Agenda item

The Committee considered a report providing an update on progress made on the implementation of the Internal Audit Plan. It was noted that Part A thereof provided a progress report on the Audit Plan 2016/17 and 2017/18 together with a recommendations Scoring Matrix. Part B provided a summary of completed final reports for 2016/17 relating to key Financial systems (April 2016 to date). Part C related to reviews of other systems and Establishment Audits.

The following issues were raised on the reports:-

·        Reference was made to Report C and the Internal Audit undertaken of Departmental Contract Management. Clarification was sought on whether there were any proposals to undertake further audits to assess if the issues identified within the report on the 8 contracts were/had been addressed and if the new Heads of Services in the respective divisions were implementing the Action Plan. The Interim Head of Audit, Risk and Procurement confirmed that provision had been made within the 2017/18 Audit Plan to revisit those issues. She further advised that the Authority’s approach to procurement had now changed to being more pro-active examining how and what it purchased with a view to securing efficiency savings.

The Head of Property advised that whilst the issues raised within the report primarily related to waste services an element thereof related to property services prior to his taking responsibility for that service. He assured the Committee that procedures were being introduced to address those issues.

·        In response to a question on the value of the 8 contracts, the Interim Head of Audit, Risk and Procurement advised that whilst she did not have the specific information available at the meeting, each would have been in excess of £75k. She confirmed that arrangements would be made for the information to be provided direct to the Committee Members.

·        Reference was made to the audit of the 8 contracts and clarification sought on whether the scope of the Audit had been widened to incorporate other contracts. The Interim Head of Audit, Risk and Procurement advised that the Authority had established a Procurement Board to oversee contracts, especially those of high value, to ensure they were operating within the relevant framework and Contract Procedure Rules. To assist the Board in that regard, information collated by the Atamis system (replacing the Spike system) was used to evaluate numerous contracts awarded to one supplier across a number of departments e.g. grass cutting to secure the best possible service at the best price.

The Director of Resources, in response to a question confirmed that whilst the historic data held on Spike was gradually being transferred to Atamis, it would still be accessible for the foreseeable future.

·        Reference was made to Report C and the Audit undertaken on Capital maintenance. Clarification sought on what measures the Authority had/was taking to address the issues identified in relation to call-off arrangements and the keeping of written evidence of post completion checks.

The Interim Head of Audit, Risk and Procurement advised that arrangements had been made for a workshop to be held in September to examine the report’s findings, using building maintenance as a pilot, and through that process a new framework would be developed. Discussions would also be undertaken on firming up the call-off arrangements.

The Head of Property confirmed that in relation to post completion checks, whilst those had been completed prior to payment of the invoices, no other documentary evidence to that effect had been retained. Arrangements had now been introduced, via a pro-forma, to ensure the appropriate evidence was in place when payments were made. With regard to the call-off arrangements, that issue was being resolved and would be in compliance with the framework ensuring the process was fully documented and agreed with contractors. He also advised that the Authority would be going to tender to replace the existing framework next year.

·        Reference was made to report C and the Audit undertaken on the Coedcae Area Sports Centre with clarification being sought on whether measures had been introduced to address the monitoring of income collection at the Centre.

The Senior Sports and Leisure Manager confirmed that subsequent to the Audit, all bookings for the centre were now being managed via the Gladstone booking system at Llanelli Leisure Centre. For gym users, a cashless system was being introduced to reduce risk at the site (i.e. joining online or via Llanelli Leisure Centre and paying monthly by direct debit) which would be in place by the end of August 2017. The site would be ‘cashless’ from that point addressing the majority of the issues raised in the audit report.

UNANIMOUSLY RESOLVED that, for monitoring purposes, the 2016/17 Internal Audit Plan progress report and 2017/18 Update be received.