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Crawley Borough Council

Report No: FIN 139

Report to Audit and Governance Sub Committee

5 March 2008

Internal Audit Progress Report as at 22nd February 2008

1. Key Points 1.1 The purpose of this report is primarily to update the Sub Committee on

progress towards the completion of :- the 2007-2008 Internal Audit Plan; and

to report on the progress made in implementing previous recommendations.

2. Recommendations

2.1 The Sub Committee is asked to receive the report and to note progress to date.

John Burke

Head of Finance

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3. Background

3.1 Since our last progress report, as at 24th August 2007, the following reviews from the 2007-2008 plan have been completed:- Sheltered Housing Housing Rents Planned Maintenance - Non Housing Stock Casual Workers K2/Bewbush GIS (Geographical Information Service) CRM (IT review of the Customer Relationship Manager software). Waste Collection – Data Quality Procurement (06/07) Treasury Management and the following reviews are in progress:- Risk Management/Business Continuity Planning (06/07) Capital Expenditure (06-07) Outsourced Services (06-07) Responsive Repairs/ Mears Review (07-08) Planned Maintenance – Crawley Homes (07-08) Lifeline (07-08) Budgetary Control (07-08) Payroll (07-08) Council Tax (07-08) NNDR (07-08) Project Management Town Centre North (07-08) Project Management Bewbush and Langley Green Regeneration (07-08) Section 106 Planning Agreements (07-08) Community Wardens (07-08)

IT audit – FMS Upgrade (07-08) IT audit – AUDDIS (07-08) 3.2 Progress against the completion of the 2006-2007 and 2007-2008 Internal

Audit Plans is illustrated in Appendix B.

4. Key Findings and High Priority Recommendations Sheltered Housing

4.1 Crawley Borough Council has over 600 homes in their sheltered housing schemes which allow residents to live independently but with reassurance that there is assistance, in the form of a scheme manager, if required. The Sheltered Homes service is managed by the Special Needs section, under the ultimate control of the Housing Operations Manager, Specialist Services.

4.2 On a day-to-day basis the scheme is managed by the two Special Needs

Managers, who are based at the Town Hall, and at an operational level, by Scheme Managers who are based at the sheltered homes themselves.

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4.3 This review was wide ranging, looking at Financial, Security, and Administration procedures. It also included a follow up audit of the Sheltered Housing – Control of Keys Review, completed in December 2006.

4.4 The overall opinion of the Sheltered Homes scheme was found to be

Adequate. (Definition of adequate has been included at Appendix C) 9 recommendations were made, 2 of which were classified as high. These related to :-

The need to document procedures for the evacuation of sheltered schemes in the case of an emergency, such as a fire, and The need for Sheltered Scheme Managers to maintain inventories. Further details and management responses are included in Appendix A Casual Workers

4.5 During the period 6 April 2007 to 7 December 2007 Crawley Borough Council

employed a total of 343 casual workers incurring total gross payroll costs of £387,753.

4.6 The Human Resources Division are also undertaking some comparative work

in this area, involving neighbouring authorities to achieve an approach for the employment of casual workers in a way acceptable to all line managers and the payroll section. This review has therefore focused on the current procedures to provide Crawley Borough Council with assurance of compliance with section 8 of the Asylum and Immigration Act 1996. This was achieved by covering the following areas:-

A review of current procedures.

A review of Casual Workers and their usage by HR, Payroll and Line Management. A review of Management awareness of current procedures and legal requirements.

A review of the records held for individual casual workers, including references and where necessary, the results of CRB checks. Within the area of Payroll, a review of documentation received from Line Managers and HR including Starter and Leaver documentation.

A review of timesheets for casual employees and their authorisation, together with the basis of payment and the monitoring of their budgets by Line Management.

4.7 The overall opinion of the Casual Workers audit was found to be Adequate,

with 5 recommendations, 1 of which is classified as high. This relates to the need to retain confirmation of proof of identity and eligibility to work in the UK, in compliance with Section 8 of the Immigration and Asylum Seekers Act.

