Audit Committee
8 March 2011
Agenda Item No___11__________
Progress Report on Internal Audit Activity, 23 November 2010 – 15 February 2011
Summary:
This report provides the Audit Committee with an update on
current progress achieved in relation to the delivery of the
Annual Audit Plan for 2010/11, following on from previous
reports presented in September and December 2010.
In line with our terms of reference, this report provides a brief
summary of the audit work completed at this stage together with
further details of the performance and effectiveness of the
Internal Audit function, whilst the remaining audit work to be
completed within the Annual Audit Plan, will be presented
alongside the Head of Internal Audit’s Annual Audit Opinion in
June 2011.
Conclusions:
At this stage, 87% of planned work has been delivered for the
year, culminating in the issue of 9 final audit reports. Of the
other projects featuring in the Annual Audit Plan, it should be
noted that a further final report is due to be issued shortly, two
draft reports are under preparation, fieldwork relating to 3
reviews is in progress and an audit brief has been prepared for
the 1 remaining assignment, with the fieldwork set to commence
on 3 March 2011. An additional ad-hoc review requested by
management has also been completed and subject to a final
audit report – and this involved 3 extra days of audit input.
Recommendations:
It is recommended that the Committee notes the progress made
in delivering the Annual Audit Plan.
Cabinet member(s):
Ward(s) affected:
All
All
Sandra C King, Head of Internal Audit
scking@s-norfolk.gov.uk
01508 533863
Contact Officer, telephone
number, and e-mail:
1. Appendix A highlights the current progress made in delivering the Annual Audit
Plan. At this stage, 87% of the total planned work we had expected to deliver in
Audit Committee
8 March 2011
year is now completed; the only case where fieldwork is yet to be significantly
progressed is in respect of the work to support the Annual Governance Statement
audit. This audit is intentionally undertaken very late in the financial year to ensure
that audit coverage is provided across the full year, and thus our work can most
effectively support the Council’s External Auditors. Work on the remaining audit
assignments is nearing completion.
2. This progress report follows on from those reports presented to the Committee in
September and December 2010, which provided Management Summaries of those
audits completed during the timeframes specified in the respective activity reports.
Summaries pertaining to two additional audit assignments completed between
November 2010 and February 2011 are included at Appendix B. It should also be
noted that the key findings in respect of the Computer Audit Needs Assessment for
the period 2011-12 to 2013-14 are referenced within the Annual and Strategic Audit
Plans, also presented to the Committee today. The outcomes for the residual
assignments – Council Tax and National Non Domestic Rates, Housing and Council
Tax Benefits, the Waste Management Contract, Corporate Governance and Risk
Management, Planning and Development Control, plus Work to Support the 2010/11
Annual Governance Statement, will be incorporated in the Head of Internal Audit’s
Annual Report and Opinion in June 2011.
3. In addition to the two audit assignments completed since November 2010, Internal
Audit has also undertaken an ad-hoc piece of work requested by management to
review certain aspects of procurement processes within the Property Services
Department. This audit generated two findings which related to deficiencies in the
internal control environment. Given that the work was not performed with the
intention of conducting a detailed systems review but instead to examine specific
elements of working practices, it has not been feasible to award an overall
assurance level with regards to this work. However, the main findings of our review
are included for the Committee’s reference at Appendix C.
Appendices attached to this report:
Appendix A –Review of work delivered in accordance with the Annual Audit Plan for
2010-11, plus Ad-Hoc work requested by management
Appendix B – Management Summaries in respect of completed audit assignments
Appendix C – Findings arising from a review of specific processes in the Property
Services Department