Agenda item

Report of Head of Audit and Assurance (Audit West) (attached)

The representative of the Head of Audit West presented the report on the closing Internal Audit Annual Report to the Committee for the financial year 2021-22. Also included was a summary of audit performance and key issues, as well as the formal opinion on the internal control framework.

It was highlighted that all but two of the audits completed had an overall audit opinion of satisfactory to excellent (between ‘Level 3’ and ‘Level 5’).

There were not any significant control issues identified within internal audit’s consultancy, advice, and guidance work. There were two audit reports issued where it was considered that the overall systems of internal control were weak (‘Level 2’). These were in respect of a primary school and ICT – Malware/ Ransomware.

Members were informed that there had been four main audit investigations in the 2021-22 financial year as well as significant involvement in a fact-finding review. Two investigations were ongoing during the year, both of which related to suspected Covid-19 grant payment frauds.  NATIS had been approached for anupdate on their own investigation(s) and members would be informed when there was further information to report.

Members were made aware of the details of the third investigation which related to an allegation that an officer of one of the council’s partner organisations had been overseen looking at inappropriate material.  Internal Audit were asked to investigate this allegation as a matter of urgency, and, upon review, it was confirmed that these allegations were true. The employee concerned subsequently had their employment terminated with the partner organisation. In the case of the fourth investigation an email was received from a whistle blower via the Fraud mailbox where an external source alleged that a council employee had not declared their criminal record. This employee was found to work for a partner organisation. The employee’s employment was terminated with that organisation.

Members noted that as well as the investigations the Internal Audit service have assisted in an independent review of the issues surrounding the roofing works commissioned at a North Somerset school during the summer of 2021. There was found to be a lack of ownership and joined-up thinking. At the conclusion of the work, several presentation/ feedback sessions were held with the Chief Executive/ One West, followed by similar sessions with council Directors and Members, and a session with the school.

Members were informed that in terms of completion of the Internal Audit Plan there were forty-six pieces of audit work within the plan. Forty-two audits had been completed or were at reporting stage. One audit (Business Rates) was approximately 60% complete and would be carried forward; two audits had been requested to be postponed into 22/23 (Green Waste/Sea Fronts) and there was one planned piece of work which had been superceded by s151 Officer/Audit Committee Work (Capital Projects)

Members were directed to Section 5 of the report – Conclusion – Opinion on Internal Control Framework.  During the period it was noted that opinions had been tempered by remote working.  This continued to be the case through most of 2021/22. Overall, it was considered that the council’s internal control framework and systems to manage risk are reasonable.  Members were thanked for their work, comments and input and that their challenge was appreciated.

In discussing the report members sought clarification in relation to the following matters: green waste and operational pressures; council response rates of members of the public phoning 888888 and the difference between calls answered and how quickly (members to be provided with statistics on response rates); the risk involved for the council with ICT malware/ ransomware; remote working and how the approach to audit would be amended to suit that way of working (more risk based and probably a requirement for officers to visit the office on a risk basis).

Resolved: that the report be noted