The report of the Head of Internal Audit and Risk Management is enclosed.

Consideration was given to the report of the Head of Internal Audit and Risk Management that provided a summary of the key areas of Internal Audit focus over the last twelve months, the planned future strategy for audit within the Council and the areas of planned service change in terms of innovation and structure. These included:

·         Internal Audit During 2020/21;

·         Internal Audit Strategy;

·         Organisational Change and Partnerships;

·         Innovation in Approach;

·         Structure and Capacity.

The Committee was also informed that the Audit activity and other sources of assurance from 2020/21 will be used to inform the Annual Opinion for consideration by the Committee in April. The report also provided context for the Annual Plan that the Committee have approved to provide a clear direction of the work to be covered over the first six months of the year.

The Chair invited members of the Committee to ask questions.

A member asked the Head of Internal Audit and Risk if this is a direction that would have been taken even without the current circumstances and could those areas identified have been addressed quicker. Also, has the Council’s external auditor been involved in the process or had some oversight.

The Committee was informed that the timing of the proposals was opportune in terms of wider changes to look at how the audit service works and evolve the service. The external auditor can be included in the process to provide comment.

A member proposed that officers within Internal Audit be thanked for the positive manner in which they have worked over the past year to benefit the residents of Manchester. In noting, this reference was also made the Organisational Change and Partnerships referred to in the report and the scale of the work involved and resources required to undertake this, in view of the reduced staffing and finances available to the Council.

A member referred to the schedule of meetings of the Committee and the importance of ensuring that the Risk Register report is submitted to the June meeting of the Committee.

The Committee was informed that meetings were programmed for the year and a work programme would be produced to project work and development across the year.

A member referred to the future replacement of the SAP system and how long this could take due to the importance and reliance on the system. Also, was the use of data sets as used by other local authorities, something Manchester will use and develop and is the consolidation of audit resources across GM something that is being considered.

It was reported that the Council will start to use data sets in different ways such as the National Fraud initiative for payments made to reduced duplicate payments. Birmingham City Council used data sets and had been for a number of year and would be consulted on its uses. The Committee was also advised that collaboration work had been discussed with other Councils in the Data Protection Service.

The City Treasurer reported that there are different components within SAP and therefore there is not an absolute end date set for its replacement. In preparation, work is underway as part of a change programme over the next two years, as parts of the system reach end of life. Other considerations include the cost of licences and what will best meet the future needs of the Council.

A member referred to the work of the Audit Service in core services such as Adult Services and Children’s Services and asked officers if there is confidence in the Management Assurance Framework to enable Internal Audit to begin to pull back from those areas.

The Committee was informed that the Management Assurance Framework provided managers within the authority with a system that can be tested to help provide confidence and will provide a level of assurance with their arrangements, although the Internal Audit Service will be available to provide support where needed.

Decisions

1.    The Committee noted the report on the proposals for development of

the Manchester Internal Audit Service and to receive further updates and

reports in April 2021 (Annual Opinion) and September 2021 (Updated Internal

Audit Strategy, QAIP and Annual Audit Plan) and the comments received.

2.    To thank the officers of the Internal Audit service for the work they have undertaken over the past year under difficult circumstances that has benefitted a large number of the residents of Manchester.

3.    To provide an update on Outstanding Audit Recommendations to the next meeting of the Committee.

(Note: Dr Barker informed the Committee that through he is employment by Manchester University and is the line manager to the Interim Deputy City Treasurer’s husband but had never met the Interim Deputy City Treasurer.)