Agenda item

Members were presented with the Audit Activity Report which informed them of the progress of audit testing to date and presented a forward plan of testing and the resources available to meet the plan to support the assessment of risk.

Members were asked to note the results of audit activity and agree that the work for the next quarter be prioritised using the audit risk assessment methodology as outlined in the Audit Charter.

Internal auditing was an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helped an organisation accomplish its objectives by bringing a systematic disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. To support this, audit work the results of audit work were an integral part of the assurance framework in place to assess the current risk status.

The overall summary showed a summary of audit results against each theme. It was highlighted to Members that the themes in use had been revised, officers felt the revised list would be easier to understand and provide more clarity to readers.

Audit testing results broke down work undertaken in the previous period to provide members with an update on where audit resources had been employed and the results of that work. This would highlight any concerns raised in the period. There had been 5 Red controls identified in the period, which were detailed within the report. Members were reminded that testing frequencies were adjusted based on their status, controls rated as red were reviewed every 3 months. This may give the impression that the same issues were being raised each quarter whilst recommendations were being implemented, officers monitored progress of implementation. Reds previously reported that were making good progress were waste and recycling targets, a requirement to review the information sharing protocols with occupational health partners, and the Joint Strategic Needs Assessment. The remaining Red controls Business Continuity in Adoption Tees Valley and the effective management of cash park machine income.

Planned work identified the areas to be examined in the next period as required by the Public Sector Internal Audit Standards. Members were reminded that each control was risk assessed to determine the frequency of testing, audit work was planned and undertaken a rolling programme which prioritised controls with the highest risk rating in accordance with this methodology. The Audit & Risk Manager was required to report any concerns he may have that would impact on the independence of the audit service or the adequacy of resources, it was confirmed that the Audit & Risk Manager had no concerns in either regard.

Quality Assurance and Improvement showed a balanced scorecard for the delivery of the audit service. Most indicators would be reported annually but the ones contained within the report provided an update on progress against agreed work to date. The level of adequate resources was calculated after staff time was adjusted to allow for Annual Leave, Bank Holidays and a reasonable amount of Admin Time. The Service fell slightly short of their target for completion of work, however analysis completion for the year to date should not impact on the ability to provide an opinion. Productivity levels were lower than expected, this was partly due to maternity leave and the Christmas period. Whilst the Service had been able to balance workloads sufficiently to manage the maternity leave the Service were unable to plan for their15 day contingency therefore any additional work identified would require a delay in some other work, which would be managed on a risk basis.

RESOLVED that Members note the results of audit activity and agree that the work for the next quarter be prioritised using the audit risk assessment methodology as outlined in the Audit Charter.