Agenda item - Internal Audit Progress Report 2013/14

Report of the Executive Director of Finance & Resources (copy attached).

30.1         The Committee considered a report of the Executive Director of Finance & Resources in relation to the Internal Audit Progress Report 2013/14. The report sought to inform the Committee of the progress made against the Internal Audit Plan 2013/14 – including the outcomes of specific audit reviews completed and the tracking of the implementation of recommendations. The report also included information on the work undertaken by the Corporate Fraud Team that had been recently established, and whose work was a key component of the Internal Audit Plan.

30.2         Councillor Hamilton noted that there was a Part 2 appendix which the Committee could discuss later in closed session.

30.3         Councillor Sykes asked about internal slippage, and in particular at which point this would impact on other pieces of work. In response the Audit Manager, Mark Dallen, explained that the plan had a mixture of work – some of which was aligned closely with the work of external audit. It was planned at this stage that the team would complete 95% of the work, and it was noted that there had been some slippage – this was not considered significant so far, but would be kept under review.

30.4         Councillor Summers asked for some clarification in relation to the recommendations against some of the final audit reports. In response the Audit Manager explained that it was very unusual for there to be no recommendations at the completion of an audit. He noted that the Saltdean Lido had been unique as it had looked at a ‘point in time’ when any recommendations would have been unnecessary. It was also important that the work for Senior Officers was focused onto the highest risk items. The Executive Director of Finance & Resources added that it was important that any additional work to add control was proportionate, and Officers needed to take a mature approach to manage risks.

30.5         In response to a query from Councillor Deane the Audit Manager explained that figures in relation to overpayments were the value of fraudulent payments identified. In most cases there was a clear requirement for the money to be repaid; however, where this related to individuals with ongoing benefit requirements the court could set a maximum that could be taken from payments creating very lengthy repayment programmes.

30.6         RESOLVED – That the Committee notes the progress made in delivering the Annual Internal Audit Plan 2013/14.