Agenda item

The Chief Auditor introduced the report, the purpose of which is to present an update on the progress of implemented and agreed audit recommendations to address weaknesses discovered in audit jobs in service areas.  Opinions are agreed according to the number of weaknesses and strengths identified in the audit.  Where weaknesses are identified, an action plan of recommendations is agreed with the manager with the purpose of improving overall financial management and the internal control environment.

Committee members were reminded that in 2015/16 97% were agreed by Managers to implement; the percentage for 2016/17 was 96%.  Audit will follow up to double check implementation. 

Car park income and outdoor education were areas highlighted as areas where recommendations had not been implemented.  It was agreed to recirculate Appendix D that provided details of 3 significant audit recommendations not implemented in outdoor education, benefits and community meals.  It was agreed to provide further detail on recommendations agreed with Managers and not implemented outside the meeting.

A Member drew attention to Appendix C, there were 11 recommendations for implementation for refuse and garden waste (all implemented) and questioned what the relevance of the implementation requirement. The Member also asked for further information about the implementation of recommendations for County farms.  A response will be provided in due course.

A Member asked for clarification about the recommendations not implemented, querying if they were agreed by the manager first and not then implemented.  If so, what follow up takes place.

It was confirmed that if there is an overall unfavourable opinion, this is revisited in the follow up review.  If found to be more favourable, there will be a 6 month review, and will be carried forward, chasing progress with managers as required.  Where there are issues, these can be brought back to Audit Committee.

A Member expressed concern about recommendations agreed and not implemented by Managers in view of the amount of work undertaken by the Internal Audit Team.  It  was confirmed that reports are sent to Senior Leadership Team Agreed and all Heads of Service.  Follow up reports also go to Heads of Service to raise responsibility to Directorate level.  In response to a question, it was explained that elected members are involved when a manager is asked to attend Audit Committee.  The Chief Officer, Resources, will liaise with the Chief Auditor to facilitate escalation to the relevant Head of Service for non-implementation of unsatisfactory opinions. 

In response to a question about the high proportion of recommendations not implemented in Finance and Leisure, some detail is included in the appendix but a note will be added to record which directorate the job is related to provide further information.

The Assistant Head of Finance will seek further information about recommendations not implemented in Finance areas thought to be related to system changes.  Regarding the seriousness of those not implemented, there are 3 significant issues, and an undertaking was given to provide further information.  The higher risk elements were in relation to Benefits, Outdoor Education and Community Meals

The recommendation that Audit Committee considers this report, identifies any concerns of non-implementation of audit recommendations and considers where appropriate calling-in any managers for further explanation as to why the implementation of actions has not been as productive as expected was noted.  It was also noted that overall, non-implementation of audit recommendations has not led to a significant risk to the Council.