CORPORATE SELECT COMMITTEE AGENDA ITEM 11 2 nd March 2005

Transcription

1 CORPORATE SELECT COMMITTEE AGENDA ITEM 11 2 nd March 2005 INTERNAL AUDIT SECTION OPERATIONAL INTERNAL AUDIT PLAN 1 April March 2006 Report of the Internal Audit Manager Executive Member: Councillor John Faulkner Scrutiny Lead Member: Councillor Clive Beattie 1. PURPOSE 1.1 The purpose of this report is to inform and seek the comments of the Corporate Select Committee on the proposed Internal Audit Operational Audit Plan for the period 1 April 2005 to 31 March This plan identifies the BRIEF OUTLINE of Internal Audit work planned for the year 2. RECOMMENDATIONS That the Annual Internal Audit Plan at Appendix 1 for the year 1 st April 2005 to 31 st March 2006 be approved. 3. BACKGROUND 3.1 Internal Audit prepared a three year Strategic Internal Audit Plan for the period 1 April 2003 to 31 March 2005, which was approved by this committee. From this Strategic Plan the annual plan for the coming year has been prepared. This planning through risk analysis assists Internal Audit to determine priorities for the Council and allocate resources appropriately. Account has been taken of the risks identified in the Council s risk register in the preparation of this plan. An example of this has been the inclusion of the Disability Discrimination Act in the plan. Directly as a result of the review other areas were identified through the audit risk assessment methodology and tailored to include results of the review of the risk register e.g. Corporate Governance. 3.2 The risk based Internal Audit plan will allow for the examination of services working practices, IT functionality, for compliance with documented procedural guidance, legislative and the achievement of best practice. The process will also take account of the the efficiency Savings required under Gershon; though the depth of any review will be agreed in conjunction with the relevant business manager. 3.3 The priority of each audit planned for the year is shown as high, medium or low in Appendix 1. Many of those with a high priority are those classed as fundamental by the Council s external auditors The Audit Commission. Not undertaking these fundamental audits could result in adverse comment from the external auditors, these fundamental audits are identified with an asterisk at Appendix 1. Internal Audit will ensure that as a minimum those marked with an asterisk will be completed in the next financial year. 3.4 A member of the Internal Audit staff has been on secondment to the Change Team since November 2002 and the arrangement is expected to continue with the member of staff not returning to Internal Audit. Since September 2004 a member

2 of the Customer Services Team has been seconded into Internal Audit until March Should there be no additional resource into Internal Audit in 2005/6 some of the High audits and none of the medium and low audits shown at Appendix 1 will be undertaken. 3.5 During 2005/6 a member of Internal Audit will be acting as an assess for Inventors in People (IIP) and a allocation of 10 days has been made for this work. 3.6 As well as the pure audit work identified in the Plan the Internal Audit Manager is heavily involved in developing and leading the Council s approaches to Risk Management and Procurement. This accounts for over 50% of his time. 4. ISSUES AND ANALYSIS 4.1 Directors and Senior Managers have been consulted about the content of the Annual Plan and where possible their observations have been taken into account. The Council s external auditors have also been asked to comment upon the Plan. 4.2 The Audits have been categorised as being high medium and low priority. The intention is to complete all high priority audits and to undertake the others as resources permit. 4.3 A key feature of the proposed plan is that there are fewer but more detailed audits planned than in previous years. This is to help ensure that audits are in future more objective, add value to the Council and meet the needs of Business Managers. 4.4 Audits will include as well as the aspects identified at Appendix 1: A review of how the area being audited helps the Council to meet its objectives; How the Service is meeting its business plan The preparation of local Performance Indicators The preparation of Best Value Performance Indicators (BVPIs) Is the service providing Value for Money including if systems are efficient and effective Identify Gershon Savings. 5. IMPLICATIONS There are no Resources; Legal, Human Rights Act, Equal Opportunities, Environmental Issues and Community Safety implications other than those referred to above. 6. BACKGROUND PAPERS Background papers are held in the Internal Section of the Financial Services

3 COMMUNITY SERVICES Housing Rents Review the collection arrangements. Public Health Pest Control Review the provision of the pest control service and its effectiveness. Environmental Review of Compliance with EMAS accreditation Environment Services Car Parks Pavilion Gardens Pavilion Gardens Customer Services Customer Services Complaints CORPORATE SUPPORT FINANCE Audit 11.3 Income Collection, Review of staff duties Staff Parking. Review the arrangements for collecting and accounting for income, Review of pricing. Review the effectiveness of the operation of customer services. Staff training. Review compliance with the Councils complaints procedure. Insurance/Risk Management Review the inspection regime 3

4 Review adequacy of insurance cover for work done for and with third parties Procurement Review the quality of management information. Review effectiveness of role of lead officers. Benefits Housing Benefit (Note: The content of this audit could vary depending upon the implementation of the new Benefits/ Revenues system) Revenues Debtors Council Tax 11.4 NNDR (National Non Domestic Rates) Financial Services Review the Housing Benefit Service including: Overview of current position with regards to the Benefit Fraud inspector HB/CTB Performance Standards Review the system for the raising and collection of debts Review the system for the setting, raising of bills and collection of council tax. Include; Discounts and refunds. Review the arrangements for the collection of NNDR. Include: Bad Debt procedures. Creditors Review payments to creditors. Review arrangements for the payment to sub contractors Treasury Management Review the Treasury Management function

5 Income Review efficiency and effectiveness of the services put in place following the closure of the cash offices FMS Review the budgetary control process. 5 5 Year End Accounts ICT pare and receive documentation concerning stock certification 2 2 Computing e-gov Legal and Democratic Services Sale of Council Houses Corporate Governance 11.5 Review the practices for establishing valuations and the subsequent sale procedures. Review compliance with the Seven Principles of Public Life of the Nolan Committee. Personnel and Payroll Payroll Review the system for the remuneration of staff. Include: Sick pay Budget preparation. Payroll Expenses Review the payment of expenses

6 Investors in People Review whether criteria for holding IIP status is being achieved POLICY Policy Local PIs Review the use of local performance indicators in managing services & how these link into the Business Plan process. Equalities Review of compliance with equalities Standard PLANNING AND REGENERATION Regeneration Planning Assets and Facilities 11.6 Review planning control system on commercial developments Property Management To review the arrangements for maintaining the Council s public buildings. Disability Discrimination Act Review of progress of compliance with the Act. CORPORATE Project Management For a selected project review the extent of compliance with good project management practices. Partnerships For a selected partnership review the arrangements in place. Capital Programme To review the management of contracts. 6

7 BVPIs OTHER To ensure that PIs presented to the External Auditors for audit are supported by adequate working papers and that they are as far as is practical correct vious year Audits Completion of audits started in the previous financial year. Recommendation Follow up To follow up recommendations to ascertain if they have been implemented by the agreed date. Investigations To undertake investigations as and when necessary. Contingency To undertake unplanned work as and when necessary. Value for money (VFM) / To undertake VFM/BV work as necessary Best Value (BV) Insurance Routine To manage and provide cover for the Insurance officer. Procurement Routine To undertake routine procurement work Investors in People routine Member of Internal Audit acting as an assessor Company Searches To undertake company searches for services. 7