Agenda item

To consider the report of the Head of Audit Risk Assurance which informs Members of the Internal Audit activity progress in relation to the approved Internal Audit Plan 2016/17.

Prior to the Head of Audit, Risk and Assurance reporting on Internal Audit activity in relation to the approved Internal Audit Plan 2016/17, the Group Manager, Audit, Risk and Assurance reported specifically on the final audit report from 2015/16 audit plan – Marketing Gloucester.

The Group Manager, Audit, Risk and Assurance reported that, as resolved at the meeting of the Audit and Governance Committee on 16 March 2015, the 2015/16 Internal Audit Plan included a Marketing Gloucester internal audit to ensure consideration and review of a partnership organisation within the Plan. During audit planning, the potential scope of the audit was discussed with officers and it was confirmed that a Value for Money review approach would be useful. Due to initial review findings identifying weaknesses within the Council’s governance arrangements in place with the Company, a full VFM review and opinion could not be completed. The resulting detailed audit report and assurance level provided is in relation to the Council’s arrangements, processes and controls (governance framework) in place with Marketing Gloucester at the point of audit.

The Cabinet Member for Culture and Leisure (Councillor Noakes) reported that she was grateful to the Group Manager, Audit, Risk and Assurance for the work on the Marketing Gloucester audit.  Councillor Noakes updated Members on the work of Marketing Gloucester, particularly the events activities which were having a positive impact on visitor numbers to Gloucester.  Councillor Noakes assured Members that processes were  in place to capture data in order to understand and report on the value of events.

In answer to a question from Councillor Wilson, Councillor Noakes confirmed that Marketing Gloucester partnership quarterly performance reviews had been taking place since March 2016. Though these were not public meetings Councillor Wilson requested that Members of the Audit and Governance Committee be given sight of the papers. 

Councillor Stephens expressed disappointment with the ‘unsatisfactory’ assurance level due to a significant breakdown in governance and controls in place within Marketing Gloucester and stressed the importance of having SMART targets in performance management.  He acknowledged  that a significant amount of taxpayer money was being  paid to Marketing Gloucester noting that it was important there was evidence of value for money.

The Corporate Director confirmed that the legal documents and financial management arrangements  were now up to date and in place and that there was  now a rigorous performance management framework in place, including SMART targets.

The Head of Audit, Risk and Assurance confirmed that the follow up of the Marketing Gloucester internal audit recommendations was  planned to be completed in January 2017, with update to be provided to Audit and Governance Committee in March 2017, and that the VFM work would be completed as part of the 2017/18 Audit Plan.

The Head of Audit, Risk and Assurance took Members through the Internal Audit Activity Progress Report 2016/17 and reported that there were no major issues to be brought to the Committee’s attention. The high level summary of actions would  be updated through the year and reported at this Committee.

In answer to a question from Councillor Stephens regarding the Zero Hours Contracts audit, the Head of Audit, Risk and Assurance reported that the scope of the audit was to ensure correct processes were adhered to rather than to review the Council’s policies on using zero hour contracts.  Following discussion it was agreed that a short report from officers be brought to the November 2016 meeting regarding the current policy on zero hours contracts and the criteria for their use.   Councillor Norman reported that this had already been raised at Council, at which there had been a full report.

In answer to a question from Councillor Stephens regarding the level of sundry debt, the Head of Audit, Risk and Assurance agreed that a breakdown on this would be provided to Members.

RESOLVED

That the following be noted:

1     The progress against the Internal Audit Plan 2016/17

2     The assurance opinions provided in relation to the effectiveness of the Council’s control environment comprising risk management, control and governance arrangements as a result of the Internal Audit activity completed to date