Agenda item

(Chief Internal Auditor) To consider the attached report (AGC-019-2014/15).

The Chief Internal Auditor presented a monitoring report for the third quarter of 2014/15, which provided a summary of the work undertaken by the Internal Audit Unit between October and December 2014. The report detailed the overall performance to date against the Audit Plan for 2014/15 and enabled the Committee to monitor the progress of Priority 1 actions issued in previous reports.

The Committee was advised that the following audit reports that had been issued during the period:

(a) Full Assurance: None

(b) Substantial Assurance: Bank Reconciliation; Car Mileage Claims; Private Housing Assistance; Corporate Asset Register; Housing Repairs Service; Gifts and Hospitality (Members and Officers); Contracts (Fraud Prevention);

(c) Limited Assurance: Corporate Procurement; Car Parking Contract; and

(d) No Assurance: None

The Committee noted that, during the quarter the report on Corporate Procurement had received a limited assurance rating due to a number of identified departures from Contract Standing Orders, specifically failures to monitor expenditure and take action when financial thresholds were reached. This audit had resulted from the findings of the Facilities Management audit reported to the previous meeting of the Committee, which had also been given a Limited Assurance rating. The Chief Internal Auditor reported that this additional audit work had targeted procurement across the remainder of the Council’s services and had analysed data from the Marketplace system where Contract Standing Orders required quotations rather than formal tenders.

Members were advised that an audit had also been undertaken of the Car Parking Contract managed by the North Essex Parking Partnership (NEPP). The Chief Internal Auditor reported that, as a result of limitations in the information supplied by NEPP, this audit had been given limited assurance. However, the Committee noted that, based on the evaluation and testing of the Council’s key controls designed to achieve its objectives relating to off-street car parking income, the Internal Audit Unit had been able to provide assurance that relevant processes were sound and in place for when full data was received from NEPP. The Chief Internal Auditor advised members that, since the audit had been completed, NEPP had outsourced their cash collection and payments to the Council had become erratic, and that documentation supplied could not always be reconciled with monies received. The Committee was pleased to note that additional audit time had been allocated to this issue and that further work was currently in progress. The Chief Internal Auditor indicated that he understood that orders for new parking meters had been placed and was requested to circulate details of the likely level of deficit to members, after the meeting.

The Chief Internal Auditor also reported that a range of further audit reports were currently being prepared, in relation to overtime claims, committee allowances and subsistence claims, and ICT access controls.

The Committee considered a schedule of outstanding Priority 1 recommendations arising from previous audit reports and the findings of limited assurance audits, to ensure follow up both by the Internal Audit Unit and relevant service management. The Chief Internal Auditor reminded members that progress against the Priority 1 recommendations was also monitored on a monthly basis by the Corporate Governance Group. Members were also advised of progress against the Audit Plan for 2014/15 and the current performance of the Internal Audit Unit against its key performance indicators.

Resolved:

(1)       That the following issues arising from the Internal Audit Monitoring Report for the third quarter of the year be noted:

(a)       the audit reports issued between October and December 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.