Comhairle nan Eilean Siar Internal Audit Follow Up Review Statutory Performance Indicators. Final Report FU20 11/12

Transcription

1 Comhairle nan Eilean Siar Internal Audit Follow Up Review Statutory Performance Indicators Final Report FU20 11/12 14 th August 2012

2 CONTENTS Page SECTION 1 - EXECUTIVE SUMMARY 1 3 SECTION 2 - DETAILED FINDINGS AND RECOMMENDATIONS 4 APPENDIX - RESPECTIVE RESPONSIBILITIES OF MANAGEMENT AND 5 INTERNAL AUDIT 14 th August 2012

3 SECTION 1 EXECUTIVE SUMMARY Introduction 1.01 This follow up report has been prepared for the Audit and Scrutiny Committee. The original report advised of a number of recommendations made in the Statutory Performance Indicators report which was issued on 6 th September The follow up review was undertaken in accordance with the operational annual internal audit plan for 2011/12. Internal audit objective 1.02 Following up internal audit reports and assessing the level of compliance with recommendations made is an important part of the internal audit function In accordance with the remit detailed in the operational annual internal audit plan for 2011/12, our internal audit work was designed to obtain assurance that the original recommendations have been implemented. We obtained this assurance through internal audit testing and undertaking discussions with key personnel The main recommendations in the original report were: - There are still some minor errors occurring in the data submitted despite declarations being signed off by the Heads of Service; A bespoke report from the Civica system -Creditors - did not reflect the correct totals. This has been highlighted to the Creditors Supervisor and the Head of Exchequer. This error has resulted in the incorrect figures being reported on Interplan and also for the SPIs. The figure has been changed to reflect the new information and the provider has been notified; and Difficulty in locating officers to discuss findings/ variances due to the deadline dates for SPI/LPIs and timing of the visit of External Audit coinciding with holidays/leave etc. A review to bring forward the SPI/LPI reporting deadlines would be beneficial both to Internal and External Audit. 14 th August

4 SECTION 1 EXECUTIVE SUMMARY (CONTINUED) Detailed findings 1.05 The current status of progress against the original recommendations can be summarised as follows:- Key to status Fully implemented; Partly implemented, although further work is required to meet the objective of the recommendation; or Insufficient progress to date. Recommendation Action to Date Status The Corporate Policy Manager informs the Heads of Service to challenge the accuracy of the data that is Completed. being signed off prior to submission to the Directors. The Corporate Policy Manager informs the Heads of Service who are signing off the data being submitted that they must also provide a narrative against the indicator if there has been a significant change from the previous year. The Corporate Policy Manager advises the Heads of Service/SPI coordinators that they would benefit from arranged meetings with the Performance & Monitoring Officer to discuss the requirements of the SPI criteria. Completed. Completed. 14 th August

5 SECTION 1 EXECUTIVE SUMMARY (CONTINUED) Concluding remarks 1.06 From our follow up testing, we are pleased to note that out of the three follow up recommendations made in the original report all three have been fully implemented For Comhairle nan Eilean Siar Internal Audit Services Internal Audit Comhairle nan Eilean Siar Council Offices Sandwick Road Stornoway 14 th August th August

6 SECTION 2 DETAILED FINDINGS 2.1 Action recommended Action by Progress to Date Action outstanding The Corporate Policy Manager informs the Heads of Service to challenge the accuracy of the data that is being signed off prior to submission to the Directors. Corporate Policy Manager. Ongoing. Guidance has been provided to nominated individuals covering all the actions that require to be followed in completing and submitting the required information. None. The Corporate Policy Manager informs the Heads of Service who are signing off the data being submitted that they must also provide a narrative against the indicator if there has been a significant change from the previous year. The Corporate Policy Manager advises the Heads of Service/SPI coordinators that they would benefit from arranged meetings with the Performance & Monitoring Officer to discuss the requirements of the SPI criteria. Corporate Policy Manager. March 2012 Corporate Policy Manager /Performance Monitoring Officer. March 2012 None. None. 14 th August

7 APPENDIX 1: RESPECTIVE RESPONSIBILITIES OF MANAGEMENT AND INTERNAL AUDIT Internal controls It is the responsibility of Comhairle management to maintain adequate and effective financial systems and to arrange for a system of internal controls. Our responsibility as internal auditors is to evaluate significant financial systems and associated internal controls and to report to the Audit Committee on the appropriateness of such systems and controls. In practice, we cannot examine every financial activity and accounting procedure and we cannot substitute for management s responsibility to maintain adequate systems of internal controls over financial systems. We therefore may not identify all the weaknesses that exist in that regard. Fraud and corruption The prime responsibility for the prevention and detection of fraud and irregularities rests with Comhairle management. They also have a duty to take reasonable steps to limit the opportunity for corrupt practices. It is our responsibility to review the adequacy of these arrangements, but our work does not remove the possibility that fraud, corruption or irregularity may have occurred and remained undetected. We nevertheless endeavour to plan our audit so that we have a reasonable expectation of detecting material fraud, but our examination should not be relied upon to disclose all such material frauds as may exist. 14 th August