Agenda item

Report by the Director of Finance and Support Services, and the Head of Southern Internal Audit Partnership.

The Committee is asked to approve the annual audit report for the year ended 31 March 2020.

4.1        The Committee considered a report by the Head of Southern Internal Audit Partnership (copy appended to the signed minutes).

4.2        Neil Pitman, Head of Southern Internal Audit Partnership, introduced the report and reported that despite the impact of Covid-19, the majority of the plans had been delivered to a draft state which allowed Mr Pitman to give a ‘limited’ audit opinion.  The report outlined where resources had been applied and the status of reviews to be finalised.  Two reviews could not be completed due to Covid-19.  The graph on page 48 omitted a substantial opinion review of bank reconciliations, this would be amended for the final version.

4.3        The Committee made comments including those that follow.

•    Asked how the overall ‘limited’ opinion compared to other Councils and if strategic action was required.  – Mr Pitman commented that the opinion showed that audit was looking in the right areas and that officers were utilising Internal Audit to best effect.  The County Council had taken positive steps towards addressing governance framework.  Internal Audit were working with directors and expected the work to be finalised and reported at the next committee meeting.

•    Queried if the six limited opinions would be reassessed before the final report.  – Mr Pitman explained that the management would be working through the actions and Internal Audit would then follow up to see if things had been appropriately implemented.

•    Asked if there were particular concerns for Special Educational Needs.  – Mr Pitman explained that the report was still in draft and so it was not appropriate to discuss in open session.  Internal Audit would report on this to the committee at an appropriate time.  The limited opinion showed that there were areas to be addressed which would be reviewed for 2021.

•    Queried the position last year.  – Mr Pitman confirmed that the opinion last year was ‘adequate’.

•    Sought clarity on the status of the governance review.  – Mr Pitman explained it would be later in the year when a rounded conclusion could be given. 

•    Asked if disaster recovery planning would be reconsidered following Covid-19.  – Mr Pitman explained that the following agenda item covered the plan for 2020/21 which would include IT.  Risk linked to Covid-19 would be highlighted, with a focus on home working aspects.

•    Sought clarity on the section relating to allowances and enhancements data not being fully optimised.  – Mr Pitman explained that the data could be more analytical.  Mr Harvey, Deputy Head of Southern Internal Audit Partnership, added that some elements of the systems were not being fully utilised.

•    Queried the other entries in the position statement and if they were given formal opinions.  – Mr Pitman explained that these were not given formal opinions, but were looking at areas were things could be implemented.  Issues in these areas would be reported on via normal routes, such as coming to the committee.

•    Asked why risk management had received a limited opinion.  – Mr Pitman explained that the opinion did not specifically relate to risk management, but was a rounded opinion on all areas.

•    Queried what recommendations had been made to management regarding corporate governance.  – Mr Pitman explained that no recommendations had been made and that the position statement for Whole Council Design would cover this.

4.4        Resolved – That the Committee approves the annual audit report for the year ending 31 March 2020.