Agenda item
Certification of Claims and Returns Annual Report LBTH Audit 2011/12
- Meeting of Replaces Postponed meeting 11 December 2012, Audit Committee, Monday, 14th January, 2013 7.00 p.m., NEW (Item 4.1)
- View the background to item 4.1
To note the report of Auditors KPMG
Minutes:
Mr Sayers of KPMG advised the committee that KPMG would in future undertake the role previously performed by the Audit Commission and would be responsible for undertaking the audit of the council’s accounts. He advised that the style of audit may differ from that undertaken by the Audit Commission but the annual report will be the same as that hither to provided.
Mr Sayers presented the report circulated at agenda item 4.1, the annual audit of Certification of Claims and Returns. He advised that the certification of grants and returns 2011-12 had been undertaken by the Audit Commission and the report produced by KPMG.
Regarding the certification of claims and returns, Mr Sayers advised that there were six certified claims reported, two of which were subject to qualification.
He noted the technical qualification against housing audit resulting from a DCLG error. This qualification although not originating the Council was reported to the awarding body in accordance with the grant certification requirements.
Mr Sayers noted the need for consistent rigour in the preparation of returns and that a reduced fee had been levied this year as there had been a general improvement in their preparation.
In response to questions from the Committee, the following matters were discussed:
The origins of the income calculations error relating to housing benefit and council tax benefit subsidy were not clear. The error was traced and was found to originate only to the figure submitted in the return. He noted that there was no indication that monies had been paid incorrectly. Therefore the consequences of this qualification were reduced.
The Head of Risk Management and Audit informed the Committee that there was close interaction between the Council's Audit Officers and its external auditors because the number of internal audits undertaken had diminished.
Because of the close cooperation inconsistencies also could be identified readily.
At internal school audits Council Audit Officers assessed where areas of higher risk existed and where the audit cycle was manipulated by Chairs of Governors.
The Service Head, Finance, Risk and Accountability advised that accounting differences in the certification of benefits claims and returns were caused by delays in the issue of software updates that incorporate changes in benefits rules. Software updates were issued regularly and reflected the changes in benefits rules. However inconsistencies could arise at times because of delays in software release from Government forcing officers to anticipate the impact of benefits changes before the software could be run on the system data. Mr Sayers advised that the updates had been released after the audit work had started on the certification of claims and returns and this had also affected the final sums reported. He also noted that this circumstance did not impact benefits claimants but affected the sum that the Council recovered for each claimant.
The Committee was informed that the single person discount claim was made based on Council Tax Band D. This was £280. The scale of discounts was not given and the figure was not held by KPMG.
Concerning the GLA Single Programme, the Council reported that it had received income of £1,083K. The sum had not been verified and the ServiceHead, Finance, Risk and Accountability advised that this may have occurred because it was pre-announced and/or the timing of the receipt which took place after the year end accounts had closed. He advised that this return had not been checked by the Council and therefore this risk was being addressed.
RESOLVED:
That the report to be noted
Supporting documents: