Agenda item

(Chief Internal Auditor) To consider the attached report (AGC-006-2012/13).

The Chief Internal Auditor presented the Internal Audit Monitoring Report for the first quarter of 2012/13, which provided a summary of the work undertaken by the Internal Audit Unit between April and June 2012. The report detailed the overall performance to date against the Audit Plan for 2012/13 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)        Substantial Assurance:

·                     Budgetary Control;

·                     General Ledger;

·                     Council Tax;

·                     Car Parking; and

·                     Management of Sickness Absence.

(b)        Limited Assurance:

·                     Housing & Council Tax Benefits; and

·                     Housing Maintenance Stores Stock Take.

(c)        At draft report stage:

·                     Business Plans;

·                     Debt Recovery;

·                     Environmental Controls & Backup Procedures;

·                     Overtime & Committee Allowances; and

·                     Corporate Procurement.

The recommendations made in the previous Housing & Council Tax Benefits audit regarding accuracy checks had not been implemented. The Benefits Manager had agreed to review the situation on a monthly basis to ensure that the checks were being completed. The Housing Maintenance Stores Stock Take had identified that the stock database records could not be relied upon as there were a significant number of discrepancies. However, a recommendation had not been made as action had already been taken by the Management to resolve the issue.

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 2012/13 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 2012/13:

·                     % Planned Audits Completed             Target 90%     Actual 16%;

·                     % Chargeable Staff Time                   Target 72%     Actual 70%;

·                     Average Cost per Audit Day               Target £245     Actual £239; and

·                     % User Satisfaction                            Target 85%     Actual 95%.

The Committee noted that there had been a shortfall in the planned audits completed for the period. This was due to a vacancy within the Internal Audit Team, but the Chief Internal Auditor announced that this vacancy had now been filled. A Fraud Auditor had been recruited who would work for the Council for 2 days a week; they were currently doing 3 days a week at Uttlesford District Council. This post would replace the Auditor who had previously been on long-term sick leave.

In respect of the Limited Assurance audit report issued for Housing & Council Tax Benefits, the Committee requested that the Assistant Director of Finance & ICT (Benefits) attend the next meeting to provide an update upon the implementation of the recommendations from the report.

For the Limited Assurance audit report issued for the Housing Maintenance Stores Stock Take, the Committee requested that they receive the presentation that was recently given to the Housing Scrutiny Panel on the subject at their next meeting. It was also highlighted that, sometimes, the cost of correcting the errors was greater than the actual cost of the discrepancies, and was the Council responding proportionately to the scale of the problem. The Housing Portfolio Holder assured the Committee that a series of measures were being implemented at the Depot to improve operations, and this included the ongoing stock control issues. The Chief Internal Auditor added that the new Depot Manager was inviting tenders for a new stock control system.

In relation to the outstanding priority 1 action for Planning Fees Income Reconciliation, the Assistant Director of Planning & Economic Development (Development Control) advised the Committee that the Northgate health check had identified an IT solution was required, and the Crystal Financial reporting module had to be amended as well. The Committee requested a further update on progress at the next meeting, and that the current target date of April 2011 should be updated to reflect the new deadline. There was also an outstanding priority 1 action in respect of Planning Fees Refunds and the Committee requested an update on progress with this issue at the next meeting as well.

Resolved:

(1)        That the following issues arising from the Internal Audit Monitoring Report for the first quarter of 2012/13 be noted:

(a)        the Audit reports issued between April and June 2012 and significant findings therein;

(b)        the Priority 1 Actions Status Report;

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

(d)        The 2012/13 Audit Plan Status Report; and

(2)        That the Assistant Director of Finance & ICT (Benefits) be requested to attend the next meeting of the Committee to provide a progress report on the implementation of the recommendations made for the Housing & Council Tax Benefits audit report;

(3)        That the Assistant Director of Housing (Property) be requested to present the briefing recently received by the Housing Scrutiny Panel on the stock-taking issues at the Depot to the Committee at its next meeting; and

(4)        That the Assistant Director of Planning & Economic Development (Development Control) be requested to provide the Committee with progress reports at its next meeting on the Planning Fees Reconciliation and Planning Fees Refund issues identified by previous audits.