Agenda item
Internal Audit Annual Report for 2013/14
To provide the annual internal audit opinion to committee in accordance with the Public Sector Internal Audit Standards.
Minutes:
The Head of Risk Management and Audit presented the report at agenda item 5.2 which summarised the work carried out by Council’s auditors during 2013/14.
The report provided:
- A summary of the audit work performed in the year 2013/14
- Together with the Annual Internal Audit Opinion
He also informed the Committee:
- that the internal audit team set out report with recommendations-
- where recommendations had not been implemented these would be raised with the appropriate director and where officers had not implemented recommendations they would be asked to explain why, to the Committee.
The Head of Risk Management and Audit then summarised the recent audit work undertaken informing the committee that a number of limited assurances had been returned. Officers were present to answer questions on the limited assurances returned in four of the audits that had been undertaken.
Procurement below EU threshold: Follow up audit
It was noted that at the time of audit, management had already identified the need to review processes and procedures, a work group set up to ensure standardisation of all documentation and a new procurement system had been implemented.
The Service Head for Strategy and Resources CLC was present to answer the committee’s questions. He noted the following:
- Some inconsistency in terminology had made it unclear if the recommendations related to contracts above £50k or to all orders regardless of value.
- Some criticism in the report specific to practice (Level 2 quotations) was not supported by the procedures at the time and, in his view, may have been the result of confusion by the auditor with tender procedures.
- The findings had been based on a sample size of five and was too small to draw reliable strategic conclusions regarding compliance across a large organisation.
He confirmed that the recommendations had been substantially complied with from the follow-up audit and was open to questions from the Committee. The Head of Risk Management and Audit pointed out that CLC had been given the opportunity to raise any concerns before the report was concluded and offered that a fresh review be undertaken to address the sample size issue. The Service Head for Strategy and Resources suggested that before moving to undertake the suggested review audit, the Head of Risk Management and Audit should meet with him to review the current position regarding follow up and collectively agree if any further action is needed.
Controlling and monitoring of disclosure and barring service checks audit
The Head of Risk Management and Audit advised that the audit concerned risks arising to the authority from the transfer of applicants’ central records checking systems from Criminal Records Bureau to Disclosure and Barring Service.
A limited assurance had been assigned because although the transition had been good, the process lacked evidence.
The Service Head for HR and Workforce Development was present to answer questions and informed Members of the long and extensive process of going through current posts, to ensure employees do not exceed the three year period.
Looked after children audit
The Service Head of Risk Management and Audit reported that a limited assurance had been assigned as there was insufficient audit evidence of some activities. He noted that no evidence of activity did not imply that the required activity had not been undertaken but solely that it had not been documented.
The Interim Service Head for Children’s Social Care was present to answer questions and informed the Committee that there had been work to encourage staff to balance their active work with children, with required administration tasks to ensure that both areas of work were appropriately balanced.
A Member enquired and was informed that, all recommended actions will be in place by September 2014.
Management and control of planned maintenance work
The Head of Risk Management and Audit informed the Committee that a limited assurance had been assigned because of the slippage in the first six month of the programme, which led to concerns that programme management had not been completed.
Additionally:
- More clarity was required concerning value for money (VFM) of the contract
- There was a payment not in the contract
The Interim Director of Neighbourhood Services Tower Hamlets Homes attended to answer questions and informed Members that a revised programme management arrangements had been put in place which would provide more robust measures around contract management.
Right to buy systems audit
The Head of Risk Management and Audit advised that a limited assurance had been returned because of delays in completing sales in this category.
Additionally some right to buy identity checks had not been carried out and control of the valuation of assets was not up to date.
The Interim Director of Neighbourhood Services Tower Hamlets Homes informed Members that:
Internal right to buy procedures had been strengthened to ensure future compliance
There had been some disruption due to changes in right to buy regulations but these were now up to date.
Since the audit, Tower Hamlets Homes RTB Team better shared evaluation data with the Council’s asset management team.
RESOLVED
- That the annual audit report be noted including summary of audits undertaken which have not previously been reported.
- That the Head of audit opinion be noted and that the internal audit charter be endorsed.
Supporting documents: