Issue - meetings

INTERNAL AUDIT UPDATE

Meeting: 16/11/2020 - Audit and Risk Management Committee (Item 5)

5 INTERNAL AUDIT UPDATE pdf icon PDF 101 KB

Additional documents:

Minutes:

Mark Niblock, Chief Internal Auditor, introduced his report that summarised the work of the Internal Audit Service for the period 1 April to 31 October 2020, the report identified the significant impact of the Covid19 pandemic on scheduled audit work and included an analysis of planned work for the remainder of 2020/21. The items of note were:

 

  • The Impact of Covid19 on the Internal Audit Plan 2020/21
  • Internal Audit Activity for the year to date
  • Planned Internal Audit work for the remainder of the year; and
  • Items of note arising from audit work undertaken.

Details of audit work undertaken in these areas and actions arising were provided to the committee.

 

The Chief Internal Auditor provided a brief update on internal audit activity over the reporting period, as attached at Appendix 1 to the report, and summarised progress being made by officers to address identified issues.

 

In response to questions from Members of the Audit and Risk Management Committee the Chief Internal Auditor informed that the Council continued to face significant challenges the forthcoming year and he and his team were discussing with colleagues, external bodies and partners ways to address these. He added that there was increased emphasis on the work involving the Wirral Growth Company – Governance and Financial aspects as a result of aspects of issues such as the loss of value commercial property arising from Covid19

 

Members further questioned the Chief Internal Auditor on his report, and the Director responded accordingly. Subjects included:

 

  • Work undertaken in respect of the Birkenhead Commercial District to assess financial risk for the project; and
  • Concerns expressed by Members re Woodchurch Road Primary School budget overspend. Identified as a combination of a number issues that included school reporting arrangements to Governors, and lack of challenge and evaluation of information. Limited service support purchased by the school.

 

The Director of Resources also took the opportunity to respond to Member questions on key financial issues faced by the Council as a result Covid-19. These included work already undertaken to ensure the sustainability of the Council’s finances. These included:

 

  • Regular reporting to the Policy and Resources Committee (7 October, 10 November)
  • Significant difficulties to deliver savings and create income. Some funding from Central Government (but not 100%). £20m gap as at Q2 for this year.
  • Council borrowing, and a 5 year recovery plan, to ensure a financially secure footing in the future.
  • £70m of funding passported to local business; and
  • Staff redirected to work on Covid, and impact on the renegotiation of contracts and/or delivering savings.

 

RESOLVED – That

 

1)  the report be noted; and

 

2)  the revised Internal Audit Plan for 2020/21 be endorsed.