Agenda item

Report of the Deputy Chief Executive (Place)

The Committee considered a report of the Deputy Chief Executive (Place) which summarised the Council’s Internal Audit activity for the period April 2016 to March 2017 against the agreed Audit Plan for 2016/17.  The report also provided the Committee with the Acting Chief Internal Auditor’s opinion on the overall adequacy and effectiveness of the Council’s internal control environment.

The Audit and Procurement Committee approved the Council’s Internal Audit Plan for 2016/17 at its meeting on 24^th October 2016.  The report submitted detailed the performance of the Internal Audit Service against the Plan for 2016/17, which was presented in order for the Audit and Procurement Committee to discharge its responsibility, as reflected in its term of reference.

The key target for the Internal Audit and Risk Service is to complete 90% of its agreed work plan by the 31st March 2017 and the report indicated that this target was met.  In addition to the delivery of the Plan, the Service had a number of other key performance indicators (KPIs) which underpinned its delivery.  These KPIs were aimed at ensuring that the audit process was completed on a timely basis.  The report porovided details of the performance of Internal Audit against the KPIs for 2016/17, compared with performance in 2015/16.

Appendix One of the report detailed the audit reviews that had been carried out in the financial year 2016/17, along with the level of assurance provided.  A summary of the findings of key audits that had not already been reported to the Committee during 2016/17 were included at Appendix Two.  In all cases, the relevant managers had agreed to address the issues raised in line with the timescale stated.  These reviews would be followed up in due course and the outcome reported to the Audit and Procurement Committee.  In addition, the report provided an update on those disclosures made by the Internal Audit Annual Report 2015/16 where it was believed that significant control improvements were required.

The Committee noted that the Public Sector Internal Audit Standards (PSIAS) highlighted that a key responsibility of Internal Audit was to provide an objective evaluation of, and assurance on, the effectiveness of the organisation’s risk management, control and governance arrangements.  It required that the annual internal audit opinion provided by the Acting Chief Internal Auditor was a key element of the framework of assurance that informed the Annual Governance Statement.

In the Acting Chief Internal Auditor’s view, sufficient assurance work had been carried out to allow her to form a reasonable conclusion on the adequacy and effectiveness of the Council’s internal control environment.  It was the Acting Chief Internal Auditor’s opinion that that moderate assurance could be provided that there was generally a sound system of internal control in place designed to meet the Council's objectives.  This meant that there was generally an appropriate level of control for managing the majority of the significant inherent risks to the Council’s objectives to a reasonable level.

In giving this opinion, the Committee acknowledged that assurance could never be absolute as the system of internal control was designed to manage risk to a reasonable level.  It could not eliminate all risk and could therefore only provide reasonable and not absolute assurance of effectiveness.

In undertaking the assessment of the Council's internal control environment, the Acting Chief Internal Auditor had identified a number of areas that, in her opinion, needed to be considered when the Council produced its Annual Governance Statement for 2016-17.  These related to the delivery of the Workforce Strategy and Adult Social Care and report provided detail on the reasons for their consideration.

Having considered the content of the report, the Committee sought assurance in relation to the checks and balances in place regarding the maintenance of Council vehicles and fuel consumption and requested that information on this matter be forwarded to Committee Members.

RESOLVED that the Audit and Procurement Committee note:-

1.  The performance of Internal Audit against the Audit Plan for 2016/17.

2.  The summary findings of key audit reviews, attached at appendix two, that have not already been reported to Audit and Procurement Committee during municipal year 2016/17 and which are relevant to the opinion on the overall adequacy and effectiveness of Coventry City Council's internal control environment.

3.  The opinion of the Acting Chief Internal Auditor on the overall adequacy and effectiveness of Coventry City Council's internal control environment.

4.  That information be forward to Committee Members in relation to the checks and balances in place regarding maintenance of Council vehicles and fuel consumption.