Agenda item

Q4 Internal Audit Monitoring Report 2011/12

(Chief Internal Auditor) To consider the attached report (AGC-004-2012/13).

Minutes:

The Chief Internal Auditor presented the Internal Audit Monitoring Report for the fourth quarter of 2011/12, which provided a summary of the work undertaken by the Internal Audit Unit between January and March 2011. The report detailed the overall performance to date against the Audit Plan for 2011/12 and also allowed the Committee to monitor the progress of Priority 1 recommendations issued in previous audit reports.

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

(a) Full Assurance:

· Cash Receipting and Income Control.

(b) Substantial Assurance:

· Bank Reconciliation;

· Creditors;

· Commercial Property Management;

· Housing Rents;

· Licensing Enforcement;

· National Non-Domestic Rates;

· Overtime & Committee Allowances;

· Payroll;

· Risk Management & Insurance; and

· Treasury Management.

· Planning Fees.

(d) At draft report stage:

· Budgetary Control;

· Main Accounting & Financial Ledger;

· Housing & Council Tax Benefits;

· Council Tax; and

· Car Parking.

For the Planning Fees audit, income reconciliations were not being completed correctly as the amount due from planning applications registered with the Council was not being checked against the monies actually received. The system in place did not have all the data available to perform a proper reconciliation, and therefore assurance could not be given that effective controls were in place for Planning Fee income. 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 2011/12 had been appended to allow the Committee to monitor progress against the Plan.

The Chief Internal Auditor reported upon the current status of the Internal Audit Unit’s Local Performance Indicators for 2011/12:

· % Planned Audits Completed Target 90% Actual 82%;

· % Chargeable Staff Time Target 72% Actual 80%;

· Average Cost per Audit Day Target £300 Actual £229; and

· % User Satisfaction Target 85% Actual 97%.

The Committee noted that there had been a shortfall in the planned audits completed for the period, which was due to the unavailability of a member of staff on long-term sickness who had now resigned from the Council. The Average Cost per Audit Day had been reduced following a benchmarking exercise with Harlow, Broxbourne and Uttlesford District Councils.

The Committee felt that the concept of Risk Management was still not fully embedded within the Council. The majority of the Outstanding Priority 1 Actions had target dates which had expired, and in these cases the Corporate Governance Group should investigate and agree a revised target date for the action, with an explanation added to the item. The Chief Internal Auditor commented that the Action could be complete but that the follow-up audit had yet to be performed to confirm completion. All agreed target dates would be added to the report, along with the date of the follow-up audit to indicate whether the action was still outstanding, or just awaiting validation.

The Committee noted that the updated version of the Procurement Guide was ready for release, and only awaiting final agreement by the Procurement Steering Group before being distributed to all staff, and that an updated stock control system had been implemented at the Housing Maintenance Depot by the Council’s contractor Mears.

Resolved:

(1) That the following issues arising from the Internal Audit Monitoring Report for the fourth quarter of 2011/12 be noted:

(a) the Audit reports issued between January and March 2012 and significant findings therein;