Agenda item

ASSURANCE PROGRESS REPORT

Meeting of Audit Committee, Wednesday, 18th October, 2023 7.00 pm (Item 116.)

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
Audit Title – LBH Systems Audits	Assurance	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:

Assurance Progress Report 181023, item 116. PDF 531 KB