Agenda item
Internal audit progress report 2014/15
This report provides an update on progress against the internal audit plan for the period 1st April 2014 to 31st August 2014. The appendix to the report also summarises those reports from the 2013/14 plan which have been finalised since the last committee meeting. The report also provides a summary of counter fraud work for 2014/15.
Minutes:
Members considered a report which provided an update on progress against the internal audit plan for the period 1 April 2014 to 31 August 2014. The report also provided a summary of counter fraud work for 2014/15 and the appendix to the report summarised those reports from the 2013/14 plan which had been finalised since the last committee meeting.
Simon Lane Head of Internal Audit and Investigation informed members that of the Internal Audit Plan for 2014/15 of 1,200 days, 905 days would be delivered by Mazars and a further 295 days would be delivered in-house. In setting out the key points, he stated that there were 78 projects on the current plan (excluding follow up and advisory work) and that work had commenced on 39 of them. 6 projects were removed from the original agreed plan which had been replaced with 4 others and that 10 projects had been delayed at the request of management from quarters 1 or 2. 18 projects had been completed to draft or final stage of which 14 had an audit opinion associated with them; 11 substantial and 3 limited. The other projects were grant certifications which did not have an assurance rating attached to them.
Simon Lane drew members’ attention to the list of limited assurance reports together with recommendations made and deadlines for implementation. Members noted that limited assurance report was issued for the marketing of space available for hire at the Civic Centre, sickness absence management, adult social care, millennium centre, demolition of properties in South Kilburn and Children and Young People which could impact on the council’s funds. He pointed out that 3 further limited assurance reports (Adolescence, IT contracts between departments and BHP former tenants arrears) issued did not impact on the council’s funds. Members welcomed a team from Children and Young People Gail Tolley (Strategic Director, Children and Young People), Graham Genoni (Operational Director, Social Care) and Nigel Chapman (Head of Placements) who were in attendance to brief the Committee on actions taken by the department to address limited assurance report issued .
Gail Tolley (Strategic Director, Children and Young People) in setting out the context stated that the Frameworki financial system had been introduced in early 2014. The fieldwork for this audit was undertaken in February 2014 with a draft report completed in May 2014 with a final version issued in September 2014. Following the fieldwork, prompt actions were taken to address issues raised in the report. Members heard that actions had been taken in the following priority areas;
(i) Document retention system was now in place and firmly established and that a framework agreement was in place with all fostering agencies using the West London Alliance framework.
(ii) Care plans were being completed on time, signed off by a manager with an additional tracking system for monitoring in place.
(iii) Statutory time frames for Looked After Children (LAC) were being met and improved monitoring system was in place following the appointment of a new lead manager.
(iv) Since February 2014, all providers were being required to submit their remittance slips by the 15th of the following month, otherwise payment would be withheld. A small number of remittance slips were outstanding from January 2014 and these have been chased.
Graham Genoni added that the financial systems put in place had enabled officers to cross reference and thus minimise any slippage. He continued that the current Frameworki system together with collaborative role with West London Alliance (WLA) had enabled the department to bring the level of historic overspending under control. Members heard that the social care service was more robust than before with increased monitoring, auditing and adequate caseload for care planning teams being supported.
In response to members’ questions officers from Children and Young People (C&YP) confirmed that since the Frameworki system was introduced in February 2014, progress had been made and that the service was complying with the requirements of the audit report. The system which enabled officers to cross reference and minimise any slippages and together with collaborative role with West London Alliance (WLA) had resulted in historic overspending being brought under significant control. Officers and managers were confident that the current system and measures in place were more robust to address the concerns raised in the last audit report. Members were advised that all Looked After Children (LAC) had access to advocacy services and that educational psychology services were built into their care packages where this was clearly set out as beneficial within their care plans.
Simon Lane then gave a progress report on internal fraud, housing benefit fraud, housing tenancy fraud and other external fraud as set out in the report. He continued that the Department of Works and Pensions (the DWP) had established a single fraud investigation service and staff currently working within the Audit and Investigation team would transfer to the DWP on 1st October 2014. Due to the changes, Audit and Investigations were no longer accepting HB fraud referrals as they were all being routed through to the DWP. All work on HB fraud had effectively ceased as the team prepared to migrate case files by secure methodology to the DWP. He advised members that cases which had already been referred to the council’s legal service for prosecution would continue to be dealt with by the council but any further investigative input would come from DWP staff. The funding implications of the transfer for the Council were highlighted.
It was agreed that the transfer of fraud work and staff to the DWP be publicized in Brent Magazine and via councillors’ surgeries so that the public would know where to go. In bringing the discussion to an end the Chair commended officers of Audit and Investigation team and Mazars for the internal audit progress report. He drew members’ attention to the list of areas for which limited assurance reports were issued requested if they wished to make further additions to it. It was suggested that the audit report on IT contract be included if it was completed.
RESOLVED:-
that the progress made in achieving the 2014/15 Internal Audit Plan, the review of fraud work and the limited assurance reports as set out in appendix 1 of the report be noted.
Supporting documents:
- Internal Audit Progress Report 2014-15 - Cover, item 7. PDF 175 KB
- Internal Audit Progress appendix 1, item 7. PDF 411 KB