This report provides an update on key findings emanating from Internal Audit reports issued since the last quarterly progress report.

Paul Harrington, Chief Auditor, submitted a report providing an update on key findings emanating from Internal Audit reports issued since the last quarterly progress report in July 2020.  The report stated that a total of eight audit reviews had been completed in the period between July and September 2020, five of which had received a positive assurance opinion and three a negative assurance opinion.

The report set out a summary of the audit reports in respect of Local Transport Capital Funding; Bus Subsidy Specific Grant Determination; Rent Guarantee Scheme; External Stores; ESFA Grant; Intercompany Transfers; Staff Vehicle Documentation (Grey Fleet); and Government’s Transparency Code.

In relation to Intercompany Transfers, the report found it difficult to confirm the completeness and accuracy of payments, as there were delays in payment and poor reconciliation controls, to understand what had been paid and when. The Audit recommended that clear and regular reconciliations should be undertaken to ensure payments were processed on a timely basis and were complete and accurate.  Mike Hirst, Chief Accountant, confirmed that RBC Officers and colleagues at BFfC had thoroughly reviewed the intercompany transfers and he was confident that the issues identified in the Audit had been successfully resolved.

In relation to Staff Vehicle Documentation, it was reported that the audit had flagged a number of areas of concern that needed to be resolved to ensure that the Council was adequately responding to and addressing the various potential risks in this area.  Significantly, there was no up-to-date and agreed Grey Fleet policy in place and consequently this had created a lack of clarity and common understanding of roles and responsibilities.  Failure to address the audit’s concerns could have significant legal implications for senior officers and the Council corporately.

In relation to Government’s Transparency Code, the audit highlighted that the Council was not complying with the publication and statutory requirements of the Transparency Code in all instances.  There was a lack of clarity on individual responsibilities, with no overarching corporate oversight and a lack of guidance over the whole process.  The process created additional work in replying to Freedom of Information (FOI) requests, which could otherwise have been averted by the publication of this information.

The report also listed the audits that were currently in progress, or were planned for 2020/21, and gave a summary of investigations work between April and September 2020.

Resolved:      That the Internal Audit recommendations set out in the report be endorsed and in particular those that applied to Intercompany Transfers; Staff Vehicle Documentation (Grey Fleet); and Government’s Transparency Code and the full reports on these three audits be circulated to the Committee for information.