Agenda item

2023/24 Q3 Internal Audit and Counter Fraud Progress Report

The Head of Audit and Counter Fraud presented an overview of the Audit and Counter Fraud progress report to the Committee. This report summarised the work of the Audit and Counter Fraud Team between 1 April 2023 and 31 December 2023.

Priorities for the 2023/24 Audit and Counter Fraud Plan and progress summarised below

· Fundamental Financial Systems (FFS) reviews to provide assurance in support of the Authority’s annual financial statements.

· Audits which are classed as “high priority” in the Annual Audit Needs Assessment.

· Counter Fraud work to identify fraud risks within the corporate systems.

· Specific fraud investigations on Council Tax Reduction and Corporate Fraud.

· Delivery of the financial audits of Direct Payments in line with service plans and targets.

· Support and provide assurance in connection with postal votes for local, regional, and parliamentary elections.

Work commenced on Fundamental Financial Systems (FFS) reports reviews in October 2022 and draft final reports were issued during Quarter 1 of 2023/24. Members have received reports on the significant findings of our work in this area in connection with Payroll, Adult Social Care, Children’s Social Care and Debt as part of the Annual Report and Opinion of the Head of Audit and Counter Fraud for the year 2022/23. During Quarter 3 the following were the subject of further discussion and finalisation with management, and final reports were issued in respect of Payroll, Accounts Receivable and Debt Recovery.

The remaining two FFS reports in the process of finalisation are the Direct Payment review, and the Residential Care review. Members received a presentation from the Director of Adult Social Care on the Service’s response to the Direct Payment Audit review at the Audit Committee meeting in July 2023. Internal Audit continues to work with the Service in constructing and implementing it’s response to the reports and the Direct Payment report is also the subject of a further update on progress to the Audit Committee elsewhere on this agenda. Given the need to commence our work in this area in respect of 2023/24 prior to finalisation of the 2022/23 reports, the 2023/24 reports will supersede and pick up on progress against the recommendations made in 2023/23 in place of final reports for 2022/23

The Committee heard a summary of the outcomes of the follow up work carried out by Audit. Out of a total of 23 recommendations, 16 have been completed and 5 are ongoing. No response or update was provided for the final 2 recommendations.

Committee members questioned who the non-responders were which officers were unable to provide more detail on. Officers to follow up with committee members with some more information on non-responders and in future meetings where there is no/nil response, provide a narrative with further explanation on why there is no data available.

Resolved:

1.     That the Committee acknowledged the report and the work going done

2.     That once further follow up is done with the 2 non responders, additional information is to be provided to the Committee. And that Officers will ensure that in future meetings, where there is no/nil response, some narrative is added to provide further explanation to the Committee.