Agenda item

Report of the Director of Corporate Resources – To advise the Committee of the work undertaken during the first quarter by the Internal Audit Service in completing the 2011/12 annual audit plan and reports issued for outstanding 2010/11 audits, together with the responsive and housing benefit fraud investigation work, and to provide details of the work undertaken by Council’s Human Resources business unit in supporting disciplinary action taken across all departments by respective Council Officers.

 The committee were provided with information on the internal audits completed in the first quarter on the 2011/12 financial year  by Deloitte and Touche  on behalf of the council, progress with implementing outstanding internal audit recommendations(with particular attention to priority one recommendations) details of investigative work undertaken relating to Fraud  and an update on the progress of on disciplinary actions being taken by the council. The committee were asked to particularly note that  four  out of five of the outstanding recommendations had been  implemented.  Deloitte and Touche were reported to be content with the actions being taken to address the final outstanding recommendation.  The committee also were asked to  note that  council had been successful in recovering £29k through the Proceeds of Crime Act . The service would continue to use the 2006 Fraud  Act to seek recovery of funds obtained fraudulently through housing benefit claims and tenancy fraud.

 The low number of internal audits completed in the first quarter was questioned. In response it was noted that, as in previous years, the number of internal audits completed was usually low as in the first quarter as  the auditors would be completing work from the final quarter of the last financial year and undertaking a number of planning meetings to prepare the audits to be completed over the coming financial year.   The remaining three quarters of the financial year would see a higher number of audits being completed and completion of the internal audit plan. This first quarter had also seen the implementation of the re-organisation of the council and therefore some audit work had to be deferred to allow business units to reorganise themselves.  The committee noted that Deloitte and Touché did not receive advance payments for their service but were paid following the completion of each audit.

 In relation to the  information considered on staff disciplinary action the committee commented on the average number  of days that  employees were suspended for pending their disciplinary hearing.  There were three  significantly long staff suspensions listed. The committee learned that the Assistant Chief Executive had examined these three cases in detail and was satisfied  that the appropriate actions was being taken. The reasons for  the suspensions themselves was quite exceptional and the investigations involved seeking information from external sources .

In reference to the  number of suspensions related to behaviour , understanding was sought on the types of cases that fitted this category. The  Assistant Chief Executive agreed to provide committee members with a some examples.

In terms of health and safety , it was important to ensure that  there was , through a time of change in the organisation, a system in place to monitor how issues were identified were being progressed .  The committee noted that there health and safety forum in place which had this role  and issues should be monitored on a directorate basis.

 There was a question on whether the council recorded how  many employees sued the council.  It was reported that periodically the council will complete a review on this. Legal and HR will look at whether there are any lessons to be  learned and  add advice to management training procedures accordingly. It was noted that the council would pursue costs where  there  was no prospect of a settlement.

RESOLVED

That the audit coverage and progress during the first quarter 2011/12 be noted.

That the progress and responses received in respect of outstanding audit recommendations be noted. The committee confirmed that actions taken during the first quarter to address the outstanding recommendations were appropriate.