Agenda item

Report of the Head of Internal Audit and Risk Management.

The Committee received the Head of Internal Audit’s Opinion and Annual report, including a progress report on internal audit work more generally.  Members were pleased to note that the City of London Corporation had adequate and effective systems of internal control in place to manage the achievement of its objectives.

During the discussion on this report, the following matters were raised/noted:

• An organisation could only achieve an ‘adequate’ or ‘inadequate’ opinion but the  Head of  Internal Audit could provide a more detailed overview, if required.  For example, there had been a recommendation in a previous year about project management, which had since strengthened. 

• The Internal Audit Manager explained that large, complex organisations would always have some small recommendations.  For example, the recommendations on HR initiatives would show results in about 9-12 months. 

• Members felt that it would be helpful if future reports could provide a comparison on the previous years’ performance and for improvements to be more visible.    For example, the presence of the Risk Register on all Grand Committees and the implementation of the Risk Challenge sessions. 

• The Chief Commoner was in attendance, as part of his regular programme of attending various Grand Committee meetings.  The Chairman hoped that he would see evidence of the rising profile of risk management as he continued his visits.

• As part of the Service Based Review’s agreed savings for the internal audit function of £220,000, over the next 2 years; Members noted that  there would be more focus on strategic audits, rather than lots of smaller ones and streamlining of green recommendations, which would only be reported in the event of slippage.  Members were assured that, should the  Committee become concerned at the level of resources, they would be able to raise this with the Chamberlain.

RESOLVED, that:

The Head of Internal Audit’s Annual Opinion be noted.