ITEM AU7
AUDIT COMMITTEE – 21 JANUARY 2009
REPORT OF THE AUDIT WORKING GROUP (AWG)
The Audit Working Group met on 8 January 2009.
The meeting was attended by:
Dr. Geoff Jones – Chairman; Cllr. David Wilmshurst; Cllr. Alan Bryden; Cllr Ray Jelf; Cllr. Charles Mathew (Observer); Cllr. John Sanders (Observer); Sue Scane, Assistant Chief Executive; Ian Dyson, Assistant Head of Finance (Audit); Peter Clark, County Solicitor; Georgina Paton, Corporate & Professional Standards Manager (AWG214); Sean Collins, Assistant Head of Shared Services (AWG217 – AWG219); Simon Kearey, Head of Strategy & Transformation (AWG218&AWG219); John Jackson, Director for Social & Community Services (AWG219)
1. MATTERS REFERRED TO THE GROUP BY THE AUDIT COMMITTEE
AWG219 Project Link – Post-Project Review On 24 September 2008 the Committee requested that the AWG receive a report on any lessons learnt from the Project Link that can be considered for future projects. The Group was pleased to note that a post-project review had been undertaken, and found the report to be a good summary of the learning points that can be taken from this project. It was agreed that the learning points were not weaknesses in the project management process, but highlighted the need for there to be a collective understanding of the business case for change and a better analysis of the problem, across all the key stakeholders, enabling effective assessment and challenge to proposed solutions to be made before a project is commissioned. The Group is recommending that the Audit Committee refer the report to the Change Management Board to consider, and to identify actions for ensuring the lessons learned from this project are considered in the planning of future projects; The Group also suggests that the actions could include using this example as a case study for training purposes.
2. AWG WORK PROGRAMME ITEMS
AWG215 Annual Governance Statement (AGS) – Action Plan and Interim ICC Report This was presented as a draft report in advance of the Audit Committee Meeting. The Group was concerned that satisfactory progress has not been made with actions relating to Information Security Breaches and SAP Roles, although it was noted that the former should still be completed before 31 March 2009. The updating of SAP Roles will not be completed before the year end, so whilst assurance was given that action is now being taken, the Group has asked for progress reports at future meetings to ensure the risk identified in the AGS is properly mitigated.
AWG216 Internal Audit Quarterly Report. The Group was pleased to note that satisfactory progress is being made against the Internal Audit Plan. At the last meeting the outcome of the audit of “School Support and Technical 2008/09” was highlighted to the Group as it concluded the system of internal control in this area is “unacceptable”; this function is a key control in the assurance framework over financial management in schools. The Group was concerned that actions to address the weaknesses identified in the audit report have been delayed and therefore have requested the responsible managers attend the February AWG meeting for a more detailed discussion on progress and delivery.
AWG217 Update on Progress with Accounts Payable Actions The Group received current performance information which showed overall improvement in the use of e-procurement and therefore three way matching for invoice processing; however it was noted that despite this improvement the number of invoices processed without reference to a purchase order remains high and therefore the weakness identified in the audit report is still a material control issue. It was agreed that the position will be reviewed again on 31 March 2009, at which point additional control over future processing of invoices processed without a purchase order will be implemented. The Group will receive a final report on this matter at their meeting in April.
AWG218 Update on Progress with Fairer Charging Actions The Group received evidence that performance information is now being produced and used by Senior Managers; it was therefore satisfied that the control weakness has been addressed such that whilst it is clear performance of the process remains unsatisfactory it is now a management issue. The Group will ask for a report in six months to seek assurance that changes to processes have been effective in improving the performance of this system to an acceptable level.
AWG210 Review of the work programme. Attached for information as appendix 1 (download as .doc file) to this report is an updated work programme for 2008/09.
The Committee is RECOMMENDED to
(a) note the report; and
(b) refer the Project Link – Post-Project Review report to the Change Management Board to consider and to develop an action plan for reporting back to the Committee at a future date.
SUE SCANE Assistant Chief Executive & Chief Finance Officer Corporate Core
Contact: Officer: Ian Dyson, Assistant Head of Finance (Audit) Tel 01865 815440 9 January 2009
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