Agenda item

This report summaries the work of Internal Audit and the Investigations Team from 1 April 2013 to 31 August 2013. The attached report provides further details of this together with assurance ratings of reports issued.

An appendix to the report is attached for members only.  Copies will be made available at the meeting.

Members had before them a report that summarised the work of Internal Audit and the Investigations Team from 1 April 2013 to 31 August 2013 together with assurance ratings of reports issued.  Simon Lane, Head of Audit and Investigations informed members that a total of 361 days had been delivered against the overall Plan, made up of 256 Deloitte PSIA days and 105 days in-house days. This represented 28% of the Plan and a reduction in the level of delivery when compared with 2013/14 (38%).

The Head of Audit & Investigations continued that the main reason for the reduction in the level of delivery was due to the move to the Civic Centre which took place during June to August 2013. It effectively meant that services, including the Audit & Investigations Team, gave priority to the move which led to a number of audits being delayed.  In a number of other instances audits have had to be postponed due to changes to structural changes across the organisation.  He anticipated a significant progress in September and the rest of the third quarter of the year when a number of significant financial systems were scheduled to be reviewed. In addition, Deloitte had scheduled additional staff input during the period.

Simon Lane updated members that the Department of Works and Pensions (DWP) long term proposals for the Single Fraud Investigation Service (SFIS) were beginning to take shape. On 6 September 2013, the DWP announced their intention to take over responsibility for housing benefit fraud and residual council tax benefit fraud at some point during the 2014/15 financial year. They advised that responsibility would transfer in blocks with Brent being part of the London and the Home Counties group. Fraud investigations into local council tax support (the replacement for council tax benefit from 1^st April 2013) would remain the responsibility of local authorities. There had not been any formal commitment to transferring investigation staff although the planning assumptions were that a significant number of investigation staff in local government would transfer to the DWP under TUPE arrangements.

Members heard that whilst there existed a centrally coordinated approach to business continuity planning, weaknesses were identified in the following areas: business continuity arrangements of contractors delivering key services; accuracy of priority ratings; linking Business Continuity Plan (BCP) and Risk Management Process; business continuity exercise; educating local business and voluntary organisations; sign off of business continuity review; and guidance on when to contact the Emergency Planning & Control team. He added that weaknesses were also identified in respect of linking all of the identified priorities within the recycling and waste project to quantifiable contributions, raising concerns about whether the initiatives identified would be sufficient to deliver the required reduction in waste and increase in recycling.  

During discussions, members took note of the number of recovered properties and the possibility of it in assisting to reduce the council’s expenditure on bed and breakfast accommodation. Although they welcomed the report, members expressed concerns about the business continuity arrangements as outlined by officers to which Miyako Graham of Deloittes gave an assurance that they would follow up on the recommendations within six months.

RESOLVED:

that the progress made in achieving the 2013/14 Internal Audit Plan and the review of fraud work be noted.