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 October to 31 December 2022 (Quarter 3).

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 four audit reviews had been finalised in the period with three receiving positive opinions and one receiving a negative opinion. The specific areas looked at were:

• Salary Sacrifice Schemes (Reasonable Assurance opinion given);
• Deputyship and Appointeeship (Limited Assurance opinion given);
• Purchase Cards (Reasonable Assurance opinion given); and
• re3 Waste PFI (Reasonable Assurance opinion given).

The audit of the Deputy’s team had concluded that there was a poor control framework in relation to the transfer of clients’ funds from private to RBC designated deputy and appointee bank accounts and a high volume of manual processes.  A total of eleven recommendations had been made in respect of this review, of which five were considered high priority. The recommendations and corresponding management action plan had been attached to the report and showed that considerable progress had been made to address the risks identified by the audit.

It was noted at the meeting that the Director of Finance and the Interim Executive Director of Adult Social Care and Health had been tasked by the Chief Executive to conduct a review of control measures and processes that were in place within the Deputy’s Office, including looking at how parts of the reconciliation process could be conducted by the Finance Team in order to enhance separation of duties. The Director of Finance confirmed that the Committee would be kept updated of progress to improve the control measures and processes.

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

investigations work that had taken place between 1 October and 31 December 2022.

Resolved:    

(1)           That the audit findings be noted, and the recommendations and management action underway, as set out in the Internal Audit & Investigations Quarter 3 Update Report, be endorsed;

(2)           That the Committee be updated on the action to improve the control measures and processes within the Deputy’s Office, at a future meeting.