Agenda item

To consider the report

The Audit Committee noted the coverage of audit work around financial controls.

The Committee received a report from the Assistant Director

SWAP Internal Audit Services, Alastair Woodland.

The Committee considered a report and received a report which provided information on Internal Audit – Target Financial Assurance Work 2023-24.

Alastair Woodland highlighted the following:

•        That the report was not the usual progress update report, but a report summarising work included in the 2023/24 audit plan..

•        The potential use of assurance maps to build an assurance picture across the whole organisation.

•        Where SWAP work is taking place to give insight and assurance around financial sustainability given the financial pressures the authorities are facing.

•        Strategic risks including, healthy organisation themes and SWAP top ten risk themes to ensure reasonable coverage across the organisation.

•        That Corporate risks usually monitor coverage over two years. Due to Somerset Council only being formed on the 1st April 2023, the new corporate risks are covered from that date.

•        That to provide an overview structure to SWAP financial assurance reliance is on the key factors identified the CPF's financial management code that support financial resilient 2019.

•        Summarised planned audits, assurance work, and targeted reviews and that resources are to be diverted to some of those areas where necessary.

•        The assessment of assurance controls around routine financial management is making sure that the routine financial system controls are operating effectively. and the more detailed work around some areas, such as accounts payable and accounts receivable.

•        The Audit committee training sessions are to be held in January / February 2024 (generic) and May 2024 (bespoke).

•        Audit Committee access to SWAP data, reports and helpful guidance available January 2024.

The Committee asked a number of questions and made a number of comments, which were responded to at the meeting, as follows:

•        SWAP to update Financial Systems Control risks report with SC Financial Emergency Emerging risks.

•        Audit Committee review of its Annual Report and effectiveness – agenda item for the March Audit Committee (liaise with the Chair and input from the wider Audit Committee).

•        Financial control systems required – Alastair Woodland to circulate information to Audit Committee Members.

•        The potential risk of not covering ORG0065 inability recruiting and retaining staff – Alastair Woodland responded that SWAP to take forward the discussion to relevant Officers if this is a preferred area of coverage of the Audit Committee.

•        That ORG0071 adult social care transformation program does not achieve its financial targets is not covered – the Service Director – Finance and Procurement, Nicola Hix, responded that the Audit to be slightly delayed inline with the Newton savings and confirmed that there is regular scrutiny and oversight on the adult social care transformation program.

The Chair thanked Alastair Woodland for the presentation, and the Audit Committee noted the coverage of audit work around financial controls.