Agenda item

The Chief Auditor presented the regular 6 monthly report to the Audit Committee of unsatisfactory audit opinions issued across all County Council services.  The opinions arise from work undertaken by the Internal Audit team to assess the adequacy of the internal control environment, apply a rating and provide an update on previously reported matters that have been followed up. 

Referring to the report, the Chief Auditor provided details of historic opinions back to 2014 and noted that where an improved opinion has been given it demonstrates that managers have taken on board the recommendations.  They have made changes to their systems to provide better financial management in that service therefore provide a greater degree of assurance.  Some matters are carried forward to the following year to allow managers sufficient time to implement improvements.

The Committee’s attention was drawn to compliance with the Bribery Act 2010 as a second Limited opinion has been awarded.  It was recommended that the Committee may wish to call in the responsible officer to seek assurance that progress has been made and actions taken to address the identified shortcomings.

The Chief Officer, Resources agreed it was appropriate for the Committee to challenge this matter as the recommendations have not been suitably and sufficiently advanced.  It was explained that there are two key areas to address within:

·         People Services concerning some weaknesses in Induction processes; and

·         Procurement concerning the updating of Contract Procedure Rules

Regarding People Services, work is planned but has not yet been implemented and acted upon hence the second Limited opinion.

In terms of Procurement, this area was added to the Chief Officer’s portfolio of responsibility approximately 12 months ago.  The Head of Service responsible has concentrated on the corporate landlord role and also procurement savings. A procurement strategy will be reported to Council in the near future.  The new strategy will generate a programme of work to deliver savings and wider benefits.

Clarification was provided that this matter is to do with compliance with the Act rather than allegations of bribery.  Assurance was received that the matter is being taken forward and it was agreed that appropriate officers would be invited to a future meeting to provide a progress report on either 5^th July or 13^th September 2018. It was agreed that further evidence of compliance with the Bribery Act 2010 would be required by the Committee to address concerns.

In 2017/18 there were 8 limited opinions (from 30 opinions awarded) and will be followed up in 2018/19.  The opinions and reasons given are detailed in the report.

County Councillor A. Easson declared a personal, non-prejudicial interest regarding Item 4.8 Ysgol Gymraeg Y Ffin as he is a governor of the school.

A Member questioned if the problem with Youth Service bank accounts was a new or historic problem referring to a previously reported matter.  It was responded that the current matter is separate from individual groups.  It refers to the historic setting up of a bank account that was highlighted in the course of an audit.

A Member asked, when a vehicle is being fuelled, if the mileage is checked.  It was explained that this should happen but tends not to be carried out routinely.  It was queried and responded that it is a recommendation that the Manager implements this process.  The use of fuel cards relies on the drivers and ultimately the card can be withdrawn for non-compliance.  It was agreed that Managers must emphasise the conditions of using the card with users.  An action plan has been developed with the Manager, the matter will be followed up in 2018/19 and if there is a lack of response, it will be reported to Audit Committee.  In response to a question, it was confirmed that fuel cards are generally for the council fleet with a few exceptions.  The fleet vehicles tend to be fuelled in council depots and the cards are used as a fall-back arrangement.

It was questioned if there was a rising trend of unsatisfactory opinions and responded that the checking process is the same, is prioritised and is within professional standards, but it is not usually a like for like comparison.

It was queried and confirmed that the peer review of public sector internal audit standards carried out by Neath Port Talbot will be presented to Committee.