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K2 Leisure Centre 4.8 K2 is part of Crawley Borough Council’s commitment to improve community

and sporting facilities in the town and to help tackle issues around educational attainment health inequalities and community safety. The Centre opened on November 14, 2005 and is managed by D C Leisure. The current three year contract with D C Leisure expires November 2008. The tendering process is currently under way for the new contract

4.9 This review focused on the financial and procedural aspects of the

relationship to provide assurance as to the accuracy and reliability of management information being provided to Crawley Borough Council. This has been achieved by covering the following areas:-

A high level review of the three year contract.

An audit of the front office system used at K2, which is called The Leisure Management System (TLMS).

A validation of the Profit & Loss accounts provided to Crawley Borough Council by Crawley Leisure Community Association Limited.

Review of any recent Internal Audit Reports produced by D C Leisure and/or an appraisal of reports relating to their Quality Management System (QMS) and the relevant reports associated with this facility.

A review of the local payment of the staff at the K2 Leisure Centre and how these are controlled and authorised.

Complete a check of the entrance control mechanisms (Swim and Gym Area).

Invoices provided by D C leisure and Crawley Leisure Community Association Limited are paid via the CBC creditors system. Checks were completed to ensure these have been processed in the correct manner.

There are two leases within the K2 building paying £24,000 and £30,000 per annum to D C Leisure. These amounts and transactions have been verified.

4.10 The external “Quest” assessment at K2 in September 2007 indicated an

accreditation score of 76%, placing the centre in the “highly commended” category. This accreditation validates the National Benchmarking Survey (April 2007) which indicated the centre was performing well across all the survey criteria. Despite this the audit highlighted some detailed administration issues resulting in a Poor audit opinion. 6 recommendations were in areas where controls are in need of strengthening, these include 4 classified as high priority. The areas of concern and those with the high priority classification are:-

The process for CRB checks at induction and bringing DC Leisures practice for renewal into line with CBC’s own policy (2 Recommendations).

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Ensuring that all timesheets are correctly authorised by Leisure Centre Managers

Minimising the potential for loss of revenue through improvements in security.

Management Responses can be viewed in Appendix A. Housing Rents

4.11 A review of the systems in place for the collection of, and accounting for Housing Rents has been completed. This included:-

Review of all reconciliations carried out by the Rent Control and Housing Facilities Managers. A review of financial authorisation and system access levels. A review of the procedures relating to the Rent Control; Lettings; Neighbourhood Housing Management including collection of arrears; Recovery action prior and including write-off and the Financial control procedures for housing rents. Sample of arrears and write off cases to ensure appropriate action had been taken. Key Control Tests were incorporated in accordance with the requirements of the Audit Commission.

4.12 The overall administration of the Housing Rents system was found to be

Good, and no recommendations have been made.

Planned Maintenance Non Housing

4.13 The programme for Planned Maintenance of the CBC property portfolio which

comprises some 80 properties is prepared by the Senior Surveyor and approved by the Head of Property Services and Procurement with the Leader of the Council. The annual budget is approximately £850,000 per annum.

4.14 The objective of the audit was to provide assurance that sufficient processes

and associated controls are in place to facilitate and underpin the delivery of the planned maintenance program for the Council’s non housing property portfolio. The objectives were achieved by covering the following areas:-

The review of the systems and procedures in place used for achieving of the Planned Maintenance programme. Inspecting a number of surveys and orders within the current 2007/08 financial year.

4.15 The overall administration of the Planned Maintenance non-housing stock

was found to be Good. There were 2 recommendations, but neither were considered a high priority.

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IT Audit - Customer Relationship Manager (CRM)

4.16 The CRM system provides support to front-office services i.e. the Contact Centre. It enables the logging of customer service requests and the transfer to the back office for processing and tracking through to completion. Back office staff can retrieve and update information on customers’ queries from the database as necessary.

