Agenda item

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The Senior Internal Auditor presented the report and reminded the Committee that it received updates on progress made against the Annual Internal Audit Plan.  The report formed part of the overall reporting requirements to assist the Council in discharging its responsibilities in relation to the internal audit activity.

The Committee’s attention was drawn to the following section of the report:

·        Key Issues.

·        Significant changes to the approved Internal Audit Plan.

·        Progress made in delivering the agreed audit work.

·        The outcome arising from Internal Audit’s work.

·        Appendix 1 – Progress in completing the Agreed Audit Work.

·        Appendix 2 – Executive Summaries 2023/2024.

The Chair thanked the Senior Internal Auditor for the detailed report and invited questions and comments from the Committee, a summary of which is set out below.

In response to questions from Councillor Dark on the summary of key recommendations for starters, movers and leavers, the Senior Internal Auditor explained that there had been no previous audit undertaken and that the overall objective of the audit was to gain assurance that appropriate controls were in place in respect of systems and procedures.

The Committee was advised that there were different processes to follow when commencing employment with the Borough Council and it was important that the appropriate procedures was in place for the first day of employment.  The Senior Internal Auditor explained that when an employee left the Council it was important and needed to be timely.  Ideally the access to systems should be removed on the first working day after the employee left the organisation.

Councillor Dark commented on the starters, movers and leavers on the two medium priority recommendations and an overarching procedure document to be introduced and to review the list of system administrator recipients.

In response to questions from Councillor Jones on reviewing/removing all permissions to systems when an employee left the authority, the Senior Internal Auditor explained that a discussion was held with the appropriate line manager to review/remove permissions.  The Committee was informed that a wider decision on licensing requirements would be needed to determine if additional licences should be purchased if employees transferred to another service area, etc.

In response to questions from Councillor de Winton on conducting a full review of assets and equipment across the organisation, the Senior Internal Auditor explained that currently there was a lack of information recorded in some instances and it had been recommended the asset register be updated where required which would also include ICT Loan agreements within the review process.

Following further questions from Councillor de Winton, the Senior Internal Auditor explained that equipment issued to individual employees varied from role to role. 

In response to questions from Councillor Bearshaw as to why the Organisational Development – Training audit had been deferred, the Senior Internal Auditor explained that the audit would not be undertaken during the current financial year.  The audit had been deferred to 2024/2025 so that assurance could be gained from work shortly being undertaken corporately.

Following further questions from Councillor Bearshaw on whether the audits were based on foundation topics within ISA 9001, the Senior Internal Auditor explained that the audit plan was undertaken in compliance with the Public Sector Internal Audit Standards (PSIAS).

Councillor Bearshaw asked if the Council had a spreadsheet which showed trends.  In response, the Senior Internal Auditor explained that the Council had a Corporate Risk Register and that Internal Audit maintained a Fraud Risk Register and an Operational Risk List and monitored the performance indicators to highlight risks any trends.

Councillor Everett asked what was the feasibility to circulate the leavers list on a more frequent basis to ensure that staff leaving the Council did not have access to any systems.  In response, the Senior Internal Auditor explained that this was under discussion yet no decision had yet been made on the frequency.

Councillor Dark commented that Councillors had discussed the staff pay award including the challenges to recruit and retain employees at the Corporate Performance Panel.  Councillor Dark outlined the content of the report for the previous year and provided an overview of his understanding.  Councillor Dark then referred to the report now being considered by the Audit Committee and added that the Council needed to tighten up on the processes on employees leaving the Council.  In conclusion, Councillor Dark advised that he would be taking up this important issue elsewhere within the Council.

In response to questions from Councillor de Winton on the Freedom of Information (FOI)requests, the Council’s policy specifically in relation to dealing with vexatious requests, the Senior Internal Auditor explained that the Council had taken the decision to transfer to an in-house team (the Corporate Governance Team) in order to centralise the process.  The central team received requests and would check if it was vexatious.  It was highlighted that the number of FOI requests received suggested that they were not vexatious.

Under Standing Order 34, Councillor Coates addressed the Committee and referred to page 21 – 129 days of programmed work had been completed, resulting in 43% of the total Internal Audit Plan for 2023/24 and asked how the remainder of the audits would be completed during the current financial year.  In response, the Senior Internal Auditor advised that the progress report was up to 30 September 2023 and that in his opinion, Internal Audit were on track to complete the remaining work within the current year.

At the invitation of the Chair, Councillor Morley, Portfolio Holder for Finance addressed the Committee and stated that in relation to the comments made above by Councillor Dark on the staff pay award and challenges faced in recruiting and retention of staff that there was no direct link to the processes for starters and leaversand added that if this was to be explored further that this should be done through the Human Resources professionals and not the audit process.

The Chair, Councillor Ryves commented that it would be more appropriate for these points to be considered by the Corporate Performance Panel.  Councillor Dark agreed.

RESOLVED:  The Committee received the Progress Report on Internal Audit Activity.