Agenda item

Follow up report on Internal Audit recommendations

To provide members with the position on progress made by management in implementing agreed Internal Audit recommendations as at 30 September 2018 (report of the Head of Internal Audit enclosed).


Consideration was given to the report of the Head of Internal Audit which provided members with the position on progress made by management in implementing agreed Internal Audit recommendations as at 30 September 2018.


The Head of Internal Audit advised that the report was very positive:


·         In relation to the historic recommendations i.e. those which were raised by Audit Lincolnshire, progress had been made with no recommendations now outstanding.

·         In 2016/17, a total of 88 recommendations were raised by both internal audit providers.  Of these, 83 had been implemented by management, and five had been superseded by recommendations raised in later reports, as highlighted by the Head of Internal Audit.

·         In 2017/18, a total of 85 recommendations had been raised by both internal audit providers.  Of those, 60 had been implemented by management, 17 were outstanding (7 Priority 1, 9 Priority 2, and 1 Priority 3), and eight were not yet due.  The management responses in relation to the Priority 1 and Priority 2 outstanding recommendations were detailed within Appendix 3 of the report.  In addition, 22 advisory points were raised for CPBS audits and whilst these were not formal recommendations to be followed up, it was expected that these would be addressed in due course and progress would be reviewed.


Members were also updated on progress with the limited and no assurance conclusions that were finalised in 2017/18:


·         S106 Agreements  (Limited Assurance) – all outstanding recommendations had now been addressed.  A report on the monitoring of S106 agreements had been considered by the Performance Monitoring Panel.  The whole process had been looked at by a group of key officers who were now taking this forward.  The situation was very encouraging.

·         Revenue Services (Limited Assurance) – Four out of five of the recommendations had been completed.

·         Payroll (Limited Assurance)– There had been seven recommendations, four were now complete and three were in progress.

·         Accounts Receivable (no assurance) – Twelve recommendations had been raised, seven were now complete, with management responses provided for the three that were due, and two recommendations were not yet due for action.


The Head of Audit thanked the Business Support and Performance Manager (CPBS) for his help with the audit recommendations, and ensuring that audit recommendations relating to services provided by CPBS were addressed and now fully recorded on Pentana. 


·         Asset Management (Limited Assurance). A Priority 1 recommendation had been addressed by management however, the remaining seven recommendations were all now overdue, with management comment provided at Appendix 2 to the report.  Some dates had been pushed back, and the Housing Landlord Services Manager and the Property Asset Manager were both in attendance to provide the Committee with a management response:


The Housing Landlord Services Manager commented that there had been some issues with assets, and that a dedicated team had been created to deal with assets as a whole. The team now knew what the issues were – there were issues around compliance, however audit had helped identify these and they were being addressed. Significant progress had been made on the seven outstanding recommendations.  There was still some work to be undertaken however, good progress was being made.


The Property Asset Manager stated that progress was being made, with more liaison taking place internally.  Industrial unit leases were being looked at to see if an improvement in rents paid to the Authority could be achieved.  Consideration also needed to be given to what was required of the business units – originally, they had been built to help start-up businesses, but now the Authority was considering putting on a more commercial footing.




That the report be noted.


(The Housing Landlord Services Manager, the Property Asset Manager and the Business Support and Performance Manager (CPBS) left the meeting following discussion of this item).

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