Agenda item
- Meeting of Governance and Audit Committee, Thursday, 10th May, 2018 10.00 am (Item 9.)
- View the declarations of interest for item 9.
To submit the report of the Audit Manager.
Minutes:
Submitted - the report of the Audit Manager outlining the Internal Audit
section’s work for the period. It was noted that 16 reports on audits from the
action plan had been completed.
A member stated
his disappointment that so many reports highlighted weaknesses in controls,
with debts in terms of Council smallholdings, income in some pay and display
car park machines did not match, a sample of staff highlighting that only half
of them had received checks on their qualifications and a lack of medication
monitoring in residential homes with improperly qualified staff. He noted that
the Committee needed to address these matters.
Each individual report was considered and, during the discussion,
reference was made to the following matters –
Staff Development Module
(MoDS)
A member referred
to the fact that approximately £90,000 excluding VAT had been paid to an
external IT consultant to undertake work and collect information and details
because of a lack of clear and definite brief of the needs and direction of the
project rather than focusing on technical elements. He noted that it was a
waste of money before commencing the work.
Obtaining references, proof of identity and
evidence of qualifications
A member noted
that checking this information was fundamental and expressed his disappointment
about the shortcoming.
School Meals Income
A member enquired
when all schools would be on the system and when it was anticipated that an
official opinion on the audit could be provided. In response, the Head of
Finance Department noted that the on-line payment system was developing and
improving. The Audit Manager reiterated the observation noting that it was
premature to provide an official opinion as the system was not fully
operational at the time of the audit. She confirmed that there was an intention
to undertake a follow-up audit in October or November 2018, to give schools a
chance to use the on-line payment system. She noted that the follow-up audit
would be reported upon to the Committee.
Food Hygiene
A member noted
that the Communities Scrutiny Committee had considered the Food Standards
Agency's detailed audit on the Council's food hygiene arrangements, where
weaknesses had been identified in the Council's administrative arrangements. As
the matter was a high risk for the Council, the member enquired why the audit
had received opinion category B instead of C.
In response, the
Audit Manager noted that the basis of the opinion category was a matter for the
auditor. She explained that the Internal Audit Service had quality assurance
arrangements and that the Team Leader and that she, as the Audit Manager,
examined the reports. She noted that there was an intention to submit a report
to the Committee soon in terms of tying-in risk scoring with noting an opinion
category.
In response to a
further observation by a member, the Head of Finance Department drew attention
to the fact that the definition of opinion categories B and C had been noted in
the annual report of the Head of Internal Audit. He noted that the Audit
Manager was acting independently when reaching her opinion, and that he
supported this independent professional opinion. He noted that the Committee
could either call-in the audit to the Controls Improvement Working Group or
send a message to the Environment Department noting that the audit would not be
called-in but that the Committee expected an improvement.
Smallholdings
A member noted
that she had not witnessed any report receiving opinion category CH since she
had been a member of the Committee.
Bearing in mind
that the Property Unit had undertaken a systems thinking review, a member noted
that the report highlighted that officers needed to be reminded of procedures.
He emphasised that it was unacceptable that a lack of controls had led to a
financial loss of £38,000 in terms of rent collection.
It was noted that
the Committee was unhappy with the situation with regards to this matter.
School Building Projects - Ysgol
Glancegin
A member noted
that the report highlighted a major weakness in controls as only the Property
Development Manager had signed the final scoring document in relation to the
tender. In response to the observation, the Audit Manager noted that all
individuals who were part of the process were expected to sign the documents.
As part of a follow-up audit to an audit that was undertaken in July 2016,
evidence was seen that the correct procedure was now being implemented.
Although the
report had received opinion category B, a member noted that the Council had
incurred costs as a result of modifying the plan and undertaking additional
work as some elements of the original plans and the architect's design did not
meet health and safety requirements, therefore, the matter should be referred
to the Working Group.
Car Park Income
Although the
report had received opinion category B, a member noted that consideration
should be given to call it into the Working Group as matters raised a concern.
In response to
members' observations regarding a failure to identify inconsistencies, the
Audit Manager noted that changing the collection company had created
difficulties and numerous discussions had been held with the company in terms
of report details to meet the needs of the Environment Finance Unit. Following
a specific request to the company, she confirmed that they now provided reports
to meet their needs.
In response to a
member’s observation, the Audit Manager noted that the Parking Unit in the
Environment Department was responsible for pay and display machines; however,
the Environment Finance Unit had drawn the attention of Internal Audit to the
matter as they had identified weaknesses when preparing financial management
reports. She explained that the Environment Finance Unit had made a request to
Internal Audit to examine car park income in order to identify weaknesses and
note fields for improvement.
A member referred
to missed collections and noted that there was a need to ensure that machines
were regularly emptied due to the risk for the Council.
A member enquired
whether or not pay and display machines that accepted card payments would
improve the situation. In response, the Head of Finance Department noted that a
project investigating mobile phone or on-line payments was ongoing. He
explained that on-line card payments were directly processed and that
electronic payments could be more efficient.
