Agenda item

Report of Internal Audit Manager

The Internal Audit Manager presented a report to inform the committee of the results of internal audit work for the period and provided an update on the levels of assurance issued for areas audited since they were last considered by the committee on 30 June 2010.

Appendix A to the report provided an updated position on all those audits where the level of assurance had not yet reached ‘reasonable’.

The committee were advised that in accordance with resolution passed at the previous meeting of the committee on 30 June 2010, the Internal Audit Manager had tracked progress with systems implementations relating to the audit report on ‘Income Management (Housing Rents Direct Debit Payments). It was advised that a two stage software upgrade had been required, the first stage had now been completed, and this would allow the second stage to be carried out in the near future, It was anticipated that this would allow the direct debit system to be implemented.

The Head of Financial Services provided an update on the audit report on ‘Procurement and Contract Management’. It was advised that the revised Procurement Strategy had now been approved, and the contract procedure rules were in the process of being reviewed to reflect the new strategy.

The committee discussed the progress made in regards to procurement, it was advised that while the assurance opinion was currently limited, progress was being made and actions were currently underway to achieve a reasonable level of assurance in the future. Members agreed that they were happy with the progress being made regarding procurement, but would like a further report on contract management.  The Internal Audit Manager advised that a review of contract management arrangements corporately was due to begin soon and this would deal with the issues outstanding from the earlier audit.

The committee discussed the audit report regarding ‘Payroll’, it was advised that initial project stages had been undertaken and procurement arrangements were underway with a view to a decision being made by 31 December 2010.

The Head of Financial Services provided an update on developments regarding the audit report on ‘Markets’. It was reported that there had been ongoing technical problems with the chip and pin system, which were affecting other sites as well as the council’s markets. The council was currently working with the provider to find a solution to the problem.

The committee were informed that internal audit follow-up review regarding ‘RMS’ would be reported to the committee in the usual way once it was completed. It was reported that the new Head of Health and Housing was overseeing this process.

Resolved:

(1)                     That the report be noted.

(2)                     That the Audit Committee request Internal Audit to track progress with regard to ‘Income Management (Housing Rents Direct Debit Payments)’ and report on progress to the committee.

(3)                     That the Audit Committee request Internal Audit to track progress with relation to ‘Contract Management’ and that this be reported to a future meeting of the committee.

(4)                     That the Internal Audit Manager continues to track progress with regard to the Payroll/HR system project and that this be reported to a future meeting of the committee.