The report is enclosed.

Members considered the report of the City Treasurer and the Head of Internal Audit and Risk Management which presented a summary of audit work being undertaken and opinions issued for the period April to December 2018, as part of the annual programme of audit work across the Council.

The Head of Internal Audit and Risk Management introduced the report and provided an update on audit work and changes made within the audit plan. 

The Committee was also informed that the Council would continue to issue press releases to public raise awareness of counter fraud investigations resulting in convictions.

The Chair invited questions from the Committee.

A member made reference to the requirement of three quotations for goods and services over the value of £2000 and asked officers how the level is set in view of the difficulties for schools in obtaining three quotations for such a low level of spend. Officers were also asked what impact the introduction of General Data Protection Regulations (GDPR) has had on the volume of Date Protection work within schools.

It was reported that the financial regulations used by schools is the same as that used by the City Council which also requires three quotations for services with a value of £2000 and over. The Committee was informed that the introduction of GDPR had raised the profile of Information Rights, which had resulted in increased activity and this had involved support and advice provided through the Internal Audit Data Protection Officer service to schools

A member referred to the limited assurance opinion in relation to the Mental Health Casework Audit and asked officers how the issues arising from the audit were being addressed.

It was reported that a holistic approach would be taken in addressing the issues as part of the Adult Services Directorate Business Plan and Improvement Plan which had been shared with Internal Audit.

A member expressed concern regarding assurance findings within Adult Services, in particular, the issues relating to:

• mental health casework audit findings;
• limited assurance for arrangements in place for management oversight and supervision;
• outstanding recommendations from the audit of homecare contracts and transitions to adulthood;
• importance of a successful Liquidlogic system implementation

A member proposed that the Health Scrutiny Committee be made aware of the issues highlighted and to refer the report submitted for Scrutiny ensure that the improvement plan is addressing those areas of concern.

Officers were asked to provide further explanation of the issues relating to limited assurance of the Highways Framework TC886. Officers were also requested to check to ensure that the recommendation had been completed by management to address the issues raised by the end of the financial year 2018/19.

The Committee was informed that TC886 is a highways repair contract where concern had been raised on the operation of the contract framework which is not operating as was original proposed.

A member referred to the limited assurance relating to frameworks agreements, in particular, taxis, highways and financial services as referred to in the report and asked if this would be extended to other areas.

The Committee was informed that the audit of other framework agreements could be extended across the Council and will be included in the planning of the work programme based on the internal audit findings as outlined.

Decisions

1. To note the report submitted.

2. To note with concern the comments raised relating to Adult Services, in particular, the length of time that particular areas of the service have not shown improvement in the level of assurance given.

3. To refer the report submitted to the Health Scrutiny Committee for information and to draw the Committee’s attention to the concerns raised regarding Adult Services.