FSD 18023

Internal Audit Progress report was written by Mr David Hogan, Head of Audit.

The report was written to inform Members of recent audit activity across the Council and provided updates on matters that had arisen since the previous meeting of the Audit Sub Committee.

Members discussed the update concerning Transforming Community Equipment Services (TCES). A Priority 1 recommendation had been identified regarding the roles and responsibilities for contract monitoring and contract compliance. The previous Contract Manager had retired in May 2017, and had not been replaced. Subsequently, the Director of Adult Social Care had confirmed that the Head of Service (Assessment and Care Management) would act as the Contract Manager, supported by the Strategic Commissioner.

Eight Priority 2 recommendations and three Priority 3 recommendations had been raised for a variety of matters relating to TCES. Remedial action for all of these was due to be in place by the end of the financial year. 

A Member stated that since his return to the Audit Sub Committee, he had been impressed by the work being undertaken by Internal Audit. Another Member stated that the items being looked at were more interesting and substantial. The Chairman felt that strategic lessons had been learned. The Vice-Chairman said that LBB departments were now asking internal audit to come in and to review—management saw the value in this. A collegiate approach was being developed.

Members were briefed concerning the contributions policy for ECHS. It had been discovered that the Reablement Service had not been levying the required charges for cancelled and abortive visits. This was a Priority 1 recommendation. It was estimated that lost income was just over £10k. 

The Committee was updated regarding the audit of agency staff. There were three Priority 1 recommendations. One of these involved the procedure for approving extensions for the use of agency staff beyond six months, which was not being followed. It was felt that Human Resources should be taking a more pro-active lead in these matters.

Members were appraised that the audit relating to the contract for grounds maintenance, park management and other related services had resulted in an audit opinion of ‘Substantial’. Seven Priority 2 recommendations were made to further improve controls.

Members discussed the matter of Gifts and Hospitality. It was noted that various versions of guidance were available on the Intranet, and so conformity was required. A Member expressed the view that all hospitality should be declined to avoid any allegations of corruption. 

The objective of the planning audit was to look at the planning application process with particular emphasis on pre-application advice and the subsequent approval process. The review also looked at current planning enforcement arrangements. A Member expressed the view that if an officer provided pre-planning advice and then wrote the associated report, then this was not impartial. Mr Hogan stated that all the reports should be signed off by a manager or Chief Officer. It was noted that the regulatory body was happy with the same person giving pre-application advice, and then writing the final report.

Members noted progress concerning the follow up audit of Biggin Hill Airport and the Glades. Assurances had been provided that a sample of evidence of income and expenditure incurred on the quarterly statements would be provided with respect of the quarter ending March 2018. On this basis the previous Priority 2 recommendation was regarded as resolved.

The Head of Audit updated Members concerning the follow up audit of Building Control. He explained that there was no interface between the Oracle financial system and the Uniform Building Control case management system—so that no automatic reconciliation of financial data could take place. The Head of Building Control was now in discussions with the IT provider to see if output from both systems could be combined for reconciliation purposes. To this end a work request had been raised.

The Committee was informed that all of the recommendations with respect to Street Works and defaults had now been implemented.

Members were briefed concerning the two Priority 1 recommendations for Contract Monitoring. It had been agreed that documents in the legal vault be scanned, and that a Document Management System (DMS) be developed to provide a robust repository for contract documentation. Internal Audit regarded the two Priority 1 recommendations as ‘in progress’. 

Members discussed the Priority 1 update concerning Document Storage and Retention. The Director of Regeneration had previously advised that this matter was not likely to be resolved until the Civic Centre Accommodation strategy had been progressed. Meanwhile Members heard that the number of storage boxes was increasing. The Chairman expressed the view that the Civic Centre Accommodation strategy was not likely to be progressed any time soon, and there was a consensus amongst Members that in the meantime action should be taken.

The Committee noted that comprehensive new documentation had been produced for all aspects of the authorisation process, and that these could now be found on the Commissioning & Procurement One Bromley Site, and on Team Contract Management. 

The Internal Audit Team had evidenced significant progress in improving the eviction process; this being the case the Priority 1 recommendation with respect to Temporary Accommodation was considered closed.

Members noted the internal audit reports that had been published.