4.17 The objective of the audit was to provide assurance that sufficient processes

and associated controls are in place for the CRM application to maintain the confidentiality, integrity and availability of data stored and processed within the system. The objectives were achieved by covering the following areas:-

Input of data and application access control; Data input and processing including the integrity of interfaces to/from other information systems; Output of data; System audit trails; and Arrangements for application recovery.

4.18 There are nine recommendations, 4 being rated as medium priority and 5 have been rated as low priority, the overall audit opinion is Adequate. The main areas for improvement are:

Amendments to access controls;

Backup procedure not being documented;

Backups not tested to verify their integrity.

IT Audit - Geographical Information Service (GIS)

4.19 GIS data is a collection of maps and ‘layers’ to pictorially depict the location of roads, buildings, structures or other features of the landscape. Council departments use this data for a variety of reasons including planning, provision of services, environmental health and housing. Officers are able to see where there may be contentious or litigious issues to be considered by the Council as part of their duty of care.

4.20 The overall objective of the audit was to report a level of assurance on the

key IT controls in place to protect the confidentiality, integrity and availability of data stored and processed within the GIS application. The audit considered the following areas:-

Control over input, processing and output to ensure completeness and accuracy of data;

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Maintenance of an audit trail which allows an item to be traced from input through to its final resting place, and the final result broken down into its constituent parts; Arrangements for creating backup copies of data and programs, storing and retaining them securely, and recovering applications in the event of failure; and Controls to avoid breaches of any statutory, regulatory or contractual obligations, and of any security requirements.

4.21 The overall opinion of the key IT controls in place for the Graphical

Information System audit was found to be Good with 4 recommendations 1 of which was medium and 3 low priority.

Waste Collection – Data Quality

4.22 Using a sample of transactions selected from data taken from:

4th Quarter 2006/2007 for Recycling, 1st Quarter 2007/2008 for Green Waste,

Checks were performed to verify:-

The tonnages for all recycling from the various sources. The calculations for the BVPI’s 82a recycling & 82b composting were inline with Defra guidelines. The figures entered into Covalent are correct.

4.23 Overall the collection and recording of data was found to be Good with

controls being in place and operating satisfactory. Good progress has been made since the Audit Commission Data Quality Review in 2006/2007, with only 1 area requiring further work namely, recycled fridge & freezers whose figure could not be verified. No recommendations have been made. Procurement (06/07)

4.24 In accordance with the National Procurement Strategy, Crawley Borough Council has put in place a procurement code and toolkit to provide key staff with guidance on best practice to ensure value for money is achieved.

4.25 This audit has sought to review the key controls surrounding the procurement

of goods and services and to monitor compliance with the Procurement Code and Toolkit across the authority.

4.26 The overall opinion on the Procurement process has been classified as Poor

with 6 recommendations, 3 of which are given a high priority. The main areas of concern which carry the high priority recommendations are:

Use of the Purchase Order System. - Only 13.4% of orders were completed through the purchase order system. Therefore best value

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for money cannot be demonstrated and commitments are not feeding automatically through to systems in place for budgetary control.

There is evidence to suggest that some budget holders have limited knowledge or understanding of the Procurement Code and Toolkit. Non-Compliance with procurement procedures with reference to the renewal of contracts without going through a tendering process.

Treasury Management

4.27 Based on a sample of transactions, checks were undertaken to ensure that:-

Investment files contained relevant documentation, the interest receivable and repayment terms on maturity;

The sum invested falls within the limits as set out in the Investment Liquidity policy;

Outgoing and incoming funds from / into CBC’s bank account could be traced;

The accounting entries in both the Capital and Interest accounts in the Financial Ledger are accurate; The Independent Investments Register and the monthly reconciliation of this to the balances outstanding in the Financial Ledger is being maintained; The £3m temporary borrowing identified by the Audit Commission in their 2005/06 Management Letter has been repaid. Key Control testing as detailed by the Audit Commission has also been completed.

