Agenda item

The Committee received and considered the Chief Internal Auditor’s annual assurance opinion on the adequacy and effectiveness of the Council’s internal control environment, risk management and corporate governance arrangements in place during the year. The Chief Internal Auditor’s annual internal audit opinion was based on an objective assessment of the framework of governance, risk management and control. Consulting services were advisory in nature and were generally performed at the specific request of the organisation, with the aim of improving governance, risk management and control, however still contributed to the overall opinion although each review did not deliver individual assurance opinions.  Ms Maggie Gibb, Chief Auditor and Head of Business Assurance presented the report.

Based on the work performed during 2022/23, the Chief Auditor’s experience, the cumulative knowledge gained through our ongoing liaison with officers, senior management, and the current climate in which the Council was operating, it was the Chief Auditor’s opinion the adequacy and effectiveness of the Council’s internal control, risk management and governance framework was of reasonable assurance. The detailed report which included commentary on all aspects of activity undertaken and details of the work completed throughout the year could be seen in the report appended to the supplementary agenda pack.

The overall system of internal control facilitated the effective exercise of the Council’s functions and provided an unqualified opinion regarding the effective, efficient and economic exercise of the Council’s functions for 2022/23.

During discussion, points raised included:

·       The Committee heard that whilst just under 25% of the internal audit activity resulted in limited or nil assurance outcomes, whilst reaching an overall opinion, the Chief Auditor took into account how management responded to these audits, how robust their management actions were, and how these were implemented. These audits were discussed in detail by the Corporate Management Team who monitored the actions taken closely. Further, it was clarified that the one nil assurance report related to The Downley School.

·       It was noted that whilst this report focused on 2022/23, that for 2023/24 in terms of where internal audit report findings were reported, this would also include the relevant Cabinet Member, Deputy Cabinet Member and Select Committee Chairman.

·       The Committee requested that procedures be put in place and reported to the Committee on how it was proposed to deal with internal audits which revisited areas previously audited since the implementation of the unitary authority where actions previously identified as requiring improvement did not provide at least reasonable assurance on the subsequent audit. The Committee may wish to look at these cases in further detail and potentially question the relevant Cabinet Member and Service Director on the audit reports.

ACTION: Ms M Gibb to consider methods for dealing with audits, where previous areas requiring improvement did not result in at least a reasonable assurance on the subsequent audit.

RESOLVED:

That the Chief Auditor’s Annual Internal Audit report for 2022/23 and the overall ‘reasonable’ opinion on the adequacy and effectiveness of the Council’s governance, risk management and internal control environment for 2022/23 be noted.