Issue - meetings

The Chief Internal Auditor presented the Internal Audit Progress Report (Q3).  Following presentation of the report, questions were invited:

·         A Committee Member, regarding the Passenger Transport Unit (PTU), asked for more information on the “High” risk rating.  It was explained that knowledge of the service, known issues are considered etc. to determine the risk rating which is then added to the Audit Plan.  It was explained that risk assessment is part of the planning process and the opinion is a result of the audit process.  Issues identified in the audit where weaknesses outweigh strengths result in a limited opinion being given. Specific and general advice is given by Internal Audit to ensure sound financial management.

·         A Member asked what instigates a special investigation and was informed that these issues come to attention in a range of ways such as part of routine audit work, from senior management or anonymously.  Internal Audit can become involved in disciplinary processes.  The number and frequency of cases vary each year; over which there is no control.  An overview of types of investigations over a two year period will be provided at the next meeting. 

·         In response to a question, it was explained that final reports go to the Head of Service.  A follow up audit takes place in 6-12 months to look for signs of improvement.  If there is no significant improvement, the matter is returned to Audit Committee via the 6 monthly report with reasons for no improvement after a second audit.  The Committee has the option to call in respective service managers.

·         In response to a question, it was explained that the PTU appeared not to show signs of improvement by regularly appearing on the list of unfavourable opinions.  It was explained that the opinions relate to audits of different aspects.  Generally opinions are in respect of non-compliance with contract procedure rules. 

The Chief Officer, Resources explained that a comprehensive, overarching study of the PTU is in progress.  Some operational issues have been identified and these are being worked through currently.  An update on the study from the Head of Commercial and Integrated Landlord Services was offered for the next meeting.

It was added that the operational outcomes of the study will not be brought back to Audit Committee, only any identified risks. The PTU falls under the remit of Strong Communities Select Committee for scrutiny purposes. Any redesign of operations as a result of the review, will require member decision and pre-decision scrutiny.

The Committee noted the audit opinions issued.

The Committee noted the progress made by the Section towards meeting the 2019/20 Operational Audit Plan and the Section’s performance indicators at the 9 months stage of the financial year.