Return to Agenda

Division(s): All

ITEM BV6

BEST VALUE COMMITTEE – 23 JUNE 2004

INTERNAL AUDIT SERVICES – STRATEGIC PLAN 2004/05 TO 2006/07

Report by Head of Finance

Introduction

  1. The Committee considered the draft Internal Audit Services Strategic Plan at its last meeting.

  2. The Strategic Plan was in draft, as account will need to be taken of the on-going work to improve controls in key financial systems and the significant control weaknesses in Social and Health Care, and action plans arising from the 2003/04 Statement on Internal Control.

  3. This is a progress report on those issues.

    4. Key Financial Systems

  4. Addressing the control weaknesses in key financial systems is an on going activity. Internal Audit Services has been tracking implementation plans and advising on control solutions. The Committee have also been receiving regular progress reports.

  5. All key financial systems are reviewed every year so as far as Internal Audit Services is concerned the impact is on the focus and scope of each review. This will not mean adding more reviews to the Plan.

  6. This is illustrated by the scope for recent key financial systems recent work, which has been to follow up on recommendations from previous reviews, and report on those recommendations outstanding. Some new control work has also been undertaken. More importantly, for systems such as payroll and creditors we now produce separate reports for each directorate as well as a corporate. This provides a more focused approach for directors and recognises that practises differ from directorate to directorate.

    7. Social and Health Care

  7. In conjunction with the Director of Social and Health Care I have reviewed the Social and Health Care section of the Strategic Plan. The aim being to provide the Director with as much independent assurance as is possible on the high-risk areas, within resources available.

  8. Whilst not losing sight of the need to remain strategic, it has been possible to amend the plan to include the Director’s concerns about the control risks in client finances team. In addition new audits have been included to review care assessments across all client groups, and a review of the contracts section. Follow up of previous audit recommendations is a feature of the Strategic Plan and at the Director’s request there will be a specific report for Social and Health Care.

  9. Part of the work of the external consultants team in Social and Health Care is to produce new procedures and review controls. On behalf of the Director I will review any documentation produced. When the work is completed in the early autumn I will revisit the Strategic Plan and reassess risks.

    10. Statement on Internal Control

  10. The main outcome of the interim Statement on Internal Control will be an action plan to address control weaknesses. The Council will be required to complete this work in time for the 2004/05 Statement. The action plan in its current format is broadly drawn, but will be made more specific. When the specific actions are finalised I will review the Audit Population and risk assessment. As with Social and Social Health Care I will do this in the early autumn 2004.

    11. Strategic Plan Document

  11. The final version of the Internal Audit Services Strategic Plan will be circulated separately to all committee members and executive members shortly.

    12. RECOMMENDATIONS

  12. The Committee is RECOMMENDED to:

          1. note the final amendments to the Internal Audit Services Strategic Plan 2004/05 to 2006/07; and

          2. receive a further report in the autumn 2004 on the impact of the on-going work in Social and Health Care and the Statement on Internal Control on the Strategic Plan.

CHRIS GRAY
Head of Finance

Background Papers: Nil

Contact Officer: Keith Bellew, Chief Internal Auditor Tel: (01865) 815265

June 2004

Return to TOP