Auditor stated that further review was planned prior to the 25 May 2018 deadline, and the findings would be reported to Members. Good progress was being made and comprehensive plans existed for the GDPR delivery and implementation.

The Chief Internal Auditor further informed that for this particular period there were no current outstanding audit actions, although it should be noted that a significant number of follow up audits were currently in progress which may impact on future reports. He added that performance indicators were on track, and feedback from clients was good.

A Member thanked the Chief Internal Auditor for ongoing work that had been undertaken by the internal audit team in respect of initiatives to counter fraud. 

A Member questioned the Chief Internal Auditor on the Council’s preparation for GDPR. The Head of Internal Audit advised that a detailed update would be presented later in the meeting, but key concerns currently centred on the deadline of implementation on the 25 May 2018 and penalties for non-compliance.

Another Member questioned the Chief Internal Auditor on the subject of HMRC IR35 and deemed employment, and asked how many off-payroll staff this referred to, and whether there was a trend towards this way of engaging staff. The Chief Internal Auditor informed that he would provide the requested numbers to Members of the Audit and Risk Management Committee.

Resolved – that the report be noted.