4.28 The overall administration and operation of the Treasury Management

System was found to be Good. Controls were confirmed as operating satisfactorily and as a result no recommendations were made.

Progress On Implementing Previous Recommendations Data matching of Council Tax and Electoral Registration records in respect of single persons discounts.

4.29 Following on from the joint exercise between Audit and the Revenues team in

2006/07, checks are now undertaken on a monthly rolling basis by the Revenues Team. The Council are also in discussion with the Audit Commission regarding its participation in their national exercise.

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Follow up of Housing Recommendations

4.30 We are also in the process of following up on the implementation of the recommendations arising from our reviews of DSO, Gas Servicing, Gas Boiler Replacement Contract, and Asbestos Management. Progress will be reported under Part B due to the commercially sensitive nature of the reports.

Other Ad hoc Work/Advice and Guidance

4.31 In addition to planned audit coverage, there is often the need to undertake ad

hoc work arising from example the reported breakdown in an internal control, or the possibility of fraud. We are also often requested to provide advice to management on the application or design of a control. Since our last progress report, this has involved us in the following areas:- Money Laundering and Proceeds of Crime Policies and Procedures.

Work had continued on drafting these and have been the subject of consultation with Legal Services to ensure that the draft is in line with the requirements of legislation.

The Happy Hut A report has been produced detailing the financial position of the Happy Hut, including proceeds from assets available for distribution to creditors, how much is owed and to whom, and a proposal for how funds should be distributed. This has been provided to the Chair of the Trustees for their agreement. The report also recommends that CBC write off the sum of £49,964 and this will go forward to Executive in March for approval. The next step will then be to write to all remaining creditors outlining the proposals for the distribution of funds for their agreement. We have also reviewed the Councils procedures for the management of the payrolls for other voluntary organisations to ensure that the Council is protected from further similar losses occurring. A report will be issued shortly.

Environmental Health, Out of Hours Service

A review of the Procurement arrangements for the out of hours service has been completed. Due to the commercially sensitive nature of information contained within the report, this has been included under Part B.

5. Ward Members' Views Internal Audit Coverage does not impact on any specific ward.

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6. Staffing, Financial and Legal Implications/Powers None.

7. Other Implications None.

8. Links to the Community Strategy and Corporate Plan The proposals contained in this report relate to the following key areas of the

Community Strategy

Local Economy Health and Social Care Affordable Housing Community Safety Lifelong Learning Local Environment The following key principles are applicable:- (i) Working together y (ii) Dignity, respect and opportunities for all y (iii) Leaving no-one behind y (iv) Making it last y

The report relates to the following areas in which the Council operates to enhance the town and the quality of life of local people:-

(i) Our Communities: (ensuring they are safe, healthy,

cohesive and enjoyable) (ii) Our Environment: (ensuring that it is attractive, clean,

protected and sustainable) (iii) Our Economy: (ensuring it is thriving, vibrant and

prosperous) (iv) Our Council: (ensuring it is engaging, transparent, y

business-like with a social conscience, cost-effective and a place-shaping community leader)

9. Reasons for the Recommendation Three of the core functions of the Sub Committee are to:- Monitor performance against the internal audit programme;

Review Summary Internal Audit Reports and the key findings arising from those reports; and

To seek assurance that action has been taken where necessary.

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10. Background Papers Revisions to the Internal Audit Plan for 2006/07. Internal Audit Plan 2007/08 Individual Assignment Reports for 2005/06, 2006/07 and 2007/08. Contact Officer:- Jill Hills, Interim Audit Manager Direct Line:- 01293 438384

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Appendix A

Summary of High Priority Recommendations

Report Title : Sheltered Housing

Report Issued:- 18th December 2007

Finding Recommendation Management Response and Responsible Officer

Implementation Date

The Scheme Managers’ Handbook states at section 9.8 that ‘an inventory must be completed on an annual basis and whenever a Scheme Manager takes up or leaves the post. The yearly inventory should be carried out in July of each year and a list submitted to your line manager detailing any requests/replacements for inclusion in the annual budget bids. The Scheme Manager is responsible for ensuring an up to date and accurate inventory is kept. Scheme Managers were contacted and it was found that an inventory had been completed for only two of the schemes in this financial year. These, however, did not comply fully with the requirements of the Scheme Managers’ Handbook, which stipulates that this should take place in July. In all other cases, an up to date inventory had not been maintained.