Although the
report had received opinion category B and that changes had been made leading
to an improved situation, a member noted that consideration should be given to
not calling it in to the Working Group and to keep an eye on how things
developed. A member noted that the Committee's concern about the situation
should be noted to the Environment Department.
In response to a
question by a member, the Audit Manager confirmed that follow-up work would be
undertaken on agreed steps in accordance with Internal Audit work arrangements.
Storiel - Café management arrangements
In response to a
member’s observation, the Audit Manager noted that a request had been received
to assist the Economy and Community Department after management of the café was
internalised. She noted that goods procurement arrangements had been confirmed,
necessary changes to staff job descriptions had been highlighted and
implemented, and training had been identified for café staff.
Victoria Dock
A member enquired
about the differences in the Council and Caernarfon Harbour Trust fees. In
response, the Audit Manager explained that the Council determined the fees and
that the Trust implemented them. She confirmed that correct fees were now
charged.
A member
highlighted that an audit undertaken in 2007 on Victoria Dock had drawn
attention to the need for the Trust to inform HMRC with regards to paying the
cleaner with cash. In response, the Audit Manager noted that the Trust was
responsible for informing HMRC; paying the cleaner with cash was appropriate
but the Trust had a duty to inform HMRC of the arrangements.
In response to a
question by a member regarding the risk to the Council that the Trust had not
informed HMRC of the arrangement with the cleaner, the Head of Finance
Department confirmed that it was the employer's responsibility to inform HMRC
of the arrangement.
Telecare
A member expressed
concern regarding DBS checks shortcomings given the groups of people that were
dealt with through this work. In response, following the publication of the
report, the Audit Manager noted that matters regarding DBS checks had now been
resolved. She explained that there had been a slight complication as some staff
had transferred on TUPE terms to Council employment. She confirmed that DBS
checks had been completed or were in the process of being completed.
Supported Housing
A member noted
that the same matters were regularly highlighted in audits for residential
homes. She noted that it was essential that controls regarding medication were
implemented.
A member noted his
astonishment regarding shortcomings with fire alarm tests. A member stated that
shortcomings in basic health and safety controls were highlighted in the audit
and it needed to be ensured that controls were implemented.
In response to the
above observations, the Audit Manager noted that the same matters were
regularly highlighted in such audits and that she was disappointed that lessons
had not been learnt. She reminded members that the Head of Adults, Health and
Well-being Department had attended a meeting of the Controls Improvement
Working Group on 23 October 2017 to discuss themes regularly highlighted from
audits on Residential Homes.
In response to a
member’s question, the Audit Manager explained that responsibility for
management of the houses was different due to their location.
A member enquired
whether the Care and Social Services Inspectorate for Wales (CSSIW) had
undertaken an audit of the houses and whether or not they had identified the
same shortcomings. In response, the Audit Manager noted that CSSIW undertook
audits on residential homes, when an audit was undertaken Internal Audit would
address CSSIW recommendations and consider progress against the
recommendations. She further explained that CSSIW hold discussions with
individual residents about their care whilst Internal Audit gave consideration
to administrative records.
A member noted
that the Council had a responsibility to ensure that support workers had
received proper training with a risk for the Council should a problem arise. He
added that it was important that the Committee received confirmation that it
had been implemented in accordance with agreed steps.
In response to a
member’s observation regarding the same matters being identified across services
in the Adults, Health and Well-being Department, the Audit Manager noted that
the Head of Adults, Health and Well-being Department had noted at the Working
Group meeting that one of the problems, especially in some areas in Dwyfor and Meirionnydd, were recruitment issues as there
was a failure to attract individuals to posts due to the low salary level in
addition to problems retaining individuals in posts. She added that there were
new arrangements in terms of workers in residential homes and they were now
required to qualify to a specific level.
Y Frondeg
Although no
opinion category had been noted for the audit as it was premature to provide an
official opinion, a member noted that a number of issues arose.
A member noted
that attention should be given to the report at the meeting of the Working
Group.
A discussion was
held regarding the practicality of holding a meeting of the Working Group with
a large number of reports to consider.
RESOLVED:
(i) to accept the report on
the work of Internal Audit for the period 29 January 2018 to 31 March 2018 and
to support the agreed actions that have already been submitted to the managers
of the relevant services;
(ii)
to hold two meetings of the Controls Improvement
Working Group to consider the audits that have received opinion category 'C'
and 'CH' as well as the 'School building projects - Ysgol
Glancegin' and 'Y Frondeg'
audits; and in accordance with the Committee's decision on 8 February 2018, to
invite the Chair of the Safeguarding Children and Vulnerable Adults Operational
Panel to attend a meeting of the Working Group to provide details on the work
programme;
(iii) that the Audit Manager
and the Member Support Officer divide the Committee membership in order to
serve meetings of the Working Group;
(iv) to send a message to the
Environment Department noting that 'Food Hygiene' and 'Car Park Income' audits
were not being called-in to the Working Group, but that the Committee was
expecting an improvement.
Supporting documents: