Call-In of Executive Decision – Internal Audit Plan 2005/06 Outturn
Improvements in the Internal Control Environment
In the 2005/06 Internal Audit annual report, which was considered by the Executive on 5 May (ref. 287/05), the Assistant Director (Audit) highlighted three areas of the internal control environment which needed to be improved:
(a) The full implementation of the Debt Strategy, which is essential to achieving and maintaining robust control over debt [owed to the Council]
(b) The review of the Council's risk registers following the senior management restructure and the production of business continuity plans
(c) Improvements in reconciliation of income and the resolution & ownership of discrepancies
At its 18th May meeting the Scrutiny Committee recommended that the Executive receives a progress report on each of these areas. The Executive agreed to this recommendation.
A progress report is attached. Members are asked to note progress made to date in context. The Chief Finance Officer is satisfied that the internal control environment is adequate. As more of the outstanding actions are completed, so the control environment will further improve. However, none of the outstanding actions are critical and should not displace service plan priorities.
Recommendation
Members are asked to consider the progress made to date and indicate, if necessary, whether further action is required.
Minutes:
Call-In of Executive Decision – Internal Audit Plan 2005/06 Outturn
Improvements in the Internal Control Environment
(Time: 2.35pm to 2.45pm)
In the 2005/06 Internal Audit Annual Report, which was considered by the Executive on 5 May 2006, the Assistant Director (Audit) highlighted three areas of the internal control environment which needed to be improved:
(a) The full implementation of the Debt Strategy, which was essential to achieving and maintaining robust control over debt (owed to the Council)
(b) The review of the Council's risk registers following the senior management restructure and the production of business continuity plans
(c) Improvements in reconciliation of income and the resolution and ownership of discrepancies
At its 18th May meeting the Scrutiny Committee had recommended that the Executive received a progress report on each of these areas. The Executive agreed to this recommendation at its meeting on 2 June 2006.
Appended to the Executive's agenda was a briefing note from the Strategic Director. Members noted the progress made. The Chief Finance Officer was satisfied that the internal control environment was adequate. As more of the outstanding actions were completed, so the control environment would further improve. However, none of the outstanding actions were critical and would not displace service plan priorities. The Executive concurred with these conclusions. Progress on the outstanding actions was noted as follows:
|
Actions
|
Officer |
Progress |
(a) |
The full implementation of the Debt Strategy, which is essential to achieving and maintaining robust control over debt [owed to the Council]
|
||
vi |
Strategic action 3: Publish direct debit promotional feature and form in 'Vale Views' |
DD (OD & S) |
To be completed soon |
viii |
Strategic action 5: Monthly housing system debt reports should be sent to the SD (SB) for monitoring |
AD (Housing) |
To be completed soon |
x |
Strategic action 7: Service areas to check bad debtor record and cease/withhold further goods and services until debt is repaid (where statutorily permitted to do so) |
All |
Service Areas to generate their own bad debtor records using the outstanding debt reports and notification of write-offs |
xi |
Strategic action 8: Agree prompt payment arrangements with other public sector bodies |
SD (SB) |
To be completed in next two months |
xii |
Strategic action 9: Sundry Debtor Section to achieve 98% recovery rate for live debts (excluding benefit overpayments) |
SD (SB) |
To be monitored under the Capita contract |
xix |
Strategic action 16: Insert into the Council's standard contract of employment the agreement to deduct from salary any outstanding debts to the Council |
SD (SB) & Head of HR |
To be implemented at the next review |
xx |
Strategic action 17: Produce regular printouts of written-off debts for service areas to check. And, service areas to check written-off debt records withholding further goods and services until debt is repaid (where statutorily permitted to do so) |
SD (SB)
All |
To liaise with all Service Areas |
xxv |
Instruct relevant staff to take more proactive approach (as per para 4.2.7 of internal audit report on Sundry Debtors) |
SD (SB) |
To liaise with all Service Areas |
(b) |
Review of the Council's risk registers following the senior management restructure and the production of business continuity plans
|
||
ii |
Risk registers to be realigned under new organisational structure by 31 Aug 06 |
Senior Management Team |
To be completed by end Aug 06 |
viii |
Appoint EPO Assistant |
Deputy Director (Commercial Services) |
The Deputy Director had this in hand |
ix |
Fully address the business continuity planning requirements of the Civil Contingencies Act and the Council's own disaster recovery planning needs in liaison with deputy directors. |
DD (CS) |
Linked to viii above - end March 2007 |
(c) |
Improvements in reconciliation of income and the resolution & ownership of discrepancies
|
||
iii |
The cash office should balance their takings of cash and cheques each day to their receipting system. Continual unders and overs should be looked at in respect of competency, with perhaps more training provided. Daily balances will help to ensure that the money sent to the bank is correct and the correct amount appears on the bank statement. (Accountancy Manager's response to May 05 Main Accounting audit action plan) |
DD (OD & S) |
Agreement should be reached within the next two months |
RESOLVED
(a) that the progress made to date in improvements in the internal control environment and the projected timescales to complete the remaining actions be noted; and
(b) that a further progress report be made to the Executive in November 2006.
Supporting documents: