Agenda item

The Committee considered the draft Internal Audit progress report 2014/15.

In the ensuing debate, the following principal points were raised:

·         A measure of the progress of the Superfast Broadband project had been the number of people who had upgraded their contract. It was suggested that a better measure would be the level of satisfaction of customers with the service provided to them

·         The Senior Manager – Internal Audit and Assurance explained that the 80 days of investigative audit work related to work associated with whistleblowing allegations and other investigative work such as missing cash. There was also proactive work including the use of Fiscal software to analyse key financial data relating to payments

·         The Senior Manager – Internal Audit and Assurance commented that the Annual Governance Statement was being reviewed in response to the challenges and changes the Council was facing. To support this period of change effectively, the Council required strong corporate and governance arrangements. The audit would include a benchmark analysis of the 2013/14 Annual Governance Statement (AGS) against best practice observed across the sector to ascertain whether the governance process could be improved. Helen Lillington from Grant Thornton added that one of the key aspects of the Statement that was being reviewed was whether it was complete. There was a lack of evidence in the present Governance Statement to show that limited assurance work had been completed.  She was satisfied that the work had been undertaken but evidence of this work needed to be more transparent

·         The Senior Manager – Internal Audit and Assurance explained that 15 audit days for Freedom of Information (FOI) requests related to whether FOI and Environment Information Requests (EIR) are responded to in accordance with legislation including the required timescales set out in the Act

·         The Joint Commissioning Unit – Contract Management (Residential and Nursing Care) had received a limited assurance. What were the issues associated with this audit opinion? The Senior Manager – Internal Audit and Assurance stated that this was an audit completed in the previous year but included as part of the follow up on previous high recommendations. The issues included the target for the planned number of visits was not being met

·         The Senior Manager – Internal Audit and Assurance explained that the 10 audit days for Local Enterprise Projects related to the control environment including governance arrangements. There was also some overlap with the European Funding audit which made reference to the Worcestershire and North Worcestershire LEPs

·         In response to a query, the Senior Manager – Internal Audit and Assurance pointed out that the Open for Business – Partnership Arrangements audit work included an evaluation of what constituted a partnership arrangement, policy framework, register of partnerships and the consideration and documentation of risks

·         The Senior Manager – Internal Audit and Assurance stated that the Design Services Contract – Term Shared Professional Services Contract should be removed from the list of internal audit reports to be published

·         Concern was expressed about the use of agency workers and in particular the payment of temporary workers on day rates rather than hourly rates. The Senior Manager – Internal Audit and Assurance commented that there had been two cases that fell outside the normal procedure for hourly rates and were therefore highlighted in the report. Both cases were for a short period and one of the agency workers had now left the Council. The problem with day rates was that there was no definition of what constituted a day. Reference was also made to two project officers who were paid different rates. Management were asked why these workers were on a different rate to other agency staff and had argued that it was necessary to allow some flexibility for the benefit of the service. Internal Audit sought assurance that sufficient controls were in place to justify the extra expenditure.   Management had agreed that a recommendation would be made to wider SLT/SLT to review agency rates and the introduction of a potential cap. A cap had been agreed for Children's Social workers from 1 January 2015, as part of an arrangement signed up to by every authority in the West Midlands

·         Concern was expressed about the potential conflict of interest between the role of Matrix as a Managed Service Provider of agency staff as well as acting as a "middle man" and managing the "supply chain" on the Council's behalf. It was agreed that a report on the use of agency staff be brought to the Committee meeting on 20 March 2015.

RESOLVED that:

a)    The content of the draft Internal Audit progress report 2014/15 be approved; and

b)    A report on the use of agency staff be brought to the Committee meeting on 20 March 2015.