Agenda item
Final Internal Audit progress report
This report summarises the work of Internal Audit and the Investigation Team and provides an update on progress since the previous report to this Committee on 24 March 2015.
Minutes:
The report from the Chief Finance Officer summarised the work of the Internal Audit and the Investigation Team and provided an update on progress since the previous report to committee on 24March 2015. Present at the meeting were Margaret Read (Director, Brent Customer Services) and Andrew Monkley (Subsidy and Policy Manager) as requested at the previous meeting, to give a further update on the action plan prepared in response to the findings of the audit into Discretionary Housing Payments. The committee noted that Discretionary Housing Payments had been given a Limited Assurance and Simon Lane (Head of Internal Audit and Investigations) explained the reasons for this which included concerns over failure to sign off high value awards, the same person assessing and authorising payments and the absence of sample checking.
Margaret Read sought to assure the committee that concerns were being taken seriously and appropriate action was being taken. The procedures in place were designed to avoid claims being passed back and forth between staff and staff had been reminded of the process and procedures. Much work had been carried out, including sampling, processes re-written and reinforced including at staff meetings.
The committee heard that checks were carried out on discretionary payments, the sums having increased over recent years due to the Benefits Cap and that while not visible, checking did take place. Margaret Read assured of monitoring of the types of award made and any awards above an indicative amount would have been investigated. Simon Lane added that while the calculation was likely to be correct, what was required was evidence of how it had been made. Conrad Hall contributed that records needed to be kept, that were proportionate to the decision being made.
Andrew Monkley advised that in most cases the calculation was the difference between housing benefit and rent however he took on board the fact that while this was clear to the assessor, evidence of the calculation would now be recorded.
Margaret Read pointed out that funding had been reduced from £4.2m to £2.6m and the committee agreed on the need for tighter controls. The Chair indicated that the Audit Team would be asked to conduct a further review in six months’ time and to report back if not satisfactory.
Andrew Monkley referred to the action plan in place to address previously identified concerns over the standard of file notes and assessments for the self employed. An automated system was in place for file notes and linked document folders which was being checked regularly and a self employee expense form was now being completed in every case. He assured that monitoring continued and any errors found had been corrected.
(At this stage Councillor Choudry, having declared an interest as a governor as Islamia Primary School, left the meeting and returned after the conclusion of the discussion).
The committee considered the five outstanding projects from the 2014/15 Internal Audit. While welcoming the overall improvement, it was felt that the number limited assurance reports at 28% was still too high, with two schools with nil assurance. The Chief Finance Officer attributed the improvements made to work by officers but stressed that the assurance levels remained a matter of very significant concern. The Chair on behalf of the committee expressed concern at the number of limited assurances and proposed that the Strategic Director, Regeneration and Growth write to Brent Housing Partnership to express the committee’s concern. It was also agreed that the Strategic Director, Children and Young People write to the Governors for the two schools with nil assurances, Islamia and St Mary’s RC, and invite them to the next meeting.
Simon Lane drew members’ attention to the number of planned audit days which would be reduced, resulting in a reduction in the fee of £15,800. The Chair thanked the Audit Team for their work in particular, illegal sub-lets which had resulted in properties returning to the council control. The committee expressed concern over the number of BHP limited assurance reports given the council’s responsibility as landlord.
RESOLVED:
(i) that subject to the reports remaining "limited" the relevant directors responsible for the following be asked to attend the September meeting of the Committee:
a) Accounts Payable
b) Members’ Declarations of Interests;
(ii) that the Strategic Director, Children and Young People be asked to invite representatives of the following schools be asked to attend the next meeting of the committee:
a) St Mary's RC Primary School
b) Islamia Primary School
(iii) that the Strategic Director, Regeneration and Growth be asked to write to Brent Housing Partnership to express the committee's concern with the number of "limited assurance" reports.
Supporting documents:
- final-internal-audit-progress-2014-15, item 9. PDF 542 KB
- internal-audit-progress-app12015, item 9. PDF 557 KB