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 December 2014.

Declarations of interest:

None.

Witnesses:

Sue Lewry-Jones, Chief Internal Auditor

Siva Sanmugarajah, Leader Auditor

Phil Triggs, Strategic Finance Manager – Pensions and Treasury

Key points raised during the discussion:

1.    The Chief Internal Auditor introduced the report and the nine internal audit reports that had been completed since the previous meeting of the committee.  She highlighted the effective opinion given for SAP application controls.  This provided reassurance that vigorous and effective controls were in place. 

2.    Bus Operating Contracts: Members expressed surprise that an obsolete access database was still being used for bus operating contracts given that IMT had a programme to review IT systems being used.  It was also queried how the current review of local transport could go forward without an effective contracts system.  The Lead Auditor explained that the system had not been seen as a priority.  Work was now underway to transfer the database into the new Mobisoft database. The deadline for this is 1 April 2015.  There are three types of bus operating contracts: minimum subsidy contracts and minimum cost contracts which are dealt with through normal procurement processes; and de minimis contracts (under the £3,000 threshold) which do not go through normal procurement processes.  It is the latter which have not been reviewed.  Also, where a single contract becomes unviable, new routes have been added under the old contract reference which has caused confusion and has made some contracts which were originally de minimis much larger.

3.    Pension Fund Investments: The Strategic Finance Manager – Pensions and Treasury explained that reconciliations did take place on a timely basis but that in this instance SAP had not been updated quickly enough. 

4.    SAP Application Controls: In response to a question, the Chief Internal Auditor offered to circulate information on who provides SAP support (Recommendations Tracker ref: A5/15).

5.    Financial Assessments and Benefits: The Chief Internal Auditor confirmed that Internal Audit was supportive of the changes identified through the Rapid Improvement Event on Financial Assessments and Benefits.  However, benefits were yet to materialise.  She also pointed out the link between this process and social care debt.  The Chairman offered to bring the findings of the audit of Financial Assessments and Benefits to the attention of the Cabinet Member for Adult Social Care (Recommendations Tracker ref: A6/15).

6.    Property Asset Management System: There was some concern that PAMS continued to be an issue.  The Chief Internal Auditor and Lead Auditor reminded the committee of the phased approach being taken to implementing PAMS.  In response to a query from the Chairman, the Lead Auditor explained why resolution of the process for filing paid invoices had been determined to be of high priority.  The Chairman requested that a briefing on progress and the updated MAP be brought to a future meeting of the committee (Recommendations Tracker ref: A7/15).  He also agreed to write to the Cabinet Member for Business Services and the Cabinet Associate for Assets and Regeneration Programmes about the continuing issues identified by Internal Audit regarding PAMS (Recommendations Tracker ref: A8/15).

Actions/Further information to be provided:

      i.        Chief Internal Auditor to circulate information on who provides SAP support.

     ii.        The Chairman to bring the findings of the audit of Financial Assessments and Benefits to the attention of the Cabinet Member for Adult Social Care.

    iii.        A briefing on the implementation of PAMS and the updated MAP to be brought to a future meeting of the committee.

   iv.        The Chairman to write to the Cabinet Member for Business Services and the Cabinet Associate for Assets and Regeneration Programmes about the continuing issues identified by Internal Audit regarding PAMS.

RESOLVED:

That the Committee NOTES the report.

Committee next steps:

None.