Agenda item

A report from the Head of Financial Management is attached

Appendices A – D are attached.

The Head of Financial Management, Andrew Baldwin, presented a report summarising the work undertaken by the Internal Audit service during the 2014/2015 financial year and comparing it to the Audit Plan for the year.

The report contained an Audit Opinion which assessed the Council’s control framework as “robust” and updated the Members on some of the issues facing the Internal Audit Service. It was also explained that the report would provide information to support the 2014/2015 Governance Statement, also on the agenda. 

It was explained that 97% of the target chargeable days had been achieved by the Internal Audit Team, 44 final reports had been produced which contained 244 recommendations, none of which were high level. It was also reported that 99% of the recommendations had been accepted.

Appended to the report was a Review of the Effectiveness of Internal Audit and the Annual Report and Opinion for 2014/2015.

Members were given the opportunity to ask questions and make comments and the following points were raised:-

·         Councillor Bayley referred to the cost per day of Bury’s Internal Audit team compared to the average cost and asked how Bury were able to keep the costs low?

Andrew explained that the costs were based on staffing levels and the fact that the number of staff within the team had reduced. The work that the team carried out was reviewed regularly to ensure that it was risk based, relevant and timely.

·         Councillor Bayley referred to the CIPFA benchmarking meeting and the fact that the Council no longer participated in this. Councillor Bayley asked what the Council was now doing with regards to benchmarking.

It was explained that there was a North West Chief Internal Auditors meeting that the Council was a member of and this was where benchmarking against the other authorities took place.

·         Councillor Southworth referred to the fact that the Head of Financial Management was also the Head of Internal Audit and asked whether this caused concern around the independence of the section.

It was explained that this issue had been raised previously and KPMG had initially questioned the situation. The Audit Team were managed by Andrew and there was a separation of duties between his role as Chief Internal Auditor and that of Head of Financial Management.  It was also explained that if an audit was being carried out in relation to any of Andrew’s teams, he would not be involved with the Audit and Internal Audit would report directly to the Interim Executive Director of Resources and Regulation. Trevor Rees from KPMG confirmed that they were satisfied that the management of the team was working well and they would continue to monitor the arrangement.

·         Councillor Walker asked whether the Council had any agreements with other partners to share resources.

It was explained that there was the facility to purchase 20 days from Salford in relation to computer auditing.

·         Councillor Walker also asked whether schools paid for the Audit Service and it was reported that they were charged Audit fees.

Delegated decision:

1.     That the conclusions reached in the report be accepted.

2.     That the suitability of the report in support of the Governance Statement for 2014/2015 be endorsed.