Agenda item

The purpose of this report is to inform Members of the Internal Audit reports that have been completed since the last meeting of this Committee in July 2014.

Declarations of Interest:

None.

Witnesses:

Sue Lewry-Jones, Chief Internal Auditor

Verity Royle, Senior Principal Accountant – Management Accounting

Key points raised during the discussion:

1.    The Chief Internal Auditor introduced the report.  She highlighted that an audit report issued since the last meeting of the committee, on Looked After Children – Personal Monies, had an audit opinion of ‘Unsatisfactory’.  This had ten high priority recommendations. 

2.    One audit report on the Agency Staffing Contract had an audit opinion of ‘Significant Improvement Needed’.  The contract had been due to commence in April 2013 but was only signed in August 2014 after Internal Audit asked to see a signed copy of the contract.  This meant that lower rates which had been negotiated for the new contract were not in place for over a year.  The Chief Internal Auditor was asked if she knew why the contract had been signed late, but she was unable to provide an explanation.  The Chief Internal Auditor said that there was also a question whether current arrangements meet Children’s Services’ needs, as the Service had been going ‘off contract’ due to concerns over Manpower’s performance.  Members questioned how the performance of Manpower is monitored and managed.  The Chairman said that this audit report would be considered by Council Overview and Scrutiny Committee on 2 October 2014, and officers from HR and Procurement had been invited as witnesses.  The Chairman asked that the Minute of Audit & Governance Committee’s discussion be passed to Council Overview and Scrutiny Committee for its information prior to its meeting.  The Minute would also be copied to the Cabinet Member for Business Services who had wished to be present at today’s meeting but had to send her apologies.  A Member confirmed that Children and Education Select Committee would be looking at the Agency Staffing Contract audit report.  Members wished to put a question to Cabinet or Council about why the contract had not been signed but it was agreed that Council Overview and Scrutiny Committee be asked to follow up on this and the other points raised in the discussion with officers at its meeting (Recommendations tracker ref: A24/14). 

3.    The Chief Internal Auditor also highlighted the audit report on Grants to Voluntary Bodies which had two high priority recommendations.

4.    The Chief Internal Auditor explained that the audit report on the Management of Citrix Systems was a position statement as it was not the audit which was in the Audit Plan.  An audit on the Management of Citrix Systems was in the previous year’s Audit Plan and had not gone ahead as the upgraded Citrix system was not yet in place.  As it was still not in place for this year’s planned audit, it had been decided to issue a position statement.  This found that the project go-live date keeps slipping and the project costs had doubled.  The Chairman informed the committee that he had spoken to the Head of Information Management and Technology about the project and invited him to bring a report to the December meeting (Recommendations tracker ref: A25/14).

5.    A Member queried why a Member task group which had vetted energy projects prior to the elections in May 2013 had not been continued.  The Chief Internal Auditor was unaware of why that was.  She pointed out that prior to the elections there was some concern about the LASER contract but a recent audit showed that this contract was offering good value for money.  The recommendations of the recent audit of Energy Management were sensible and the new Energy Manager was working closely with the relevant auditor.  The Senior Principal Accountant – Management Accounting informed the committee of a new project team overseeing energy and sustainability targets.  It would be headed by senior officers and/or Cabinet Members.  This would be reported on in the 2014/15 Annual Report of the Council.  A Member suggested that County Hall could be a role model to other municipal buildings in Surrey by ensuring that its lights are turned off in the evenings.

6.    A Member suggested to the Chief Internal Auditor that any reports on Children’s Services or Education issues should be circulated to the Cabinet Members for Children and Families, and for Schools and Learning, as well as to the Cabinet Associate for Children, Schools and Families.

Tim Hall joined the meeting at 10.45am.

7.    A Member informed the Chief Internal Auditor that in Surrey Heath, the Borough Council officers who had monitored the work done by EIKON had found that the work was unsatisfactory.  The person leading EIKON now wanted to speak to the Local Committee as they were unhappy about these findings.

8.    The committee was informed that a Children and Education Select Committee Sub-Group would be looking at the audit report on Looked After Children – Personal Monies.  The Chief Internal Auditor stressed that the audit had been undertaken because information from other local authorities suggested that this was a problem area.  Therefore, Surrey was not alone with having challenges to address.  As the audit opinion was ‘unsatisfactory’, there would be a follow-up audit in six months with a report on findings to Audit & Governance Committee.

Actions/Further information to be provided:

      i.        The Minute of Audit & Governance Committee’s discussion on the Agency Staffing Contract to be passed to Council Overview and Scrutiny Committee for its information prior to its meeting, and copied to the Cabinet Member for Business Services.

     ii.        The Head of Information Management and Technology to bring a report on the Citrix project to the December meeting of the committee.

RESOLVED:

That the committee notes the report.

Committee Next Steps:

None.