This report provides an update on key findings emanating from Internal Audit reports issued since the last quarterly progress report.

Paul Harrington, Chief Auditor, submitted a report providing an update on the key findings emanating from the Internal Audit reports issued for the period 1 January to 31 March 2023 (Quarter 4).

The report provided a summary of the findings following each audit review, summarised the recommendations and management actions that had been put forward for each area and stated the overall assurance opinion level given by the Internal Audit team. A total of three audit reviews had been finalised in the period with two receiving positive opinions and one receiving a limited assurance opinion. The specific areas looked at were:

• Commercial Assets & Investments (Reasonable Assurance opinion given);
• Housing Revenue Account (Follow up) (Substantial Assurance opinion given); and
• Direct Payments (Limited Assurance opinion given).

The audit of Direct Payments had identified some process weaknesses, such as payment account setups not being authorised and checked, along with delays in the monitoring of user accounts, which had resulted in a ‘limited assurance’ opinion.  There had been a strengthening in the separation of duties between setting up and monitoring accounts, but there were some poor procedural practices and compliance issues in the completion of system documentation that should be improved to support this further and provide an audit trail.

The report also detailed the audits that were currently in progress and gave a summary of

investigations work that had taken place between 1 January and 31 March 2023.

Resolved:    

(1)           That the audit findings be noted, and the recommendations and management action underway, as set out in the Internal Audit & Investigations Quarter 4 Update Report, be endorsed;

(2)           That an appropriate officer be invited to attend either the next meeting on 20 July 2023 or the subsequent meeting on 27 September 2023 to reassure the Committee that progress had been made to correct deficiencies in the Direct Payments’ processes that had been identified by Internal Audit as requiring improvement and that the Audit Recommendations, as described in Minute 45 below, had been implemented.