Agenda item

Report of Internal Audit Manager

Committee received the report of the Internal Audit Manager to inform Members of the results of internal audit work since the last report to Committee on 11^th January 2011.

Members were advised that the report covered audit work and reports issued since the last meeting and noted that summary reports were issued to Members for their consideration and posted on the Council’s Intranet.

Set out in the report was a list giving the assurance opinion issued for areas audited since the last Audit Committee.  The audits where a ‘reasonable’ level of assurance had not been achieved were also set out in the report, as follows, together with the conclusions reached and details of the follow-up reviews.

10/0791 – Corporate Learning and Development Limited – follow-up review in November 2011.

10/0795 – Capital Contract Management (Limited) – a follow-up review of progress, with action plan, scheduled for October 2011.

10/0819 – Purchasing Cards (Minimal) – a follow-up review of progress, with the action plan, scheduled for September 2011.

09/0776 – Payroll 2009/10 Follow-Up Review (Limited) – options being evaluated by officers.

08/0753 – Williamson Park Financial Procedures Follow Up Review (Limited) – a new and more in-depth audit review, including progress to be undertaken in the second half of the year, was to be undertaken in the second half of the year.

09/0759 – Housing Standards Follow Up Review (Limited) – officers were satisfied that a ‘substantial’ level of assurance would be achieved once the comprehensive housing strategy, currently due by December 2011, was in place.

Members noted that Appendix A to the report provided the updated position and recommendations for further action for all previously reported audits where the level of assurance had not yet reached ‘substantial and updates were provided at the meeting.  These were as follows:

08/0708 – Income Management (Housing Rents Direct Debit Payments) – it was recommended that the Internal Audit Manager continue to track and report on progress to the Committee.

07/0709 – Payroll – officers had been evaluating options for procuring a payroll and HR solution through the strategic partnership being implemented by Lancashire County Council, with implementation scheduled for April 2012.  It was recommended that the Internal Audit Manager continue to track and report on progress to the Committee.

07/0679 – Markets – the invoicing and payment collection arrangements introduced from 1^st June 2011 had gone a long way to meeting the Committee’s resolution at its meeting on 20^th January 2010 that Audit Committee wishes to increase the amount of non cash payments in the Charter Market, the Festival Market and the Assembly Rooms and that a report be presented to the next Audit Committee as to the progress on this policy and the areas in which it can be applied.  The current position was set out in the report.  Internal audit’s opinion was that the invoicing and payment collection arrangements introduced from 1^st June 2011 had gone a long way to meeting the Committee’s resolution and the Council’s income collection policy expectations.  Continued effort was needed if the Council was to increase the proportion of rents collected by card from the Charter Market.  It was internal audit’s view that these developments were sufficient to raise the assurance level to ‘substantial’, and it was recommended that the progress be noted and that no further updates to Committee were required.

09/0750 – Academy/Civica Interfaces – it was recommended that the Internal Audit Manager continue to monitor and report on progress with resolving the system issues identified.

07/0764 – Council Housing Repair & Maintenance Section – the results of the further follow-up review would be reported to Audit Committee in the normal way.

Members considered the report and raised questions thereon.

It was proposed by Councillor Knight and seconded by Councillor Williamson:

“(1)      That the report be noted.

(2)        That, regarding audits ref 07/0708 – Income Management (Housing Rents Direct Debit Payments), 07/0709 – Payroll and 09/0750 – Academy/Civica Interfaces, the Internal Audit Manager continues to track and report on progress to the Committee.

(3)               That, regarding audit ref 07/0679 – Markets, progress be noted and no further updates to Committee be required.”

Upon being put to the vote, Members voted unanimously in favour of the proposition, whereupon the Chairman declared the proposal to be clearly carried.

Resolved:

(1)        That the report be noted.

(2)        That, regarding audits ref 07/0708 – Income Management (Housing Rents Direct Debit Payments), 07/0709 – Payroll and 09/0750 – Academy/Civica Interfaces, the Internal Audit Manager continues to track and report on progress to the Committee.

(3)        That, regarding audit ref 07/0679 – Markets, progress be noted and no further updates to Committee be required.