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 highlighted that a copy of the Internal Audit Plan, including the status of each assignment was detailed at Appendix A of the report.  Good progress was being made on the Plan.  2 assignments had been finalised and a number of others were significantly underway.  There were many conflicting demands on staff due to the Covid-19 pandemic but work was progressing with support from Senior Management Team.

Ms. Ashley-Caunt advised that since the last meeting of this Committee, the Cattle Market – Open Book Accounting audit had been finalised (as detailed in section 2.5 of the report).  This audit had focused on the Council’s agreement percentage in relation to various income streams.  The open accounting arrangement ensured that the Council recovered the correct amounts from the Market and processes were in place to make sure the figures reported were accurate and the payments received were in line with the agreement.  ‘Block payments’ referred the receipt of regular monthly payments (based on estimates of various income stream totals), which were reconciled against the actuals at year end to ensure accurate income recovery.

Ms. Ashley-Caunt advised that there were no significant issues identified by Internal Audit.  It had shared a template with the Council's Finance team to undertake open book reviews and had made recommendations to strengthen processes, which had been agreed with Senior Management Team.  Overall a satisfactory level of assurance for the design and compliance with the controls had been issued and actions arising from this would be monitored.

Ms. Ashley-Caunt confirmed that an update on the implementation of audit recommendations was detailed within the appendix.  The consolidation of intensive housing management scheme actions had resulted in a reduction in the number of recommendations and as previously agreed, a full review would be undertaken as part of the 2021/22 Audit Plan.  Revised implementation dates had been issued for all other outstanding actions and a further update would be provided to the Committee at it’s meeting on 9 March.

During discussion the following points were noted:

·         The Cattle Market – Open Book Accounting audit had specifically excluded any review of contract management, as this had been undertaken (within the last 12 months) as part of MJP Property Services’ consultancy review.

·         The consultancy review had been comprehensive.  It had been useful for understanding which aspects of the current contract could be negotiated further and had highlighted areas which needed firmer contract management and those which were not working well for both the Council and the Cattle Market (and needed further discussion).

·         The majority of the cattle market income recovered related to cattle sales but for smaller income streams, such as car parking, recommendations had been made to implement processes which enabled a thorough verification of records (e.g. a more robust cash receipting process).

·         The 2017 Cattle Market lease was not ‘in perpetuity’ and had an end date (which was not confirmed during the meeting).

·         Incomes classed as ‘excluded incomes’ within the Cattle Market lease had been considered and advice had been taken when the lease had been negotiated.  There would always be business undertaken by the contractor, which was not covered by the lease.

·         Development of the Cattle Market North carpark was outside the scope of the Cattle Market – Open Book Accounting audit.  MJP Property Services’ had reviewed in scope income streams as part of their consultancy review and this may be of interest to Members.

·         The latest update on Housing and Communities actions was detailed within the appendix.  The housing management policies (including the Right to Buy Policy) had been approved at Cabinet on 20 January 2021 and it was anticipated that related actions would be closed shortly.

·         Further updates on outstanding actions and assurances relating to revised dates would be circulated outside this meeting.

·         There would be no report on the Cemetery Consultancy Support as it related to proactive advice to queries.

·         Internal Audit were liaising with the Finance team on facilitating the Budgetary Control audit in Quarter 4.

·         Some audits had been delayed but progress had been made in the last Quarter.

·         The 2 audits yet to commence (Housing Repairs and Landlord Health and Safety Follow Up) were commissioned for March 2021.

·         Internal Audit would revise the table detailed at Appendix 3 of Appendix A, to include an additional row showing ‘actions due over six months ago but not implemented’.  The Committee would continue to focus on those actions which were due over three months ago.

·         Confirmation on whether there had been an increase  to commission charges would be provided outside the meeting.

·         Members noted that Internal Audit had delivered 93% productivity against the target set of 90%.

·         Members noted the importance of the Procurement Compliance (following the adoption of new procedures) and Asset Management audits.

·         The Cattle Market – Open Book Accounting audit report would be circulated to Members.

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