Agenda item

This report summarises the status of work included in the 2022/23 Internal Audit Plan as at the end of February 2023.

Moira Mackie (Head of Internal Audit) presented the report which summarised the status of work included in the 2022/23 Internal Audit Plan as at the end of February 2023. She noted that nine audits had been finalised, seven of which received Satisfactory assurance and two Limited assurance.

Councillor Ashok Patel asked if the new approach of a ‘3 plus 9-month’ plan had been tested. David Hughes said they started the new approach in 2020 using learning from the pandemic, allowing audits to be more agile and dynamic. He said the approach had been very successful. Councillor Patel felt three months was too short a period.

Councillor Patel, in reference to the school findings on page 48, asked what should be done to ensure it didn’t happen again. Moira Mackie said often there were checks made but they weren’t evidenced. Some schools had very simple systems and processes. Officers had sent clear messages about the separation of duties and controls. David Hughes added that officers carried out follow-ups to school audits to ensure the proper controls were now in place.

Councillor Patel noted that some school funds had not been audited since 2015 and asked why. David Hughes said they were small funds used for school trips etc. Schools had trouble finding people with the right skills to review them.

Councillor Florian Chevoppe-Verdier noted that in Pension Fund Committee meetings members heard that some schools were struggling to provide pensions information. He asked if it was due to a lack of resourcing and if there were ways the Council could support them. Moira Mackie said schools did sometimes find it difficult to resource those areas, but the Schools Finance team helped them with financial matters and the Council’s HR team helped them with DBS checks and other matters.

The Chair asked if there had been any training for staff to help them. Moira Mackie said officers did tell them in advance what areas would be looked at and what records needed to be available. The finance team was very supportive. Audit officers also attended school business managers forum meetings to provide guidance.

The Chair, referring to school finance systems, noted staff turnover was an issue and asked if there were robust processes and security in place so someone new coming in could take over. David Hughes said almost all schools used the same system so it was easy for people to move between jobs. He noted that each school controlled their own access to ensure security.

The Chair noted the one school that didn’t use the same system as the others had run into some issues. He asked why they opted out. Moira Mackie said it was a decision for the school. They chose a more commercial accounting system but it was not set up in way that worked well for a school.

The Chair asked if the system they were using would be able to provide the information necessary for a complete audit. Moira Mackie said it would, but it may not be able to provide certain financial returns and reports as quickly as the more widely used system.

Councillor Patel, in reference to the disrepair claims, asked if there had been further developments since the report was written. Moira Mackie said there had been progress. Officers would conduct a follow-up and report back.

Councillor Paul Alexander noted the risk around major projects did not reflect the issues experienced at ground level. David Hughes said that should be dealt with through contract management, but he could take away any specific examples.

RESOLVED

1. To note and comment on the report.