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Agenda Item No

 

The Vale of Glamorgan Council

 

Audit Committee: 25th February 2013

 

Report From The Head Of Accountancy & Resource Management

 

Internal Audit - Outturn Report - April to December 2012

 

Purpose of the Report

1.             The purpose of this report is to inform the Committee of actual Internal Audit performance against the 2012-13 Plan for the period 1st April to 31st December 2012.

Recommendation

1.         THAT the report on actual Internal Audit performance during the nine months of the Financial Year be noted.

Reason for the Recommendation

1.         To facilitate monitoring of the audit function.

Background

2.             The 2012/13 Internal Audit Plan was submitted to the Audit Committee for approval on 17th September 2012 (Minute No. 348).  The Plan outlined the assignments to be carried out, their respective priorities, an estimate of resources needed and differentiated between assurance and other work.

Relevant Issues and Options

3.             The actual position for the nine months compared against the Plan is detailed at Appendix A

4.             The figures show that 1,059 actual productive days have been achieved, which equates to 93.5% of the overall planned productive time available.  The shortfall of 73 days is directly attributable to sickness absence and staff shortages.

 

Work Area

2012-13

Full Year

Plan Days

Proportion of

Plan Days Available for

April to Sept

2012-13

April to Sept.

Actual Days

 

Assurance

965

724

540

Anti-Fraud & Corruption

115

86

104

Governance - Performance and Risk Management

290

217

165

Unplanned

140

105

250

TOTAL PRODUCTIVE DAYS

1,510

1,132

1,059

 

5.             A summary of audits completed during the period April to December 2012 is detailed in the Head of Accountancy & Resource Management's progress report attached at Appendix B.  This together with Appendix A provides the Committee with details of the reviews completed, together with an overall Audit Opinion and this will support the annual audit opinion at the end of the financial year.

6.             Detailed reports are issued to the relevant service managers on the results of individual audits and where fundamental and/or significant weaknesses are identified these will be followed up to ensure high priority recommendations are implemented.

7.             Overall, with the exception of 8 reviews where either no assurance or limited assurance can be given; the remainder of the reviews completed during the nine months of the financial year have not identified any significant weaknesses in the system of internal financial control.  Of the 8 reviews where weaknesses have been identified these relate to Waste Management; Waste Bags; St. Helens RC Junior School, Energy Management; Cowbridge Comprehensive School - Unofficial Fund; Palmeston - loss of income; Intake and Family Support and Leisure Services Contract Monitoring.

8.             From a Governance perspective, the Leisure Services Contract Monitoring review is viewed as a major issue and as a result Internal Audit will be closely monitoring arrangements to deal with the control issues.  The remaining 7 reviews will receive follow up visits during the last quarter of the financial year but it is not envisaged that any of these will have a detrimental effect on the Council's Governance arrangements.

Resource Implications (Financial and Employment)

9.             Effective audit planning and monitoring are key contributors in ensuring that the Authority's assets and interests are properly accounted for and safeguarded.

Sustainability and Climate Change Implications

10.        None directly.

Legal Implications (to Include Human Rights Implications)

11.        Provision of an adequate and effective Internal Audit function is a legal requirement under the Accounts and Audit (Wales) Regulations 2005 as amended.

Crime and Disorder Implications

12.        Pursuing initiatives to prevent, detect and deter crime is encompassed within the terms of reference under which the audit function operates.

Equal Opportunities Implications (to include Welsh Language issues)

13.        None as a direct consequence of this report.

Corporate/Service Objectives

14.        The work of audit is intended to assist in the achievement of all corporate and service objectives.

Policy Framework and Budget

15.        The proposals in this report are in accordance with the policy framework and budget.

Consultation (including Ward Member Consultation)

16.        No further consultation is proposed.

Relevant Scrutiny Committee

17.        Corporate Resources.

Background Papers

None

Contact Officer

Helen Smith - Principal Auditor Tel: 01656 754901

Officers Consulted

External Audit Manager - Grant Thornton UK LLP

Responsible Officer:

Alan Jenkins - Head of Accountancy & Resource Management

 

 

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