Agenda item

Report of Internal Audit Manager  

The Committee received the report of the Internal Audit Manager to seek Members’ support for proposals for strengthening the Council’s information governance and other assurance arrangements (covering Information and Communications Technology (ICT), information management, corporate anti-fraud and internal audit generally).

Information and Communications Technology (ICT)

Members were advised that, as part of the 2014/15 budget, Cabinet had supported an outline investment plan and associated growth estimated at £120K per year for ICT Security and Public Services Network (PSN) compliance.

The Council had engaged an external company to undertake a skills review within the ICT Service to inform restructuring proposals.  The key findings of the review were that the ICT Service was understaffed and under-skilled in critical areas and needed to draw on external support where it was more cost-effective to do so.

Information Governance

It was reported that the Council needed to develop and improve standards of information governance throughout the organisation.  A self-assessment of the position had been carried out using the National Archive’s information management self-assessment tool.  A summary chart and headline results from the review were set out in Appendix A to the report.  The conclusion from the analysis was that information management resources and arrangements were insufficient.

Corporate Anti-Fraud Arrangements

Members were advised that Government had recently confirmed that all local authority fraud investigators would transfer to the Department of Work and Pensions (DWP) in a phased process to create a Single Fraud Investigation Services (SFIS).  Shared service staff currently employed by Preston City Council were scheduled to transfer to the DWP from 1^st June 2015 as part of these arrangements.

It was proposed that a corporate anti-fraud team be set-up in collaboration with Preston City Council and Fylde Borough Council.  The scope of this corporate function would include business rates, council tax discounts and, significantly, council tax support cases, which would not be covered by the Single Fraud Investigation Service.

Internal Audit and Assurance

Members were informed that there was scope to broaden and strengthen the Audit Committee’s role through development of a corporate assurance framework.  This would support the Committee in considering the annual review of effectiveness for the Annual Governance Statement and approval of the internal audit risk-based plan.

It was proposed that the vacant Principal Audit post within Internal Audit be filled and existing levels of resource in the Internal Audit team maintained to incorporate a wider ‘assurance’ function into the remit of Internal Audit, with particular emphasis on the reporting of assurance to the Audit Committee.  Responsibility for fulfilling this wider role would be attached to the Internal Audit Manager and, to a lesser extent, the Principal Auditor.

Members were advised that, at its meeting on 20^th January 2015, Cabinet had:

·                     supported the development of the ICT Service and the corporate information governance function (to be financed from within existing budgets);

·                     supported the setting-up of a corporate anti-fraud team in collaboration with Preston City Council and Fylde Borough Council (subject to it being at least cost neutral); and

·                     noted the proposed widening of the Internal Audit Service’s remit (subject to consideration by the Audit Committee).

Members raised a number of questions on the report.

It was proposed by Councillor Knight and seconded by Councillor Scott:

“That the recommendations set out in the report be approved.”

Resolved unanimously:

(1)        That the proposals for the development of the ICT Service and the corporate information governance function, as outlined in the report, be supported.

(2)        That the setting-up of a corporate anti-fraud team in collaboration with Preston City Council and Fylde Borough Council, on the basis outlined in the report, be supported.

(3)        That the development of assurance reporting be supported and the proposed widening of the Internal Audit Service’s remit be endorsed.