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.
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.
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.
Plan Days Available for
April to Sept
April to Sept.
Anti-Fraud & Corruption
Governance - Performance and Risk Management
TOTAL PRODUCTIVE DAYS
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.
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.
Helen Smith - Principal Auditor Tel: 01656 754901
External Audit Manager - Grant Thornton UK LLP
Alan Jenkins - Head of Accountancy & Resource Management