Agenda item

FSD23063

The Internal Audit Fraud Progress Report was presented by the LBB Head of Audit and Assurance. The report provided an update on internal audit activity and outcomes in the 2023/24 financial year. The report also provided an update on counter fraud activity for the first half of 2023/24.

It was noted that 12 audits had been fully completed. All outstanding priority one recommendations had been followed up. Follow up work had also been undertaken on priority two and priority three recommendations. The Head of Audit and Assurance said that not as much progress had been made with the Internal Audit Plan as she would have liked, due to staffing issues. She had a member of staff on long term sick leave, other staff doing reduced hours, a member of staff on secondment and it was also noted that another member of staff had tended his resignation. Some work had been required to be contracted out. A Member asked what was being done to replace members of staff who were either leaving or on secondment.  The Head of Audit and Assurance responded that she did have a plan in place, but did not necessarily wish to replace like for like. She wanted to look at her structure first and decide what sort of structure she would like to use going forward and then get approval for that new structure. In the meantime, there would be some reliance on contractual resource. It was noted that recruitment for internal auditors was difficult across London and the southeast. A discussion took place with respect to co-sourcing.

The Head of Audit and Assurance drew the Committee's attention to the section of the report which noted the work undertaken by the Royal Borough of Greenwich Fraud Team. They were responsible for the investigation of all allegations of fraud, and maintained the Fraud Register. It was pointed out that in October 2023, the Greenwich Fraud Team had won the Institute of Revenues Rating and Valuations award in the category of ‘protecting the public purse’ for their work across the Royal Borough of Greenwich and also their work across the London Borough of Bromley. The report noted that the criteria for the award was evidence of high performance that had secured a measurable impact on fraud prevention or detection.

The Chairman highlighted section 3.44 of the report where it was noted that the Institute of Internal Auditors would be launching a revised set of professional standards before the end of the financial year. The Head of Audit and Assurance commented that as a member of the Chartered Institute of Internal Auditors, she would have a professional obligation to follow the new Standards and she anticipated that the changes would be significant. She also advised that the Council had an obligation under the Accounts and Audit Regulations to undertake Internal Audit following public sector internal auditing standards and guidance.

The Vice Chairman expressed concern at the results of the Domiciliary Care Audit. He was concerned to note that the report had identified that there was a lack of evidence to demonstrate that the needs of clients, desired outcomes and expected quality care standards were being met. He felt that there should be a clear plan and a swift response from management to resolve the issues that had been highlighted. He also suggested that this could be a matter that required a referral to the Adult Social Care Committee. The Head of Audit and Assurance said that the timescale for a management response was only just due and that Internal Audit would follow up as required. 

It was noted that Internal Audit had set itself a target of 80% in terms of draft audit report dates achieved. It was pointed out that the year to date outcome was only 20% and so there was work to do in this area in becoming more efficient. There was a discussion that took place regarding internships and apprenticeships as a possible way of recruiting into Internal Audit. The Institute of Internal Auditors was now offering an apprenticeship scheme. An Independent Member felt that mentoring an apprentice would be time intensive for the Head of Audit and Assurance.

A Member enquired how oversight of the Transformation Programme was managed. The Head of Audit and Assurance said that there was a project register, but not all of the information would be located there. There was some information available on the Transformation Intranet page. 

RESOLVED that the Internal Audit Fraud Progress Report be noted.