The Committee considered the report of Chief Internal Auditor which identified and evaluated the performance of the Internal Audit section and included details of any issues arising from the actual work undertaken during the period 1 January to 28 February 2013. He provided details of the following items of note concerning audit work undertaken, that were reported in order of risk in relation to -

·  Asset Management

The findings of the audit conducted of the Asset Management system in operation had identified significant issues and minimal assurance opinions provided.  The department had responded positively to the report and an action plan has been agreed to address all of the issues identified within an agreed timescale. Follow up work was scheduled in these areas and would be reported in the monthly summary report for Members.

·  Absent Management

The findings of the audit conducted of the Absence Management system in operation had identified a number of significant issues and limited assurance opinion provided.  The department has responded positively to the report and an action plan has been agreed to address all of the issues identified within an agreed timescale.  Follow up work was scheduled n these areas and the findings would be reported in the monthly summary report for Members.

·  Improvement Plan

The findings of the audit conducted to review the adequacy of the controls in operation over the Improvement Plan.  The audit focused on the current process in place for the improvement Plan but not the delivery of the actual improvement targets due to the Plan being in the infancy of its programme life cycle.  The audit generated a 'substantial' assurance opinion and identified 4 recommendations of which 2 were medium propriety.  However, detailed audit resting would be undertaken in the next financial year in order to gain assurance regarding outcomes, the achievement of targets and deadlines within the Improvement Plan and the impact of those achievements.

·  Libraries

The findings of the audit undertaken to review the cash management arrangements at the Council Libraries where income was collected on behalf of a number of external organisations e.g. for charitable items and voluntary activities. The objective was to determine whether the financial, legal and reputational risks had been identified and the controls in place provided managers with reasonable assurance that the activities complied with current policy and the assets held were protected against loss.  A minimal assurance opinion was provided and a number of high propriety recommendations agreed with management to address some fundamental control issues relating to this type of activity.  It was acknowledged that the levels of cash transactions for this activity were minimal but the impact from the legal and reputational risks were considered significant. An action plan had been agreed with management and follow up activity would be reported to Members upon completion.

·  The Holy Spirit School

The findings of an audit conducted at the Holy Spirit School where excellent progress has been made to address some significant issues identified at previous audits of the school.  The changes effected at the school were very evident following discussions with the Head Teacher and School Business Manager, and it was pleasing to note that all recommendations had now been fully implemented.

Mr Niblock further indicated that the report identified a number of improvements that have been made to the delivery of the Internal Audit Service as part of our overall improvement plan.  Good progress was being made to deliver the program within the agreed timescale and 12 of the 18 actions had been implemented with work progressing well in most of the other areas. In addition to the delivery of the internal audit improvement plan a number of other initiatives were currently underway that would also develop and improve the effectiveness of the service.

In relation to Asset Management, a Member raised concerns regarding the issues raised and suggested that the Head of Asset Management be requested to attend a future meeting to discuss the way forward.

In relation to the development of the Internal Audit Intranet Facility, A Member stressed the importance of implementing this to assist Members to track items post audit.

In response to comments in relation to shared services, Mr Peter Timmins, Interim Director of Finance indicated that a lot of work was currently being undertaken in a number of service delivery areas across the Council and various options were being considered. In respect of the Internal Audit service a collaborative arrangement had been developed with Liverpool City Council that was proving to be very effective and was helping to realise significant improvements and savings in this area of operations, the intention is to continue with this arrangement as it is regarded as being the most effective and efficient way of operating. Members requested an update on this.

Resolved –

(1)  That the report be noted.

(2)  The Head of Asset Management be requested to attend a future meeting of the Committee to discuss their audit update issues.

(3)  The Interim Finance Director be requested to provide an update report to a future meeting of this Committee.