Agenda item

This report provides an update on progress made in delivering the internal audit work plan for 2014/15 and on current counter fraud activity.

Members considered a report that provided an update on progress made in delivering the internal audit workplan for 2014/15 and on current counter fraud activity.

Members questioned officers on the following Audit reports:

(i)           Allocation of Highways Funding

Members asked if the committee could receive a copy of the report that had been presented to the Chief Executive.  Officers explained that the report contained sensitive information and to disclose this would be in breach of the Data Protection Act.  It may also make future audits less effective, as people may be less willing to speak freely.

Officers stated that the audit had identified that there had been a lack of proper record keeping.  Auditors had spoken to those involved and there had been conflicting responses given as to what had occurred.  The outcome of the audit had been that systems and processes needed to be changed and improved.  These changes had been accepted by management. 

Officers were asked if they were considering whether the weaknesses identified in the audit were applicable in other areas of the Council.  They stated that they had been tasked with considering the allocation of highways funding but that the recommendations made were similar to those in respect of the Lendal Bridge project and within the LGA report.  The auditors were mindful of these recommendations and would consider whether they applied when similar audits were carried out.

(ii)          CANS and CES Charging for Private Works, Overtime

Officers were asked to provide more information regarding the “limited assurance” opinion.  They explained that managers were still giving consideration to the issues that had been raised and hence this opinion may change.

(iii)        Contract Management for new Service Delivery Models

Members queried whether organisations such as Explore, which were run as a social enterprise model, were subject to the same transparency requirements as a Local Authority.  Officers agreed to clarify this matter but explained that the Council had a contract with each organisation which required them to provide information.

(iv)        Partnership Arrangements

Clarification was sought as to whether partnership agreements and partnership mandates had been updated and whether a partnership portal had been established.  Officers confirmed that these actions would be followed up.

(v)         Democratic Governance (follow up)

Members expressed their concern that the training session that had been arranged had been cancelled as no one had enrolled.   Officers confirmed that the session would be rescheduled.  Consideration was being given to making some training sessions mandatory and to alternative ways of delivering sessions, for example online.

(vi)        Subsidy to Greenwich Leisure Limited (GLL) for the Waterworld Leisure Centre

Members requested that the unredacted version of this report be presented at a later meeting once the issues had been dealt with.

Resolved:  That the progress made in delivering the 2014/15 internal audit work programme, and current counter fraud activity be noted.

Reason:     To enable Members to consider the implications of audit and fraud findings.