Agenda item

The purpose of this report is to inform Members of the Internal Audit reports that have been completed in the period November 2012 – January 2013

Declarations of interest:

None.

Officers:

Sue Lewry-Jones, Chief Internal Auditor

Key points raised during the discussion:

1.     The Chief Internal Auditor drew the Committee’s attention to the Records Management audit report, which had attracted an ‘Effective’ audit opinion.  However, it was noted that the Direct Payments follow up audit and the Corporate Purchasing Cards audit had received ‘Major Improvement Needed’ opinions.  The review of Special Schools (funding of residential provision) was the only report to receive an ‘unsatisfactory’ audit opinion.

2.     It was noted that the Direct Payments follow up audit had been discussed in detail at the Adult Social Care Select Committee in November 2012.  Most of the other reports, including the Corporate Purchasing Cards report, had been discussed at the last meeting of the Council Overview & Scrutiny Committee (COSC).

3.     Members were concerned that staff other than the designated card holder might be using purchasing cards.  The Chief Internal Auditor explained that when issued with a card, the terms of issue stated that only the cardholder must use it. Discussions were taking place to ensure that adequate controls were in place to ensure that others were not able to use purchasing cards that had not been assigned to them.  It was reported that managers were issued with guidance when a member of staff received the card; however, this guidance may not be passed on to any subsequent manager taking on that role.  Therefore, it was important that awareness of guidance and rules continued to be promoted on an ongoing basis.

4.     The Committee asked whether inappropriate expenditure had been recovered.  The Chief Internal Auditor advised that appropriate action was taken on individual cases such as repayment of money and removing the card from an individual.  Members felt that if the responsibility lay with the manager not making the required checks on a team’s purchasing card use, the use of cards should be withdrawn from that department.  It was agreed that the Committee would make this recommendation to the Head of Corporate Purchasing.  (Recommendations tracker ref: A4/13).

5.      The Chief Internal Auditor explained that as a result of the Corporate Purchasing Cards audit attracting an opinion of ‘major improvement needed’, a follow up audit would be planned.  Members agreed that the Chief Internal Auditor should report on progress against actions at the next meeting, along with the Head of Corporate Purchasing. (Recommendations tracker: A4/13).

6.     One Member of the Committee commented, during the debate, that the content of the Schools Basic Needs Programme audit report was being considered very closely by the Education Select Committee.

7.     Members commended the work of the Superfast Broadband team and the work undertaken so far. 

8.     During the debate, one Member queried whether Internal Audit would be reviewing the end-to-end process for accounts receivables in Adult Social Care.  The Chief Internal Auditor confirmed that an audit of financial assessments and benefits was underway. 

Actions/Further Information to be provided:

The recommendations tracker to be updated to reflect the actions identified during the discussion.

RESOLVED:

The Committee noted the content of the report.

Committee next steps:

The Committee to receive a further update on the Corporate Purchasing Cards audit report at their next meeting.