12 OUTPUT OF THE INTERNAL AUDIT SECTION PDF 532 KB
To consider the
report of the Audit Manager
Decision:
To accept the report and support the agreed actions which have already been submitted to the managers of the relevant services. GwE (regarding travel costs) and Highways and Municipal (regarding overtime) to be called in to the Controls Improvement Working Group
Minutes:
The report of the
Audit Manager was submitted for information, which
provided the Committee with an update on the internal audit work for the period
between 3 February and 31 March 2020. It was noted
that 10 of the plan's audits had been completed.
It was explained that new arrangements had been established for
follow-up audits. In 2018/19, agreement had been reached
on 88 action steps to be completed by 31 March 2020. Following
a request for information and evidence from the relevant Units/Services on
action progress, it was shown that on 31 March
2020, there was acceptable implementation on 100% of the agreed actions to
mitigate high/very high risks, i.e. 11 from 11, and 72.73% of the agreed
actions to mitigate medium/low risks, i.e. 56 from 77.
It was added that acceptable action had been taken on 76.13% of
agreed steps, i.e. 67 from 88 agreed actions with progress made on 12.5%, i.e.
11 agreed actions. However, no response had been received
in relation to 11.36% of the actions, despite a request for information having
been submitted.
Reference was made to the audit of the GwE
travel cost claims process, which had received a 'limited' assurance level. The
purpose of the audit was to ensure that an efficient and effective process was
in place to claim travel costs via the self-service system, which reduced the
administrative load and kept the risk of loss by mistake or fraud at acceptable
levels.
A Member
highlighted concern, as the procedure for submitting applications via
self-service had reduced the administrative work considerably, that managers
were forgetting to check their staff's claims for travel costs. It was confirmed
that GwE management had committed to remind managers
to check claims in order to mitigate the risk highlighted.
Furthermore, it
was considered uncertain whether there had been consideration of value for
money in changing the official work locations of some GwE
staff. It was emphasised that there was
no flaw in the self-service arrangement in general, that managers had a
responsibility to check applications for travel costs, and that it was not an
administrative role. Regarding GwE specifically,
following Gwynedd Cabinet's decision to change the procedure for claiming
travel costs, GwE decided to change the work
locations of some staff. It was added that Internal
Audit was not convinced that remote work locations for staff provided assurance
of value for money.
It was reported that discussions had been held between GwE and Corporate Support at the time of changing the work
locations, and that GwE had justified the changes
before they were approved.
In response to the
above, it was suggested that GwE
should review the changes to work locations again.
In response to a question as to whether it was commonplace to overturn / change the Cabinet's decision, the Head of Finance noted that the Cabinet had established a travel claims procedure based on work locations, and that GwE had separately re-designated the working location of some staff. It was noted that the Cabinet's decision ... view the full minutes text for item 12