Agenda item - Internal Audit and Corporate Fraud Progress Report

Report of the Executive Director, Finance & Resources

1)            That the Audit & Standards Committee notes the report and considers any further action required in response to the issues raised.

43.1    The Principal Audit Manager introduced the report and highlighted changes in the audit plan: ICT disaster recovery and Able and Willing had been added and Housing Allocation had been removed. One minimal assurance report had been received on City Clean and four partial assurance reports had been produced since the last update. There were 8 high priority audits scheduled.

43.2    Officers also updated the committee on the audit of parking permits. An online parking permit system was procured in autumn 2016. It was hoped this new system would help identify fraud. There were however teething issues with the system. Further issues with the customer-facing side of the system had now been resolved but the back office issues remained.

43.3    Councillor Simson expressed concern that Housing Allocation had been taken off the audit plan as new arrangements had just been introduced, and these had caused a lot of disquiet among residents.

43.4    Officers responded that an audit would be carried out in the first quarter of the financial year 2018/19.

43.5    In response to Dr Horne, officers responded that an audit of parking permits estimated £180,000 of potential fraud. Some of the issues with fraud would not be able to be resolved until a new system was in place.

43.6    Councillor Sykes asked if officers could expand upon the financial risk to the council of the areas which had been audited.

43.7    Officers responded that council tax was audited every year and there were potential challenges around collection. Residential care for the elderly also carried a large potential financial risk as costs were dependent on where the placement was. City Clean was also operating a commercial waste service which only had partial approval from Policy, Resources and Growth Committee, an oversight arising from demand increasing at a faster than anticipated rate. The proposal for an improvement programme which included the commercial waste service was due to be taken to Policy, Resources and Growth committee after the budget process.

43.8    Officers responded to Councillor Simson that the Audit Plan was set by officers and then agreed and amended at committee. There was a responsibility to review and change the plan in response to new and emerging risks.

43.9    Resolved:

1)            That the Audit & Standards Committee noted the report and considers any further action required in response to the issues raised.