Issue - meetings

Report of the Director – Finance and Corporate Services

Ms C Thomas from BDO the Council’s Internal Auditors presented the Council’s Internal audit Progress Report for quarter 1 (Appendix A), which highlighted the completion and issuing of three reports and one advisory review as follows:

The Budgetary Control Audit: Received a substantial rating for both Design and Effectiveness with two low level findings around the training for monitoring officers and consistency with regards to the variations in the notes provided during monitoring.

The Main Financial Systems Audit: Received a substantial rating for Design and Moderate for Effectiveness, with four low level findings around accounts receivable and payroll. With regards to accounts receivable the findings highlighted the checking and evidencing of new supplier information and the reconciliation of journals under £10k. With regards to payroll which is supported by Gedling Borough Council the findings highlighted the segregation of controls and HR having access around temporary election staff and around a one-off review and reconciliation.

The Workforce and Succession Planning Audit: Received a substantial rating for both Design and Effectiveness with two low level findings around a workforce gap analysis and an AI Strategy and a framework around identifying high performing

staff.

The Group noted that management actions had been agreed for all recommendations and follow up actions from previous audits had been completed in line with the recommendations.

The Auditors also completed an advisory review of the Council’s Fraud Risk Assessment, an advisory piece of work assessing the Council’s current position against best practise. It was noted this assessment did not generate an assurance opinion.

Councillor Polenta asked a specific question relating to the separation of duty in respect of journal controls and if the process was not automated. Ms Thomas explained this was in relation to manual journals, and the Head of Finance confirmed these were not payments but movements within the General Ledger and would be identified during budget monitoring.

Councillor Regan asked whether the £10k threshold in respect of the reconciliation of journals was too high and whether the Council had anything in place to mitigate any further risk. Ms Thomas explained that generally the number of manual journals is low as most are automated and had recommended manual journals are reviewed. The Head of Finance reiterated that the risk from manual journal below £10k was low and would be picked up during budget monitoring and that going forward any new finance system would hopefully provide functionality for approval of all journals.  

Councillor Birch commented on a fraud investigation at Gedling Borough Council and asked if Rushcliffe could learn anything from this. The Director – Finance and Corporate Services advised the fraud investigation at Gedling was a long-term case and explained mitigation controls are in place, but they are not a guarantee that fraud won’t happen.

Councillor Calvert highlighted the high staff retention rates and job satisfaction across all critical roles which was positive.

Councillor Polenta commented on the training budget for each department and what happens to the money if these budgets  ...  view the full minutes text for item 12