North Tyneside council’s audit committee were informed the council’s fiscal management for the year is in a good place.
According to the report: “Overall internal audit work performance in the financial year 2021/22 found that internal control systems in the areas audited were effective.
“The opinion of the chief internal auditor is therefore that, at the time of preparing this report, the organisation internal control systems in the areas audited are satisfactory.
“This is a positive assessment of the authority’s control environment and reflects favourably on the organisation's governance arrangements”.
The report did identify two areas of concern, namely the Hardware and Software Management and Debt and Income Management.
The audit acknowledged it could only offer “limited assurance” in these areas. Limited assurance is defined as “weaknesses in the design of, or regular non-compliance with key controls put the achievement of the organisation's objective at risk in some or all of the area.”
Eight recommendations were made in Hardware and Software Management five of which could be implemented. The remaining three recommendations have yet to be achieved.
A review into Debt and Income Management found pandemic restrictions put a “significant impact” on the service.
The report also included successes from special investigations to tackle financial irregularities. Petty cash procedures, card refund processes, ICT access, and procurement processes have been investigated throughout the financial year 2021/22.
The audit stated: “Where irregularities were confirmed, swift action was taken by management (supported by Internal Audit) to cease the potential for ongoing impropriety.
“Causes were then investigated and this, as is typically the case in this area of work, tended to highlight the need for enhanced directive control in particular management and supervisory controls.”
The audit committee was also informed that the draft annual statement of accounts will be delayed.
Several factors were identified as holding up the process. Covid-19 grant funded areas of the council’s books have reportedly taken longer than anticipated to collate due to volume of transactions.
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