Agenda item

The Head of Assurance presented this report which outlined his annual opinion for the year 2021/22 on the adequacy and effectiveness of the Council’s framework of governance, risk management and internal control. He summarised the report, stating the following:

He stated he was satisfied that the internal audit service has had complete and unfettered access to people and properties throughout the year so the work has not been restricted. The audit service has acted with independents throughout the year. In the coming year, he will be looking at how this differs to the Head of Audit’s role as he undertook this role a lot a later. He is also satisfied that the work done this year has met the necessary standard as required.

Internal Control

He was satisfied that during the year ended 31 March 2022 the Council managed its internal controls to offer satisfactory assurance on their adequacy and effectiveness. He noted some persistent control weaknesses in the operation of control account reconciliations, procedural documentation and evidencing control function. He added that these matters were discussed with the Council’s EMT and recommended they be included within the Annual Governance Statement along with a plan to improve compliance.

Framework of Governance

He was satisfied with Council’s framework of governance for the year. He thanked Members of this Panel and the Council’s Executive Management Team for their efforts in supporting compliance with fulfilling agreed actions arising from audit report.

Risk Management

He was satisfied with the risk management arrangements at the Council for the year ended 31 March 2022 are effective and provide satisfactory assurance. He stated there was room to develop the Council’s risk approach to include its reporting, comprehensiveness and integration with wider decision-making. He had discussed these matters with the Council’s EMT and recommended they be included within the Annual Governance Statement.

There were a relatively high number of process engagements by the year end 2021 but there was nothing underlying that would alter his opinion. The work is progressing well.

Commenting on Quality Assurance and Improvement Programmes in the audit service, the Head of Assurance identified a range of areas to improve both actual conformance and how we document to demonstrate conformance: greater emphasis on planning; shorter, more specific actions; and new reporting templates.

The special investigation work carried out by A-FACT covers allegations involving employees, contractors, business rates, grants, blue badges and financial irregularities within or against the Council. Housing investigation work covers fraudulent applications and the team conduct investigations into subletting on behalf of our partners Lewisham Homes and several RSLs. The team had also supported different teams in setting up and processing the various grants available during the pandemic. The aim was to ensure that while monies were distributed to businesses as soon as possible, it was within the framework of fraud controls. A full account of this work will be available in September as the work is currently still ongoing.

It was asked what structure were in pace to ensure prevention of fraud as opposed to reactive reporting of anti-fraud work. Core risk-assessments will continue to be carried out throughout the year ahead of new initiatives and promote whistle-blowing services.

RESOLVED the Panel noted the report.