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 for the period 1 January to 31 March 2022.

The report set out a summary of the audit reports in respect of: Parks and Grounds Maintenance; Climate Change Strategy; Main Bank and Feeder Reconciliations; Intercompany Accounting; and Transition from Children to Adults.  As the Chief Auditor had given ‘limited assurance’ to Intercompany Accounting, the full internal audit report for this audit was appended to the report.

In relation to Intercompany Accounting, the audit review had found that intercompany transfer payments for the contract, service level agreement payments and delegated schools grant funding were being paid and received monthly; however, BFfC had not regularly requested that the Council transfer over any of the grant funding that had been received in the Council’s accounts.  Likewise, quarterly recharges to BFfC for statutory posts had not been transferred.  The transfer payments that had happened had been well supported but, whilst the Accounts Payable Team performed manual checks, there would continue to be a risk of duplicate payments being made as the financial system did not have the functionality to identify a duplicate intercompany transaction.  This finding validated the need for quality authorisation and prompt payment processes to be in place.

The report also listed the audits that were currently in progress and gave a summary of investigations work between April 2021 and March 2022.

Resolved:     That the audit findings in relation to Intercompany Accounting be noted, and the recommendations and management action underway, as set out in the full audit report, be endorsed.