Agenda item

To consider a report by the Chief Officer (Financial Services) which provides a summary of the Internal Audit activity for the period November to December 2019 and highlight the incidence of any significant control failings or weaknesses.

(Report attached)

The Chief Officer (Financial Services) submitted a report which provided a summary of the Internal Audit activity for the period November to December 2019 and to highlight any significant failings or weaknesses.

Members noted there were 19 reports issued during the November to December 2019 period.

Referring to Housing Disrepairs, Members noted that a follow up review had been undertaken and it was considered that this was an area where significant progress had been made. A number of measures had been implemented resulting in the establishment of stronger governance arrangements and joined up working across departments.

It was suggested by Members that the issue of repairs should be raised with the tenant at the annual home visit, which would provide an opportunity to address potential areas of disrepair ahead of a claim being received

Reference was made to FMS Risk Assessment and in particular the risk of material errors arising from incorrect journal entries. Members were informed that the risk assessment had now been completed by Financial Management who were satisfied that a sound methodology had been used in undertaking the risk assessment and that compensating controls were in place.

Referring to the Review of Gifts and Hospitality, Members noted that recommendations had been agreed that would strengthen the process by ensuring that all declarations of gifts and hospitality from Directors must be subject to third party approval.

Members queried if the forms for declaring gifts and hospitality were public documents.

Members were informed that such documents were not available for public inspection.

It was noted that Internal Audit Performance was actively monitored through the use of a customer satisfaction questionnaire. Members were informed that for the period from 1 April 2019 to 31 December 2019, 34 Customer Satisfaction Questionnaires were received (25 were received during the same period last year).

Members were invited to provide any suggestions for the coverage of the Audit Plan for 2020/21.

Members asked how Leeds compared with other Core Cities in terms of resources to carry out audit work.

The Interim Head of Internal Audit suggested that some of the core cities reported more resources within their internal audit teams, however, this was explained by differences in the way that counter fraud work was organised. Members were informed that in Leeds there were a number of different teams contributing to counter fraud work across the authority.

Members requested if further information on benchmarking of resources would be provided when the Audit Plan was next presented to the Committee.

One Member queried the audit work being undertaken on the Leeds Flood Alleviation Scheme.

Members were informed that an update on the outcomes from this audit would be reported to Members once the audit had been completed.

RESOLVED –

(i)  To receive the Internal Audit Update Report covering the period from November to December 2019 and note the work undertaken by Internal Audit during the period covered by the report.

(ii)  To note that there have been no limitations in scope and nothing has arisen to compromise the independence of Internal Audit during the reporting period.

(iii)  That further information on resources be provided when the Audit Plan was next presented to the Committee