Agenda item

Annual Internal Audit Report 2015/16

[To note the content of the annual internal audit report]

Minutes:

Peter Farrow, Head of Audit summarised the key points of the report which aimed to provide the Committee with an annual Internal Audit opinion on the adequacy and effectiveness of the Council’s governance, risk management and internal control processes.

 

Cllr Andrew Wynne sought assurance that where major risks are identified from the work of Internal Audit, they are being acted upon by the Council’s senior management team. The Head of Audit confirmed that service directors receive a copy of the report on the audit of their service.  The report would indicate what action they proposed to take in response to the audit recommendations.  The Audit team would undertake a follow-up visit to confirm that the action had been taken.

 

Cllr Phil Bateman requested an update on the ongoing work at Coppice Performing Arts School. The Head of Audit informed the Committee that Council employees were working with the School team to find solutions to support them to make the desired improvements. The Education Service was also working with the School regarding their finances. In response to a call for further information, the Head of Audit undertook to request the Director of Education provide an update on the work taking place and progress being made.

 

Mike Ager, Independent Member commented that the Governors at Coppice Performing Arts School were concerned that a further audit report had been produced six months ago but had yet to be released. The Head of Audit undertook to speak to the Director for Education to accelerate the release of the report.

 

Mike Ager also commented that a quarter of the audit reviews completed in 2015/16 had a ‘limited’ level of assurance and that he felt that this figure was too high. The Head of Audit acknowledged the observation but indicated that a large proportion of the limited assurance reports were related to schools. If those reports were excluded it would give a fairer picture of the Council.

 

The Chair also asked whether Audit Services would hold follow up meetings on the reviews into the Black Country Gold Project and the Bilston Urban Village Advanced Programme. The Head of Audit advised that the final reports in respect of these reviews had only recently been issued.  He would be reporting back on progress made in implementing the recommendations to a future meeting.

 

The Chair also noted that only 60% of audit reports had been issued within the target of two weeks after the completion of the audit fieldwork.  The Head of Audit explained that a new protocol had been agreed by the Strategic Executive Board in order to improve performance.

 

Resolved:

That the contents of the Annual Internal Audit Report and the overall opinion that “based on the work undertaken during the year, the implementation by management of the recommendations made and the assurance made available to the Council by other providers as well as directly by Internal Audit, Internal Audit can provide reasonable assurance that the Council has adequate and effective governance, risk management and internal control processes” be noted.

 

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