Agenda item

a.    Internal Audit Progress Report

b.    Internal Audit Reports

c.     Internal Audit Recommendation Tracker Report

A report was submitted which provided an update on the progress of the 2021/22 Group Internal Audit Plan.

Members noted the progress that had been made to date, with approximately 70% of the Internal Audit Plan now completed.  Since the last Committee Meeting, a total of four reviews had been completed and matters were on track to deliver a timely Head of Internal Audit Opinion as planned.

L Mackenzie informed Members of a potential change to the Internal Audit Plan.  As a result of other sources of assurances, it had been agreed that it would not be the best use of resources at this time to complete a review of integration.  Initial discussions had been held in relation to completing a Value for Money Review of community transport.  Grant Thornton’s Advisory Team was currently scoping the potential review, to be completed as bespoke advisory work outside of the Internal Audit Plan.  Scoping work was underway for the other pieces of work within the Internal Audit Plan Quarter 4 reviews and were on track for completion before the end of March 2022.

In relation to the additional audit, A Marshall commented that the Audit, Standards and Risk Advisory Panel would commend to the Committee to include the new community transport audit within the Internal Audit Plan.

Members were provided with an overview in relation to the following final reports:-

i)         Critical IT Controls.

ii)       Asset Management.

iii)      Supplier Resilience.

iv)      Core Financial Controls.

In response to a number of queries raised by Members regarding the difficulties encountered in reading the reports on their devices, L Mackenzie would ascertain whether the documents could be produced in a more easier to read format.  ACTION:-  L Mackenzie

In relation to the Asset Management report, L Mackenzie highlighted that the review had been recommended by Management, due to it being a known area with possible improvements to be made.  Grant Thornton’s Internal Audit Opinion took onboard the specific areas that they had been directed to provide an independent overview and provide a number of recommendations to assist the SYMCA in moving forwards in managing its assets.

Members noted that the Core Financial Controls report would form part of the integration to streamline the processes.  M Thomas commented that the supplier checks were being streamlined with one key person across the Finance Team.  He was pleased with the report presented, and he expressed his thanks to L Mackenzie and her team for conducting the work swiftly.

A Marshall queried whether some of the work was dependent upon the recruitment of a Financial Controller.

M Thomas referred to the difficulties that had been encountered in the labour market to recruit a Financial Controller, however the work would be picked up by himself and his team.

The Internal Audit Tracker Report brought together all of the existing actions for the SYMCA and PTE.  There were currently four actions which had reached the implementation dates and were now reported as overdue.  One medium risk was brought to the attention of the Committee in relation to the implementation of the new CRM system for concessionary travel passes.  Management had requested to extend the implementation date to the end of March 2022, and assurance had been given that this date was achievable.  Approval was sought from the Committee to extend the date.  The three low risk items which were overdue related to the updates of the contract procedural rules which would be encompassed as part of the integration.  The high risk item was also linked to the implementation date for the CRM system.

In relation to the superseded recommendations, A Marshall queried whether the recommendations were negotiated by the Management and then superseded.

Members noted that in relation to the two low risk items, one related to the duplication of actions regarding the procurement review and the contract procedure rules, with one recommendation to the SYMCA and the other to the PTE which had been brought together as one action.  The other superseded action related to the core financial controls audit that had been undertaken last year; the action had not been reported again this year as an issue.

RESOLVED – That the Committee noted the progress of 2021/22 audit activity undertaken by Grant Thornton for:-

i)         Joint MCA and SYPTE audits.

ii)       MCA audits.

SYPTE audits.