Agenda item

[To note the contents of the latest internal audit update]

Peter Farrow, Head of Audit presented the report on progress made as at 30 September 2014 (quarter two) against the 2014/15 audit plan and on recent work that had been completed.  In doing so he informed the Committee that the extent of Audit service’s role in the implementation of Agresso, would in all likelihood impact upon its ability to complete the number of planned audits within the current year.  The service would continue to review its planned audit capacity in line with the changing risks profile of the Council and audit resources would continue to be targeted towards the high risk areas.

In response to Councillor Phil Bateman, it was reported that audit work at Coppice Performing Arts School related to advice and support the Service been asked to provide. The School accepted the actions suggested in the interim audit review. Audit would be revisiting the school to determine whether it had taken on board the advice and support offered.  A full audit report would be produced and presented to the Audit Committee in due course.

In response to Cllr Wendy Thompson concerning a backlog of invoices, Kevin O’Keefe, Director of Governance reported on arrangements whereby he and the Director of Finance met daily to go through outstanding invoices and ensure that this information is cascaded down from Strategic Directors to heads of service for them to take appropriate action to ensure that invoices are moved along for payment.  This process would continue until it becomes embedded within the organisation.  He also undertook to asked the Director of Finance to contact Cllr Wendy Thompson direct to give her the assurance that business are being paid and the backlog of unpaid invoices would not be repeated.

Following on from Cllr Phil Bateman’s comments, Cllr Wendy Thompson requested a report to provide the Committee with an awareness of the financial picture of all secondary schools.

Cllr Mike Hardacre reiterated comments he had made at previous Audit Committee meetings regarding the financial regimes for schools over which local authorities have no control and no right of access over schools finances and the failure of the Government funding agency in being unable to oversee what is happening in schools.  If the local authority cannot gain access to its schools it would end up picking up the pieces of a fractured relationship schools have with national government.

Terry Day, Independent Member referred to the ‘Information governance protective marking compliance’ audit area and asked whether there was confidence that council employees are not emailing information that could put the Council at risk of breach of information governance requirements.  Peter Farrow reported that while this could not be prevented at the moment if an employee chooses to do this, he was confident that following the training that all employees should have undertaken on information governance, they should be aware not to do so.  

Kevin O’Keefe, Director of Governance informed the Committee that the Council was trialling a piece of software that rather than the employee having to type in the protective marking classification, there would be a default of ‘PROTECT’ and the option for the employee to amend the classification.  He anticipated that it would be in place within the next few months.

Mr Mike Ager, Independent Member also commented that he was concerned that there were four ‘Limited’ level assurance reports involving slack local controls. He also commented that the Audit team was pressed and the assurance map demonstrated that more work was required to show that risks are being mitigated. The Head of Audit informed the Committee that the assurance map had been based on the work that the Audit Team could deliver, which would be a good level of audit.

PwC added that the number of ‘limited’ assurance reports was something that they might review with the Council.  In terms of the resourcing issue, PwC reported that it was vital for them that there is a realistic Audit Service.  If the Committee was not receiving enough assurance about the Council’s audit work, that would be something that PwC would want to discuss.

Resolved:

1.    That the contents of the latest internal audit update as at the end of quarter two be noted.

2.    That a report be submitted to a future meeting to give the Committee an awareness of the finances of secondary schools within the city.