Agenda item

The Head of Internal Audit to submit a report to update Members on the progress made in delivering the 2020/21 Internal Audit Plan and key findings arising from audit assignments completed.

The Head of Internal Audit, Rachel Ashley-Caunt introduced the report, the purpose of which was to update Members on the progress made in delivering the 2020/21 Internal Audit Plan and key findings arising from audit assignments completed.

Ms. Ashley-Caunt advised that since the last meeting of this Committee, the audit report on rent arrears had been completed (as detailed at section 2.5 of appendix A).  Internal Audit had issued a satisfactory assurance over the control environment and a good assurance over compliance with those controls.  There were some arrears due to be recovered but the processes in place and the policies followed provided a reasonable level of assurance those were operating in practice.

Ms. Ashley Caunt highlighted that progress made on the Internal Audit Plan was detailed at Appendix 1.  This set out all assurance assignments and consultancy reviews to be undertaken and the status of these.  Work had progressed and an additional audit report had been completed.  Further details would be reported to the next meeting of this Committee (on 27 January).

Ms. Ashley-Caunt updated Members on the implementation of recommendations arising from audit (as detailed at appendix 3).  3 recommendations had been closed since the last meeting of this Committee but there were a number of actions, which remained overdue (24 over the last 3 months).  7 of these were high risk and were detailed at appendix 4).  Concerning the audit on ‘Effectiveness of Case Management Arrangements 2019 – 20, a full service review would be undertaken, as part of the Housing Revenue Account business plan review.  It was suggested that actions relating to this audit be consolidated into 1 recommendation (which would be reported as a high risk and overdue until completed) and a further audit review (to be included on the 2021–22 Audit Plan) be undertaken to give full assurance that all expectations in relation to all the consolidated actions were complete.  Concerning the audit on ‘Right to Buy 2018–19’, a report would be submitted to Cabinet on 20 January 2021) supporting the implementation of policy and procedure by 31 March 2021.  Due to the second Covid-19 lockdown, there was no further progress on asbestos surveys, (which related to the audit on Landlord Health and Safety 2019–20) but an Asbestos Management Plan was being developed, providing assurance that this was embedding in normal practice.

During discussion the following points were noted:

·         Despite the difficult year, as a result of Covid-19, the Council had progressed many of the recommended actions.

·         Members were concerned about the level of outstanding rent arrears (£660k).  Senior Management had a focus on this and processes were in place to reduce the level.

·         The percentage of gross debt had decreased over the last 3 years (it was over 8% in 2017-18, rising slightly in 2018-19 and reducing to below 8% in 2019-20).

·         An assessment was made (at year end) of how much was set aside as bad debt provision, based on likelihood of recovery.

·         The Director for Housing and Communities would update Members on the steps taken to recover rent arrears and on the anticipated amount to be recovered (out of the £660k) outside this meeting.

·         Internal Audit had recommended enforcing the implementation of performance monitoring for rent arrears by Senior Leadership Team.

·         Due to conflicting priorities, (including enhanced monitoring, submitting Covid-19 returns to Government and implementation of the new finance system) the audit on ‘Budgetary Control’ may not be deliverable in Quarter 4 and would be prioritised for the next financial year.

·         All other audits not yet started and those currently at the planning stage were progressing in line with the Audit Plan.

·         Undertaking asbestos surveys was a Council priority but progress had been disrupted by Covid-19.  All properties would be surveyed and this would inform the Asbestos Management Plan.

·         The audit on ‘Effectiveness of Case Management Arrangements’ was in progress, as part of a full service review.  All related actions would be consolidated in to 1 main action.

·         All audit reports were available to Members upon request.

Audit and Standards Committee NOTED the report and progress made by the Internal Audit team in the delivery of the Audit Plan.