Agenda item

(Chief Internal Auditor) To consider the attached report (AGC-005-2015/16).

The Chief Internal Auditor presented the Internal Audit Monitoring Report for the period April to September 2015, which provided a summary of the work undertaken by the Internal Audit Service during this time.

The Chief Internal Auditor advised the Committee that seven reports had been issued and finalised since the last meeting, and all had been issued with substantial assurance. The proposed new approach for dealing with the monitoring and reporting of audit recommendations was outlined. The new process was designed to ensure that all audit recommendations were monitored by the Committee and implemented within the agreed timescale rather than just the Priority 1 recommendations as per the current process. It was expected that the new process would reduce the number of follow up audits that were required.

The Chief Internal Auditor outlined the overall performance to date against the Audit Plan for 2015/16. As of September 2015, 13% of the planned audits had been completed against a target for the year of 90%. The Committee was informed that some audits from the previous year had to be competed at the beginning of this municipal year, and the Service still had a staff vacancy which had not yet been filled. The current productivity of Audit staff was 70% against a target of 72% for the year. This figure was calculated to show the average audit days per member of staff, excluding annual leave, training and the such like. A new performance indicator concerning the implementation of agreed audit recommendations from the 2015/16 Audit Plan within the agreed timescales would be reported on in future, but there were no figures available for this meeting.

The Chief Internal Auditor reminded the Committee that the Council had made a commitment to integrate internal audit services with Broxbourne Borough Council and Harlow District Council, with the same Chief Internal Auditor across all three Councils. The Internal Audit Service was in the process of implementing the same audit methodology, document templates and electronic working papers as Broxbourne and Harlow, and this would be closely monitored to ensure that there was no detrimental impact upon audit services within Epping Forest.

The Chief Internal Auditor reported that the Corporate Fraud Team now consisted of a Senior Fraud Investigator and two Fraud Investigators, with a vacancy for a third. Since April 2015, the achievements of the team included:

·         Reclaiming £88,000 under the Proceeds of Crime Act from a fraud involving the Right to Buy scheme;

·         Recovering seven Council properties through issues with the tenancies;

·         Stopping eight further Right to Buy applications;

·         Stopping one housing application; and

·         Preparing five criminal prosecutions relating to Right to Buy applications and sub-letting.

The Committee was requested to note the progress made against the Internal Audit Plan for 2015/16 and approve the new approach for monitoring and reporting audit recommendations.

In respect of the overdue Audit recommendation regarding Planning Fees, the Chief Internal Auditor reported that the new reconciliation process was being implemented, as detailed in the Appendix, and then monthly reconciliations would be performed in the future.

Resolved:

(1)        That the progress made against the Internal Audit Plan for 2015/16 be noted;

(2)        That the progress made by the Corporate Fraud Team be noted; and

(3)        That the new methodology for the monitoring and reporting of Audit report recommendations be approved and implemented.