Agenda item

This report provides Members with an update on the work, outputs and performance of the Audit and Counter Fraud Team for the period 1 September to 30 November 2018.

Discussion:

Members considered a report which provided an update on the work, outputs and performance of the Audit & Counter Fraud Team for the period 1 September to 30 November 2018.

With regard to the recommendations still outstanding more than six months after the scheduled implementation date, Members were advised that since the report had been published, the regeneration and off payroll engagements recommendations had been implemented.

Reference was made to the seven outstanding recommendations relating to heritage buildings. Officers advised this was in part due to delays in receiving a response from English Heritage. It was suggested that if the recommendations were not actioned after 4 months then the Portfolio Holder should be informed so the matter could be escalated and, in addition, that the Chairman of the Committee should write to English Heritage and the Director Regeneration, Culture, Environment & Transformation & Deputy Chief Executive to highlight that Members considered it unacceptable that some audit recommendations had not been responded to after 18 months.

A Member referred to the thefts highlighted in the review of the Splashes Leisure Centre and commented that these problems tended to be more prevalent in satellite offices. It was suggested that the 2019/20 Audit Plan include a review to look at best practice in satellite offices. The Head of Audit & Counter Fraud Shared Service commented that this would be looked at when preparing the 2019/20 Plan but made the point that the scale of the thefts was quite low and the risks may not be high enough to justify a review. However, one of the Council’s largest satellite buildings did feature in the draft plan.

A Member suggested that the review of Luton Infant and Nursery school could be removed given the proposal to merge Luton Infant and Luton Junior Schools.

A discussion took place about Blue Badge fraud and a recent report which showed many councils had not convicted anyone for fraud. The Head of Audit & Counter Fraud Shared Service advised that the Council had not pursued anyone for blue badge fraud and there was not a dedicated blue badge fraud team. There was a difference between misuse and fraud and any decisions to prosecute would only be made in the case of fraud and where it was in the public interest. Where misuse was the issue then the emphasis was on education before enforcement. The fraud team worked with the parking enforcement team to check badges where they could. A Member queried whether there was scope for the new litter enforcement contract to also include blue badge enforcement. Officers advised that these were two quite different services but the idea would be explored.

A Member referred to the investigation work the audit team carried out for HR and asked if this had increased in recent years. The Head of Audit & Counter Fraud Shared Service commented there had not been a dramatic increase and the balance between this and audit and fraud work would fluctuate across the year. There was a benefit to the Council in audit carrying out the investigating officer role. 

A Member referred to the Medway Commercial Group – Governance & Accounting review and queried why this had not highlighted the difficulties in CCTV provision that had recently been discussed at an Overview & Scrutiny (O&S) Committee. Officers advised that these issues had come to light after the review had concluded and were not within the scope of the review.

In response to a query about what sanctions existed where recommendations were not implemented in a timely manner, the Head of Audit & Counter Fraud Shared Service advised that an implementation date was agreed with the service and CMT received quarterly reports on outstanding recommendations given the potential impact this could have on the Annual Governance Statement. After noting the request that these quarterly reports be sent to Portfolio Holders it was suggested that they should also be circulated to Opposition Spokespersons of the O&S Committees.

Decision:

The Committee agreed:

a)   to note the outputs and performance of the Audit & Counter Fraud Plan for Medway for the period 1 September to 30 November 2018, as detailed at Appendix 1 to the report;

b)   to approve the removal of the Directs Payment review from the 2018-19 work plan, as detailed in section 6 of Appendix 1 to the report;

c)    that the Chairman of the Committee write to English Heritage about the outstanding heritage recommendations, and;

d)    that the quarterly reports on outstanding audit review recommendations be also circulated to Portfolio Holders and the Opposition Spokespersons of the Overview & Scrutiny Committees.