Agenda item
Annual Internal Audit Report for Schools 2013-14
Minutes:
This report summarised the work of Internal Audit in relation to the audit of schools for the financial year 2013/14.
The Committee were informed that;
· During the financial year 2013/14, audit visits were carried at 27 schools.
· The report highlighted the weaknesses in financial control and management in 14 out of 27 schools visit by Internal Audit during 2013/14
· There were 12 control areas examined during the audit;
1. Operation of Governance Processes;
2. Financial Planning and Budgetary Control;
3. Control and Monitoring of Schools Bank Account
4. Procurement, including Large Single Purchases, Tendering and Value for Money;
5. Accounting of Income and Expenditure;
6. Charging Policy, Income Collection and Banking;
7. Personnel and Payroll Management;
8. School Meals
9. Voluntary Fund and School Journey;
10. Asset Controls and Security of Assets;
11. Security of the IT Infrastructure, Disaster Recovery and Data Protection; and
12. Risk Management and Insurance.
· 14 schools were assigned Limited Assurance.
· Key findings by Audit Area were around;
Ø Operation of Governance Processes
Ø Financial Planning, Budget Setting, Monitoring and Forecasting
Ø Control and monitoring over School Bank Accounts
Ø Procurement
Ø Accounting of Income and Expenditure
Ø Charging Policy and Income Collection and Banking
Ø Personnel and Payroll Management
Ø School Meals
Ø Voluntary Fund and School Journey
Ø Asset Controls and Security of Assets
Ø Security of the IT Infrastructure, Disaster Recovery, Data Protection
Ø Risk Management and Insurance
· Members were informed in detail about the schools investigated;
Ø Cambridge Heath Sixth Form
Ø Shapla Primary School
Ø St Anne’s Catholic Primary School
Ø St Paul’s Way Trust School
The Service Head for Resources-ESCW was present to answer Members’ questions. She informed the Committee that;
· The 4 schools investigated, had been assigned Limited Assurance for the 3rd time, indicating a systematic failure over a 3 year period and failure to implement internal systems.
· There had been regular meetings with the schools concerned but it was difficult to intervene directly
· The audit has highlighted the need to provide additional support to these schools.
Further to Members’ questions the Committee was informed;
· That it is for schools to monitor the number of people entitled to free school meals.
· The Council has the authority to withdraw finance delegation- but this would be the ultimate sanction
· 10 schools had been identified as needing extra support to avoid being assigned Limited Assurance for a 4th year.
· In order to assist schools who were failing financially, the entire governance system needed reviewing.
· Very few schools were in deficit and those that were, were due to specific reasons such as; school building expansion.
· There are a number of schools that had not been audited in over 4 years however they were assessed as low risk schools.
· There are currently 96 schools on the programme
Members stressed the importance of monitoring the schools in questions due to child protection issues arising in other UK authorities.
The Chair moved and it was;-
RESOLVED
That the contents of the Annual Internal Audit Report for Schools be noted.
Supporting documents:
- Audit Committee Annual School Report 201314 v2, item 3.3 PDF 198 KB
- AC_Annual School Report Trends Information Graphs 13-14 (73600668), item 3.3 PDF 482 KB