Issue - meetings

Report of the Director for Finance and Corporate Services

Mr Dulay from BDO, the Council’s internal auditors presented the third Internal Audit Progress Report for this financial year, in Appendix A, which reflects the progress made against the Annual Internal Audit programme along with any significant recommendations with regards to the audits completed during this period.

The report highlighted the completion and issuing of one report from the Internal Audit Annual Plan as follows:

The Main Financial Systems

This audit received a substantial rating for both design and operational effectiveness. Mr Dulay informed the Group of three low level findings of concern:

1.     In one instance an officer external to the finance team had been granted both requisitioner and authoriser level access up to the value of £15,000. However due to the systems automated controls this was deemed a low risk finding.

2.     In respect of the procurement card procedure notes, these do not state what type of spend is permitted and associated limits nor the requirement for cardholders to retain receipts.

3.     In two instances invoices that had been raised from Purchase Orders on the e-procurement system had goods received values different from the invoice. These related to annual contracts where the goods receipt had been completed ahead of the service being received.

Mr Dulay explained that overall, the council has good controls in place to manage its main financial system and that the findings raised are low level findings and would be addressed by management.

Members asked whether the concerns had been actioned by management, highlighting the individual officer access to both requisitioner and authoriser and the potential risk of fraudulent activity occurring. The Service Manager – Finance confirmed that all management recommendations had been completed and the relevant controls were in place. In respect of the individual who had been granted access to both requisitioner and authoriser this had not been picked up when the officer had changed roles. The Service Manager – Finance advised that the financial system does not allow an individual to raise and authorise a purchase order/invoice.

It was RESOLVED that the Group notes the Internal Audit Progress Report for 2022/23 prepared by the Council’s Internal Auditor.