Agenda item

The Committee considered a report of the Head of Internal Audit and Counter Fraud, which summarised the work carried out by the team from 1^st April 2022 to 31^st March 2023. During the year the Audit Service had prioritised the Council’s Fundamental Financial Systems (FFS) reviews to support both the 2021/22 and 2022/23 assurance process, to support the production of the financial accounts, plus the Annual Opinion that was detailed in the report.

In addition, other Audit and Counter Fraud Team activity included:

a.    Continued support in respect of COVID-19 grant funding regimes, including responding to Central Government requests for supporting information and Assurance Statements in respect of grants received.

b.    Continued support in providing assurance in respect of other non-COVID Central Government Grant regimes; Compilation of the 2021/22 Annual Audit Report and Opinion and reports detailing key issues for this Committee.

c.    The completion of a variety of other planned Audit reviews and reports on Local Authority Maintained Schools, Miocare CIC’s Fundamental Financial Systems, Alexandra Park Eco-Centre, the Council’s Let Estate Function and Home to School Transport.

d.    Issuing briefing notes and reports on Postal Voting during the election in May 2022 and the Hollinwood by-election.

e.    Issuing briefing notes on ad-hoc reviews of Foster Care Aids and Adaptations, Payroll Leavers procedures, Tax Compliance and Controls, Children’s Social Services Cash Imprest Accounts, Duplicate Payments and Children’s Services Recruitment.

f.     The commencement of audit reviews of Semi-Independence Units, Housing Strategy implementation, Out of Borough Education and Land Sales, and in connection with the pre-contract phases of the North Chadderton High School Extension, the Spindles redevelopment, Diggle Clock Tower, The Old Library and Egyptian Room projects.

g.    Corporate Counter Fraud activities have identified £312,061 of fraud errors and overpayments. The Direct Payments Audit Team (Children and Adults) have continued to deliver significant recovery outcomes which have generated £188,976 and £2,865,466 (respectively) for the period 1^st April 2022 to 31^st March 2023.

h.    Having an independent inspection undertaken for Public Sector Internal Audit Standards.

In reply to a query from a member the meeting was informed that in addition to annual FFS work on Adult Social Services in connection with Direct Payments and Residential Care the Internal Audit service continued to contribute to Adult Social Care Service working groups to address the concerns raised in the FFS audit reports in these areas. As a result of these discussions, the Audit Service assisted the Service by the Direct Payment (DP) Auditors invoicing for DP overpayments as soon as the DP audit was concluded.

Further to paragraph 2.6 of the report, a member sought clarification regarding the sign-off of grant-funding schemes referring to some earlier confusion regarding who had the appropriate authority to authorise such payments.

The Chair of the Committee noted that the report detailed six areas of the Council’s remit that the Internal Audit Service had deemed to be ‘inadequate’. The Head of Internal Audit and Counter Fraud assured the Committee that all of these areas would be subject to a follow-up audit action within 12 months of the original decision to ensure that agreed improvements were taking place.

Resolved:

That the Committee notes the 2022/23 Audit and Counter Fraud Progress Report.