Agenda item

WAO Annual Audit Summary 2019

To consider the WAO Annual Audit Summary 2019.

Minutes:

Documents:

·         WAO – Annual Audit Summary 2019

 

Discussion:

·         This was a new style report replacing annual audit letters that was being trialled – the WAO would welcome any feedback

·         The summary provides a snapshot of work completed in the period October 2018 to December 2019

·         The WAO were satisfied with value for money but recognised the challenges in the delivery of timely transformation

·         A report regarding Financial Sustainability will be available for the March meeting

·         The WAO were also satisfied that planning and reporting requirements were in place to deliver continued improvement

·         the Corporate Improvement Plan had been published in October 2019

·         Wellbeing of Future Generations examinations show that the Council has acted in accordance with the sustainable development principle, but improvements could be made with regard to schools’ infrastructure and the design of the North Powys Wellbeing Programme

·         A higher priority needs to be given to transformation

·         Ongoing work includes

o   Delivering Vision 2025

o   Growing Mid Wales

o   Assurance and Risk Assessment

o   Financial Sustainability

·         The Committee questioned whether the process associated with the use of funds under the Capital Receipts Directive had been considered and whether the projects financed had been sustainable.  The requirements of the Directive are quite specific.

·         The WAO were asked if there was any discussion with the senior management team regarding the work programme.  The WAO combine their knowledge of what is happening within the Council with particular reference to risk.  Prior to finalising the Audit Plan, discussions are held with the Chief Executive and other senior managers to discuss what has been included.  The work programme will cover specific projects and national projects, but managers will be asked if there are any areas which they think should be included.  The WAO would robustly challenge if there was a suggestion by management that an item was not included.

·         The WAO were asked how their work programme ties in with the Internal Audit work programme.  With regard to financial audit work there is no reliance on the internal audit work programme.  However, the outcomes of internal audit reports inform the level of risk to the financial statements and whether any of those risks might lead to misstatements.  If this were the case, then more testing would be done in that particular area.  A similar process would apply to performance auditing.

·         A specific query was raised regarding the Mid Wales Growth Deal – to date no money has been spent but the governance arrangements will be included in the work programme

·         A Member asked the WAO if consideration was given to projects that were overspent but was advised that the Authority had responsibility for project management and the WAO would only consider whether funds had been properly accounted for and would not have an impact on the financial statements.

·         The WAO were asked if they received good quality data from other sources.  There were good relationships with CIW and Estyn.  The WAO was also an observer on the Improvement and Assurance Board and could monitor implementation of Action Plans through that forum.

·         With reference to Value for Money, the WAO were asked how their opinion had been evidenced.  Consideration is given to processes, methods, policies and procedures to ensure money is spent effectively and efficiently.  This will be aligned with good practice and any recommendations included within the final report.  There was very little benchmarking analysis, but the Portfolio Holder for Finance indicated that this was the subject of discussion at the Improvement and Assurance Board.

 

Outcome:

·         The summary report was noted