Summary of IA Activity in Partner Organisations complete
Renfrewshire Council · 4 November 2024
Back to Audit, Risk and Scrutiny Board — 4 November 2024 and its agenda
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___________________________________________________________________ To: Audit, Risk and Scrutiny Board On: 4 November 2024 ___________________________________________________________________ Report by: Chief Auditor ___________________________________________________________________ Heading: Summary of Internal Audit Activity in Partner Organisations July 2024 to September 2024 ___________________________________________________________________ 1. Summary 1.1 Members of the Audit, Risk and Scrutiny Committee expressed an interest in the outcomes of audits undertaken in partner organisations. A proposed revision to the Audit, Risk and Scrutiny Board’s Terms of Reference, to facilitate this, was agreed at Council on 4 May 2024. 1.2 This report provides members with a summary of the internal audit arrangements within each partner body and a summary of the internal audit activity from1 July 2024 to 30 September 2024. 1.3 Renfrewshire Valuation Joint Board – Internal audit services are provided by Renfrewshire Council’s Internal Audit Service. An audit on the non-domestic rates valuation system is currently in progress and will be reported upon to the Renfrewshire Valuation Joint Board once finalised. 1.4 Scotland Excel Joint Committee - Internal audit services are provided by Renfrewshire Council’s Internal Audit Service. An audit has been finalised in relation to contract monitoring (implementation of collaborative procurement) and was reported to the Executive Sub-Committee on 23 August 2024. A summary of this audit engagement is included at appendix 1 of this report. 1.5 Renfrewshire Integration Joint Board - Internal audit services are provided by Renfrewshire Council’s Internal Audit Service. An audit on the processes followed for financial planning has commenced and the fieldwork is currently ongoing. An exercise to ensure that previous internal audit
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recommendations have been implemented by their due date has also commenced. 1.6 Glasgow City Region City Deal – Internal audit services are provided by Glasgow City Council Internal Audit Services, finalised reports for each completed audit engagement are reported to the Glasgow City Region Cabinet and the reports are shared with member Council’s. During the reporting period, one audit review on the UK Shared Prosperity Fund (SPF) Assurance Framework across Glasgow City Region was completed and has been included at appendix 2. ___________________________________________________________________ 2. Recommendations 2.1 All of these Audit Reports and Summaries have been submitted and considered by the partner organisations’ audit committees. Members are therefore invited to note the content of the audit reports and audit summaries. __________________________________________________________________ Implications of the Report 1. Financial - None 2. HR & Organisational Development - None 3. Community Planning – Safer and Stronger - effective internal audit is an important element of good corporate governance. 4. Legal - None 5. Property/Assets - None 6. Information Technology - None 7. Equality & Human Rights – None 8. Health & Safety – None 9. Procurement - None 10. Risk - The summary reported relates to the delivery of the risk-based internal audit plans for the partner bodies 11. Privacy Impact – None 12. COSLA Implications – None
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13. Climate Risk – None 14. Children’s Rights – None. ________________________________________________________________ Author: Karen Campbell, Interim Chief Auditor
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Internal Audit Report Scotland Excel Contract Monitoring – Implementing Collaborative Procurement (A0008/2024/005) Date: July 2024 COMMITTEE SUMMARY Audit Objectives The objectives of the audit were to ensure that: 1. All Members views are sought on potential future frameworks. 2. Member engagement in framework development is widely sought and obtained from relevant clients and their views and requirements are taken into consideration as much as possible. 3. Member likely usage is obtained from reliable sources and taken into consideration when frameworks are being established. 4. Frameworks are fair and equitable for all relevant members. 5. Communication and publicity regarding new frameworks is adequate for members. 6. A satisfactory mobilisation strategy has been approved and implemented. 7. Member framework usage is being monitored and addressed as early as possible. 8. Any major issues/problems raised by Members re the utilisation are escalated to the Executive Team at an early stage. 9. Member involvement in the framework management process is maximised throughout the lifespan of the framework. Audit Scope 1. Interviewed relevant officers within Scotland Excel to obtain the required information relating to processes for member visibility of forthcoming frameworks. 2. Prepared a series of tests to meet the above objectives. Three contracts were selected for testing purposes. Key Audit Assurances 1. All members views are sought on potential future frameworks through various methods of communication such as regular Business Reviews by Project & Account Managers. 2. Member engagement in framework development is widely sought and obtained from relevant clients and their views and requirements are taken into consideration as much as possible, by the Commercial User Intelligence Group Meetings held regularly throughout the year. 3. Member likely usage is obtained from reliable sources and taken into consideration when frameworks are being established, by the Contract Steering Group. 4. Regular Business Review meetings ensure that frameworks are fair and equitable for all relevant members. 5. Communication and publicity regarding new frameworks is adequate for members, using Prior Information Notices. 6. For the sample of contracts tested, a satisfactory mobilisation strategy has been approved and implemented. 7. Member framework usage is being monitored and addressed as early as possible, by the User Intelligence Group. 8. Any major issues/problems raised by members re the utilisation are escalated to the Executive Team at an early stage by Category Managers.