The Scheme Managers should comply with the Scheme Managers’ Handbook and complete an inventory in July and submit this to their line manager (Special Needs Managers).

The Special Needs Manager advised that under normal circumstances an inventory would be completed annually, in July, in line with the Scheme Managers’ Handbook. However, due to staff shortages and illness, this has not been completed on time, for all schemes this year. This has always been done annually and will continue to be done annually in the future. It is not a case of disagreeing with the Handbook; circumstances made compliance impossible.

July 2008

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Implementation Date

Scheme Managers were contacted to confirm whether they are aware of an evacuation policy for their schemes, in the event of a fire or other serious incident. With regard to the integrated schemes, Managers referred the auditor to the ‘Stay Put’ policy, which requires tenants to stay in their flats in the event of a fire alarm. They were, however, unable to produce any formally documented procedures in the event of the scheme requiring evacuation. With regard to the dispersed schemes, no formally documented procedures were available which covered the evacuation of the scheme.

Procedures for the evacuation of both dispersed and integral sheltered homes schemes should be formally documented and be endorsed by management. These should then be passed to all relevant staff.

We are working towards this at the moment with the West Sussex Fire and Rescue service. They are undertaking a large piece of work, which may take up to 6 months to complete, and this has involved the fire brigade visiting one of the schemes today. Audit Comment It is accepted that the Council is approaching this properly by involving the experts, i.e. the fire brigade and that it cannot be implemented in the short term.

June 2008

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Report Title : Casual Workers



Implementation Date

Line Managers are responsible for ensuring that new starters provide proof of identity and eligibility to work in the UK, in compliance with Section 8 of the Immigration and Asylum Seekers Act. Under the Asylum and Immigration Act 1996, an employer who has failed to obtain proof of identity/eligibility may be subject to a summary conviction leading to a fine not exceeding £5,000. Additionally Immigration, Asylum and Nationality Act 2006, with effect from 29 February 2008, will impose new civil penalties on employers of illegal workers of up to £2000 per illegal employee. It also provides for a new criminal offence of employing a person knowing that they are not legally entitled to work in the UK, with a maximum penalty of 2 years imprisonment and/or a fine. A review of files held by line Managers identified that evidence was not always available to confirm that this check had been undertaken.

HR should remind Line Managers that they should photocopy and retain copies of acceptable documentation in accordance with section 8 of the Immigration and Asylum Seekers Act.

Agreed – the new appointment form will be amended to address this issue and copies of required documents to be attached to original form.

April 2008

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Report Title : K2 Leisure Centre



Implementation Date

CRB checks in compliance with the Children Act It is understood that the procedure for obtaining CRB checks is that at induction a new member of staff is issued with a Child Protection leaflet; shown the location of the company Child Protection Poster and advised not to be in a 1 on 1 situation. 5 minutes is allowed for this in the induction training guide. The induction training guide states that the employee is to fill in CRB and Rehabilitation of Offenders forms referring them to their line manager. An allowance of 5 minutes is also given for this action. The form is then submitted to D C Leisure Head Office who then issue the full 4 page CRB form to the new member of staff, sending it to their home address for completion. It is at this stage that the process can break down as it is possible for the member of staff to neglect/ forget to complete the form. Where the member of staff completes the form and returns it to D C Leisure, they will then submit the form for the CRB check to be carried out. The results of the check are then emailed to the Payroll department at K2 where they file the email on the staff file.

