Agenda item

CEO 16015

The Internal Audit Progress Report informed Members of recent audit activity across the Council.

The Committee were updated concerning the Leaving Care (Payments to Clients) Audit. A previous audit had resulted in 9 Priority 1 recommendations, and at the last cycle, two of these were outstanding; these were Pathway Plans and Purchase Cards. Pathway Plans had now been actioned in 89% of cases, against a target of 85%, and this recommendation was now considered to be implemented. With respect to Purchase Cards, this recommendation was considered to be partially implemented, and it was acknowledged that management were taking the actions required to resolve the issues. The Committee were also informed that all 8 priority one recommendations in respect of the Family Placements audit had now been implemented.

The Committee were updated concerning the audit of Domiciliary Care. In the past, there had been two priority one recommendations. The first issue was relating to service agreements closed on the wrong dates, or non-closure. The second audit recommendation was around the number of hours that had planned to be delivered--not being reconciled to planned hours. The Committee heard that there were still problems in both these areas, and so both recommendations remained open.

The Audit of rent arrears in Temporary Accommodation was originally undertaken five years ago and was ongoing. As at March 2016, the total number of people in temporary accommodation stood at 1074, and the level of rent arrears was £3.58m. Reconciliations had begun with Orchard and Shipman, and this was expected to be completed by the end of the financial year. As the rent arrears remained high, this recommendation remained outstanding.

The Head of Internal Audit updated the Committee concerning the issue of Creditors, and the problem of “retrospective” orders. An audit that took place between October 2015 to December 2015, revealed that 2,155 retrospective orders were raised during that period. This was an increase from the previous quarter, and it was noted that 44% of these orders were related to Housing. The new housing system would not be available for some time, but in the interim, Internal Audit had agreed Housing’s proposal to streamline payment procedures, and it was hoped that this would reduce the volume of retrospective orders related to Housing.

The Head of Internal Audit summarised the main areas of audit activity, including the list of internal audit reports that had been published. Members were also advised of the six monthly update on new waivers sought attached as Appendix B in the committee report. The Head of Internal Audit advised that there were no concerns with the list of waivers.

An update was provided on VFM around the Youth Offending Service. The YOS was in the process of implementing an improvement plan that had been recommended subsequent to the inspection of the YOS by HM Inspectorate of Probation in February 2015. This was being scrutinised by the Youth Justice Board. It was considered that the implementation plan was partially implemented, and moving in the right direction.

The Head of Internal Audit updated the Committee concerning the matter of Public Sector Internal Audit Standards. It was explained that LBB had joined a London wide assessment external assessment group that would be involved with peer reviews of internal audit systems. LBB had been peer reviewed in March 2016 and the outcome of this review was awaited.

The Head of Internal Audit asked the Committee to note that the Internal Audit Budget had to achieve savings of £80k. This was going to be achieved by deleting two part time posts, and by the removal of the £40k for buying in services from the London Borough of Wandsworth. The £40k cut in the budget would reduce the ability of internal audit to buy in services.

With respect to Risk Management, it was highlighted that a 30 minute interactive online training package was being developed after consultation between Zurich and Learning and Development. It was hoped to launch the training package in July 2016. The Committee noted the new Risk Matrix that was attached as Appendix C. Members had raised queries on some classifications such as banking failure and IT systems failure  (in the light of recent events) and had asked that ‘Significant and High Risk ‘ be reviewed.

A Member referred to the table detailing “significant and high risks” and specifically to the possible risk posed by a loss of parking income. This was as a result of proposed Government changes to Parking Regulations that would lead to a major loss of parking income from fixed and mobile CCTV enforcement.

A Member referred the Committee to section 3.34 of the report, which outlined the 7 key risks that had been identified by the Corporate Risk Management Group. One of the risks had been identified as “Business Continuity and Emergency Planning”. The Member expressed the view that Business Continuity and Emergency Planning was not normally classed as a risk.

The Committee were briefed that a new Annual Governance Statement would be presented to the meeting in July 2016. Work on this would be co-ordinated by the Corporate Risk Management Group. 

RESOLVED

(1) that the Internal Audit Progress Report be noted

(2) that the list of Internal Audit Reports published on the web be noted

(3) that the list of waivers sought since October 2015 be noted

(4) that the audit of VFM arrangements be noted

(5) that the arrangements around risk management be noted and that the  high and significant risk spreadsheet in Appendix C be reviewed