Agenda item

To consider the report of the Interim Internal Audit Manager.

The Interim Internal Audit Manager introduced the report. The committee were informed that the report for the second quarter included all limited assurance reports which had been issued during this period.

The officer explained that the last two reports from the 2021 plan had been finalised and that the review of the council’s response to the Covid-19 pandemic had been completed. Two of the reports, housing benefit and council tax reduction and payroll were both limited assurance and are included within the report pack. There had been an additional follow-up report issued which also related to the previous year.

The committee was given an update that eight audits were currently in progress for the 2021/2022 plan. The Audit Manager referred to the two limited assurance reports which had been issued during the quarter.  With specific reference to the housing report, the committee was told that the item contained four recommendations, with one high risk, two medium risk, and one low risk.

The new Revenue and Benefits Manager, Trevor Gaffney, was introduced to the committee. The officer clarified the high risk issue, in the Housing Benefit and Council Tax Reduction Audit report, related to overpayment debt which was described as a difficult debt to recover. The officer clarified that since 2021, they had recovery documents back and these would be completed again. Reminders, and final notices were going out again and this was reflected on the money being brought in. While the debt itself should be shrinking, there was a large amount of cash to go out which could be recovered. It was also clarified that over 60 per cent of these were on arrangement either through the Department of Work and Pensions or Capita.

In the same Housing Benefit and Council Tax Reduction Audit report, a question was raised on the £2.5 million which was to be recovered and whether this was on the balance sheets to be recovered and the possible risk of any debt being written off. Councillors were informed the debts were on the balance sheet, but a bad debt provision was implemented, and these were assessed on an annual basis.

The Audit Manager then referred to the Payroll report and introduced John Tredrea, who carried out the review and David Fairall the Strategic Payroll Manager. John Tredrea gave an overview of the report, followed by David Fairall who provided the committee with further detail surrounding the payroll information within the report. In response to a question surrounding the right to work checks which had been due two days after the current meeting. The Strategic HR Manager confirmed that the right to work checks had been completed.

In addition, in response to a concern surrounding overtime payment without backup. The Strategic HR Manager clarified that no spurious claims had been submitted, and what had been inherited had led to a push towards self-service so while the policy was clear, and reminders had been sent, the Manager acknowledged that they needed to go into further detail and collect more information when someone submits a claim. Additionally, further training and guidance was being given to Managers to ensure that overtime claims were submitted alongside the appropriate evidence.

RESOLVED: to note the Internal Audit Activity Report – Second Quarter 2021/22