Agenda item

To consider a report from the Audit, Risk and Assurance Manager which informs Members of the audits completed as part of the original and revised Internal Audit Plan 2014/15.

The Committee received the report of the Audit, Risk and Assurance Manager outlining the audits completed as part of the original and revised Internal Audit Plan 2014/15. He advised the Committee that Appendix A detailed the work undertaken by the Audit team.

The Audit, Risk and Assurance Manager informed the Committee that a number of audits had resulted in a split level of assurance, with the Guildhall and Benefits audits both receiving a partial limited level of assurance.

The Chair enquired about the Guildhall issues and questioned whether the VAT issue was due to an outdated rate being used. In response, the Audit, Risk and Assurance Manager informed the Committee that an incorrect code had been used to calculate VAT on the spreadsheet used for calculating charges for events hosted by the Guildhall. He advised the Committee that this meant VAT had been calculated at 25%.

The Chair questioned whether a declaration would need to be made to HM Revenue and Customs. He was advised by the Audit, Risk and Assurance Manager that it would be necessary to check the level of VAT error before this could be determined.

Councillor Hobbs made reference to the Benefits audit and stated that it would be useful to have more details on the number of inaccuracies that had been identified.  The Audit, Risk and Assurance Manager advised the Committee that for the period April to December 2014 the Client Team had identified an average error rate of 35%. The group noted that of this 35%, 16% had been identified as financial errors and 19% as non- financial errors.

Councillor Hobbs questioned how these errors were being addressed with Civica and questioned whether this issue would be reviewed to check that the error rate was decreasing. He was advised by the Audit, Risk and Assurance Manager that a follow up audit would be completed to check that the backlog of errors had been cleared.

Councillor Haigh expressed concern that 35% of claims were incorrect and questioned the effect this would have on claimants if they were overpaid or underpaid.

The Audit, Risk and Assurance Manager advised the Committee that the levels of checks carried out by the Client Team were in line with recommendations from the Department of Work and Pensions.  He also informed the Committee that the Client Team had agreed with Civica an action plan on the matter.

The Chair questioned whether a similar audit had been included in the Audit Plan 2015/16. He was advised by the Audit, Risk and Assurance Manager that 25 days had been allocated in the 2015/16 Audit Plan to complete an audit of the Benefits System.

Councillor Taylor asked for an example of a non- financial error. He was advised by the Audit, Risk and Assurance Manager that these included errors in a claimant’s personal details such as their date of birth.

Members of the Committee requested that they receive a report from the Client Team at the meeting in June to update the Committee on the error rate.

RESOLVED

(1)  That Members receive an update on the Benefits error rate at the Committee’s meeting in June.

(2)  That Members endorse the audit work undertaken to date, and the assurance given on the adequacy of internal controls operating in the systems audited.