Agenda item

(Chief Internal Auditor) To consider the attached report (AGC-003-2017/18).

The Senior Internal Auditor presented the Internal Audit Monitoring Report for the period March to June 2017.

The Senior Internal Auditor advised the Committee that seven reports had been issued since the previous meeting, of which all had been given substantial assurance: Electoral Registration; Langston Road Development Project; Recruitment of Staff; Housing Rents; Management of Housing Voids; Neighbourhood Enforcement; and Business Rates & Council Tax. The Audit Recommendation Tracker currently contained three recommendations which had passed their due date; one medium priority recommendation for External Data Transfers, and two low priority recommendations also for External Data Transfers.

The Senior Internal Auditor drew the Committee’s attention to the 2016/17 Annual Summary for the Corporate Fraud Team, which highlighted that:

·                  28 Right-to-Buy applications had been stopped or withdrawn;

·                  other investigations into suspected housing frauds had resulted in the recovery of 16 Council-owned properties;

·                  the Team had been involved in five criminal prosecutions;

·                  the Team had undertaken a number of other investigations, including two that were staff related;

·                  the Team had undertaken a Standards investigation for which a fee had been received;

·                  an informal joint working arrangement with Chelmsford City Council had been instigated; and

·                  the Team had founded The Eastern Corporate Fraud Group for counter fraud professionals in Essex, Suffolk and Norfolk, which had already met three times.

In addition, the Senior Internal Auditor reminded the Committee that the Internal Audit and Corporate Fraud Teams collaborated to assess the data matches from the National Fraud Initiative to identify those worthy of further investigation. Priority was given to areas of potential fraud which might have a high direct impact on the Council, including any data matches involving Council Members and Officers.

The Senior Internal Auditor added that staff within the shared service worked across all three Councils and were therefore able to apply their skills and knowledge to assignments at each Council. The three Councils also benefited from the sharing of best practice. The Service was also represented on a number of business groups  and project teams to provide advice and guidance, including:

·                  Programme & Project Management;

·                  Information Management;

·                  Personal Data (Payroll/HR System); and

·                  Corporate Debt Working Party.

In response to questions from the Committee, the Chief Internal Auditor stated that the audit concerning the Management of Housing Voids had only focused on Council residential housing and not commercial premises. An extra audit for Commercial Property Voids could be undertaken if the Committee so desired; however, the Audit Plan was based on identified risks to the Council. There was some contingency within the Plan for 2017/18 or this item could be scheduled for 2018/19. The Chief Internal Auditor undertook to discuss the matter with the Corporate Governance Group and the Council’s Estates Team to ascertain if there were any issues which required further investigation.

The capital overspends and project specification issues that had occurred with the relocation of Council services from Langston Road to the Oakwood Hill Depot were highlighted and whether this was an issue that the Internal Audit team intended to investigate. The Senior Internal Auditor reminded the Committee that there was an audit of the Council’s Strategic Sites scheduled, and perhaps these issues could be picked up as part of that. The Chief Internal Auditor added that the issues that had arisen had been managed and reiterated that the Audit Plan was risk based, i.e. if time was spent looking at this issue then potentially an audit with a higher risk factor to the Council would be deferred or cancelled.

Resolved:

(1)        That the progress made against the Internal Audit Plan for 2017/18 be noted; and

(2)        That the work of the Corporate Fraud Team during 2016/17 be endorsed.