Mr Paul Rock, Head of Internal Audit, Fraud and Risk presented his Annual Head of Internal Audit Report. Mr Rock said the report provided the annual audit opinion in accordance with the requirements of Public Sector Internal Audit Standard. The opinion supported the governance conclusions that are included in the Annual Governance Statement, which forms part of the statement of accounts required under the Accounts and Audits Regulations 2015.

Mr Rock referred Members to page 231 of the agenda, paragraph 10.1 and said he was limiting the scope of the annual opinion to exclude Information Technology (IT) related risks as no audits had been undertaken in this area during 2018/19. Mr Rock said he viewed IT related risks to be a significant risk and as such would be included in the 2019/20 internal audit plan. Mr Rock said specialist IT auditors would be contracted to undertake this work.

Mr Rock continued stating the team was under resourced and this continued to be a risk. Members had already heard plans are underway to recruit to vacant posts to improve Internal Audit’s performance plus appoint a third-party audit partner by the 30^th September.

In response to questions from Members the following was noted:

·         In reference to the table at page 228, Members asked why management were not responding to the actions/recommendations made by internal audit reviews. Mr Rock said he was investigating why this was however he was clear that Service Heads and Directors needed to be more responsive and accountable. Mr Rock said the Committee had an important role in holding them to account.

·         Mr Bartle added he had confidence in Mr Rock to deliver the Internal Audit Plan and make the changes required to ensure better performance and outcomes.

The Committee RESOLVED to:

1.    NOTE the content and opinion of the Head of Internal Audit as outlined within the Head of Internal Audit Annual Report which includes a summary of the work undertaken during 2018/19.