Agenda item

The purpose of this report is to inform Members about the Internal Audit reports that have been completed since this Committee last considered a Completed Internal Audit Reports item in December 2015 - as attached at Annex A. 

Although it is not the Committee’s policy to review all Internal Audit reports in detail during the meeting, full copies of the reports summarised have been provided to Members of the Committee and are available through the Members’ on-line library.

Declarations of interest:

None

Witnesses:

Sue Lewry-Jones, Chief Internal Auditor

Sheila Little, Director of Finance

Key points raised during the discussion:

1.    The Chief Internal Auditor introduced the report and made a correction to the table of reports in paragraph 3: the number of recommendations rated as high priority for the Public Health Contracts Audit to read 0 instead of 1.

Highways Contract

2.    It was reported that the contract extension to 2021 had been approved by the Cabinet and Kier, subject to completion of the legal process.  The improvement plan would form part of the extended contract.

3.    The reason for the publication of a decision statement without audit opinion was due to the commercial sensitivity of the contract negotiations.  The conclusion that the contract had so far delivered value for money was a Procurement Team rather than Audit opinion, but that did not imply that Internal Audit were not in agreement.  Internal Audit worked closely with the Highways service, and the concerns expressed about the Star Items were not that the Council was being charged too much but that the level of spending over time was at a level which meant that it should have been added to the schedule.

4.    The Committee expressed concerns that repair work being signed off as complete by the Highways team had not always been completed by Kier or its sub-contractors.  A particular concern related to drainage work, and it was requested that this be added to Internal Audit’s programme of work.  Members would also be asked to provide feedback to Internal Audit if they felt repair work in their Divisions was not being completed as claimed. 

Training Course Cancellations

5.    The Committee shared the concern about the high number of cancellations for classroom-based training, and requested that the Chairman of the People, Performance and Development Committee (PPDC) be sent a copy of the audit report and that the PPDC be asked to look into this issue.

General Ledger

6.    The Director of Finance reported that she believed that there were no longer any uncleared transactions on the General Ledger, but would confirm that with the Committee after the meeting.

Schools Compliance Audit – Schools Fraud Checklist 2015/2016

7.    It was noted that the reports were sent to the relevant schools and to Babcock.  Schools were asked to discuss the report with their governors and then address any actions in relation to the recommendations in their financial standards report.

Action/Further information to note:

The Director of Finance to report back to the Committee on the balance of transactions on the General Ledger.  [Recommendations Tracker ref: A4/2016]

RESOLVED:

(a)   That the effectiveness of drainage work carried out under the Highways Contract be added to Internal Audit’s programme of work, and that Members be asked to provide feedback to Internal Audit if they felt that highways repair work in their Divisions was not being completed as claimed.  [Recommendations Tracker ref: A5/2016]

Action by: Sue Lewry-Jones

(b)   That the Chairman of the People, Performance and Development Committee (PPDC) be sent a copy of the audit report, and that PPDC be requested to look into the high number of cancellations for classroom-based training.  [Recommendations Tracker ref: A6/2016]

Action by: Sue Lewry-Jones/Ken Akers