Agenda item

John Scott, Audit Manager:

 

a.    presented the Internal Audit Progress Report to Audit Committee, incorporating the overall position reached so far and summaries of the outcome of audits completed during the period December 2019 to January 2020, as detailed at Appendix A

 

b.    highlighted that Audit Committee held the responsibility for receiving a regular progress report from Internal Audit on the delivery of the Internal Audit Plan as a key requirement of public sector internal audit standards

 

c.    detailed the content of the report covering the following main areas:

 

·         Progress Against the Plan

·         Summary of Audit Work

·         Implementation of Audit Recommendations

·         Current Areas of Interest Relevant to the Audit Committee

 

d.    detailed audit work completed and a final report issued in respect of:

 

·         Housing Rents (Substantial)

·         Recruitment (Substantial)

 

e.    highlighted consultancy work completed during the period in relation to Fire Risk - High Rise Blocks

 

f.     advised that following members observations and comments at the last meeting of Audit Committee a recommendation follow up protocol was presented at Appendix 3 of his report for consideration and comments

 

g.    reported on an audit report at draft stage in respect of Licensing which was with management for approval

 

h.    reported on work in progress in relation to:

 

·         Treasury Management

·         Payroll

·         ICT Anti-Malware Arrangements

·         Sports Pitches Improvements

·         Homelessness

·         Efficiency Savings

·         Housing Allocations (Choice Based Lettings)

·         Western Growth Corridor

·         Partnerships (Consultancy)

·         De Wint Extra Care Facility

·         Project Management

 

 

i.      reported on other work ongoing in the following areas:

 

·         Combined Assurance Map Update

·         Audit Strategy and Plan 2020/21

·         Bribery/Whistleblowing Policy Review

·         NFI Completion

·         Tenancy Fraud

 

j.      highlighted the following audits being prepared for Quarter 4:

 

·         Performance Management

·         Website Security

·         IT Combined Assurance

·         Governance/Risk Management

·         Economic Development/Growth

·         Office 365 Project (may be deferred)

·         Counter Fraud Training (Consultation)

·         Fraud Health Check

·         Money Laundering Risk Assessment

·         Identity Fraud

 

k.    detailed other matters of interest in relation to

 

·         Planning Guidance

·         Business Rates Avoidance Survey Report 2019

 

12. highlighted performance against a range of indicators, with good achievement secured in respect of Audit KPI’s to date

 

13. detailed the contents of the Audit Plan Schedule at Appendix 4 of the report

 

14. requested members' consideration of the report.

 

Members discussed the content of the report in further detail, commenting as follows:

 

·         Question: Were rent collection figures worse or better with the introduction of Universal Credit?

·         Response: Rent collection performance figures were on target so far for the financial year 2019/20. Performance indicators had been slightly revised to take into account Universal Credit. These figures would be presented to Performance Scrutiny Committee in due course.

·         Question: It was noted that 28% of tenants paid their housing rents by direct debit. How did the remaining tenants settle their accounts?

·         Response: A high proportion of housing rent accounts were settled by card payment. The council’s current policy was not to make an administration charge for this. The service endeavoured to encourage payment by direct debit wherever possible as the cheapest method for the council.

·         Question: Had the planned audit of ICT Mobile Office 365 been deferred?

·         Response: The new system was still in the first part of the trial period, a consultant had been taken on board to assist with its implementation. Performance Scrutiny Committee would receive regular updates throughout.

·         Question: It was noted that the Local Government Association estimated that around 1% of total business rates income was lost to business rates avoidance each year. Could examples be given of this across our city?

·         Response: There were ways to avoid business rates which were not considered to be fraudulent. For example, letting the premises to charities, premises used for storage which could then claim back business rate charges.

·         Question: How many times in a month had the target rent not been applied to new tenants if not previously charged?

·         Response: There had been 300 new tenancies of which the rents of102 had been reviewed. There had been only two instances that hadn’t been moved to the target rent and the rent lost had been ‘negligible’. The difference in the increase in rent had been just pence.

 

RESOLVED that the contents of the report and continuation of further monitoring arrangements be noted.