Agenda item

The Chairman welcomed the new Interim Head of Internal Audit, Simon Bailey to his first meeting of the Audit Committee.

The Director of Finance updated Members on the structural changes which had taken place in the Council, and the implications this had in relation to this Committee. The Committee was assured that the effectiveness of the Internal Audit Team would not be affected by the changes.  

Reference was made to the proposals to transfer the Fraud Team to the Residents Services Directorate, but Members were informed that Corporate Fraud Reports would still be submitted to this Committee every six months.

The Interim Head of Internal Audit provided Members with a summary of Internal Audit activity in the period from 24 November 2012 to 8 February 2013.

During the period of the fourteen audits completed, two had received Full Assurance, ten audits had received Satisfactory Assurance and two had received Limited Assurance.

The following issues were raised by Members:

·        The implementation rate for follow up reviews was 75% which was an improvement on last quarter’s rate of 64%.

·        Housing Services Major Works and Housing Gas and other Services Contracts – the Director of Finance reported that this service was undertaking a major BID review so it was not appropriate to carry out a full audit at the moment. These audits would be covered in 2013-14 as part of the planned Property Maintenance audit.

·        Schools Buildings Programme – Permanent - The  Committee expressed some concern at the lack of a Corporate Construction Procedures Handbook which had been identified as a high risk area. The Director of Finance reported that the number of high risks was being addressed.

·        Licensing Service – Reference was made to the two high risk areas identified and in particular the required action plan to clear the backlog. Members asked that an update be provided at the next meeting on what level of management had been made aware of this backlog.

·        Northgate IT Disaster Recovery Arrangements – Reference was made to the two data centres and subsequent to the meeting the Director of Finance reported that these were located within the UK, at London Docklands and in Woking.

·        Self Directed Support – The Committee was informed that clients were not yet managing their own Personal Budgets so there was no increased risk to vulnerable people.

·        Commissioning Third Sector Providers – Concern was expressed at the high risk which had been identified in relation to three unsigned contracts. Members were assured that Corporate Procurement was now tightening up procedures to ensure this did not happen in the future.

·        Caravan Site (Colne Park) – Concern was expressed at the identified high risk recommendation regarding the collection of annual gas certificates from residents at the site. The Committee asked that Members be emailed progress on the implementation of this control improvement, together with the management response.

·        Golf Courses Follow Up Review – The Committee noted the progress made in implementing the recommendations but officers were asked to provide a further update on progress made at the next meeting of the Committee.

·        School Audits – The Committee was informed that the Governing Body of schools were sent audit reports.

·        New Year’s Green Lane Weighbridge – The Committee was informed that there was now only one medium outstanding recommendation and this would be followed up.

·        Children with Disabilities – Transition – The Committee asked that their concerns at the revised date of May 2013 to implement the outstanding recommendations be communicated back to management.

RESOLVED-

1. That the in year progress against the Internal Audit Plan for 2012/13 be noted and the updated position on outstanding recommendations of those audits undertaken in 2009-10, 2010-11 and 2011-12 be noted.