Agenda item

Report of Internal Audit Manager.

The Committee considered the report of the Internal Audit Manager regarding a summary of the activities of Internal Audit for the first quarter of the financial year 2014/15.

Audit work carried out to date against the audit plan to the end of June 2014 was set out in appendix A. The Internal Audit Manager made reference to the main point from the appendix which was the annual audits for BDO and the number of days taken to carry out the work which referred to the last financial year but was carried out in this financial year.

A list of all final audit reports issued from 1 April to 30 June 2014 and the level of assurance attained were detailed in the report. The Committee was advised that during this quarter, no reports had been issued with an assurance level of inadequate.

Further information on reports issued in final during the year with an assurance level below excellent was set out in Appendix B, with any issues highlighted in the reviews which informed the assurance level given.

A brief explanation for a number of outstanding high and medium priority recommendations from audits, reasons why they had not been implemented along with the month when the next follow up date was due were set out in appendix C.

The comments made by the Corporate Management Team and officers following consideration of outstanding high risks were set out in appendix D. Appendix D was designated as “confidential” to reduce the risk of opportunities to commit fraud. The Internal Audit Manager reassured the Committee that the recommendations detailed in Appendix D were being actioned.

The Committee was advised that no frauds over £10K had been reported in the first quarter of 2014/15.

The Internal Audit Manager reported that the recruitment of a replacement IT Auditor had commenced and a preferred candidate had been contacted and they had verbally accepted the role. The Committee was advised that the time spent training that individual would impact on the completion of the audit plans/IT audits and this would be reported at the next meeting of the committee.

The Committee was advised that due to the authority’s continuing move towards shared service arrangements or joint contracts and the prospect of more being set up, the subject of auditing these was raised at the Sussex Audit Group. It was proposed to the Group that a protocol be drawn up for auditing shared services/joint contracts so that there was a set process followed, giving assurances to Members, managers and audit teams that such reviews would be carried out with the full knowledge of all involved.

This idea had been agreed and a draft protocol was created, presented to and supported by the Sussex Audit Group. Neighbouring authorities such as Rother, Wealden and Lewes have agreed to adopt the protocol, a copy of which was appended to the report.

RESOLVED: (1) That the report be noted.

(2) That the Auditing Protocol for Shared Services/Joint Contracts be adopted for Eastbourne Borough Council.