To receive a report from the Director of Law and Governance presenting the Internal Audit Progress Report 2018/19.
RECEIVED the report from the Director of Law and Governance presenting the 2018/19 Audit & Risk Management Service Progress.
1. The report was presented by Gemma Young (Head of Internal Audit & Risk Management) and summarises the work that the Audit & Risk Management Service has undertaken for the period 1 April 2018 to 31 January 2019.
2. The team had started 62 assignments which is 98% of the current audit plan and 38% of the current plan had been fully completed. At the same period in 2017/18 99% of assignments had commenced with 49% completed. Chart 1 on page 65 of the report details the progress made so far.
3. As detailed at point 3.5 (page 65) there had been a lot of changes to the audit plan. Twenty new assignments had been added and nine deferred/cancelled as shown in Annex 2 (Page 79 – 80 of the report).
4. Since the last committee meeting, there have been 2 No Assurance Audits and 1 Limited Assurance as detailed at pages 66 – 67 of the report.
5. In terms of implementing audit actions, 61% of High-Risk actions and 49% of Medium risk actions had been fully implemented by the end of February 2019. Compared to last year, 46% of High-Risk actions had been implemented by 1 February 2018.
6. As detailed at 3.14 (page 69) of the report, the annual savings target is £2m and by the end of January 2019 the team had achieved £3.6m. The team recovered 58 Council properties and 31 Temporary Accommodation recoveries.
As detailed at page 71 of the report, 29 Right to Buy applications had been cancelled, submitted by tenants.
7. As detailed at 3.16 (page 72) of the report, 25 applications had been cancelled as regards ‘No Recourse to Public Funds’ equating to a saving of £430K per annum.
8. As detailed at 3.17 (pages 72-73) of the report, the Insurance team’s highlights included a significant new claim and is likely the reserve will exceed the £500K deductible. This was a large claim that Gemma Young would keep Members informed of.
9. As detailed at Table 7 (page 73) of the report, the Current Abuse cases are listed.
10.As detailed at Table 8 (page 73) of the report, several key successes, so far for the Insurance team, resulting in £243K worth of claims avoided and dis-continued pre-trial.
11.The following questions and queries raised in response to the report:
a. The committee queried the audit action implementation of the high-risk items (61%) which equated to 39% of high-risk actions not implemented. How did the team action this. Gemma Young clarified that the implementation of audit actions by managers is monitored via the assurance board. Managers attend the board to provide reasons for non-implementation of actions and this is taken very seriously. Some of the reasons refer to system issues whereby the supplier is contacted to make those changes. They are still high-risk items but have not been able to be remedied. There are ... view the full minutes text for item 1001