Issue - meetings

To consider the report of the Audit Managers.

The Audit Manager (HP) presented the report which provided a review of the internal audit work carried out during the period 1^st October to 21^st December 2017 and provided a progress update to the Members. She explained that the internal audit provided an independent review of the Councils effectiveness for internal control, risk management and governance.

She discussed the work undertaken, examining the financial internal control systems in place to prevent loss due to frauds, errors and inefficiency, and to corporate governance and risk management. The progress against the annual audit plan was considered good, despite the impact of losing a staff member, who was on long term sick leave and not having the finance apprentice to support. However as previously agreed, staff had been working additional hours since January to ensure the plan was completed by the end of the last quarter. She referred Members to the overspend outcomes of time against contract management in Appendix B.

The Audit Manager (HP) explained that there were no instances to report where recommendations had not been accepted by management during this quarter or of management accepting a recommendation which was not subsequently implemented within a reasonable timescale. She referred to the annual governance statement (AGS) which had included areas to improve governance arrangements

A summary of the emerging issues included cyber security which was defined as the defence of any physical or information assets, had been rated among the top four risks to national security. She explained the possible attacks to local authorities included malware, phishing, botnet attacks and specific individual attacks. She stated that the report highlighted the potential risks to our own systems and data.

In response to Members’ questions the Audit Manager (HP) and the Chief Finance Officer responded that:-

·         The CIL and Section 106 improvements related to the previous quarter for issues related to affordable housing. The Chief Finance Officer would issue a copy of the audit report to Members;

·         The Chief Finance Officer would ascertain as to whether there were any requirements to repay section 106 funds in respect of Pinhoe Quarry;

·         S106 was dependent on who was involved in the agreement, e.g. if Devon County Council were a party to the agreement, then they would receive money directly for services that they were responsible and would also be  responsible for refunds if required.

The Audit and Governance Committee noted the Internal Audit Report for the third quarter of 2017/18.