Agenda item - Internal audit and corporate fraud progress report

Report of the Interim Director Finance & Resources (copy attached).

1)           That the Audit and Standards Committee note the report.

34.1      The Committee considered a report of the Interim Executive Director of Finance & Resources that that summarised the progress made against the Internal Audit and Corporate Fraud Plan 2015/16. It summarised the key issues identified by Internal Audit and the Corporate Fraud Team and the progress made by management in implementing audit recommendations.

34.2      The Head of Parking and Network Operations attended the meeting to provide a verbal update on Blue Badge fraud and Parking Permits. In relation to both these items, the Head of Parking and Network Operations apologised for having missed the deadline but assured Members that both issues were in hand. Identify proofs had been increased for the issuing of Blue Badges and reconciliation was now in place between permits issued, income received, the amount banked and that posted to the ledger.

34.3      Councillor Sykes asked if the Head of Internal Audit was satisfied with progress made.

34.4      The Head of Internal Audit stated that he had been provided assurance with the information outlined and now received.

34.5      Diane Bushell enquired as to how issues were followed up by managers. Furthermore, Diane noted the comments made on the future of Internal Audit and asked if the Committee would be able to provide their opinion on any proposals.

34.6      The Interim Executive Director of Finance & Resources clarified that the implementation of audit recommendations were the relevant manager’s duty from the point they were identified. Progress against the recommendations was monitored by ELT. The Interim Executive Director of Finance & Resources added that discussions with the committee would be held on the future of the Internal Audit team.

34.7      Councillor Taylor expressed his concern that one fifth of the audit recommendations due to be implemented by 31 July 2015 still remained as a high priority and had not been implemented.

34.8      Councillor Robins noted that £67,508 had been identified and recovered in overpayments to employees and contractors and asked if the council relied on those concerned notifying the council of underpayments.

34.9      The Head of Internal Audit stated that whilst underpayments were not often reported to the council, it had key controls in place to ensure these were identified and recovered as quickly as possible.

34.10   RESOLVED- That the Audit and Standards Committee note the report.