Agenda item
Internal Audit - Follow up of recommendations
Report of: The Internal Auditor, BDO
Purpose of report:To inform the Audit and Governance Committee of the Internal Audit follow up of recommendations.
Recommendation(s):
· That the Committee notes and discusses the report.
Minutes:
Yasmin Ahmed, Internal Auditor from BDO, Phil McGaskill, Revenues Service Delivery Manager, and Stephanie Nicholls, People Team Operations Manager, were present to answer questions.
The Internal Auditor introduced the report which outlined the audit reviews and associated high and medium recommendations. The Committee heard that most recommendations have been implemented but understood that five in relation to recruitment and retention remain outstanding. The Internal Auditor explained that these cannot be marked as completed until fully embedded. In relation to the Accounts Review, one recommendation on ‘accounts payable’ remains in progress whilst processes are discussed with ODS. Finally, the Internal Auditor outlined one recommendation for data analytics focused on procurement card transactions which is being reviewed on a regular basis and reminders sent to officers.It is intended that a further follow-up report will be provided to the Committee in April.
The Head of Financial Services left the meeting.
The Revenues Service Delivery Manager noted that considerable progress has been made to mitigating and ruling out risks. Specific focus was paid to the red risk relating to the audit actions required for credit card payments for which a new process is now in place, but it was explained that this has not been operating long enough for the Internal Auditor to be satisfied that the risk can be downgraded. Furthermore, in relation to the medium risk around reporting and delivering KPIs, The Revenues Service Delivery Manager explained that the operating system which supports the reporting tool was out of date and a new tool is being procured. He noted this should in place for the next meeting of the Committee.
The People Team Operations Manager commented in relation to the five amberrisks associated with recruitment and retention of staff and assured the Committee that progress is being made on all necessary actions with a focus on embedding. The Committee learned that the new recruitment and selection policy is complete, noting a delay due to employee turnover and operational pressures. Additionally, the workflow chart is available on the intranet to accompany the policy which demonstrates further progress since the publication of the progress report. It was noted that multiple systems are still being utilised to input data as iTrent is insufficient for all functions, but The People Team Operations Manager notified the Committee that a new system will be procured as a replacement. Finally, the Committee heard that engagement with managers on the changes continues, monitoring data isbeing collected across some categories, and document storage systems will remain the same. She noted the completion of 4A, 4B and 5B and committed to providing the necessary evidence to the Internal Auditor.
Councillor Ottino asked the Internal Auditor why the actions listed relate more to recruitment than retention, to which she noted that there is one recommendation about retention policy but committed to checking and reporting back to the Committee.
The Chair queried what data exists to demonstrate the turnover rates amongst new recruits to the Council and whether this is high. The People Operations Manager committed to isolating this data and reporting it back to the Committee.
The Chair also noted that computer systems seem to be a key hurdle in making progress and queried whether this is being addressed in the Council budget to which the People Operations Manager committed to finding out.
The Chair thanked the officers.
The Committee noted the report.
Supporting documents:
-
BDO - OCC - 2024-25 - Internal Audit Follow Up Report - 20 January 2025 - (client issue), item 28.
PDF 465 KB