New members of staff should complete the full CRB form at their induction, following which the completed form should be passed to the Payroll department for them to copy for the staff file and either carry out the CRB check locally or pass the form to D C Leisure Head Office to perform the check. .

. CRB forms are now available on site and sent directly to the CRB. Forms are included in all staff induction packs so they are completed at the commencement of employment.

Implemented

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Implementation Date

A sample of 30 staff files was reviewed. It was found that of the sample 10 did not hold any record of CRB checks being carried out. Whilst it is appreciated that CRB checks are not required for all members of staff, of the 10 found, 2 were Life Guards and 1 a fitness instructor. Best Practice dictates that CRB checks should be renewed/updated every 3 years as per CBC policy. This procedure is not currently in place within DC Leisure

CRB checks should be updated every 3 years or as legislation or D C Leisure policy decrees

DC Leisure company procedure is not to carry out updated checks. However the Crawley Borough Council policy for review every three years will be included in the new specification for leisure management in 2008. Complete. See Section 2.3 Staff vetting Procedures of the Sports and Leisure Management Specification

Implemented

During the review of the timesheets, it was evident that the required weekly production of all staff timesheets is not completed and therefore collated correctly for each month’s processing. Furthermore, some of these were not receiving the correct authorisation by the relevant manager.

All timesheets should be completed using the company standard format on a weekly basis and then collated each month for processing and be properly authorised by an appropriate signatory.

Authorised signatory list to be updated to include some recent new staff. Action taken as confirmed by Steve Warriner by e mail dated 13/02/08

Implemented

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Implementation Date

It was found that control over access to the K2 and it’s facilities is weak resulting in the potential for loss of revenue. This considered to be for the following reasons:- The original concept of access to the K2 facilities was that of purchasing a ticket at the reception desk which would allow access through a turnstile. The arms of the turnstiles have been removed and the ticket slots covered up allowing open access to all facilities other than the climbing wall and the gymnasium which are operated by licensees and have separate access arrangements.

It is understood that access can be gained through the boundary fence allowing use of the outside facilities.

By observation and discussion with staff it was found that there is the potential for customers to use the pool and the sauna without paying. It appears that no one is challenged on entry if they are not wearing a wristband. Through discussion with the Front of House Manager, it is understood that the fast track machine for members to use is no longer in use.

Access controls should be reviewed to ensure all available revenue is captured. When re-examining the procedures they must include both indoor and outdoor activities. Once the assessment has been completed any new practices should be clearly communicated to the K2 staff and agreed with all relevant parties i.e. D C Leisure and Crawley Borough Council.

“DC Leisure have considered the installation of security access to the sauna/steam rooms but have not taken this forward at present due to cost implications”. Steve Warrinor 13/02/08.

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Appendix B

Internal Audit Plan 2007/08

Progress Report as at 15th February 2008

(table includes some reviews carried forward from 2006/07 completed in 2007/08)

Audit Area Budget/

days

Provisional Timing

Fieldwork Commenced

Draft Report Issued

Management Responses Received

Final report Issued

Findings reported to

Audit & Governance

Comments

Risk Management & Business Continuity Planning Overview/ Emergency Planning

20 March 2007 20/03/07 30/11/07

Payroll 10

September 06

November 06

04/06/07 18/6/07 and 6/8/07

05/08/07 24/09/07

Human Resources 10 September 06

n/a n/a n/a n/a n/a Deferred in light of internal review of procedures. Combined with Payroll review.

Improvement Grants/DFG 10 April – June 07

06/06/07 19/07/07 01/08/07 03/08/07 24/09/07 Carried forward from 2006/07

Cashier Services 10 February 07 20/02/07 n/a n/a 22/06/07 24/09/07 Final Memo – no recommendations made.

