Agenda item

This report includes the Annual Report of the Head of Internal Audit, which summarises internal audit work undertaken in 2020/21 and provides an opinion on the overall adequacy and effectiveness of the council’s framework of governance, risk management and internal control. An annual report setting out counter fraud activity and performance is also included.

Alongside this report the following internal audit reports referred to in annex 1 have been published on the Council’s website under this meeting but will not be part of the agenda pack (https://democracy.york.gov.uk/ieListDocuments.aspx?CId=437&MId=13013&Ver=4):

• SEN Ofsted Inspection & written statement of action (WSoA)

• Home working

• ICT Server Administration and Security

• ICT Licence Management

• Public Health – Healthy Child Service

• Cash handling

The Committee considered and discussed the Annual Report of the Head of Internal Audit for 2020/21 and the report setting out

counter fraud activity and performance. Members raised questions about the internal auditor opinion of governance and management within in the Council, noting that in 2020/21 they gave the Council a rating of substantial assurance despite having  received its second Public Interest Report (PIR) and highlighted the issues raised by the external auditor. The internal auditor confirmed that they were aware of and had taken into account the PIR, their findings were rated as substantial assurance because they were content with the actions outlined in the action plan to address problems raised by the external auditors.

The report into Make it York (MIY) was also discussed by Members with concerns highlighted from the report into the structural problems identified within MIY. In relation to this members enquired as to whether reviews had been undertaken with all of the Council’s TECKAL companies and the internal auditors confirmed that they would check this. The Committee also enquired as to whether reviews of these TECKAL companies would come under Audit and Governance or the Shareholders Committee and it was noted that this would be considered by officers and the auditors.

Resolved:

                      i.         Auditors to review the Service Level Agreement of Make it York and report back to the Committee as to whether it is suitable for the management of MIY.

Reason:     To address concerns around the structure of MIY.

                     ii.         Noted the results of internal audit and counter fraud work undertaken.

Reason:     To enable members to have considered the implications of internal audit findings, and inform their assessment of the effectiveness of counter fraud arrangements.

                    iii.        Noted the opinion of the Head of Internal Audit on the

adequacy and effectiveness of the council’s framework of governance, risk management and internal control.

Reason:     To enable members to consider the implications of

internal audit findings.

                   iv.        Noted the outcome of the Quality Assurance and

Improvement Programme and the confirmation that the internal audit service conformed with Public Sector Internal Audit Standards.

Reason:     To enable members to consider the opinion of the Head of Internal Audit.

                     v.        Noted that no significant control weaknesses had been identified by internal audit during the year which were relevant to the preparation of the Annual Governance Statement.

Reason:     To enable the Annual Governance Statement to be

prepared.