Audit Committee
18 June 2012
Agenda Item No____10_________
The Status of Agreed Audit Recommendations due for Implementation by 31
March 2012
Summary:
This report seeks to update members as to the progress made
in implementing the agreed audit recommendations due for
completion by 31 March 2012. The report provides an overview
as to how recommendations have progressed since our previous
report was presented to Committee on 6 December 2011, and
also draws attention to the efforts made by management
throughout 2011/12 to ensure that ongoing improvements to the
internal control environment are taking place.
Conclusions:
Following on from our previous status update report, we are
once again able to confirm that no high priority issues due at this
stage remain outstanding; however our year end follow up work
has indicated that the overall number of outstanding items has
increased, whereas previously, the numbers involved had been
falling. The Council’s Interim Accountancy Manager was
appreciative of this situation and following our verification work
in April 2012, had embarked on an exercise in May 2012, to
obtain further updates from senior management regarding the
very latest position in relation to their outstanding audit
recommendations.
Recommendations:
It is recommended the Committee notes the current position
regarding the overall status of audit recommendations as at 31
March 2012, and the areas where further work is required.
Cabinet member(s):
Ward(s) affected:
All
All
Sandra King, Head of Internal Audit
01508 533863, scking@s-norfolk.gov.uk
Contact Officer, telephone
number, and e-mail:
1.
Background
1.1.
We provide reports on the progress made in implementing audit
recommendations to this Committee on a 6 monthly basis. The previous report,
although submitted to the Committee in December 2011, concentrated on the
period April to September 2011.
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18 June 2012
1.2.
The process used to monitor the status of recommendations has remained
unchanged; recommendations are input on the TEN performance system at the
time the final report is issued, and managers are requested to provide updates as
and when their recommendations fall due. At the end of the reporting period,
Deloitte auditors visit services to confirm there is supporting evidence to
demonstrate the completion of audit recommendations. This year there has been
an additional stage in so far as once Deloitte staff completed their year end
verification work, North Norfolk District Council’s Interim Accountancy Manager
commenced an exercise to prompt responsible officers to further annotate the
TEN system with the very latest information in relation to their outstanding
recommendations. As this exercise was initiated after our scheduled follow up
work had been undertaken, any subsequent results from this initiative are not
reflected within this report.
1.3.
This report thus incorporates all management feedback provided to Internal Audit
up to 24 April 2012, in respect of recommendations which fell due between 1
October 2011 and 31 March 2012, or were outstanding at the time of the
previous report to the Committee.
2.
Overall Position
2.1.
The number of outstanding recommendations, listed per audit, is identified at
Appendix G to this report. A summary of the current, and previously reported
positions, is shown in the table below:
Recommendation status
as at
31.03.11
No.
%
30.09.11
No.
%
No.
%
Due for implementation
75
Completed/superseded
41
54.7
28
48.3
29
34.9
Partly implemented
7
9.3
10
17.2
12
14.5
Outstanding
27
36
20
34.5
42
50.6
2.2.
58
31.03.12
83
There are several items to highlight within the current report:
•
We would usually provide additional details to the Committee in respect of
high priority recommendations. However, we are pleased to confirm that
there were no high priority items outstanding at 31 March 2012. The one
high priority recommendation made in 2011/12 has been implemented and
verified, and was linked to NN/12/03 Waste Management Contract.
•
Conversely, when assessing the overall position, we have found that the
number of recommendations due to be implemented, and the number
outstanding, has risen. A total of 21 of the recommendations implemented in
the last 6 months of the year (72.4%) relate to 2011/12 audits, whilst 9 of the
outstanding recommendations noted in the table above and representing
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18 June 2012
21.4% of the overall total, are likewise applicable to current year audits,
thereby demonstrating that delays in progress relating to the roll out of
agreed audit recommendations has been more marked with reference to
prior year audits. As is evident from the table at paragraph 2.1, the
proportion of completed recommendations has been consistently falling over
the last 18 months.
2.3
In the course of our audit follow up work, we have also found that delivery of
audit recommendations in relation to four specific audits has been somewhat
limited and details pertaining to these are summarised below.
o NN/11/01 Environmental Services
A total of 5 recommendations (3 medium, 2 low) remain outstanding. The
final audit report, published on 16th August 2010, originally put forward 6
recommendations. The 5 that remain outstanding had original
implementation dates between 30th September 2010 and 31st March 2011.
o NN/11/12 Development and Building Control
There are presently 8 outstanding recommendations (4 medium and 4 low) in
respect of the Development Management and Building Control audit. The
final audit report, published on 18th May 2011, had contained 11 agreed
actions, hence the bulk of recommendations have still to be completed
although there had been agreement with senior management to upgrade
these aspects of the system of internal control between 30th November 2011
and 29th February 2012.
o NN/12/03 Waste Management Contract
There are 4 recommendations outstanding plus 1 partly implemented from an
overall 7 agreed actions recorded in the final audit report for this review,
which was produced in October 2011. The remaining items were due to be
fully completed by 31st March 2012.
o Computer Audit Recommendations
When examining outstanding computer audit recommendations, we have
established that at year end, 6 recommendations remain outstanding and
apply to 4 different review areas, although 2 are applicable to one particular
audit - NN/11/17 Network Infrastructure. The latter also has a partly
implemented recommendation requiring clearance. With regards to
NN/11/17, we were not provided with any update from senior management
as to the latest position regarding the outstanding agreed actions and how
these have been progressing.
2.4
Our audit follow up work has further confirmed that 12 of 83 recommendations
due to be completed within the second half of the year have been partially
delivered at present and thus, there is still work to be done here before the audit
recommendations can be properly signed off. The audit of Partnerships
(NN/10/02) had 4 recommendations falling within this category and the recent
audit of Sports Halls/Centres (NN/12/09) had 3 agreed actions where there were
still aspects needing further input before completion was achieved.