Agenda item

This report informs Members of the Audit & Counter Fraud work completed during 2016-17 and also presents the opinion of the Head of Audit & Counter Fraud Shared Service as Chief Audit Executive on the Council’s internal control environment.

Discussion:         

Members considered a report regarding the Audit and Counter Fraud work completed during 2016-17. The report also presented the opinion of the Head of Audit and Counter Fraud Shared Service as Chief Audit Executive on the Council’s internal control environment, as set out in page 50 of the Agenda.

A Member suggested that a joint meeting with Gravesham Borough Council’s Audit Committee Members take place to discuss progress of the Shared Service. The Head of Audit and Counter Fraud Shared Service advised Members that an External Quality Assessment on the Shared Service was due to take place during 2017/2018 and that part of this process would include seeking both Medway’s and Gravesham’s Members’ views on the progress of the Shared Service. In addition, the Chief Finance Officer advised that he had recently discussed the Shared Service with Gravesham’s Section 151 Officer who had confirmed that he was happy with the Shared Service. It was also noted that Medway was now providing other services to Gravesham including the provision of a Shared Legal Service.

A Member sought clarification on whether the findings and recommendations from Internal Audit Assurance work was subsequently included in wider reviews with particular reference to the review of Homeless Temporary Accommodation (page 60) and the Homelessness Prevention Strategy, which was due to be considered by the Business Support Overview and Scrutiny Committee on 6 July 2017. The Head of Audit and Counter Fraud Shared Service advised that her team was engaged in a number of corporate projects, including the Homelessness Prevention Strategy, and that in addition, the team undertook a follow up of agreed recommendations, as highlighted in pages 91-94 of the Agenda.

Members suggested that relevant Cabinet Members and relevant Opposition Spokespersons should be advised of the outcomes of Internal Audit Assurance work prior to being formally reported to the Audit Committee.

A Member asked for further details of the Income Collection review (pages 57-58 of the Agenda) with reference to the level of refunds and the refunds policy. The Audit and Counter Fraud Shared Service Manager explained this mainly related to money laundering in respect of Council Tax refunds and that it was necessary to ensure that any refunds paid with regards to the overpayment of Council Tax must be to the same bank card to ensure compliance with money laundering legislation. Such sums involved were likely to be less than £5,000. The Audit and Counter Fraud Shared Service Manager also undertook to provide a Briefing Note on this matter.

A Member asked for further details of the Adult Social Care – Assessments and Reviews of Financial Support (pages 61-62 of the Agenda) review and in response the Head of Audit and Counter Fraud Shared Service stated that in relation to direct payments some individual sums may have been significant, however, work had been undertaken to improve procedures. She undertook to provide more detail via a Briefing Note on this matter.

A Member asked for further details of the Cyber Security review and in response the Head of Audit and Counter Fraud Shared Service gave details of the review which, for example, included ensuring that employees and contractors had the appropriate levels of access to the Council’s networks and more widely, that the Council was a member of the Public Services Network (PSN) which included a compliance process for Local Authorities in delivering a safe network. Members had a wider discussion on business continuity arrangements and building security at Gun Wharf and recommended that the Business Support Overview and Scrutiny Committee be requested to consider a report on these matters.

A Member referred to the Adoption Services review (page 71 of the Agenda) and sought and update on the recommendations. The Audit and Counter Fraud Shared Service Manager advised that the follow up work on this review was currently in progress and was due to be completed  by September 2017.

It was noted that the Head of Audit and Counter Fraud Shared Service had recently been appointed as the Head of Finance Strategy. The Committee thanked her for her work in her former role and wished her luck in her new role.

Decision:

a)     The Committee endorsed the work undertaken by the Audit and Counter Fraud Shared Service for Medway during 2016-17 in providing an effective service to the Council.

b)     The Committee endorsed the opinion on the Council’s internal control environment provided by the Head of Audit and Counter Fraud Shared Service.

c)     The Committee noted the request for a joint meeting between Medway Council’s and Gravesham Borough Council’s Audit Committee members on the progress of the Shared Service and noted that they would be able to provide comments on the progress of the Shared Service as part of the External Quality Assessment which would take place during 2017/2018.

d)     The Committee requested that consideration be given to relevant Cabinet Members and relevant Opposition Spokespersons should be advised of the outcomes of Internal Audit Assurance work prior to being formally reported to the Audit Committee

e)     The Committee requested Briefing Notes on i) further details of the Income Collection review and ii) further details of the Adult Social Care – Assessments and Reviews of Financial Support review.

f)      The Committee requested that the Business Support Overview and Scrutiny Committee consider a report on the Council’s business continuity arrangements and building security at Gun Wharf.