Internal Audit Report: Update of progress of the Annual Audit Plan

ITEM 10
Buckinghamshire & Milton Keynes
Fire Authority
MEETING
Overview and Audit Committee
DATE OF MEETING 9 December 2010
OFFICER
Maureen Simmons- Audit Manager, Buckinghamshire
County Council
Ian Dyson – Chief Internal Auditor
David Skinner – Acting Director of Finance & Treasurer
LEAD MEMBER
SUBJECT OF THE REPORT
EXECUTIVE SUMMARY
ACTION
RECOMMENDATIONS
RISK MANAGEMENT
FINANCIAL
IMPLICATIONS
LEGAL IMPLICATIONS
Internal Audit Report: Update of progress of the
Annual Audit Plan
(The date of preparation of this report is 15 November
2010).
The purpose of this paper is to update Members of the
Overview & Audit Committee on the progress of the annual
Audit Plan.
This report includes three annexes:
A. Progress against the annual Audit Plan up until 15
November together with a schedule of proposed
work still to be undertaken
B. A timetable for the audits together with the start and
end date and the name of the relevant officer
dealing with the audit.
C. 2010/11 Internal Audit Performance Indicators (15
November 2010)
It has not yet been possible to schedule in all the audits
because of delays caused by the restructure since it is not
always possible to identify the officer with the relevant line
management responsibility until after the finalisation of the
restructure.
Information.
That Members note the progress on the Annual Internal
Audit Plan to date.
There are no risk implications arising from this report.
The audit work is contained within the 2010 – 11 budget.
There are no legal implications arising from this report.
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HEALTH AND SAFETY
EQUALITY AND DIVERSITY
USE OF RESOURCES
PROVENANCE SECTION
&
BACKGROUND PAPERS
ANNEXES
TIME REQUIRED
REPORT ORIGINATOR AND
CONTACT
There are no health and safety implications arising from this
report.
There are no equality and diversity implications arising from
this report.
Communication and progress monitoring
All audits, follow up reports and further updates will be
submitted to this committee
Internal Audit Plan 2010/11
Annex A: Internal Audit Report - update on progress of
2010/11 Audit Plan (as at 15 November)
Annex B: Timetable for the audits in the 2010/11 Audit Plan
(as at 15 November)
Annex C: 2010/11 Internal Audit Performance Indicators
(as at 15 November 2010)
20 minutes
Maureen Simmons – Audit Manager, Buckinghamshire
County Council – 01296 383070
msimmons@buckscc.gov.uk
Ian Dyson – Chief Internal Auditor – 01865 323875
2
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ANNEX A: INTERNAL AUDIT REPORT - UPDATE ON PROGRESS OF 2010/11 AUDIT
PLAN (as at 15 November)
2010/11 Audits Current Stage Proposed Work
to be
undertaken
Audit Opinion
Contracts & Contract
Management
The audit has been completed
and the final report has been
issued.
N/A
Limited
Budget Management
The audit has been completed
and the final report has been
issued.
N/A
Reasonable
ICT Health Check
Follow-up
The field work has been
completed and the draft report
has been issued.
After the
management
responses have
been received, the
final report will be
issued.
Budget Setting
The audit work has commenced
but the field work is in two
distinct stages. The first stage
has been completed. The
second stage of fieldwork will be
completed in February 2011.
Therefore there will be delay in
delivering the audit report due to
this two-stage approach.
After completion
of the second
stage of fieldwork,
an exit meeting
will be held and a
draft report will be
issued. When
management
responses to the
draft report have
been received, the
final report will be
issued.
Core Financial
Controls
The majority of the audit
fieldwork and testing has been
completed.
Testing has to be
finalised and an
exit meeting with
the auditees has
to be held before
issue of the draft
report. After the
management
responses have
been received, the
final report will be
issued.
Performance
Management
Audit work still to be commenced
3
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Procure to Pay
Process
Audit work still to be commenced
Corporate
Governance
Audit work still to be commenced
Stocks and Stock
Management
Audit work still to be commenced
Human Resources
Audit work still to be commenced
Corporate
Governance
(Partnerships)
Follow up audit work still to be
commenced
ICT Dept.
Governance
Follow up audit work still to be
commenced
4
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ANNEX B: TIMETABLE FOR THE AUDITS IN THE 2010/11 AUDIT PLAN (as at 15
November)
NB This table excludes finalised audits
Auditable
Area
Relevant Officer Start Date End Date
Performance
Management
Jason Thelwell To be advised 2 months after
Budget Setting
(inc. MTP)
David Skinner,
Jacqui May
27.09.10
To be done in two
stages: the second
stage will be
undertaken in
February 2011
15.03.11
Procure to Pay
Process
Jason Thelwell,
David Skinner
To be advised
2 months after
Core Financial
Controls
David Skinner,
Jacqui May
9.11.10 31.12.10
Corporate
Governance
David Skinner,
Adrian Crook
31.01.11 31.03.11
Stocks and
Stock
Management
Jason Thelwell To be advised 2 months after
Human
Resources
Lynn Swift
To be advised
ICT Health
Check
Jason Thelwell,
Peter Duckmanton
28.09.10 30.11.10
Corporate
Governance
(Partnerships)
Des Williamson February 2011 February 2011
ICT
Department
Governance
Jason Thelwell,
Peter Duckmanton
To be advised
2 months after
5
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ANNEX C: 2010/11 INTERNAL AUDIT PERFORMANCE INDICATORS (as at 15
November 2010)
Performance Measure Target Method
1
2
3
4
5
6
7
8
9
Elapsed time between start of the
audit (opening meeting) and Exit
Meeting.
Elapsed Time for completion of
audit work (exit meeting) to
issue of draft report.
Elapsed Time between issue of
Draft report and issue of Final
Report
% of Internal Audit Planned
Activity delivered against that
planned to be achieved for the
period.
Hours charged to audits
compared to budgets
% of High and Medium priority
recommendations followed up
after implementation date
% of recommendations
implemented within the agreed
timescales
Customer satisfaction
questionnaire (Audit
Assignments)
Extent of reliance External Audit
can place on Internal Audit
Target date agreed for each
assignment by the Audit
manager, stated on Terms of
Reference, but should be no
more than 3 X the total audit
assignment days (excepting
annual leave etc)
15 Days 100%
15 Days
100% of Plan by End of April
2010
All audits delivered within
budget
All High and Medium
recommendations followed up
within three months of the
date of expected
implementation
90% of all recommendations
Overall customer satisfaction
95%
Reliance placed on IA work
67% (2 of 3
draft reports
issued on time)
50% (1 of 2
reports issued
on time)
Measured at
year end
125.6%
Internal Audit
Performance
Monitoring
System
Internal Audit
Performance
Monitoring
System
None received
Audit
Commission
report
6
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