Agenda item
Quarterly Internal Audit Assurance Report December 2008 - February 2009
To note the contents of the report and to take account of the assurance opinion assigned to the systems reviewed during the period.
Minutes:
Minesh Jani (Service Head Risk Management) introduced the report.
Mr Minesh reported that the percentage of recommendations implemented at follow up stage had increased. For follow ups completed from December 2008 to February 2009, the percentage of recommendations implemented was 88%.
The Committee considered a summary of the Audits undertaken between December 2008 and February 2009. Consideration was given to those assigned nil or limited assurance as set out below.
(a) Management of the Commercial Property Portfolio - Nil (Moderate) Assurance
Andy Algar (Service Head, Asset Strategy, Capital Delivery Property Services)presented this report.
Mr Algar reported on the nil (moderate) assurance ascribed to the management of the Commercial Property Portfolio.
Mr Agar reported on progress made since the last Audit of the service which was completed in July 2008. In response to the recommendations, a comprehensive range of policies had been put in place to address the issues raised by the Audit. There was also a service improvement plan and clear targets. The service was in the process of codifying their quality assurance procedures. The process for authorising evaluations had been strengthened.
Mr Algar expressed confidence that the service area was now providing a substantive level of assurance. However, responsibility for debt recovery was one area where greater clarify was required.
Members asked about the scope of the Audit. Mr Algar clarified that the Audit did not examine community buildings only shop premises. The emerging Asset Management Strategy would cover all types of properties both commercial and community buildings. It was intended that the Strategy would be brought before Members early in 2010. However, in view of the issues raised in the Audit, Members requested that it be submitted to them ahead of this target date - that the timetable for Member consideration of the Strategy be brought forward in view of the issues raised by the Audit.
Mr Algar added that the follow up Audit would give coverage to the area of rent reviews. Specifically the operation of the commercial rent collection service. Mr Algar also reported that a more comprehensive report would be submitted to the Committee in June 2009. This report would cover in detail the improvements in commercial rent collection and include statistics showing scope of improvement.
A Member asked about the frequency of commercial rent reviews. Especially the number carried out in the last six months? A Algar undertook to provide this information.
(b) Schools Audit – Old Place Primary School, St Agnes Roman Catholic Primary School
Isobel Cattermole reported on the outcome of the schools audit. Two schools had been ascribed a nil assurance rating. However, a number of support mechanisms had been put in place and all of the audit recommendations had been implemented. Both schools had since completed and passed an FMSiS assessment.
(c) Horticulture Monitoring Contract – Systems
Minesh Jani presented the findings of this Audit. He referred to a recent meeting of the TH Homes Board where assurances were sought on the arrangements for monitoring the contract.
The information reported to the TH Homes Board in respect of this Audit would also be reported to the Audit Committee.
(d) Sidney Street Estate – Central Heating Installation.
Councillor Jones drew attention to the improvements in relation to costs reporting. Specifically whether advanced payments with a security of a bond was expectable? The follow up Audit would address this question. The finding of which would be reported in the next quarterly Assurance report
(e) Council Bank Accounts.
Alan Finch, (Service Head, Corporate Finance) presented a report regarding Council Bank Accounts.
Mr Finch commented on the recommendations made in the last Internal Audit Report (September to November 2008). In which the Bank and Reconciliation service had been identified as a nil risk assurance area. The Audit recommended that accounts should be reconciled on a monthly basis and there was business case for each facility. Since that time all of the recommendations had been implemented. The long term objective was to minimise the number of bank accounts held. The Audit Commission were supportive of this approach.
Therefore, it was RESOLVED that the report and the actions indicated above be approved.
ACTION BY: Minesh Jani (Service Head Risk Management)
Andy Algar (Service Head, Asset Strategy, Capital Delivery Property Services)
Supporting documents: