Agenda item

The report was presented by Mrs J Taylor, Senior Auditor, Lancashire County Council. The Internal Audit Annual Report summarised the work that the Internal Audit Service had undertaken during 2018/19 and the key themes arising from it.  It provided an opinion on the overall adequacy and effectiveness of the systems of governance, risk management and internal control.

On the basis of programme of work for the year, the Head of Internal Audit provided substantial assurance over the adequacy of design and effectiveness in operation of the organisation’s frameworks of governance, risk management and control.

The opinion was based on the individual assurance levels provided for each of the individual audit reviews undertaken in 2018/19, detailed in the report now presented to Members. 

Mrs Taylor advised that overall a strong control environment continued to operate, overseen by a Service Management Team that was responsive to internal audit findings and committed to continuous improvement.  No significant areas of weakness in governance, risk management or control had been identified from the audit or consultancy services and where areas for improvement had been identified, actions had been agreed to enhance aspects of the control framework further and to ensure that it was effectively operating throughout.  Follow up work confirmed that agreed actions were being appropriately implemented.  It was confirmed that consideration was also given to the wider sources of assurance available including the results of the HMICFRS Inspection and the findings of Grant Thornton as the Authority’s external auditor.

The work of the Internal Auditor was one of the key control measures in place within the Authority. As such, the annual report provided an assurance to Members that risks were being managed and controlled, and fed the Authority’s overall assessment of the internal controls that operated within the Service.

With reference to point 3.12 on page 11 of the agenda pack regarding optimising rota management, County Councillor Holgate expressed concern that the ‘majority’ of appliances were ‘largely’ available and that the current processes were ‘inefficient’ which had significant resource implications and a detrimental impact on staff wellbeing.  The Director of Corporate Services advised that Members of the Performance Committee did monitor appliance availability, and our on?call availability was the envy of many Fire Services with performance around 90%.  He confirmed that included within the number of actions agreed to address inefficiencies was a project which had been set up to look at sourcing a digital/electronic system that could identify where cover was needed and the availability of staff to cover.  It was agreed that the project outcomes would be reported by the lead Director to the Chairman of the Performance Committee.

Mrs Taylor advised that confirmation was awaited from the internal auditors of the Local Pension Partnership that audit work in relation to pension administration had been completed.  Mr Baker advised that the pension administration audit covered a whole range of work for LCC and Grant Thornton did not rely on that information as part of its audit of the Authority.

RESOLVED: - That the Audit Committee noted and endorsed the report.