Agenda item

Consider report by Chief Officer Audit and Risk.  (Copy attached.)

1.1          There had been circulated copies of the Internal Audit Annual Assurance Report for the year to 31 March 2022 which included the Chief Officer Audit & Risk’s independent assurance opinion on the adequacy of the Council's overall control environment.  The Public Sector Internal Audit Standards (PSIAS) required that the Chief Audit Executive (CAE), the Council’s Chief Officer Audit & Risk, provided an annual internal audit opinion and reported on the adequacy and effectiveness of the Council’s governance, risk management and internal controls to support the preparation of the Annual Governance Statement.  This was in support of the overall governance arrangements of the Council, as set out in the Local Code of Corporate Governance.  The Remit of the Audit and Scrutiny Committee, relevant to the content of this report, indicated that it should: ensure an adequate framework of internal control, risk management and governance throughout the Council; and monitor and review the performance of Internal Audit, conformance to the Public Sector Internal Audit Standards and code of ethics.  To meet the requirements of the PSIAS, the Internal Audit Annual Assurance Report 2021-22, at Appendix 1, included the annual Internal Audit opinion, provided details of the Internal Audit activity and performance during the year to fulfil its role, and summarised the outcomes of assessments of the Internal Audit service against the PSIAS.

1.2          The opinion of the Chief Officer Audit and Risk was that the internal control, governance and risk management within the Council were operating satisfactorily.  The main issue for 2021-22 was non-completion by staff of the mandatory eLearning training (particularly child protection), and lack of oversight by Management to check compliance and include in staff annual appraisals.  Common themes from Internal Audit findings during the year were: keeping policies and procedures up-to-date which was of particular importance during a period of change, for example HR and Financial Policy Frameworks; Senior Management needed to carry out second line monitoring for assurance purposes, for example, Performance Management; and establish a board to provide strategic oversight on capital asset management planning and implementation of capital programmes and projects.  The Council continued to make progress in embedding Risk Management and awareness, ensuring that the risks to achieving corporate objectives were systematically identified, analysed, evaluated, controlled, monitored and reported regularly.  Corporate and Service Risk Registers were subject to regular review by those Managers who were allocated the responsibilities for managing individual risks.  Improvements were required on the Council’s Business Continuity Framework to ensure the policy was up-to-date, the system was fit for purpose, adequate support resources were deployed, and a programme of testing was developed and implemented to ensure business continuity was being applied in practice.

1.3          In response to a question regarding the uptake of e-learning training, the Chief Officer Audit and Risk advised that it had been recognised that the recording of staff completion of e-learning was not always being picked up by the system.  Not all staff had access to IT to undertake e-learning.  All these factors were being taken into account in recognising the challenges of the Council as an employer.  In response to a question about the availability of appropriate equipment for staff to undertake training, the Chief Officer Audit and Risk advised that work was underway with particular staff groups to look at different ways to deliver training, perhaps in group setting, but it was important for the Council, as an employer, that there was a record to show that staff were aware and had complied with requirements.  A number of different options were being considered to provide a solution.  The key element was about having management oversight of the level of staff engagement which would allow a much better picture to emerge across the range of services and how this would help with the challenges going forward.

DECISION

NOTED the Internal Audit Annual Assurance Report 2021/22 (Appendix 1) and assurances contained therein.