The Chief Internal Auditor presented a report which identified and evaluated the performance of the Internal Audit Section and included details of any issues arising from the audit work undertaken during the period 1 November to 31 December 2012. He provided details of the following items of note concerning audit work undertaken, that were reported in order of risk, in relation to –

·  Adult Social Services: Appointeeships

·  CYPD: Learning Care

The findings of audits conducted in these areas had identified significant issues and minimal assurance opinions provided. However, the departments had responded positively to the reports and were implementing recommendations to address concerns.

·  Adult Social Services: Personal Budgets

Early indications were that progress was being made to address weaknesses within the revised timescales previously reported (minute 38 (26 November 2012) refers). More detail would be provided following completion of the work and he suggested that Members may wish to consider inviting the Director of Adult Social Services to provide a brief on this, following the outcome of the follow up work.

He commented also that to address similar issues within DASS, IA had been providing training for managers regarding building effective controls.

·  Information Governance

Following issues previously identified (minute 34 (26 November 2012) refers), he commented that an Information Assurance Policy would be presented to the Cabinet in February 2013. Following this, progress would be made in the implementation of audit recommendations.

·  Adult Social Services: Bad Debts

IA was currently undertaking work as part of a multi-disciplinary team, focusing at present on the processes for charging, collection and recovery of uncollected income. In response to a question from a Member, the Interim Director of Finance highlighted a number of factors that had led to the extent of the bad debt being identified. Problems in relation to various processes had now been addressed and he was confident that progress would continue to be made in the collection of income.

The Chief Internal Auditor reported also upon audit work in relation to Emergency Payments by CYPD. It had not been included in his report as the work had not been completed at the time of writing. However, follow up work had since indicated that all of the recommendations except one had been implemented and work was progressing to timescale on the one remaining area.

The situation in relation to each of the items of note would continue to be monitored to ensure that recommendations were implemented within agreed timescales and any actions required would form the basis of further reports to Committee.

The Chief Internal Auditor provided information in respect of compliance with relevant IA Performance Indicators and commented that no issues had arisen during the monitoring period. He outlined actions undertaken to date and indicated that good progress was being made to deliver the Internal Audit Improvement Plan, which was designed to drive a number of developments and initiatives aimed at increasing the overall efficiency and effectiveness of systems of internal audit across the Council.

He reported also that the first UK Public Sector Internal Audit Standards would come into force in April 2013. All local authorities would be required to implement the new standards from April and report upon compliance by June 2014. Internal Audit planned to undertake a self assessment exercise against the standards over the coming months and to report the findings and any required actions to this Committee in June 2013.

In response to comments from members with regard to the future structure and delivery of the Internal Audit service, the Chair advised that he had discussed a number of proposals with officers. Further meetings would be arranged and he invited other Members of the Committee to attend if it was possible for them to do so.

Resolved –

(1)  That the report be noted.

(2)  That the Chair be requested to liaise with Committee Members, to arrange further meetings with officers to discuss the future delivery of the Internal Audit service.