Agenda item - Internal Audit Plan Reports

Agenda item

Internal Audit Plan Reports

Minutes:

The Committee considered a report which presented the Internal Audit reports for the AMP Technology Centre and Core Financial Controls. 

 

Members noted that the objective of the AMP Technology Centre review was to provide an independent and objective assessment of the design of MCA controls and the effectiveness of those controls relating to the internal and financial reporting arrangements within the Centre and the accuracy around financial reports received.

 

The audit concluded that the processes provided partial assurance with improvement required.  Based on the findings, eight recommendations had been made.  Full details of these were contained within the report. 

 

Following publication of the AMP Technology Centre report in January 2021, it was confirmed that significant progress had been made in implementing the recommendations. 

 

L Mackenzie said that a bespoke follow-up review on the AMP Technology Centre was scheduled within the Internal Audit Plan to be undertaken later in the year. 

 

Councillor Auckland asked if the management arrangements in place with the third party managing agent for the AMP Technology Centre had the capacity to meet public service standards with regards to financial debt management. 

 

In response, G Sutton said that the management agent for the Centre was performing well, however, there had been some lapses which had been identified within the Internal Audit review.  In relation to financial debt management, bespoke systems had now been developed and were being regularly reviewed. 

 

G Sutton added that, if the Committee wished to receive a report on the AMP Technology Centre’s financial performance and its management of outstanding debt, he would be happy to provide this to the Committee in June 2022. 

 

The Committee endorsed the suggestion.  ACTION: G Sutton – C James to add to the Committee’s Work Plan. 

 

Councillor Jones queried if performance indicators were in place for the AMP Technology Centre. 

 

G Sutton replied that the Business Plan for the AMP Technology Centre contained a broad suite of performance indicators.  For example, occupancy levels and responsiveness to complaints etc.  G Sutton added that, if the Committee wished to receive a report later in the year around the Centre’s performance indicators he would be more than happy to provide this. 

 

The Committee endorsed the suggestion.  ACTION: G Sutton – C James to add to the Committee’s Work Plan. 

 

Members noted that the Core Financial Controls review for the MCA and SYPTE was focused on the following potential risk areas:

 

·         General ledger

·         Accounts payable

·         Accounts receivable

·         Cash & bank

·         Payroll

·         Capital Accounting

·         Budgetary Control

 

The audit concluded that the processes provided significant assurance with some improvement required.  Based on the findings, sixteen recommendations had been made.  Full details of these were contained within the report. 

 

In response to a query from Councillor Bluff, L Mackenzie confirmed that there had been no instances with regards to the segregation of duties with regards to the approval of journals and accounts payable. 

 

RESOLVED – That the Audit and Standards Committee considered the findings and recommendations of the internal audits on:

 

1.      AMP Technology Centre

2.      Core Financial Controls

Supporting documents: