To receive the report of the Executive Director of Finance, Resources & Customer Services summarising the work that the Internal Audit and Risk Management Service (ARMS) has completed for the period 1 April 2017 to 23 October 2017.
RECEIVED the report of the Director of Finance, Resources & Customer Services (No.84) summarising the work of the Internal Audit & Risk Management Service for the period between 1 April and 23 October 2017.
a. Regeneration projects – where the team looked at the governance structure and financial controls for the Meridian Water Development Programme and identified 2 main risks relating to:
· Format and information for budget reporting of the programme which had not been clarified at the time.
· The governance structure, which was relatively cumbersome given the size of the project.
b. St. Pauls CE Primary School – two high risk issues were identified relating to:
· Private Fund Records
Table 3 (page 15) of the report provides more detail of counter fraud savings, broken down by different types of activity.
8. In terms of quality assurance, as detailed at para 3.17 (page 15) of the report and at table 4 (page 16). The Key Performance Indicator (KPI) that hadn’t made the target related to days between the team issuing the draft report to management and then receipt of their comments. The team feel that this KPI has been skewed because a number of draft reports were issued to schools just before the summer holidays and therefore staff were away and could not respond to the team until they returned.
a. The Chair’s comments that more progress was needed in implementing management actions by managers. The Chair also asked if Christine Webster could further comment about the annual target regarding council housing recoveries. Christine Webster clarified that the team relied heavily on the neighbourhood team for referrals in order to investigate where there could be potential sub-letting or issues for council housing. The neighbourhood team have been pre-occupied with visiting high rise flats after the fire at Grenfell Tower. So no referrals were received around that time.
However, the team have had many referrals recently regarding high rise towers and identifying people who should not be in the high rise blocks or suspicions. Under staffing, in the early part of this year, is the other reason why the counter fraud team have fallen behind with council housing recoveries.
b. The Chair was also concerned with the days taken from issue of draft report to receipt of management comments (table 4, page 16). The target is 15 days but the actual average figure is 31 days. The Chief Executive would raise this issue at the next Executive Management Team meeting.
AGREED to note the progress made in delivering the Audit and Risk Management Service’s 2017/18 work plan and the outcomes achieved and to note managers’ progress with the implementation of internal audit recommendations.