Agenda item

Amanda Stanislawski, Audit Manager:

1. presented the Internal Audit Progress Report to Audit Committee, incorporating the overall position reached so far and summaries of the outcome of audits completed from November 2022 to February 2023, as detailed at Appendix A

2. advised that currently 61% of the revised plan had been completed. There were eleven pieces of work in progress, one of which was at draft report stage

3. reported that one report had been issued since the previous progress report in November. this was the Stores report which had been given a limited assurance rating

4. explained that the Combined Assurance work had been completed and the results would be reported in the Annual Report

5. reported that the issues had been identified with the timeliness of completing the audits and the receiving of agreed actions for the reports. Some of this could be attributed to the staffing levels in the team, but not all. Therefore, work was being undertaken on other processes that could be introduced to improve the engagement process with service areas.

6. detailed the content of the report covering the following main areas:

7. updated that there was one vacancy for an Auditor within the team which would be advertised for recruitment later in the week

The full Stores report was circulated to the committee for consideration.

Daren Turner, Strategic Director of Housing and Investment addressed the Stores report and raised the following main points:

·         There were issues in relation to the Stores arrangements for a period of time where it was handed over from one Store provider to another.

·         Gave some context to the issue and explained that the transfer of the managed stores contract occurred during the response to the covid pandemic and also at a time where there was staff turnover.

·         The audit process had highlighted that there was a potential risk to practices.

·         The recommendations had been accepted and addressed.

Question:  Asked if any fraud had been identified as part of these issues.

Response: Explained that there was no fraud identified as part of the issues. Assurance was given that the stores environment was not set out correctly but there had been no detriment to the Council. The recommendations would be followed up in approximately one years’ time.

Question: Asked if Officers were confident that no fraud had taken place as a result of the issues.

Response: Officers were confident that no fraud had taken place. Procedures had been put in place and the stores were now running as expected.

Question: Asked for clarification on the stores contract.

Response: It was a managed stores contract, where part of Hamilton House was leased to the stores contractor and they managed and monitored the stores.

Question: Asked why the contract had been set up in this way.

Response: The managed stores contract was more efficient and saved money for the Council.

Question: Asked for clarification on “the lack of formal strategic management oversight”

Response: This related to the strategic meetings that should have taken place on a quarterly basis but had not been happening. These meetings were to discuss changes to products, procedures, or suppliers. The meetings had been arranged on a quarterly basis going forward.

RESOLVED that the report be accepted and the monitoring arrangements be continued.