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 2018 to March 2019 against the agreed Audit Plan for 2018/19 and the Public Sector Internal Audit Standards.  The report also provided the Committee with the Chief Internal Auditor’s opinion on the overall adequacy and effectiveness of the Council’s internal control environment for the 2018/19 financial year.

The key target for the Internal Audit and Risk Service was to complete 90% of its agreed work plan by the 31^st March 2019 and the report indicated that this target had been exceeded, with 92% of its work completed.  It was noted that the reported performance was based on a revised audit plan of 480 days, which reflected un-planned absence within the Team and which was reported to the Committee in February 2019.  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 provided details of the performance of Internal Audit against the KPIs for 2018/2019, compared with performance in 2017/18.  Appendix One of the report detailed the audit reviews that had been carried out in the financial year 2018/2019, along with the level of assurance provided.  A summary of the findings of key audits were included at Appendix Two of the report.

In the 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 Chief Internal Auditor’s view 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 means 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, 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 a reasonable and not absolute assurance of effectiveness.

In undertaking the assessment of the Council’s internal control environment, the Chief Internal Auditor had identified a number of areas that, in her opinion, need to be considered when the Council produces its Annual Governance Statement 2018/19.  These related to homelessness, controls over accessing system data, and delivery of the IT Strategy.

RESOLVED that, the Audit and Procurement Committee note:

1.  The performance of Internal Audit against the Audit Plan for 2018/19.

2.  The results of the Quality Assurance and Improvement Programme and the Chief Internal Auditor’s statement on conformance with the Public Sector Internal Audit Standards.

3.  The summary findings of key audit reviews (attached at Appendix 2) that have not already been reported to the Audit and Procurement Committee during municipal year 2018/19 and which are relevant to the opinion of the overall adequacy and effectiveness of Coventry City Council’s internal control environment.

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