Agenda item

(Chief Internal Auditor) To consider the attached report (AGC-010-2019/20).

The Chief Internal Auditor presented the Internal Audit Monitoring report for the period September to November 2019.

The Chief Internal Auditor reported that three reports had been issued since the Committee’s last meeting on 12 September 2019. The report on Disabled Facilities Grants had been issued with moderate assurance, and the report on Homelessness had been issued with substantial assurance. The third report was a review of Payroll HM Revenues and Customs and BACS payment processes, following three separate incidents. A Management Action Plan, which included four recommendations, had been raised to minimise the risk of such incidents occurring again, and the implementation of these recommendations would be followed up through the standard Internal Audit Recommendation Tracker process.

The Chief Internal Auditor stated that good progress had also been made with the 2019/20 Audit Plan, and the timings of the audits had been agreed with the Leadership Team to ensure a timely flow of reports throughout the year. However, the Audit Recommendation Tracker was showing the number of overdue audit recommendations increasing, with 13 currently past their due date. The overdue High Priority recommendation related to the Business Continuity Planning Project. In other activities, the Internal Audit team was working with Business Services in reviewing Officer delegated authorities, and the Officer Risk Management Group had reconvened to review risks at both the Corporate and Service level. The Group Company and Accommodation Project Risk Registers had also been reviewed prior to their consideration by the Risk Management Group.

The Chief Internal Auditor highlighted the following achievements by the Corporate Fraud Team, since the previous meeting of the Committee:

            (i)         five Right-to-Buy applications had been stopped resulting in a discount             saving of £414,000 and a potential ongoing rent stream of approximately             £260,000;

(ii)        two properties had been recovered from investigations into tenancy related fraud, saving the Council approximately £186,000;

(iii)       a Proceeds of Crime award in the sum of £50,000 arising from a previous investigation was due to be shortly received; and

(iv)       National Fraud Awareness week had been from 17 to 23 November 2019, and the Team had organised a series of activities.

The Chief Internal Auditor informed the Committee that the Council’s Anti-Fraud & Corruption Strategy had been revised, to include the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. The Committee was requested to agree the revised Strategy and recommend its adoption by the Council. Finally, the Chief Internal Auditor outlined the progress that had been made with the issues identified for improvement during the current municipal year in the Annual Governance Statement.

The Committee was concerned with delays for the Business Continuity Project, as it illustrated the Council’s previous casual approach to Business Continuity. Business Continuity was very important for the Council, and all of the key players should be involved. The Chief Internal Auditor acknowledged the Committee’s concerns and drew the Committee’s attention to the progress update on the project from the Commercial & Regulatory Service Director that had been included within the Committee’s agenda papers.

Resolved:

(1)        That the progress made against the Internal Audit Plan for the period September to November 2019 be noted; and

(2)        That the revised Anti-Fraud & Corruption Strategy be agreed, and recommended to the Council for approval.