Agenda item

  3.1 Outstanding Matters

  3.2  Use of Cash Payments across the Council

  3.9  Debtors

  3.21  Annual Audit Report

  3.25  Direct Payments

  3.27  Previous Priority One Recommendations

  3.29  Progress and new issues since the last meeting

  3.34  Academy Status

3.35  Current Matters

3.37  New Priority One Recommendations

3.39  FMSiS Assessment of Secondary School 2009/10

3.44  Emergency Accommodation & Rent Accounts

3.46  Housing Benefit Update

3.50   Waivers

3.56  Other Matters

3.57  Benchmarking

3.62  Partnership Working

3.64  Audit Commission

3.67  Risk Management 

Report DR 10080

The Sub-Committee considered a report updating them on recent internal audit activity across the Council. The report included an update on matters outstanding from the last meeting and information on implementing previous priority one recommendations. The following matters were raised in particular.

(a) Use of Cash Payments across the Council

Members received an update on the programme to reduce cash usage across the Council.  An additional sheet was tabled showing petty cash and purchasing card usage by month combined into one graph.

RESOLVED that a further progress report be submitted, and the Head of Corporate Procurement be requested to attend the meeting.

(b) Debtors

The Sub-Committee was informed that the debt recovery rate was 96% by value to 13^th September 2010. Officers were seeking to recover the debt and minimise write-offs. Much of the outstanding debt related to utility works, and in particular to Thames Water. An arbitration process was in place for these debts.

Outstanding debts were submitted to Executive and Resources PDS Committee through the regular Exchequer Services contract monitoring report, and it was proposed that further information be provided in the next report and copied to this Sub-Committee. Councillor Julian Grainger requested additional details about the outstanding debts, and these would be provided to him.

(Councillor Simon Fawthrop declared a personal interest during consideration of this item as he was employed by a utilities company.)

RESOLVED that further information be supplied in the report to Executive and Resources PDS Committee and copied to this Sub-Committee.

(c) Annual Audit Report

The Annual Audit report had been amended in line with the Committee’s suggestions at the last meeting, and one further change was suggested.

RESOLVED that the word “ascertaining” in the third bullet point in section 3, Objectives of Internal Audit, in the Internal Audit Terms of reference be replaced with the word “evaluating”.

(d) Previous Priority One Recommendations

The sub-Committee noted the latest list of outstanding priority one recommendations. It was suggested that the report could in future highlight recommendations where there was a particular risk of fraud.

(e) Progress and new issues since the last meeting

Officers were hoping to streamline the targets.

(f) FMSiS Assessment of Secondary School

The Sub-Committee were updated on two priority one recommendations relating to a secondary school. Members emphasised the importance of Internal Audit reports being considered by the full governing body, and local authority governors being briefed where necessary so that they could represent the views of the Council effectively.

RESOLVED that the Children and Young People PDS Committee be requested to ensure that all Internal Audit reports are considered at a full meeting of the school’s governing body.

(g) Housing Benefit Update

Brendan Costello, Head of Internal Audit and anti-fraud at the London Borough of Greenwich, attended the meeting and reported on the successful work of the anti-fraud partnership between Bromley and Greenwich. He explained that three sanctions were available where housing benefit fraud was uncovered – prosecution, formal caution and administrative penalty (the latter two did not result in a criminal record, but the offence would be listed on council and Department of Work and Pensions registers.) It was confirmed that press releases were issued for every successful prosecution. 

RESOLVED that a further update be submitted to the next meeting.

(h) Waivers

The Sub-Committee examined the waivers of the Contract Procedure Rules set out in Appendix P. Members commented that these waivers should be scrutinised by PDS Councillors, and it was also suggested that more information should be provided in the “reason” column in the appendix.

(i) Benchmarking

The Sub-Committee noted the outcome of a recent Cipfa benchmarking exercise which showed that Bromley’s costs compared very favourably with other boroughs across London. 

(j) Partnership Working

Officers reported that they were looking to extend the successful partnership with Greenwich. Members considered that partnership working should be explored more widely and it was suggested that this issue should be referred to the Executive for consideration. 

RESOLVED that the Executive be requested to examine the possibilities for further joint working with other authorities.

(k) Audit Commission

The full implications of the Government’s decision to abolish the audit commission were not yet known, but it was stated that Councils would be able to appoint their own external auditors from 2012/13 onwards. 

(l) Risk Management

A one page “Instant Guide to Risk Management” had been developed by the Council’s Risk manager and was set out at appendix V. The Sub-Committee welcomed this document and asked that the author be thanked. 

RESOLVED that the one page guide to risk management be commended and offered to other Councils.