Issue - meetings

To receive and consider the report of the Interim Head of Shared Assurance Services.

Janice Bamber, Interim Head of Shared Assurance Services, presented the report which summarises the work undertaken by the Internal Audit Service from 1 April 2019 to 31 March 2020 relating to the 2019/20 Audit Plan. 

The report also provides the Head of Internal Audit’s overall opinion on the adequacy and effectiveness of the Council’s framework of governance, risk and control and an appraisal of the Internal Audit Services performance throughout the period.

The report and summary show that 70% of the Planned work has been completed in the year.  Changes included Elections where the review was deferred to 2020/21 Audit Plan and Time Credits where the review was no longer required. 

Two unplanned pieces of work requested and added to the plan were Syrian Resettlement and Environmental Permitting Regulations Follow Up.  A number of pieces of work had commenced in March 2020, which have not been completed, due to the Internal Audit team being seconded into the Community Hub at South Ribble.

There is one area at Chorley Council which received a Limited Assurance, which was the Syrian Resettlement Programme.  It was identified that whilst there are some areas of good practice, there are significant weaknesses in the governance arrangements and the application of controls which put at risk the achievement of the system objectives.

There are two areas where the Assurance opinion has been determined to be Limited, in regard to the service areas that sit within Shared Services, this is in relation to Creditors and Payroll, the details of findings are outlined at paragraph 5.7 - 5.9 of the report.  The review of Payroll was a review carried forward into 2019/20 and was reported in the 2018/19 Audit Plan, however, the follow up will be undertaken as part of the 202/21 Audit Plan relating to Shared Services.  The Creditors review, has been issued without Management Actions as further work is required to determine the extent of the failures and the potential impacts of the lack of control in those areas reviewed.

Internal Audit achieved a 100% acceptance level for recommendations / agreed management actions. 

Decision: To note

1.         the Internal Audit Annual Report for 2019/20.

2.         the progress of work undertaken against the 2019/20 Annual Plan.

3.         the Head of Internal Audit’s opinion on the adequacy and effectiveness of the Council’s framework of governance, risk and control.