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 2015/16.

A list of all final audit reports issued from 1 April to 30 June 2015 and the level of assurance attained were detailed in the report.  The Committee was advised that during this quarter one report had been issued with an assurance level of inadequate which related to IT.

Audit work carried out to date against the audit plan was set out in appendix A.  The Internal Audit Manager advised that owing to new members of staff joining the team the plan was slightly behind in the first quarter and two reviews, planning and licences went over the time allocated.  Further details were contained in the report.

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.  The Committee was reassured that these were the assurance level given at the time the final report was issued and did not reflect recommendations that had been addressed.

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 was set out in appendix C.

The comments made by the Corporate Management Team and officers following consideration of outstanding high risks was set out in appendix D.  Appendix D was designated as confidential to reduce the risk of opportunities to commit fraud.

Work undertaken by the Corporate Fraud team, its engagement with the Difficult Property Group and involvement in the East Sussex Fraud Hub was detailed in the report.  Appendix E to the report detailed the savings and income from the work of the Corporate Fraud team for the first quarter of the year.  Appendix F to the report projected the savings for the Hub in 2015/16 and actual savings for the quarter so far, which were slightly above the target set.

The Committee was advised that as a result of the Principal Audit Manager at Lewes District Council taking flexible retirement with reduced hours, the Council’s Internal Audit Manager had agreed to provide cover for the equivalent of one day a week at Lewes.  The Internal Audit Manager stated that although the exact level of resource required had not been fully assessed, as a request had been made to undertake Lewes audit reviews, it may equate to more than one day a week on occasions.  Although the impact on the work of Internal Audit in Eastbourne would be kept to a minimum there would be a loss of 12 days from January to March in 2015/2016 and a total of 45 days a year from 2016/2017.  There would be a corresponding saving in the budget of Internal Audit as the cover would be funded by Lewes.

In response to a question from the Committee regarding appendix E, the Internal Audit Manager agreed to incorporate the cost of the Corporate Fraud team into the appendix for future meetings.

RESOLVED: That the report be noted.