Follow Ups & Enhancement on Computer Audits General Provision.

iworld–Benefits, Council Tax and NNDR

20 February 07 08/01/07 07/03/07 30/05/07 02/07/07 24/09/07 Further discussion required following issue of draft report.

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Audit Area Budget/

days

Provisional Timing

Fieldwork Commenced

Draft Report Issued


Final report Issued


Audit & Governance

Comments

Data Protection 5 April 2007 24/04/07 31/07/07 28/08/07 28/08/07 24/09/07

Project Management 15 January 07 In discussion with Management this has now been combined with the 06/07 Corporate Governance budget, to facilitate a review of Data Quality in relation to BPVI’s in advance of the Audit Commission review early in 2007/08.

Capital Expenditure 8 March 07 12/03/07 Review of Draft report has been delayed due to other priorities. Will now be issued as soon as possible.

Outsourced Contract Management Arrangements

15 April 2007 July 07

Draft report being reviewed prior to issue

Crawley Homes

Responsive Repairs 20 Autumn/

Winter 07

16/11/07 Now 13 days, to be spent on Mears Invoice processing follow up. Draft being reviewed prior to issue

Mears Review 10 Autumn/

Winter 07

Budget reallocated to accommodate additional coverage of Gas Servicing.

20

Audit Area Budget/

days

Provisional Timing

Fieldwork Commenced

Draft Report Issued


Final report Issued


Audit & Governance

Comments

PH Jones Open Book Review 10 Autumn/

Winter 07

Budget reallocated to accommodate additional coverage of Gas Servicing/Boiler replacement contract

Gas Servicing 10 May 07 23/4/07 22/6/07 11/07/07 11/7/07 October 07

Gas Boiler Replacement Contract 5 May 07 25/5/07 2/7/07 11/7/07 11/7/07 October 07

DSO 20 May/June 07 26/04/07 09/07/07 22/08/07 24/9/07 October 07

Repairs Recharges to Tenants 10 Spring 08 Deferred in favour of Decent Homes Audit

Planned Maintenance 15 July/August 07

16/8/07 04/01/08 Responses not expected until early Feb given Audit Commission inspection

Asbestos Removal 10 Autumn/

Winter 07

18/6/07 03/09/07 24/09/07 25/09/07 October 07

Void Management 10 June 07 29/6/07 2/8/07 8/8/07 29/8/07 October 07

Sheltered Housing 10 Summer 07 Oct 07 06/12/07 06/12/07 18/12/07 February 08

Lifeline 10 Winter 07 Dec 07

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Audit Area Budget/

days

Provisional Timing

Fieldwork Commenced

Draft Report Issued


Final report Issued


Audit & Governance

Comments

Management Information 20 June/July 07 Deferred, due to additional testing required on DSO

