Audit Committee
6 March 2012
Agenda Item No_____9________
Progress Report on Internal Audit Activity, November 2011 – February 2012
Summary:
This report examines progress made during the last 4 months in
relation to delivery of the Annual Audit Plan for 2011/12, and
includes abbreviated management summaries in respect of the
audit reviews which have been finalised in the course of this
period.
Conclusions:
At this advanced stage of the financial year, we are now able to
confirm that 80% of audit work has been completed.
Furthermore, there were changes made to the Audit Plan in
December 2011, which subsequently resulted in two additional
assignments being brought forward from 2012/13 into the final
quarter of 2011/12. There are currently 6 remaining audit
assignments at varying stages of delivery and their
corresponding management summaries will be incorporated into
the Head of Internal Audit’s Annual Report and Opinion in June
2012.
Recommendations:
It is recommended that the Committee notes the outcomes of
the 6 audits completed between November and February, and
the recent amendments made to the Annual Audit Plan.
Cabinet member(s):
All
All
Wards:
Contact Officer,
telephone
number, and
e-mail:
Sandra King, Head of Internal Audit
01508 533863
scking@s-norfolk.gov.uk
1.
Background
1.1
This report represents the third progress update on the Annual Audit Plan for
2011-12. As agreed previously with the Committee, a shorter report is
presented in March of each year to appraise members as to the current status
of the Plan and provide management summaries in respect of audits completed
to date, whereas a more comprehensive report (the Head of Internal Audit’s
Audit Committee
6 March 2012
Annual Report and Opinion) will be provided in June, accompanied by the
Annual Review of the Effectiveness of Internal Audit.
2.
Amendments to the Annual Audit Plan
2.1
Following our previous report to the Committee in December, a number of
further changes to the Plan have been initiated. Aside from those revisions
which were verbally communicated to the Committee at its last meeting, namely
the deletion of the Communications audit from the current year Plan and the
rescheduling of the Corporate Policy review to 2012/13, it was then agreed with
management to redirect the unused job budgets into audits of Electoral
Registration and the Cedar Financial Application. However, after embarking on
detailed audit planning work in respect of the Cedar Financial Application,
management subsequently confirmed that it was no longer viable to undertake
this particular review in Quarter 4 due to year-end pressures of work and as
such, this audit has been moved back to 2012/13 and replaced by a review of
Remote Access, which was originally timetabled for delivery in 2012/13.
2.2
The resultant revisions to the Plan have led to a one day increase overall in the
total audit days that had originally been approved by Committee on 8 March
2011, i.e. the Plan now stands at 217 days.
3.
Delivery of Programmed Audit Work in accordance with the Revised
Annual Audit Plan
3.1
As demonstrated in Appendix A to this report, 173 days (80%) of programmed
work has been completed at the time of writing this report. The remaining 44
days are required to complete 6 outstanding audit assignments – 3 systems
audits and 3 computer audit reviews, all of which are currently at varying stages
of delivery. The most recently commissioned audits in the areas of Electoral
Registration and Remote Access are not expected to be finalised until April
2012, although the fieldwork will be completed within the current financial year.
Given the timings involved, it should be possible for the corresponding final
reports to be incorporated into the Head of Internal Audit’s Annual Report and
Opinion in June 2012.
Audit Committee
6 March 2012
4.
Outcomes of Work Undertaken
4.1
With reference to work completed between November 2011 and February 2012,
it is pleasing to note that 6 audits have been cleared during this period and their
respective management summaries are attached at Appendix B to the report.
4.2
In the case of two of the management summaries, however, audit findings led to
limited assurances being given concerning Car Parking and Markets, plus
Sundry Debtors. In both cases, the assurance level awarded previously had
been adequate, hence the systems of internal control were found to have
deteriorated since our previous review of arrangements back in 2009.
Conversely, we were able to give a more positive opinion in respect of Sports
Halls/Centres this year, with the assurance level improving from limited to
adequate since our last audit visit.
5.
Conclusion
5.1
Good progress has been made with the delivery of the Audit Plan whereby 80%
of programmed work has been provided to date. Moreover, the remaining work
is scheduled such that the Head of Internal Audit’s Annual Report and Opinion
will be available in Quarter 1 of 2012/13 and hence, will be issued to
management in a timely manner enabling its contents to inform the Council’s
Annual Governance Statement. The management summaries from the final 6
reviews will also feature in the Annual Report and Opinion.
6.
Recommendation
6.1
That members note the outcomes of the latest set of completed audits and the
recent amendments made to the Annual Audit Plan for 2011/12.
Appendices attached to this report:
Appendix A – Review Work delivered in accordance with the Annual Audit Plan for
2011/12 plus Extra Work requested by Management
Appendix B – Abbreviated Management Summaries of Completed Audit Assignments
Appendix B (1) NN/12/06 Car Parking and Markets
Appendix B (2) NN/12/08 Sundry Debtors
Appendix B (3) NN/12/09 Sports Halls / Centres
Appendix B (4) NN/12/10 Corporate Governance
Appendix B (5) NN/12/15 Data Consistency
Appendix B (6) NN/12/17 Payroll and HR Application