Agenda Item No 10
The Vale of Glamorgan Council
Audit Committee: 19th September 2018
Report of the Operational Manager - Audit as the Head of Audit
Audit Report - Healthy Organisation Review 2017/18
Purpose of the Report
- The purpose of this report is to present to Members the audit report in respect of the Healthy Organisation Review which was undertaken by the South West Audit Partnership on behalf of the Council's Internal Audit Shared Service (IASS) and which formed part of the Council's 2017/18 audit plan.
That Members give due consideration to the content of the Healthy Organisation Review and the actions being taken to address those areas requiring attention.
Reason for the Recommendation
To progress the actions requiring attention from the review and to ensure that robust scrutiny of the Healthy Organisation Review takes place.
- As a consequence of resourcing issues within the Internal Audit Shared Service (IASS) during 2017/18, it was necessary to commission a number of reviews to be undertaken by an external provider. The South West Audit Partnership (SWAP) was therefore contracted to undertake a Healthy Organisation Review on four of the eight core functions of the Council.
- The review was part of the 2017/18 Internal Audit risk based Plan and was undertaken on behalf of the Internal Audit Shared Service.
Relevant Issues and Options
- The purpose of the Healthy Organisation Review is to provide an objective assessment of the management control framework or "health" of the Council. The framework comprises eight corporate themes: Corporate Governance; Financial Management; Risk Management; Programme & Project Management; Commissioning and Procurement; Information Management; Programme & Project Management; and finally People and Asset Management.
- Four of the eight themes were reviewed, these were; Risk Management; Commissioning and Procurement; Programme & Project Management and Information Management.
- For each of the corporate themes, the strength of the management control framework in place was assessed against a benchmark model by identifying the presence or otherwise of key controls. As the Healthy Organisation review is a high level corporate overview, it assists with ensuring that there is a balanced view of the control framework in operation across the Council.
- The assurance for each of the four themes referred to above have been reviewed indicating an overall High Assurance opinion. The detailed report is attached at Appendix A. Set out from pages 30 onwards details those areas where attention is needed and whilst these have already been recognised as such by services and work is either ongoing or planned to address them; further details have been provided as to the owner of the action and whether or not follow up will be required by Internal Audit during 2018/19.
- The Healthy Organisation Review 2017/18 was reported to Insight Board on 21st June. Following the meeting it was agreed that where high and medium risk has been identified follow up action is required by Internal Audit; these actions will also be incorporated into the Insight Action Tracker (Appendix B provides an extract). Some actions deemed as low risk have been identified as not requiring Internal Audit follow up work. However, the Insight Board discussed the importance of individual officers completing these actions (detailed in Appendix C). As a result, actions contained within the Insight tracker will be monitored as they are implemented, while actions identified in Appendix C will be progressed by identified officers. An update on progress will be reported to Audit Committee in November 2018.
Resource Implications (Financial and Employment)
- Effective Audit planning and monitoring are key contributors in ensuring that the Council's assets and interests are properly accounted for and safeguarded.
- The work undertaken by SWAP was contained within the Audit budget for 2017/2018
Sustainability and Climate Change Implications
- None directly from this Healthy Organisation report.
Legal Implications (to Include Human Rights Implications)
- None directly from this Healthy Organisation Review
Crime and Disorder Implications
- None directly from this Healthy Organisation Review.
Equal Opportunities Implications (to include Welsh Language issues)
- None directly from this Healthy Organisation Report.
- This report is consistent with the Council's corporate objectives to ensure effective management of resources.
Policy Framework and Budget
- The proposals in this report are in accordance with the policy framework and budget.
Consultation (including Ward Member Consultation)
- No further consultation is proposed.
Relevant Scrutiny Committee
- Corporate Performance and Resources
Appendix A: Healthy Organisation Review
Appendix B: Healthy Organisation Review - Actions for Inclusion in Insight Action Tracker
Appendix C: Healthy Organisation Review - Action Plan not requiring Internal Audit follow-up
Helen Smith - Operational Manager - Audit
Carys Lord - Head of Finance / Section 151 Officer