Agenda item

(Chief Internal Auditor) To consider the attached report (AGC-001-2015/16).

The Chief Internal Auditor presented the Internal Audit Monitoring report for the final quarter of 2014/15, which provided a summary of the work undertaken by the Internal Audit Unit between January and March 2015. The report detailed the overall performance to date against the Audit Plan for 2014/15 and also enabled the Committee to monitor the progress of Priority 1 Actions issued in previous reports.

The Chief Internal Auditor advised the Committee of the audit reports that had been issued during the period:

(a)        Full Assurance:

·                      Council Tax;

·                      Business Rates;

·                      Payroll; and

·                      Main Accounting and Financial Ledger.

(b)        Substantial Assurance:

·                      Overtime Claims;

·                      Committee Allowances and Subsistence Claims;

·                      ICT Access Controls;

·                      Treasury Management;

·                      Risk Management;

·                      Insurance (Fraud);

·                      Budgetary Control;

·                      Creditors;

·                      Housing Rents; and

·                      Cash Receipting & Income Control.

(c)        Limited Assurance:

·                      Sundry Debtors.

(d)        No Assurance:

·                      None.

The Chief Internal Auditor also highlighted that there were a further two reports being drafted concerning: Housing Benefits; and Council Tax Reduction. The Committee’s attention was drawn to the Outstanding Priority 1 Actions Status report, all of which would be reviewed in follow-up audits, and the Limited Assurance Audit Follow Up Status report. It was also noted that the Audit Plan for 2014/15 had been appended to the report to allow the Committee to monitor progress against the Plan.

In respect of the Limited Assurance audit report issued for Sundry Debtors, the Chief Internal Auditor stated that the Management Board had decided in October 2014 to not refer overdue debts under £500 to Legal Services as it was not a cost effective use of resources. The audit had found that not all Officers involved in Debt Recovery had been advised of this change, and there was no evidence of any process to monitor and pursue outstanding debts under £500 following the issue of three reminder letters. This was being reviewed by the Corporate Debt Working Group, and further recommendations would be made to the Management Board in due course. However, any new recommendations agreed should be communicated to the Officers responsible for debt recovery to ensure the process was implemented effectively.

The Chief Internal Auditor reported upon the current status of the Internal Audit Unit’s Local Performance Indicators for 2014/15:

·                     % Planned Audits Completed             Target 90%     Actual 94%;

·                     % Chargeable Staff Time                   Target 75%     Actual 75%;

·                     Average Cost per Audit Day               Target £245     Actual £229; and

·                     % User Satisfaction                            Target 90%     Actual 100%.

The Chief Internal Auditor added that the two audits listed in the report as being in progress had now been completed, and the Corporate Procurement issues highlighted in the Outstanding Priority 1 Actions List were being considered by the Corporate Working Group on Contract Standing Orders. The audits carried forward to 2015/16 were highlighted, and the 2015/16 Audit Plan would be available for the Committee at its next meeting. The audit of the Waste Management contract was currently scheduled for quarters 2 and 3 of 2015/16. The Committee welcomed the report but requested that, in future, the measures actually taken be detailed for the Outstanding Priority 1 Actions List, rather than bland comments such as “…work underway…”

Resolved:

(1)        That the following issues arising from the Internal Audit Monitoring Report for the second quarter of 2014/15 be noted:

(a)        the Audit reports issued between January and March 2015 and significant findings therein;

(b)        the Priority 1 Actions Status Report;

(c)        the Limited Assurance Audit Follow-Up Status Report; and

(d)        the 2014/15 Audit Plan Status Report.