Agenda item

(Chief Internal Auditor) To consider the attached report (AGC-008-2014/15).

The Chief Internal Auditor presented the Internal Audit Monitoring report for the first quarter of 2014/15, which provided a summary of the work undertaken by the Internal Audit Unit between April and June 2014. 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:

·                      None;

(b)        Substantial Assurance:

·                      Creditors;

·                      Housing Benefits;

·                      Overtime & Committee Allowances;

·                      Travelling & Subsistence Claims;

·                      Fleet Operations Income;

·                      Management of Sickness Absence;

·                      Norway House; and

·                      Right to Buy;

(c)        Limited Assurance:

·                      Housing Rent Collection and Arrears; and

(d)        No Assurance:

·                      None.

The Chief Internal Auditor also highlighted that there were a further five reports being drafted: Business Plans; Commercial Property Management; Facilities Management; Reprographics; and Planning Fees. 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 Housing Rent Collection and Arrears, the Chief Internal Auditor stated that the Rental Income reconciliation and Council Stock reconciliation had not been completed for 2013/14. Staff from both the Communities and Resources Directorates had worked together to resolve the issue; the Council Stock reconciliation had been completed by the time of the final report being issued, and the Rental Income reconciliation had been completed by 7 August 2014. Rental Income reconciliations would now be carried out on a monthly basis.

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 17%;

·                     % Chargeable Staff Time                   Target 75%     Actual 74%;

·                     Average Cost per Audit Day               Target £245     Actual £237; and

·                     % User Satisfaction                            Target 90%     Actual N/A.

The Chief Internal Auditor informed the Committee that a member of the Internal Audit team had left the Council in July, and a new member of staff would start in October. It was anticipated that the current backlog with the Audit Plan would be eliminated by the end of the year. As of 1 July 2014, the User Satisfaction Survey was being given to the relevant Assistant Director or Manager at the Audit Exit meeting for completion at the meeting. This would hopefully ensure both completion and responses while the audit was fresh in the mind of the Responder.

In relation to the follow-up of Limited Assurance Audits, Car Parking Income had still been assessed as Limited Assurance, following the issue of a draft report. It was highlighted that an independent review of the Car Parking Contract with the North Essex Parking Partnership (NEPP) by the Internal Audit section of Colchester Borough Council had found similar problems with the income from Penalty Charge Notices and Season Tickets. The full report would be issued in time for the next meeting of the Audit & Governance Committee. It was anticipated that the introduction of new parking meters to replace the existing ticket machines would enable the pay-and-display income to be more effectively monitored, as these meters would be directly connected to the NEPP computer systems.

The Chief Internal Auditor added that a new Commercial Property Portfolio computer software system had yet to be acquired.

Resolved:

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

(a)        the Audit reports issued between April and June 2014 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.