Agenda item
Quarterly Internal Audit Assurance Report
Minutes:
The Committee received the Quarterly Internal Audit Assurance Report presented by Minesh Jani, Divisional Director, Risk Management.
Minesh Jani informed the Committee that the report summarised the work of Internal Audit for the period September 2016 to November 2016 and set out the assurance rating of each audit finalised in the period and provided an overall assurance rating.
Minesh Jani reported to the Committee the following:
· Of the 15 finalised audits which focused on high risk or high value areas –
o 1 was assigned full assurance
o 9 were assigned Substantial Assurance
o 4 were assigned Limited assurance and
o 1 was not applicable
· A further 13 audits were of moderate significance and of these 11 were assigned Substantial Assurance and 2 were assigned Limited Assurance
· Overall 75% of audits resulted in an adequate assurance, the remaining 21% of audits have an inadequate assurance rating and 4% Not Applicable
· Three performance indicators were formulated to monitor the delivery of the Internal Audit service as part of the monitoring process the actual and targets for each indicator for the period is as follows:
Performance Measure |
Target |
Actual |
Percentage of Audit Plan completed up to the quarter to November 2016 |
65% |
65% |
Percentage of Priority 1 Audit Recommendations implemented up to July 2016 by Auditees at six monthly follow up audit stage |
100% |
70% (14 out of 20) |
Percentage of Priority 2 Audit Recommendations implemented up to July 2016 by Auditees at six monthly follow up audit stage |
95% |
40% (6 out of 12) |
· Lettings Systems Audit – an update was provided including information relating to 19,120 people were on the housing waiting list and for 2015/16, approximately 2,091 lettings had been made, with 2 cases being tested by Audit, with management confirming that these lettings did not meet the required standards and procedures as the applicants’ eligibility and assessment could be open to challenge.
· Establishment Control – an update was provided including information relating to a review of the establishment list obtained for March 2016 confirmed the concerns raised over the usefulness and completeness of the data including the fact that there are 102 posts that are detailed as being vacant for four or more years but there are no further details as to why they have been long-term vacant.
· Risk Management Follow Up – an update was provided including information relating to two detailed medium priority recommendations which had been agreed at the conclusion of the original audit, none had been fully implemented.
· Market Vouchers – an update was provided including information relating to the market fees and charges generated in 2014/15 and 2015/16.
Members enquired about the following:
· How was progress monitored across all audits being conducted;
· Are the systems in place robust enough in Tower Hamlets;
· When properties are offered to tenants are checks completed in the event of fraud etc;
· Is Tower Hamlet joined up with Tower Hamlet Homes in terms of document checking and fraud;
· Does TH always get it right, in terms of “right person, right home” or can it be “wrong person, right home”;
· Does the market management meet with the market traders; and
· Are market management looking at new sites for new markets across the Borough.
The Committee was informed that –
· the progress of the audits being conducted was monitored by risk assessments and issues being raised and then drafted within reports.
· Social Housing is a commodity within the Borough and as such proper checks are in place and usually conducted to ensure housing is allocated to the right people.
· There are clear policies and procedures in place for staff to conduct the checks, but the system may not be robust enough.
· A procedure guide for staff was being produced together with checklists and ad hoc checks by managers to ensure the procedures were being followed.
· If there were consistent failures by staff then formal action would take place.
· Information is shared between TH and Tower Hamlet’s Homes and checks are conducting on tenancy agreements and subletting issues.
· Information is also referred to the Fraud Team and use is made of the “whistle-blowing” facility by staff.
· In relation to the “Risk Management follow up update” that a Risk Management Review was currently underway.
· A new Market Manager has been appointed since September 2016 and there have been changes made to the enforcement and processes which are now monitored more closely.
· Changes have been made to the back office and frontline staff and the way things are done.
· Regular meetings are held with the team and market traders and there is now a different working environment and a zeal to improve standards.
· Market staff are looking at improving current market sites by raising standards and ensuring the markets maintain a high quality of food and other products.
· Once this is complete and maintained then work will begin on establishing more markets in new areas.
The Committee agreed to:
1. Note the contents of the report and to take account of the assurance opinion assigned to the systems reviewed during the period.
2. Receive an update relating to the Lettings Systems Audit within 6 months.
3. Receive a report relating to the Establishment Control at the Audit Committee meeting in June 2017.
4. Defer the “Troubled Families” and “Management and Control of No Recourse to Public Funds” Updates to the next meeting of the Audit Committee on 21st March 2017.
Supporting documents: