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 (copy attached).

With reference to paragraph 6 of the Minute of 23 November 2020, there had been circulated copies of a report by the Chief Officer Audit & 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 report also provided the conclusions of the External Quality Assessment (EQA) of the Internal Audit service against the Public Sector Internal Audit Standards (PSIAS).  The work Internal Audit had carried out in the period from 1 November to 31 December 2020 associated with the delivery of the approved Internal Audit Annual Plan 2020/21 was detailed in this report.  During this period, a total of 3 Final Internal Audit Reports had been issued, on the following subjects: Schools Financial and Business Administration Processes; Foster and Kinship Carer Payments; and Education Maintenance Allowances Process. There was a total of 5 recommendations made associated with 2 of the reports (4 Medium Risk; 1 Low Risk).  An Executive Summary of the final Internal Audit reports issued, including audit objective, findings, good practice, recommendations (where appropriate) and the Chief Officer Audit & Risk’s independent and objective opinion on the adequacy of the control environment and governance arrangements within each audit area, was shown in Appendix 1 to the report.  The report also detailed current Internal Audit Assurance work in progress. The Chief Officer Audit & Risk, Jill Stacey, drew attention to the section of the report explaining that the findings of the SBC EQA concluded by North Lanarkshire Council in early January 2021 assessed the function as ‘fully conforms’ in line with the SBC Internal Audit self-assessment 2019/20.  A small number of recommendations had been raised, based on areas for further improvement.  These had been accepted for implementation and had been included in the Quality Assurance and Improvement Plan (QAIP).  In a discussion of the report Members asked for further information about the Internal Audit report on Education Maintenance Allowances Process where 3 Medium Risk recommendations had been made.  Ms Stacey explained that the weaknesses identified related to some inconsistencies across the High Schools, which led to inefficiencies.  It was recommended that a single set of guidance rules and structured procedures were developed across the schools.  There were however examples of good practices and, with the recent appointment of a senior business manager, work was in progress to bring these together.

DECISION

            AGREED to:-

(a)        note the final assurance reports issued in the period from 1 November to 31 December 2020 associated with the delivery of the approved Internal Audit Annual Plan 2020/21;

(b)       note the Internal Audit Assurance work in progress and Internal Audit Consultancy and other work carried out in accordance with the approved Internal Audit Charter;

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

(d)       note the conclusions and improvement actions from the External Quality Assessment of the Internal Audit service against the Public Sector Internal Audit Standards.