Agenda item

Report CEO1622

The Committee considered a report informing Members of recent audit activity across the Council.  The report also provided an update on matters arising from the last Audit Sub-Committee. The latest list of priority one recommendations was attached to the report at Appendix A.

The Head of Audit provided an update concerning creditors and reported that thefollow up audit covering the three month period March 2016 to May 2016 showed 2,129 retrospective orders being raised.  This represented a slight decrease from the quarter to December 2015 when 2,155 were raised retrospectively. However 28% of the orders related to Housing which represented a decrease from 44%. This reflected the streamlining of the payment process. There had been an increase in retrospective orders in other areas that had left the number on similar levels as before. This recommendation had been left as outstanding and a further follow up would be conducted for the next cycle of the Committee.

A Member queried whether the recent Ofsted Inspection of Children’s Services had raised any issues that would impact on the findings in the report that had been presented to the Committee.  In response, the Head of Audit confirmed that some of the issues in the Ofsted report had been identified by internal audit two years ago, an example of this was concerns surrounding pathway plans.

Members agreed that the proposed Internal Audit Charter be adopted.

Members noted the list of redacted reports and that in future where applicable, the audit opinion would be stated.

The Committee congratulated the Head of Audit on his nomination for Bromley Auditor of the Year.

In relation to Housing Benefit Fraud Cases referred to the Department for Work and Pensions, the Head of Audit stressed the need to ensure that the Bromley element of some of the cases did not go without investigation given the DWP’s reluctance to pursue joint prosecutions.  The Committee supported the recommendations set out in paragraph 3.36 of the report.  It was agreed that the Bromley element of cases should be investigated and where appropriate, prosecutions should be bought for council tax support where the overpayment exceeded £3,000.  In response to a question, the Head of Audit confirmed that there was a financial implication to the Authority if allegations were not followed up, as overpayments may continue to be made whilst the DWP decision was awaited and also no money could be made on cases where the administration penalty could be levied.

Members noted that a further update on Local audit contracts for local authorities would be provided to the Committee.

In relation to Risk Management, the Committee noted the excellent work that had been undertaken on risk management.  Members discussed the risks associated with the outcome of the recent referendum and the decision to leave the European Union--such as possible increases in wages, the ability to demonstrate value for money, and changes in legislation relating to contracts.  Members agreed that it would be prudent to do some work around these issues but it was too early to consider.

The Committee noted and endorsed the Code of Corporate Governance.

RESOLVED: that

a.  the Progress Report and comment upon matters arising be noted;

b.  the list of Internal Audit Reports publicised on the web be noted;

c.  the Chief Executive’s nomination for Auditor of the Year be approved;

d.  the updated Internal Audit Charter be approved;

e.  the review of value for money arrangements in SEN be noted;

f.  the latest on cases referred to the DWP be noted and council tax cases where overpayments exceed £3,000 be prosecuted where possible;

g.  the latest position on the options to appoint a local auditor be noted; and

h.  the updated high and significant risks be noted.