Agenda item - ASSURANCE PROGRESS REPORT

Agenda item

ASSURANCE PROGRESS REPORT

Report attached.

Minutes:

The Committee was presented with a report that informed Members on the work undertaken by the Assurance Service (internal audit and counter fraud) during the period from 1 April to 30 September 2023. 

 

The following summary of work undertaken by Internal Audit was detailed:

The report indicated that some of the work undertaken by internal audit does not result in an opinion being provided such as advisory reviews and grant claims. 

Audit Plan Status

Number of Audits / Tasks

Final reports issued / Reviews Completed

11

Draft reports issued                        

4

 

In giving an overall Audit opinion on the system control environment within the areas reviewed, there are two levels of assurance as follows:

 

Key to Assurance Levels

Reasonable Assurance

The control framework is adequate to manage the risks in the areas reviewed. Controls are applied consistently or with minor lapses that do not result in significant risks to the achievement of system objectives.

Limited Assurance                             

There are fundamental weaknesses in the internal control environment within the areas reviewed, and further action is required to manage risks to an acceptable level.

         

The tables below detailed the results of the work undertaken during quarter one and two of 2023/24. These recommendations were provided with the limited assurance summary reports.

 

Audit Title – LBH Systems Audits

Assurance

Recommendations

 

H

M

Adv

Total

 

Full System Reviews:

 

Service Charges Follow Up

Limited

2

0

0

2*

 

Duplicate Payments (Faster Payments)

Limited

3

3

1

7

 

DPIAs - CCTV (Follow up)

Reasonable

0

0

0

0

 

Responsive Repairs

 Limited

1

1

2

4

 

Advisory/ Grant Reviews:

 

Insurance Process Mapping (Phase One – Third Party Claims)

n/a

n/a

n/a

n/a

n/a

 

Mayors Appeal Fund

n/a

n/a

n/a

n/a

n/a

 

Supporting Families (Quarter One)

n/a

n/a

n/a

n/a

n/a

 

                                System Audits Total

6

4

3

13

 

 

 

 

 

 

Audit Title – LBH Schools Audits

Assurance

Recommendations

 

H

M

Adv

Total

 

St Patricks Primary

Reasonable

0

3

0

3

 

Parklands Primary

Reasonable

0

2

0

2

 

Engayne Primary

Reasonable

0

1

0

1

 

Gidea Park Primary

Reasonable

0

5

2

7

 

                                School Audits Total

0

11

2

13

 

It was noted that Internal Audit follows up all high and medium risk audit recommendations with relevant service management.  There is a rolling programme of follow up work with each auditor taking responsibility for tracking the implementation of recommendations made in their audit reports. The implementation of audit recommendations in systems where limited assurance was provided is verified through a follow up audit review. 

 

It was stated that the work is of high importance given that the Council’s risk exposure remains unchanged if management fail to implement the recommendations raised in respect of areas of control weakness. Part of the Audit Committee’s role is to monitor the extent to which recommendations are implemented as agreed and within a reasonable timescale, with particular focus applied to any high risk recommendations.

 

All high and medium risk recommendations due as at the end of September 2023 have been followed up and confirmed with management as implemented.  Any recommendations that remain outstanding and are past agreed implementation dates, or where management have not responded to requests for progress updates, will be reported to Audit Committee.  

 

Recommendations were classified into three potential categories according to the significance of the risk arising from the control weakness identified. The three categories comprise:

High

Fundamental control requirement needing implementation as soon as possible.

Medium

Important control that should be implemented.

Advisories

Pertaining to best practice.

 

 

 

 

 

Members sought and received clarification on specific questions matters raised.

 

The Committee noted the contents of the report.

 

 

 

Supporting documents: