Since publication of the agenda, further information had been supplied to the auditors which increased the assurance from limited to moderate.  The new report from the Auditors was appended to the minutes as a revised Appendix A. 

Overall, the auditors were able to provide moderate assurance that there was a sound system of internal control, designed to meet the Council’s objectives and that controls were being applied consistently. In forming the view of the auditors they took into account that:

The Council had performed broadly in line with budget regarding financial performance. The Council had shown strong financial management with moderate / substantial and substantial assurance opinions provided in the 2017/18 audits on the financial planning and budget monitoring and capital projects respectively.

The Council’s record in implementing audit recommendations required some improvement. Whilst management were proactive in discussing plans to address the risks identified in audits, there was a lack of engagement when internal audit followed up recommendations, therefore they could not report a year end position relating to recommendations made during 2017/18 that had fallen due before 31 March 2018.

47% of audits received limited or part limited assurance. These included car parking and payment collection, environment and community halls viability, and the key areas of risk management, main financial systems, housing and partnerships.  Although the main financial systems issues were mainly contractual.

Whilst a moderate assurance had been given, which had been a more marginal deciison than previous years, Internal Audit had noted a deteriation in the controls environemnt whilst new arrangements were taking time to bed down. However, management had responded positively to the reports and if the improvements required were implemented this would support a better position in 2018/19.

A motion was MOVED by Cllr Russell and SECONDED by Cllr Mrs Hones to amend the recommendation in the report:

That the Committee receives and notes the contents of the report revised Appendix A.

A vote was taken by a show of hands and it was RESOLVED UNANIMOUSLY that:

That the Committee receives and notes the contents of the revised Appendix A.

Reasons for Recommendation

To review the results of internal audit reviews undertaken during the year, and highlight key themes and areas for consideration arising from the work of internal audit.