Agenda item

To submit the report of the Audit Manager.

Submitted - the report of the Audit Manager outlining the Internal Audit section’s work for the period. It was noted that 8 reports on audits from the action plan had been completed. Attention was drawn in terms of follow-up audits, that acceptable action had been taken on 58.28% of the agreed steps, namely 95 out of 163.

Consideration was given to each individual report and during the discussion reference was made to the following main matters –

Council Tax Refunds

In response to an enquiry by a member regarding the higher risk of fraud under the new arrangements to pay refunds via BACS, the Audit Manager noted that the audit had received a high level of assurance and officers were investigating producing purposeful reports to undertake checks, and that compensatory controls had been established.

Leisure Centres

A member asked if Internal Audit would continue to undertake audits of leisure centres once the provision of leisure facilities had transferred to Byw'n Iach Cyf. In response, the Senior Manager - Revenue and Risk noted that the transfer agreement, that had not yet been signed, noted that Internal Audit would provide the service to the company. 

In response to a member’s observation, the Audit Manager explained that an action plan with a timetable for the relevant service would be presented, with a follow-up being completed to consider progress. She elaborated that a clear improvement had been seen in leisure centre arrangements. Until recently, audit of leisure centres would receive opinion C (under the previous system) with many action points. It was noted that the action points were now 2 or 3 and Plas Silyn Leisure Centre had received opinion A in 2017.

In response to a question from a member if it was possible for the company to select who would undertake audits, the Senior Revenue and Risk Manager explained that there was a break clause if the company was of the opinion that the service provided by Internal Audit was not to the expected standard. It was noted that it would be the company's Board of Governors who would receive audit reports from Internal Audit from April 2019 onwards, as Byw'n Iach Cyf was a company at an arm's length from the Council. The Council would continue to need assurance about the company's governance arrangements, but the Head of Economy and Community would be the main contact. He elaborated that Internal Audit was seeking to ensure that the company started on a firm foundation and it would be useful to complete the follow-up work on leisure centres before the end of March 2019.

A member noted that leisure centre audits highlighted the lack of commercial thinking, in order for the new company to be successful staff would have to be armed to enable them to operate commercially.

A member asked if it was possible for the audits to continue to be presented to the Committee following transfer to Byw'n Iach Cyf. In response, a member noted that he was Chair of the Shadow Board and that a business plan was being prepared. He elaborated that there would be a requirement for the company to submit an annual report to the Council and that discussions were continuing in terms of possible scrutiny arrangements.  

A member noted that as Council members were on the Board of Governors of Byw'n Iach Cyf, what was the purpose of submitting the reports to the Committee. In response, the Head of Finance noted that more attention would be given to the leisure field than before with the company accountable to the Council. It was added that the accounts of Byw'n Iach Cyf would be included as part of the group accounts submitted for the attention of the Committee.

Parc Glynllifon Income

In response to a member's question about the checks on the number of visitors, the Audit Manager stated that the best solution for the Council regarding collecting entry fees to Parc Glynllifon was the arrangement with the tenant of the Shop near to the Park’s entrance. She highlighted that a reduction in staffing resources, and bearing in mind that £14,000 was the annual income, the costs of employing a person to undertake the work would be higher than the income.  

RESOLVED to accept the report on the work of the Internal Audit for the period 17 September 2018 to 16 November 2018 and to support the agreed actions that had already been submitted to the managers of the relevant services.