Agenda item
Quarterly Internal Audit Assurance Report September 2009 - November 2009 (AC/001/09)
- Meeting of Audit Committee, Tuesday, 15th December, 2009 7.30 p.m. (Item 61.)
- View the background to item 61.
To note the contents of the report and to take account of the assurance opinion assigned to the systems reviewed during the period.
Minutes:
Mr Minesh Jani (Service Head Risk Management) introduced the report and explained the four assurance ratings assigned to each area audited for the benefit of the Committee.
Mr Jani reported that the percentage of priority 2 recommendations implemented at the follow stage was 71% but the target was 95% and reaching this was a key aim. Corporate wide action had been taken to improve this score. It was anticipated that this would have the desired effect.
In reply to a question from Councillor Haque, Mr Jani reported that all of the recommendations not implemented were submitted to and discussed with the Corporate Directors and this enabled them to considered with Audit what needed to be done.
It was RESOLVED that a progress report be submitted to the next meeting of the Committee (highlighting progress in reaching the targets). It was also RESOLVED that where no progress had been made, the Corporate Director be asked to submit a written response explaining the reasons for the lack of progress.
ACTION BY: Minesh Jani (Service Head Risk Management)
(a) Management of Major Works – Systems Audit - Limited (Extensive Assurance)
Mr Jani reported on the reasons why the above had been assigned a limited assurance. Overall it was considered that the systems of control for recovering outstanding arrears and debt recovery needed to be strengthened. Mr Jani welcomed to the meeting Ms Jackie Odunoye (Service Head Strategy - Innovation & Sustainability) and Sayeed Kadir (Director of Tower Hamlets Homes).
The officers reported the following points:
- Ms Odunoye reported that since the fieldwork had been completed a considerable amount of progress had been made. The Council and Tower Hamlets Homes had implemented a major Leaseholder Improvement Programme and had submitted a report to the Corporate Management Team on leaseholder service charges.
- The contract framework had been re tendered. There was also specific/individual contract tendering to improve performance and progress had been made in bringing the contractors final accounts up to date. The final accounts were updated on a monthly basis.
- As part of the Leaseholder Improvement Plan, consideration would be given to putting fees against properties.
- The Tower Hamlets Homes Board received regular reports where debt recovery and collection was covered in a significant way.
- Mr Kadir reported that the contacts for major works had been re tendered as a result they were now more cost efficient.
- Where there was a legal issue that could not be resolved and it was not possible to implement the final certification, time limits would be put on cases to force completion. The key target was to complete work on time and the Staff Performance Development Reviews would focus on this. There was also proactive recovery letters, and action to encourage the use of direct debit. Last month (November 2009) the target for recovery had been exceeded. The sum receovered was £1.4 million representing the services best performance in three years. The target for this month was £1 million as of today (15th December 2009) the service had collected £700,000.
Councillor Hawkins queried the overall level of debt, the number of write offs and the number of charges not being placed on properties. Ms Odunoye stated that the collection figures for debt recovery had risen throughout the year. The target for the third quarter was £15,000 and at this point in the year it expected that the third quarter target would only narrowly be missed. The service was looking to half the overall level of major works debt by the end of the year. Tower Hamlets Homes was preparing a schedule for major works write offs to be completed by the end of this year and then subjected to the Council’s processes. In cases where leaseholders at risk of loosing their properties were unable to pay for the charges, Tower Hamlets Homes was exploring alternative recovery routes.
Councillor Haque queried at which point in the process would a debt be written off and the mortgage company be contacted? Mr Kadir clarified that the service had a qualified in house debt advisor. The mortgage company would only be contacted as a last result option. There was a timescale for major works and they were carried out in accordance with the statutory legislation and the leaseholder contracts.
The service had also starting undertaking up front charges and incremental billing as each section of work was completed to enable customers to pay in stages.
(b)Teesdale Estate Concrete Works and Associated Repairs (Limited, Moderate Assurance)
Sayeed Kadir (Director of Tower Hamlets Homes) reported on progress made in implementing the outstanding recommendations from the original audit in June 2008.
Mr Kadir reported that the contracts for the work previously covered by the Framework Contracts had been re tendered and they also had made the Quantity Surveyors responsible for overseeing the costs of work.
Mr Kadir met with Audit on a regular basis to consider the audit recommendations and they were also submitted reports to the Tower Hamlets Homes Finance Board and the Council’s Finance Team on a quarterly basis. It was RESOLVED that a progress report be submitted to a future meeting of the Audit Committee.
ACTION BY: Minesh Jani (Service Head Risk Management)
Democratic Services
(c) Management and Control of Blue Badges – Systems Audit
Mr John Chilton (Head of Parking Services, Communities Localities and Culture) reported on progress made in implementing the audit recommendations for the management and control of Blue Badges .
He referred to the recommendations regarding the Parking Services (CRM) IT system. There was currently a major procurement process underway to replace the system and it was expected that an award of contract for the replacement of the system would be made in the new year. Therefore the difficulties with accessing the system, producing management reports for quality control purposes would be addressed. A structural review of Parking Services was underway and it was expected the vacant posts of Permit Schemes Manager and Team Leader Investigations would be appointed to in the new year. The Mobility Contract had gone out to tender and this process should be completed by the middle of June 2010.
In reply to questions, Mr Chilton reported that in looking at the audit in terms of impact on customers, the main issues were probable the failure of the service to systematically monitor complaints as a means of improving customer service. Steps were being taken to address this and all other issues raised in the Audit. . The service did use customer feedback to improve performance already but needed to be more systematic in recording this.
In reply to questions Councillor Haque Mr Chilton clarified that the Mobility Team handled less than £10,000 per annum in respect of the replacement of Freedom Bus Passes and the replacement of the Blue Badge clocks. This figure would be significantly reduced in 2010 and subsequently if the charge for replacement freedom passes dropped. This was subject to Cabinet approval but arose from changes in the way Freedom Passes were to be administrated in London (by London Council’s). The Mobility Team would continue to charge for the replacement of the Blue Badge clocks where the customer had elected to take a Tower Hamlets Disabled Persons Parking Permit in addition to the EU Blue Badge Permit. It was believed that the Team should continue to charge for this as a means of discouraging fraudulent claims of lost/stolen clocks and then use of the blue badges and disabled permit at the same time. The issues around the speed of receiving payments had been resolved with assistance from the Cashier Office.
RESOLVED that the feedback presentations on the limited assurance risks be noted.
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