Agenda item

To consider the Internal Audit Monitoring Report as at 31st March 2014.

(Report attached)

The Committee considered the Internal Audit Monitoring Report as at 31st March 2014.

During consideration of this report the following issues were the subject of more detailed discussions:

i)          Key Performance Indicators (KPIs) for 1st April 2013 to 31st March 2014

Some concerns were expressed about the direction of travel in terms of performance in relation to these indicators.  However, Officers explained that the figures for performance indicators were not comparable as the Internal Audit Team audited different services each year as part of a three year rolling programme.  In cases where problems were identified action would be taken to ensure that the risks to the Council were minimised.

ii)         Council Tax - Access and Security

Concerns were expressed that an unknown system user named “Janet” had been provided with high level access to the Council tax system.  Officers were asked to review this matter further and to report back for Members’ consideration.

iii)       Cash Collection – Suspense Account

The Internal Audit team had identified £74,000 in the Suspense Account as at 12th December 2013.  Money was often paid into this account on a temporary basis whilst officers sought to identify the appropriate account that it was intended for.  Sometimes the Council received large grants but no indication was provided as to the purpose of this money, though equally very small sums could be held in this account whilst attempts were made to identify the right budget.

iv)       Cash Float Management

Members noted that within the report it had been suggested that floats kept by cashiers should be checked by their managers on a “regular basis”, though no clarification had been provided regarding the definition of “regular” in this instance.  Officers explained that it had been suggested there should be checks at key moments, such as prior to pay day.  However, it was agreed that more specific information about timeframes should be recorded in future copies of these reports.

v)         Implementation Dates

In many cases implementation dates had been recorded for the completion of tasks outlined in the report.  In every case Internal Audit would check to ensure that tasks were implemented by those deadlines.  Generally checks would take place within six months of the deadline unless the issue was considered to be urgent in which case it would be revisited within three months.  There was also a separate report produced by Internal Audit which tracked the implementation of recommendations and this was similarly reported for the consideration of the Committee.

vi)       VAT

Concerns were expressed that the Financial Services Manager, as a senior Officer, was completing all VAT returns and it was suggested that this would be a more suitable role for a junior member of staff.  Officers confirmed that this role would be assumed by other Officers within the Financial Services team.  However, due to the fact a number of members of staff were currently on maternity leave creating capacity issues the Manager was currently fulfilling this role on an interim basis.

vii)      Cash Collection

Reference was made to the 2012/13 finding regarding the ‘Removal of Network Access for Leavers’ and further clarification was requested about the meaning of this issue.  Officers explained that some former members of staff had been retained on internal systems as existing users.  Work was being undertaken to resolve this problem.

viii)     Kingsley Sports Centre

Concerns were expressed about the high levels of risk that had been identified concerning the retention of credit card data at Kingsley Sports Centre.  Legislative changes that had come into effect as of 1st April 2014 placed the Council at risk of being fined if it retained credit card data.  Interim arrangements had been put in place to address this problem whilst internal systems were upgraded.  Staff had been provided with training on taking payments, though this had been complicated by the fact that staff worked shifts at the sports centres and it was not therefore possible to train every member of staff at the same time.

Officers had been able to ascertain that problems with the management of payment data were more likely to occur when a single member of staff was working on the system.  To prevent this from occurring it was considered best practice to avoid situations where only a single member of staff would be handling money.  Due to the high level of risk identified for this matter it was agreed that an update on this situation should be provided for Members’ consideration at the following meeting of the Committee.

ix)       New Cash Receipting System

Officers explained that there had been a few initial problems with the new cash receipting system.  These were in the process of being resolved.

RESOLVED that

1)        Members receive an update on the situation regarding credit card payments at Kingsley Sports Centre at the following meeting of the Committee; and

2)        the report be noted.