Agenda item

To provide the Audit and Risk Management Committee with an overview of the work undertaken by Internal Audit during 2021/22;

To provide the Audit Managers annual opinion on the system of internal control;

To consider the effectiveness of Internal Audit.

Members considered the Internal Audit Outturn and Quality Assurance Review 2021/22 report presented by Kathy Woodward, Internal Audit Manager.

Kathy Woodward highlighted Section 5 of the report to members which shows the detail of the outturn of the Internal Audit function. She added that throughout the year regular updates have been presented to the committee on the progress of the function and explained that all of the completed audits are shown in the report, which contain more detail than has previously been provided to enable members to have more of an overview and provide additional assurance that the committee have been looking for.

Kathy Woodward stated that in addition to the planned audits undertaken the report shows other sources of assurance which has been considered and will look to further support the level of assurance that can be provided on the Council’s risk and control activities. She explained that the report highlights the progress made on recommendations throughout the year over a two-year period covering 2020/21 and 2021/22 and the appendix shows a small number of overdue recommendations which are being reported to the Management Team on a quarterly basis and they are being addressed accordingly.

Kathy Woodward highlighted to members the Audit Manager’s annual audit opinion which feeds into the Annual Governance statement which forms part of the Council’s statutory financial statements. She confirmed to the committee her audit opinion which is that there is adequate assurance to the adequacy and effectiveness of the internal controls, the risk management and governance arrangements of the Council.

Kathy Woodward pointed out to members the effectiveness of the Internal Audit function and highlighted the Chartered Institute of Public Finance and Accountancy (CIPFA) checklist confirms that the internal audit conforms to all of the areas within the checklist. She advised members that this year the Council will be scrutinized through the external quality assessment which takes place on a five yearly cycle and the Audit Team will be audited by an external body.

Members asked questions, made comments and received responses as follows:

·         Councillor Yeulett asked whether there was a need for something to be added within the Council’s risk plans to highlight the volatile economic situation currently in place? Kathy Woodward stated that risk management is considered by the committee on a quarterly basis and the volatility and economic climate is something that has always been captured when reviewing the overall risk management arrangements for the Council.

·         Councillor Wicks asked whether there is a specific risk which identifies and considers those residents who maybe less fortunate than others when dealing with any regular payments they make to the Council, and he asked what mitigation factors are in place to address that type of situation? Kathy Woodward explained that there are various debt management policies in place and the Council works with other partner agencies as well particularly when dealing with those vulnerable customers that the Council has. Neil Krajewski added that it is only responsible and right to point out that the approach taken will vary according to the type of debt and the Council works with Anglia Revenue Partnership in relation to those debts which are related to Council Tax or business rates and then for other services which the Council provides where customers are invoiced, where necessary payment plans have been put in place, they will be reviewed to actually understand the difficult position customers may find themselves in and the Council also has a good working relationship with Citizen Advice Bureau, as the customer may also be in financial difficulties with other types of debt. He added that the Council try to work with both residents and businesses who maybe experiencing financial difficulties at the current time.

·         Councillor Mrs French stated that she is the Chairman of the Anglia Revenues Partnership and at a recent meeting it had been raised that they are working exceptionally well with those residents who find themselves in a difficult position financially.

·         Councillor Mrs French stated that she would like to thank Kathy Woodward and her team for all the work they have undertaken over the last year as it has been a very difficult year for everybody.

·         Councillor Mrs Davis asked for clarification with regards to the audit opinion on Business Unit Lettings which is shown as limited? Kathy Woodward explained that over the last year her team achieved the greatest number of audits that have been undertaken over a number of years due to the fact that working practices are now returning to normality following on from the pandemic. She explained that she had issued one audit with a limited assurance which does raise concerns with management and added that over a number of years there has been a decline in the level of service throughout the team responsible for business unit lettings which has been primarily caused by staff vacancies and a lack of continuity within the service area and, therefore, three high risk recommendations were suggested which have all been addressed within the three month window that had been given to the team to address the points highlighted. Kathy Woodward advised members that a new Head of Economic Growth and Assets was appointed in January 2022, his name is Mark Greenwood, and he will now address some of the concerns raised. She added that it is her understanding that more officers have also been appointed in the last few weeks and this will mean that the service will be near to its full capacity and then some of the areas of weakness identified, particularly concerning the legalities with regard to business unit lettings which are being addressed and the high-risk areas have been addressed. Kathy Woodward stressed that the team have made significant progress and are moving forward, but a follow up report will be undertaken this year and a report will be brought back to the committee in the progress reports so that members can see the progress and improvements that have come from that team.

·         Councillor Mrs French stated that she was aware of the issues within that team, due to officers moving to other positions outside of the authority, however, she is also aware of the significant progress that has been made since Mark Greenwood joined the authority and it appears to be going from strength to strength.

Members agreed to note the report.