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Internal Audit Report Scotland Excel Contract Monitoring – Implementing Collaborative Procurement (A0008/2024/005) Date: July 2024 9. Meetings with Project Account managers ensure member involvement in the framework management process is maximised throughout the lifespan of the framework. Key Audit Risks There were no key risks identified during the audit. Overall Audit Opinion The audit identified that satisfactory arrangements are in place for member visibility of forthcoming frameworks. Scotland Excel staff and processes encourage member participation in framework development to maximise usage and deliver benefits for all members. As a result, there were no audit findings identified during this review and the auditor has made a provision of substantial assurance for the areas tested. Management Commentary N/A as no key risks were identified.
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Internal Audit | Chief Executive’s Department and Neighbourhoods, Regeneration and Sustainability | Mini Comp B Process 0 Introduction Audit Opinion Main Findings Action Plan Internal Audit Glasgow City Region City Deal Shared Prosperity Fund - Assurance Framework Compliance Final Report August 2024 FS 57095
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Internal Audit | Glasgow City Region City Deal | SPF Assurance Framework Compliance 1 Introduction Audit Opinion Main Findings Action Plan 1 Introduction 1.1 As part of the agreed Internal Audit plan, we have carried out a review of the UK Shared Prosperity Fund (SPF) Assurance Framework compliance arrangements across Glasgow City Region (GCR). 1.2 SPF is administered by the UK Government (UKG) and provides funding for local investment by March 2025, with all areas of the UK receiving an allocation from SPF via a funding formula rather than a competitive process. 1.3 The GCR is the only area in Scotland to adopt a regional approach to SPF, receiving in the region of £73m over the 3- year period between April 2022 and March 2025. While the GCR Programme Management Office (PMO) has overall programme responsibility as the Lead Authority, delivery will take place, in the main, at the Member Authority level, with a small number of projects being administered at a regional level. A SPF GCR Assurance Framework was created to support member authorities in the administration of SPF and outlines the key requirements that should be adopted throughout the course of the 3-year funding period. 1.4 The objective of the audit was to ensure that that member authorities are complying with the requirements outlined in the SPF Assurance Framework and that an adequate audit trail is maintained to support this. The scope of the audit included: • Documented policies and procedures, roles and responsibilities. • Governance and monitoring arrangements. • Reporting activities to track the progress and adherence to the SPF Assurance Framework. • The Change Control process. • Reporting requirements to the GCR PMO and UKG, and • Record keeping arrangements to maintain an audit trail. 1.5 This audit did not include a review of the governance arrangements for individual SPF funded projects at both a regional or member authority level. The review focused on the governance and reporting arrangements between the member authorities and the GCR PMO.
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Internal Audit | Glasgow City Region City Deal | SPF Assurance Framework Compliance 2 Introduction Audit Opinion Main Findings Action Plan 2 Audit Opinion 2.1 Based on the audit work carried out, assurance can be taken that the control environment is satisfactory. 3 Main Findings 3.1 We are pleased to report that a number of key controls are in place and generally operating effectively. The SPF Assurance Framework was developed by the PMO, in partnership with UKSPF Lead Officers from each member authority, when the funding initiative was first introduced and rolled out by the UK Government in 2022. Key officers responsible for SPF within both the PMO and member authorities are fully aware of their role in the process and the requirements that are outlined in the Framework. All relevant officers at each member authority were provided with details of the document and this has been made readily available to all appropriate staff. 3.2 We noted that there are appropriate monitoring and reporting activities in place across the GCR and within each member authority. This includes internal reporting within each organisation and more widely across the different GCR Support Groups. Member authorities are also required to submit returns to the PMO on both a quarterly and 6-monthly basis. We were satisfied that these were submitted as required and any discrepancies are appropriately investigated by the PMO. 3.3 Although there has been no requirement for the PMO to complete a formal Change Control process to date, we were satisfied that staff were aware of the thresholds and occasions where a formal change control should be adopted. We also noted that there were appropriate arrangements in place across the Region to ensure that documents relating to SPF were adequate retained for audit purposes and where required these were restricted to relevant staff. 3.4 The audit has been undertaken in accordance with the Public Sector Internal Audit Standards. 3.5 We would like to thank officers involved in this audit for their cooperation and assistance. 3.6 It is recommended that Cabinet notes the content of this report.