Agenda item

The Head of Internal Audit to submit a report to satisfy the Accounts and Audit Regulations by providing Members with the opportunity to consider a report from the Head of the Council’s Internal Audit function on the performance of Internal Audit during the year and the ‘Internal Audit Opinion’ on the Council’s system of internal control and its arrangements for risk management and governance.

The Head of Internal Audit provided a report on the annual Internal Audit Report and opinion on the overall adequacy and effectiveness of the Council’s governance, risk and control framework in accordance with the requirements of the Public Sector Internal Audit Standards.

The Head of Internal Audit highlighted the summary of audit work detailed in table 3 of the Annual Report (Appendix 1). All of the reports had been reported to the Committee with the exception of the following items:

• Financial Systems Key Controls – this audit had received limited assurance due to the bank reconciliation not being up to date at the time of the audit.  An update was provided to confirm that bank reconciliations to the end of the financial year were now up to date and audit had seen evidence of this.
• Complaints and Compliments Management – this audit has received a good assurance rating.
• Homelessness Reduction Act Compliance – this audit had received satisfactory assurance.  There were no significant issues identified but some focus was required on the process for checking identity of applicants.
• Contractor Health and Safety – this audit has received a limited assurance for design, but an action plan was in place and work had commenced to implement improvements.

The Head of Internal Audit also clarified that the information on the overdue recommendations shown at Table 5 of Appendix 1 could now be updated as the two over due recommendations in relation to Fixed Assets had now been completed.

During the discussion the following points were noted:

·         Members raised concerns that the bank reconciliations had not been balanced since December 2018.

·         The Corporate Services Manager advised this was as a result of a shortage of resources with posts remaining vacant and also a change in personal previously, though it was known by management, they  had to use their judgement in order to prioritise the use of resources alongside other key activities. He assured Members that this had now been rectified and the reconciliations were now up to date in readiness for the year end audit.  Key financial controls were monitored on an annual basis and the integrity of the system remained a high priority.

·         A Member raised concern about the Contractor Health and Safety audit suggesting that it will need to start again from the beginning regarding safety to the workers, other individuals and the public and to have clear guidance for the contract managers. There needed to be a new policy to include the risk, and the financial liability of the Council. A record of all contract licences and leases should be kept and updated, training should be provided.  There should also be a termination clause included in all contracts.

·         The Head of Internal Audit advised that an action plan was in place for this, and timeframes had been set for a policy to be developed. This would be  subject to follow up and an update available to Committee later in the year.

·         A Member asked if there were regular meetings now in place with the Chief Executive and senior management in respect of oversight of Section 106 agreements and associated payments The Director for Governance and Regulatory Services would provide an update to the Chairman.

·         In response to a request for an update on the Landlord Health and Safety Audit the Director for Governance and Regulatory Services read out a statement from the Director for Housing and Communities as follows:

Audit Committee will note a number of outstanding actions in relation to both the review of Case Management (support services) and Landlord Health and Safety Compliance.  Actions in relation to both areas have been significantly disrupted since March in terms of the Council’s response to Covid19, most obviously in the setting up of the Community Hub (largely resourced by the Case Management team) and the imposition of social distancing/lockdown (which has severely limited both contractor resource, materials supplies, and the ability to access tenant homes). 

Significant progress continues to be made in relation to Landlord Health and Safety and comprehensive updates are provided  to the Housing Improvement Board (last meeting on 26.06.20), including:

·         Gas Safety – 99.71% compliance – there are 4 expired certificates, all due to tenant health problems preventing access and all with landlord actions up-to-date

·         Electrical Safety – there are 191 properties without a valid test certificate.  All are programmed in for appointments and work.

In terms of Case Management, a wider review of the new Housing and Communities Directorate is underway, and Internal Audit recommendations will be incorporated into this review, which should be completed by the end of the financial year.  Individual actions will however continue to be closed throughout this period.

·         Further information was requested by Cllr Glancy in regard to the Case Management Intensive Housing Management audit and the HRA cap that had been achieved after £29k was recharged to the general fund.

·         The Head of Internal Audit and the Corporate Services Manager would investigate this recharge and report back to members.

·         A Member raised various concerns in respect of the Framework assurance and risk. In the March 2020 meeting there was reference to a number of consultancy work in progress jobs and requested if the works had been done and memorandums issued.

·         The Head of Internal Audit advised that the consultancy reviews did not feed back into the Internal Audit report as they do not inform the assurance opinion; they are additional value added works. Most of the reports will result in a memorandum with recommendations depending on the nature of the work.

·         A progress report on all the work undertaken would be brought back to committee later in the year to include the Licensing Enforcement and the Website which had been deferred due to the outbreak of Covid-19.

·         The Chair asked Members to forward any queries about this report to herself or the Vice Chair for further discussion.

The Committee NOTED the Internal Audit Annual Report and Assurance Opinion for 2019/20.