Agenda item

The Internal Audit Progress report provided details of the internal audit work undertaken since the last Governance and Audit Committee meeting on 12 January 2023.

Members were informed that since the last meeting of the Governance and Audit Committee in January, a total of 10 reports had been issued; the conclusions of these reports could be found in Appendix 1 of the circulated report. It was mentioned that all 10 reports either had a substantial or reasonable assurance rating.

Reference was made to the report relating to Children’s Services, Emergency Payments. Officers were asked to provide information as to why the assurance rating was set as reasonable, as opposed to substantial. It was explained that the assurance ratings, which were provided following an audit, were formulated by the number of recommendations made, the likelihood that the failure to action the recommendations within six months would lead to a significant system failure, and the impact of any system failure; this information would then be put into a formula and a category rating of 1-4 would be produced, all of which linked to the assurance ratings. It was highlighted that internal audit provided a number of recommendations following the audit, in particular in relation to  several petty cash accounts which hadn’t been used in a considerable amount of time; auditors recommended that these accounts needed to be formally closed down. It was added that there were also a few reimbursements which had been long outstanding. The Committee were informed that although in general the controls were noted to be of good standard, auditors made recommendations to further enhance the controls that were in place; hence the reasonable rating, instead of the substantial rating.

Queries were made in regards to Brynamlwg Complex Health Service. Officers highlighted that Brynamlwg was a day service, operated by colleagues in Social Services, for service users with very complex health needs.

A discussion took place in regards to the report relating to Fleet – Vehicle Fuel. The circulated report stated that there was a longstanding problem whereby the Fleet Service were not consistently being notified of relevant staffing changes and where driver tags were not being returned. It was noted that internal audit provided a recommendation to the Fleet Service, in which they should undertake an exercise to cancel all of the outstanding driver tags using the information provided by Internal Audit, and update the records accordingly; it was confirmed that this recommendation was in progress. In addition, it was explained that internal audit recommended that the Fleet Service liaise with colleagues in Payroll and IT with a view to creating a report from the Council’s iTrent system, which could be generated periodically to show all staff who were in possession of a driver tag and which staff had left the Authority. It was noted that the current process was that the Accountable Manager would notify the Fleet Service when a member of staff left the Authority; however, this wasn’t always occurring.  Officers mentioned that internal audit also recommended for all management across Neath Port Talbot Council to ensure that they had suitable processes in place for returning driver tags when staff left their service. It was added that all recommendations will be checked on, as part of the post audit review process.

Further to the above, Officers confirmed that the auditor who undertook the review had been in contact with the Service Manager and colleagues in Payroll to take forward the discussion around reports being produced from the iTrent System. Additionally, Officers highlighted that they had received confirmation from the Service Manager, that no fuel had been purchased from any of the driver tags that were assigned to ex members of staff; all of which had since been cancelled.

Following the discussion, Members stated the importance of recognising that the service should not be reliant on internal audit to detect these matters, and that there should be sufficient controls in place to stop the potential of fraud crimes.

In regards to the Data Protection Registration for Schools, Members asked Officers of the potential consequences of not being registered with the Information Commissioner’s Office, and not having paid the appropriate fee. It was confirmed that the schools could be liable to a fine up to the value of £4,350. Officers mentioned that the schools who were identified as not having an up to date registration, had all completed the registration on the day that they were advised by the auditor.

Further to the above, it was asked if schools would need to ensure that they re-visit the Fee Payers Register on an annual basis. Officers confirmed that prior to the date of registration, they recommended that all schools conduct a review to ensure that they were on the correct tier, and had paid the correct fee before the registration lapses.

The Audit Plan Monitoring, detailed in Appendix 2 of the circulated report, made reference to a Pupil Development Grant Working Group; Members asked for further information about this Working Group and how it was established. Officers explained that Welsh Government changed a number of grants within the education field; following these changes, Neath Port Talbot Council were awarded a Pupil Development Grant. It was noted that Welsh Government provided very little guidance in regards to how the money could be utilised; therefore, a working group was set up, consisting of senior staff within the Education Directorate, as well as the Councils senior auditor. Officers highlighted that the discussions in the working group were focused on how to best use the grant monies, and ensure that should the grant be audited externally, the Council would have a rationale as to why the money was used for the purposes suggested. It was noted that the work of this Group had since concluded, and Officers were content with how the grant monies were intended to be spent across the schools eligible for some of that grant.