Agenda item
Quarterly Assurance Report
- Meeting of Audit Committee, Wednesday, 23rd September, 2015 7.00 p.m. (Item 4.2)
- View the background to item 4.2
Minutes:
The Head of Audit and Risk Management introduced the report. He advised:
· That the report summarised the internal audit work in the period June - August 2015 and reported the assurance rating of each audit finalised in this period. The Committee noted that 16 audits had been completed in the period, two of which had returned a limited assurance.
· That assigning a limited assurance triggered a follow-up audit focussed around implementation of all recommendations arising from the initial audit.
· That the audit team was presently on target to complete its schedule of audits in accordance with the annual audit plan.
Members noted that there were ‘priority one’ recommendations yet to be implemented six months after the initial audit had taken place. They were dissatisfied with this situation and advised officers that Audit Committee would monitor this matter closely with the aim of evidencing improved responses. They asked:
· That managers explain why recommendations had yet to be implemented.
· That the Head of Audit and Risk Management report to Members any trends which might affect the audit outcomes such as long-term sickness restructures or other influencing factors.
- That a milestone-based programme of recommendations be incorporated into a performance framework for managers to ensure that recommendations can be monitored against targets and implementations pursued.
- That future Audit Assurance reports include milestones to set an expectation of a compliance framework.
Action by: Minesh Jani, Head of Audit and Risk Management
Quarterly Audits
Contract Management of Photocopying and Printing Contract
The Head of Audit and Risk Management introduced the item informing Members that the follow up audit had returned a limited assurance because of the following issues:
- 11 lease agreements had not been signed by the authority and the supplier.
- Orders were being raised after invoices were received,
- Reports on MFD usage did not capture accurate usage information
- there was no evidence that sample checks of machine usage were being carried out,
- there were no minutes of meetings held in respect of monitoring undertaken by Agilisys in respect of the Xerox contract.
The Head of ICT Client Team responded to the issues raised informing the committee that:
- Difficulties had risen in regard to the first audit recommendation as the procedure was not clear to the client team undertaking the purchases. Therefore leases had not been signed by a member of the Council's Legal Section. These issues have now been resolved.
- Concerning the second recommendation, the non-compliance had arisen as some payments ‘overs and unders’ were due to the implementation of a new process. This had been rectified.
- Concerning mis-matching usage data, upon investigation it was found that the recording errors originated within the Xerox copier machines which were misreading the types of copying carried out. This was rectified by the implementation of a regular sampling process.
- Concerning the failure to keep detailed minutes of meetings the matter was investigated and it was found that minutes were being recorded via an alternative method. Steps had been taken to rectify this matter.
Responding to a Member question the Head of ICT Client Team informed the Committee that the cost of leases was a fixed sum but the cost of consumables was variable and based upon the usage of the machines.
Management and Control of Staff Use of Taxis and Minicabs
The Head of Audit and Risk Management introducing item informing the Committee that the audit examined the procurement arrangements for taxis and minicabs used by staff. A limited assurance had been returned as:
· the framework contract was put in place in January 2014 at the contracts with the providers needed to be signed in accordance with the Council's procedures
· expenditure of the taxi journeys was not been authorised by approved officers in accordance with the scheme of delegation,
· invoices from the provider had insufficient detail
The Service Head Corporate Property and Capital Delivery, Development and Renewal informed the Committee that:
· A four-year contract was signed from April 2012 to bring together a set of formally disparate arrangements and to ensure consistency.
· The authority was now looking at re-procurement in the form of a single contract across all areas of the Council ensure that issues around authority and responsibility are addressed.
· There was a legal query round the process of entering into a contract that related to how staff taxis were ordered - this was reviewed and now undertaken via the FM Helpdesk.
· Procedures were being put in place to ensure that managers are accountable for usage of this resource.
· In regard to requiring drivers to give details of the journeys, it was not easy to persuade taxi-drivers to comply with such a request, some drivers even issued blank receipts.
· There was agreement that there needed to be more stringent practices in regard to taxi waiting times as it was known that waiting taxis caused costs to mounts up.
· It has been difficult to ensure that taxi services be provided through one contractor because of taxi timetabling issues. Therefore the procurement process, will factor in the cheapest and nearest provider.
· In regard to contract management reports it was intended that this issue be resolved through usage of the Council's proprietary software. Additionally the lessons learned from the issues experienced with current contract would be used to better procure the forthcoming contract. Members commended this approach and noted the account given the Service Head.
RESOLVED
- That the summary of audits undertaken and the actions reported by officers ne noted
- That the opinion assigned to the systems reviewed during the period be noted..
- That the following steps be taken to strengthen the framework of audit outcomes:
· That managers explain why recommendations had yet to be implemented.
· That the Head of Audit and Risk Management report to Members any trends which might affect the audit outcomes such as long-term sickness restructures or other influencing factors.
· That a milestone-based programme of recommendations be incorporated into a performance framework for managers to ensure that recommendations can be monitored against targets and implementations pursued.
- That future Audit Assurance reports include milestones to set an expectation of a compliance framework
- That a performance framework incorporating milestones be established to better ensure that non-compliances identified can be address in a timely and structured manner.
Supporting documents: