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Hayley McGrath, Corporate Governance Manager, introduced the Mid-Year Internal Audit Assurance Report 2016/17. The report requests that the internal audit activity between 1 April 2016 and 30 September 2016 and the performance of internal audit by reference to national best practice benchmarks be reviewed.
Hayley McGrath stated that there is a usual imbalance at 6 months, as more of the audited days are used in the second half of the year compared to the first. Hayley McGrath also highlighted that there had been increases in assurance ratings to Full for the Visitor Information Centre Cash up, Fuel Usage, Housing Benefit/Local Council Tax Support and Leisure World Cash Up. Hayley McGrath also highlighted that the audit of IT Capita Revenues and Use of Machinery/Vehicles had given a limited assurance level. All recommendations from the limited audits have been accepted.
In response to a query from Councillor Pearson, Hayley McGrath confirmed that the number of audit days allocated to each part of the year is fluid. Whilst audits are planned in different service areas there may be reasons why days need to be moved either through time off, or significant issues; Hayley McGrath confirmed that there had been some circumstances of this so far this year. Going forward, some of the days that have not been used have been reallocated.
Councillor Willetts questioned whether it is possible for Colchester Borough Council to have fully tested a disaster recovery plan given the capacity required to do it. Hayley McGrath stated that the IT system as a whole has not been tested, but the key systems have testing built in, for example, the housing systems are tested each year. The whole ICT system was moved last year, which required the systems being switched off and powered back on; this was completed successfully.
Councillor Willetts also questioned, with regard to the audit of the use of machinery/vehicles, whether there had been any employees driving council vehicles in circumstances that would invalidate the insurance. Hayley McGrath stated that there is a robust system in place including a comprehensive handbook which includes the requirement to check licenses often. The reason behind the recommendation following the audit being classed as a category 1 is due to gaps in the recording of information.
Councillor Pearson requested further information about which recommendations had been implemented. Alan Woodhead, Mazars, stated that the recommendations go through periodic and ad-hoc reviews; the implementation date for the recommendations is 30 November, and this will be reviewed next month.
RESOLVED that the internal audit activity for the period 1 April 2016-30 September 2016 and the performance of internal audit be noted.