Agenda item

INTERNAL AUDIT PLAN UPDATE 2021/22 AND 2022/23

Minutes:

The Committee considered a report which provided an update on the progress made on the implementation of the Internal Audit Plans for 2021/22 and 2022/23.  It was reported that a completion rate of 93% had been achieved for 2021/22, and that the outstanding items had been incorporated into the 2022/23 Internal Plan, which reported a completion rate of 12.5% to date. The Committee duly reviewed the progress made in respect of the delivery of the audit programme.

 

The Committee’s attention was then drawn to the completed review of the Authority’s key financial systems in respect of Payroll and Creditor Payments. The report set out the scope of the review, the issues identified, and the recommendations made.  

 

The issues/observations raised by the Committee were addressed as follows:-

 

·       In response to a request by the Committee, it was agreed that future Audit Plan Update reports would incorporate the number of days taken to complete each audit.

 

·       Reference was made to the application processes for Maternity and Paternity pay, which were not generally submitted in accordance with the required timescales.  The Head of Revenues and Financial Compliance acknowledged that Managers had a degree of responsibility to ensure the appropriate documentation was submitted in accordance with the Authority’s policy.  It was also noted that the issue was further compounded by delays in surgeries issuing the MATB1 certificates and in this regard, the Committee was assured that Officers would review the matter with the Human Resources department, with a view of possibly raising the matter with the Health Authority.

 

·       It was reported that the scale of credit balances had reduced from a value of £289k to £184k since the previous audit.  The complexity of the process was explained to Members and an assurance was provided that efforts were being made to address the matter, particularly for historic invoices, and be accurately reflected in the Authority’s accounts.

 

·       Concerns were raised in respect of the failure to raise purchase orders in appropriate circumstances.  The Head of Revenues and Financial Compliance reported that the matter had been referred to the Transform, Innovate and Change (TIC) programme with a view to enhancing compliance and performance in this area.  Accordingly, an ‘Achieving Purchase Order Compliance’ Policy was scheduled to be piloted imminently to address the matter.  The Head of Financial Services highlighted to Members that non-compliance could, in some cases be the result of a reporting issue as a result of the systems implemented by the Authority. Following a request made by a Member, it was agreed that a progress update be fed back to Members in a timely manner outside the meeting process with a view to providing an assurance that the area of risk had been mitigated by way of effective controls. 

 

·       The Committee deemed the level of response to the employee certification exercise to be unacceptable.  It was suggested that non-responses should be addressed during staff appraisals.  The Director of Corporate Services reported that the concerns expressed by the Committee would be considered at a future meeting of the Corporate Management Team.

 

·       An observation was made that whilst the overall audit rating for the key financial systems had been categorised as acceptable, it was considered that some of the issues identified were fundamental and of high risk.  The Head of Revenues and Financial Compliance explained the process utilised by the Auditors in reaching the assurance rating, within the context of the scale of the Creditor Payments System which comprised many different controls; accordingly, the Auditors would have considered the system as a whole and used their professional opinion on which to base a conclusion. The Head of Revenues and Financial Compliance confirmed that the comments made would be fed back to the auditors.

 

UNANIMOUSLY RESOLVED that

 

6.1

The Internal Audit Plan update 2021/22 and 2022/23 be noted.

 

6.2

Progress in respect of purchase order compliance be fed back to Members in a timely manner outside the meeting process. 

 

Supporting documents:

 

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