Agenda item

Consider a report by Chief Officer Audit & Risk on findings from recent work carried out by Internal Audit, including the recommended audit actions agreed by management to improve internal controls and governance arrangements,  and internal audit work currently in progress. (Copy attached).

With reference to paragraph 7 of the Minute of 15 January 2018, there had been circulated copies of a report by the Chief Officer Audit and Risk providing details of the recent work carried out by Internal Audit and the recommended audit actions agreed by Management to improve internal controls and governance arrangements.   The work Internal Audit had carried out during the period 23 December 2017 to 23 February 2018 was detailed in the report attached to the Agenda.  During this period a total of five Final Internal Audit reports were issued. There were four recommendations made relating to two of the reports which had been accepted by Management for implementation. An Executive Summary of the final Internal Audit reports issued, including audit objective, findings, good practice, recommendations (where appropriate) and the Chief Officer Audit and Risk’s independent and objective opinion on the adequacy of the control environment and governance arrangements within each audit area, was included in Appendix 1 to the report.  The SBC Internal Audit function conformed to the professional standards as set out in Public Sector Internal Audit Standards (PSIAS) effective 1 April 2013 including the production of the report to communicate the results of the reviews.

4.2       Ms Stacey highlighted the Internal Audit Assurance Reports detailed in the Appendix to the report.  She advised that the recommendations in respect of Petty Cash and Emergency Funding improvement actions were progressing.   The recommendations regarding governance arrangements for CGI were noted and agreed by the Committee.     In response to questions, Mr Robertson clarified the arrangements in place for emergency financial support and confirmed that the Finance Business Continuity Plan would be updated.  With regard to ICT’s business continuity, corporate and operational vulnerability, he advised that CGI had carried out a review following the recent difficulties experienced with ICT’s remote working functionality.  CGI had advised that they were confident that there would be no further remote accessibility issues.  He further advised that the Head of ICT was an interim post and recruitment to the permanent, internal post was ongoing.   He went on to explain that CGI was the fifth largest ICT provider in the world; they had recently signed contracts with both Glasgow City Council and City of Edinburgh Council and were therefore fully committed to the public sector. 

            4.3       The Chairman, referring to the paragraph 7.3(b) of the minute of the meeting of 15           January 2018, requested an update on the possible amendment to the Scheme of   Administration to include Live Borders within the monitoring role of the Major Contracts       Governance Group.  He suggested that an action tracker be circulated for future meetings             and this was agreed.   

DECISION:

(a)        NOTED:

            (i)         the final assurance reports issued in the period from 23                                                December 2017 to 23 February 2018 associated with delivery of the                                   approved Internal Audit Annual Plan 2017/18;

            (ii)        the Internal Audit consultancy and other work undertaken in this                                period; and

            (iii)       the assurance provided on internal controls and governance                                       arrangements in place for the areas covered by this Internal Audit                              work.

(b)       AGREED

            (i)         to request the Chief Executive consider a possible amendment to the                        Scheme of Administration to include CGI        within             the monitoring role of                      the Major Contracts Governance Group and following this                                          consultation a report be submitted to Council to approve this                                           amendment; and

            (ii)        that future meetings, considering Audit business, to include                                        an action tracker, for information.