Agenda item

This report sets out the outcome of internal audit activity completed since the last meeting of the Audit Committee. 

Discussion:

The Chief Finance Officer and Audit Services Manager introduced this report on the outcome of completed internal audit activity. The schedule of completed audit work attached to the report provided details of the main findings and risks, the main recommendations arising from the audit and the management response.

Officers responded to Members’ questions on a number of audits.

In relation to the Tenancy Fraud audit Members questioned the policy on succession rights (where a tenancy is passed on when a tenant dies) and also tenants rights to sublet. The Assistant Director, Housing and Corporate Services undertook to review the council’s existing policy on residents’ succession rights to ensure clarity on these rights. She also agreed to provide Members of the Committee with a briefing note on the council’s position relating to the subletting of council property.

The Committee discussed the Concessionary Fares audit and requested details on whether the reported balance of overpayments to two operators could still be recovered; noting that management had accepted consideration of this point.

In relation to the audit of financial controls at Halling Primary School the report noted that management of individual schools budgets was delegated to schools’ governing bodies however Medway’s Chief Finance Officer (CFO) retained a statutory duty to ensure the adequacy of financial control over this delegated funding. The role of the financial control self-assessment in providing the CFO with assurances on the effectiveness of financial controls was discussed and the Committee requested a briefing note clarifying the control the council has over school budgets, including details of any consequences of their failing for the council. The Committee also requested that the lessons learnt from this and other audits be shared with the Schools Forum, with the forum being asked to consider improvements in the financial management and financial training within schools.

Responding to a Member request the Chief Finance Officer agreed to provide Members with further information as to the occurrences where the authority had claimed too much VAT.

In relation to the Housing Rents audit Members questioned the completion date for the review of Academy access rights and the Assistant Director, Housing and Corporate Services undertook to review and advise Members as to date, which was currently scheduled for completion in March 2012.

Decision:

(a)               The Audit Committee noted the outcome of Internal Audit’s work.

(b)               The Audit Committee requested further information on

i.                    the council’s position relating to the subletting of council property.

ii.                  details on whether the reported balance of overpayments to two operators within the Concessionary Fares audit could still be recovered

iii.                the control the council has over school budgets, including details of any consequences of their failing for the council

iv.                the occurrences where the authority had claimed too much VAT.

v.                  The scheduled completion date of the review of Academy access rights.

(c)               The Audit Committee requested that the Chief Finance Officer share the lessons learnt from the Halling Primary School audit, and other audits, with the Schools Forum and the Forum be requested to consider improvements in the financial management and financial training within schools.