Agenda item

To consider the report

DECISION:

·         To accept the report in accordance with the requirements of the Public Sector Internal Audit Standards for the 2022/23 financial year.

·         To re-establish the Controls Improvement Working Group.

-       Membership to include Sharon Warnes (Chair), Eifion Jones (Vice-chair).

-       Rhys Parry, Meryl Roberts and Carys Edwards volunteered

Submitted - the report of the Audit Manager, expressing Internal Audit's opinion of the overall control environment within the Authority during 2022/23 providing the said annual internal audit opinion to the Authority. It was noted that assurance could never be absolute, and the most that the internal audit service could provide to the Council was a reasonable assurance that there were no major weaknesses in the whole system of internal control.

On the basis of Internal Audit work completed during 2022/2023, it was considered that Cyngor Gwynedd's system of internal control during the financial year 2020/2021 operated to a level which provided reasonable assurance on the overall adequacy and effectiveness of the Authority's framework of governance, risk management and internal control. 

A total of 41 pieces of work were included in the final revised audit plan for 2022/2023.  40 assignments had been completed by 31 March 2023, representing 97.56% of the plan. Of the relevant reports of the 2022/2023 audit plan that received a level of assurance, 77.14% had received a 'Satisfactory' or 'High' assurance level.

Since 1 April 2021, there were seven full-time members in the Internal Audit Team and one Temporary Senior Auditor.  It was noted that money had been earmarked to fund this additional resource for the Service to implement audits when the crisis restrictions were relaxed, as reported by the Head of Finance to the Audit and Governance Committee on 11/02/2021.

In the context of the Quality Assurance and Improvement Programme it was noted that public sector bodies reviewed their audit procedures against the Public Sector Internal Audit Standards (PSIAS) at least once every five years. The results of the self-assessment against the standards and the amended Note to Local Government (2019) would be submitted to the Audit and Governance Committee during 2023/2024.

Thanks were expressed for the report.

            Matters arising from the subsequent discussion

·         Welcomed the detailed report.

·         Congratulated the Unit on completing 97.5% of the audits - a significant increase from 2021/22.

·         Improved collaboration and support needed from departments to increase the proportion of agreed actions - need to re-establish the Management Improvement Working Group.

·         Unless there was a response to the agreed action, a request should be made for a further report to Committee for the decision to call a service in for a discussion - important for the committee to support this.

·         A suggestion that the report on failures to respond to the actions should be referred to the Cabinet Member - an opportunity to discuss in the quarterly performance challenge meetings.

·         The Committee's power to challenge performance - re-establishing the working group would be extremely beneficial in moving issues forward.

·         A need to raise awareness of Heads of Departments to the work of Internal Audit.

In response to a question regarding the number of auditors working on each audit, it was noted that one auditor worked on each audit, and was accountable to a leader that would review the arrangements and monitor the quality of the audit.  It was the exception to have more than one person working on an audit. It was added that the team worked together very well. Bleddyn Rhys and Eva Chan were thanked for stepping up during Luned's sickness absence.

RESOLVED

·         To accept the report in accordance with the requirements of the Public Sector Internal Audit Standards for the 2022/23 financial year.

·         To re-establish the Controls Improvement Working Group.

-           Membership to include Sharon Warnes (Chair), Eifion Jones (Vice-chair).

Rhys Parry, Meryl Roberts and Carys Edwards also volunteered.