Issue - meetings

Report CEO1220

The Sub-Committee received the annual report of audit activity, including schools, for 2012/13. This included highlights of the performance of the Internal Audit Team, a summary of the audits undertaken and an assessment of the overall effectiveness of the Council’s internal control environment. A separate annual fraud report was included on the part 2 agenda. The report also included the draft Annual Governance Statement.

The Chairman noted that for 2011/12 and 2012/13 there had been a decline in the percentage of recommendations in Internal Audit reports relating to lack of supporting documents compared to 2010/11.

The Head of Audit confirmed that, due to the amount of additional investigation and fraud work carried out (the total figure, to be inserted on page 5 of the report, was 286 days), it had been necessary to use Deloittes auditors through the framework agreement with LB Croydon. The costs were comparable to using in-house auditors; quality had been mixed, depending on the staff provided. The possibility of utilising services provided by LB Wandsworth was being considered.

Councillor Stephen Wells requested that a summary of audit issues be circulated to Chairmen of Governors so that schools-related issues were picked up. 

Councillor Julian Grainger commented that value for money (VFM) was not specifically included in the summary at paragraph 3.2 of the report – the Chairman confirmed that VFM was included in the Internal Audit Charter. Councillor Grainger also objected to the reference in the Annual Governance Statement to Member and Officer roles being defined in the Constitution as the Scheme of Delegation to Officers had a number of delegations that were described as being both executive and non-executive. The Sub-Committee noted this objection. 

Members discussed the recommendations about car parking and penalty charge notices in Appendix 1 to the report, and the difference between PCNs being waived or written off. It was explained that there was discretion for PCNs to be waived where there was an error or uncertainty in the process or circumstances, whereas write-offs were for legitimately issued PCNs where the Council could no longer expect to receive payment. Members commented that the Council was right to take a reasonable approach to motorists, and a Member suggested that charging for disabled parking bays should be examined. 

RESOLVED that the Annual Audit Report for 2012/13 be noted and the draft Annual Governance Statement be approved.