AS2005JAN25.Rep Internal Audit Update
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AS2005JAN25.Rep Internal Audit Update

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Audit Sub Committee rdInternal Audit Summary, 3 Quarter Use of Resources and Performance Auditor Hour Resources (Inputs) 1.1 Over 4,300 hours of auditor time has been spent on internal audit work to date this year (2004/2005). 1.2 The analysis of net audit time is as follows: Actual % of net Hours Productive Work Project work 2,302 52% Risk and Control Advice 328 8% Special Investigations 495 11% 3,125 71% (a) Overheads Staff training (inc. professional) 212 5% Audit planning, management and control 359 8% Computer audit sales 135 3% Administration, filing etc. 374 9% Audit Team Meetings 124 3% Other 41 1% 1,245 29% _______ __________4,370 100% Total Hours Note: (a) As against an Internal Audit standard of 70% productive time (Audit Manual) Projects (Outputs) 1.3 103 projects were planned for 2004/2005 of which 37 (36%) are complete. The target for 2004/2005 is 70% of all planned projects completed. 1.4 308 unplanned projects have been carried out to date of which 237 (77%) are recorded as advice. 1.5 27 service risk assessment workshops have been held representing 56% of services as recorded on the service pentile list. The Section has a target of completing 80% of all service risk assessments by the end of March. 2. Matters of Interest 2.1 Annual Statement of Internal Control (SIC) From April this year the Accounts and Audit ...

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Audit Sub Committee rd Internal Audit Summary, 3Quarter Use of Resources and Performance Auditor Hour Resources (Inputs) 1.1 Over4,300 hours of auditor time has been spent on internal audit work to date this year (2004/2005). 1.2 Theanalysis of net audit time is as follows:  Actual% of net Hours Productive Work¾Project work2,302 52% ¾Risk and Control Advice328 8% ¾Special Investigations495 11% 3,125 71%(a) Overheads ¾Staff training (inc. professional) 212 5% ¾Audit planning, management and control 359 8% ¾Computer audit sales 135 3% ¾Administration, filing etc. 374 9% ¾Audit Team Meetings 124 3% ¾Other 41 1% 1,245 29% _______ __________ Total Hours4,370 100% Note: (a) As against an Internal Audit standard of 70% productive time (Audit Manual) Projects (Outputs) 1.3 103projects were planned for 2004/2005 of which 37 (36%) are complete. Thetarget for 2004/2005 is 70% of all planned projects completed. 1.4 308unplanned projects have been carried out to date of which 237 (77%) are recorded as advice. 1.5 27service risk assessment workshops have been held representing 56% of services as recorded on the service pentile list.The Section
has a target of completing 80% of all service risk assessments by the end of March. 2. Mattersof Interest 2.1 AnnualStatement of Internal Control (SIC) From April this year the Accounts and Audit Regulations 2003 require that the Council complete an annual SIC.This statement has to be supported by a volume of evidence that the Audit Section has already started to gather together using an electronic database. This evidence is required to give the Chief Executive and Leader of the Council the assurance that internal controls are adequately managed throughout the authority. The Council’s external auditors will in turn, independently review the annual statement. 2.2 BS7799Information Security Standard  Asreported at the last Audit Committee, the Section has been involved in a Devon wide initiative to see all local councils adopt the British information security standard.The Section has developed a database that is being distributed amongst the Devon partners to ensure consistency in the evaluation process. 2.3Emergency Plan Corporate The Council’s district emergency plan was reviewed to ensure that it was up to date and accurate.Several areas of the plan were found to be out of date and the Council’s web site needed to make reference to it to ensure that the public had access to the plan. Work has also started on preparing business continuity plans for the authority in line with the requirements of the Civil Contingencies Act. Internal Audit is assisting in this process. 2.4 PayrollSystem The Council’s payroll system was reviewed and several issues were reported. Themain cause for concern was in that there was no separation of duties between access permissions on the payroll and personnel modules of the new human resources system.This weakness is to be corrected in the programming of the system. 2.5Hygiene Inspections Food The Council’s Environmental Health Section periodically inspects premises preparing and serving food to the public.The Audit Section reviewed the systems for ensuring that inspections take place by checking a random sample of 60 premises across the district.Whilst the systems and procedures were found to be in order and of a high
standard, one property had not been inspected.This property has since been added to the inspection lists. 2.6Allowances Members’ The system and supporting procedures for the submission, checking and payment of members’ allowance claims was reviewed.A few minor issues were identified and reported.All were agreed for immediate or planned action. 2.7 FromApril this year the Audit Section will submit a quarterly summary for the Audit Committee in respect of every audit undertaken where a formal report is produced.The Section will also report upon areas where the auditor’s recommendations have not been accepted. 3. AuditPlan 2005/2006 Onwards 3.1 Atpresent the audit plan is based on a 3year cycle with all core financial systems being reviewed on an annual basis and minor systems reviewed once every 3 years.From April 2005, and in support of the evidence required for the statement of internal control, the number of core system reviews undertaken will increase.For example new areas such as Information Technology and Insurances will be added. Coresystems form the infrastructure for almost all Council services and as such require ongoing review to ensure that internal controls are operating as expected. 3.2 Toresource this new work minor systems such as water sampling, travel and subsistence system and household collections will be reviewed once every 5 years.Major systems such as car parks, planning applications and building control will be reviewed once every 3 years. Spot (mystery shopper) checks may still, however, be carried out from time to time. 3.3 TheAudit plan for 2005/2006 is still in the process of being developed. Heads of Service are being interviewed to provide evidence for the SIC. Theirviews are being sought on any areas of concern and these will in due course be included in next years audit plan. Internal Audit’s plans will be discussed with the Council’s external auditors before April in order to coordinate audit activity. Rob Willcocks Chief Internal Auditor Cllr Alan Connett Portfolio Holder for Assets and Resources