Total days 160

Fundamental Systems

Budgetary Control 20 21/05/08 01/02/08

General Ledger 10 February/ March 08

February

Payroll 15 21/01/08 February

Creditors 10 February/ March 08

February

Sundry Debtors (including Estateman) 20 January/ February 08

In Progress

Treasury Management 10 Aug/Sept 07

August 07 N/A N/A 08/11/07 February 08 No high recommendations to

report

Fixed Assets 4 March 08 February

Council Tax 15 March 08

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Audit Area Budget/

days

Provisional Timing

Fieldwork Commenced

Draft Report Issued


Final report Issued


Audit & Governance

Comments

NNDR 15 March 08

Housing and Council Tax Benefit 15 March 08

Income Collection 10 February/ March 08

Housing Rents 10 September 07

September 07

19/12/07 N/A 19/12/07 February 08 Final Memo, No recommendation made

Total Days 154

Corporate Systems

Risk Management 10 March 08

Governance 10 March 08

Corporate Planning 10 March 08

Business Continuity Planning (non-IT) 10 On Hold pending finalisation of BCP IT

report as those findings will impact upon this

review

Project Management – Town Centre North

10 In Progress 11/12/07

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Audit Area Budget/

days

Provisional Timing

Fieldwork Commenced

Draft Report Issued


Final report Issued


Audit & Governance

Comments

Project Management – Bewbush and Langley Green Regeneration

10 In Progress

Partnership Arrangements 20 Deferred to 08/09 following discussions

with the Head of Planning Services to

enable recent changes in procedures to bed in

Planned Maintenance – non housing stock

5 August/

September 07

1/8/07 01/10/07

30/09/08 20/11/07 February 08

No high Recommendation made

Total Days 85

Human Resources

Management Training and Development

10 August/

September 07

22/8/07 Deferred until 2008/09 due to rescheduling of training for managers

Recruitment and Retention 10 Deferred to 2008/09 to allow time for revisions

to policy to bed in

Equal Pay Policy 10 Feb/March 08

Audit Area Budget/ Provisional Timing

Fieldwork Commenced

Draft Report Issued

Management Responses

Final report Issued


Comments

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days Received Audit &

Governance

Casual Workers 10 September 07

07/09/07 18/12/07 11/01/08 07/02/08 February 08

Absence Management 8 July 07 03/05/07 18/07/07 Aug 07 14/09/07 24/09/07 Finalisation delayed by annual leave commitments.

Performance Management 8 Deferred to 2008/09 following discussions

with Head of HR

Total Days 56

Planning and Environment

Section 106 Agreements 15 September 07

17/08/07 14/01/08

Community Services

Cohesion Strategy 5 Superseded by Community Strategy

Community Wardens 10 August/ September

07

09/08/07 Review of draft report delayed due to other

priorities

25

Audit Area Budget/

days

Provisional Timing

Fieldwork Commenced

Draft Report Issued


Final report Issued


Audit & Governance

Comments

K2 Leisure Centre 10 August/

September 07

17/8/07 24/10/07 28/11/07 19/12/07 February 08

Amenities – Data Quality Waste Management

10 Aug 07 04/07/07 N/A N/A 08/01/08 February 08 Final Memo, No recommendations

made

Amenity Services – Stock Control 8 Deferred to 2008/09 due to delay with new

depot

Total for Community Services 43

IT Audits

Leisure Booking System 20 System no longer being implemented due to problems with the Software. 5 days

reallocated to a review of compliance with the Payment Card Industry

Standard

Uniform 15 On hold pending discussion of scope

GIS (Geographical Information Service)

10 October/ November 07

October 2007

02/01/08 9/10/08 tbc February 08 No High Recommendations to

report

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Audit Area Budget/

days

Provisional Timing

Fieldwork Commenced

Draft Report Issued


Final report Issued


Audit & Governance

Comments

FMS Upgrade including Asset Register

10 January/

February 08

January 08 15.02.08 Asset Register element has been deferred as this module is now not

likely to be implemented prior to

year end

AUDDIS 10 April – June 07

21/06/07 15.02.08 Issue of draft delayed pending receipt of

information from ICT

CRM (Customer Relationship Manager)

10 April – June 07

03/05/07 17/07/07 31/08/07 05/09/07 February 08 No High Recommendations to

report

Follow ups and enhancements 10 February/ March 08

Total Days 85

Audit Commission Year-end Testing 20 April – June 07

April 07 n/a n/a n/a 24/09/07

Total Days Planned 618

27

Appendix C Audit Opinion – Definition

Overall Audit Opinion

Good Controls are in place and operating satisfactorily.

Reasonable assurance can be given that the system, process or activity should achieve its objectives

safely and effectively.

Adequate There are some control weaknesses but most key controls are in place and operating effectively.

Some assurance can be given that the system, process or activity should achieve its objectives safely and

effectively.

Poor Controls are in place but operating poorly or controls are inadequate.

Only limited assurance can be given that the system, process or activity will achieve its objectives safely

and effectively.

Unsatisfactory Controls are failing or not present.

No assurance can be given that the system, process or activity will achieve its objectives safely and

effectively.

Documents

Crawley Borough Council · Crawley Borough Council Report No: ... together with the basis of payment and the monitoring of their budgets ... input through to its final resting place,