Agenda item

To consider a summary of the work completed by Risk Services in quarter four of the 2018/2019 financial year.

Mrs Greenhalgh, Head of Audit and Risk, presented a summary of the work completed by Risk Services in quarter four of the 2018/2019 financial year. For the benefit of new members of the Committee, Mrs Greenhalgh explained that each quarter she produced a report summarising the work of Risk Services which included the overall assurance statements for all audit reviews completed in that quarter.

Mrs Greenhalgh drew members’ particular attention to the update of the proactive anti-fraud action plan for 2018/2019; the summary of Strategic Risk areas for the new financial year and the end of year performance data for Risk Services. It was identified that business continuity plans remained a concern, with a target of 100 per cent update completion rate across the Council being worked towards as a business plan priority. It was clarified to members that all business continuity plans were in place with the target referring to them being updated by service areas.

Assurance was sought that services could adequately continue if business continuity plans remained outdated, with Mrs Greenhalgh explaining that Directors of Service provided guarantees that critical functions were assured. It was made clear that Mrs Greenhalgh would continue to report on progress to the Audit Committee on a quarterly basis, with a key target for 2020 being the 100 per cent completion of business continuity plan updates which would be robust and monitored.

A question was submitted around the purchasing of external computer audit services via a framework agreement arranged through Lancashire County Council as a result of a lack of sufficiently qualified staff within the Council’s internal audit team. Mrs Greenhalgh confirmed that, despite the favourable rate secured with Lancashire County Council, buying the service in was more expensive than employing a suitably qualified member of staff internally. It was anticipated that the relevant qualifications from within the team would be completed within the next two to three years.

Mrs Greenhalgh then introduced the second half of the report which referred to quarter four performance data and liability insurance claims received by the Council.

A question was raised about the inadequate findings in relation to the financial controls in operation within the Rideability scheme, with a single priority one recommendation receiving follow-up review. Mrs Greenhalgh provided assurance that an improved system was now in place, albeit not perfect, and that further recommendations for improvement would be implemented as resources permitted.

The Committee wished to note the excellent performance from Troubled Families, with zero recommendations resulting from the testing of 2018/2019 grant returns.

Discussion was held around the Business Loans Fund which had been subject to an internal audit review, with clarification sought on the timeframe of the release of specific details of high value loans approved by the Council. Mr Towers, Director of Governance and Partnerships, explained that in accordance with guidance from the Information Commissioner’s Office the details of any loan would be made public once it had been completed and drawn down, with the corresponding decision notice being republished to include the specific information. Mr Jack, Chief Executive, confirmed that once the decision notice was republished then an alert would be triggered.

It was noted that community engagement which is led by Public Health remained as an area identified as inadequate, with the Committee observing that concerns in relation to this issue had been raised previously. It was agreed by the Committee that the issue should be referred to the Scrutiny Leadership Board for consideration on how Public Health community engagement could be improved.

In relation to the data on insurance claims submitted against the Council it was noted that a small increase was identifiable in comparison to the previous year’s data, with the question being raised of whether the positive effects of Project 30 were diminishing. It was noted that it was too soon to claim that Project 30’s effects were reducing and that more representative data should be reviewed.