Archived decisions
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Hampshire Fire and Rescue Authority Governance Committee Item 8 | |
20 November 2009 |
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Internal audit progress report 2009/10 | ||
Report of the Treasurer | ||
Contact: Karen Shaw, tel 01962 846194 or email [email protected]
1 Summary
1.1 This report summarises:
· progress against the Authority's internal audit plan for 2009/10
· an update on action taken by management to address the issues raised in the annual internal audit opinion for 2008/09
· significant matters arising from 2009/10 internal audit work
· priorities for the remainder of 2009/10.
2 Recommendations
2.1 That members of the Governance Committee approve the progress of internal audit work during 2009/10.
3 Progress against the internal audit plan for 2009/10
3.1 The 2009/10 internal audit plan was prepared in line with the updated internal audit strategy that was approved by the Governance Committee in November 2007. The original plan totalled 250 days and, in addition, 31 days of work in progress was carried forward from last year. The actual days delivered in the six months ending 30 September 2009 are shown below.
Days |
Days | |
Previous year carry forward |
31 | |
2009/10 agreed audit plan |
250 |
|
Variations to the plan |
(5) |
|
Revised 2009/10 plan |
245 | |
Total for 2009/10 |
276 | |
Actual days delivered to 30 September 2009 (including carried forward work) |
120 | |
Percentage of total 2009/10 plan delivered |
43% | |
3.2 A summary of the audit opinions given to date for each completed review is included in Appendix A.
3.3 Variations made to the plan up to 30 September 2009, amount to a decrease of five days compared to the original agreed plan. This variation arose from:
· an additional five days to review the new retained duty `Garton' system, a resource management ICT system rolled out to fire stations from May 2009. The testing for the Retained Firefighters Audit is nearing completion and the outcomes will be reported in the annual opinion.
· a reduction of ten days to review project management as the revision of management arrangements and acquisition of a new project management system has been postponed to at least 2010/11.
3.4 The number of completed audits and status of the remainder as at 30 September 2009 are summarised below:
2009/10 Plan (revised) |
Issued reports* |
In progress |
To start | |
Annual report |
1 |
0 |
0 |
1 |
Key financial systems |
2 |
0 |
1 |
1 |
Establishments |
4 |
1 |
2 |
1 |
Departmental systems |
12 |
1 |
3 |
8 |
VFM reviews |
0 |
0 |
0 |
0 |
Computer audit |
3 |
0 |
0 |
3 |
2008/09 carried fwd |
2 |
2 |
0 |
0 |
TOTAL |
24 |
4 |
6 |
14 |
* Includes reports currently in draft.
4 Action to be taken by management to address the issues raised in the annual internal audit opinion for 2008/09
4.1 The 2008/09 annual internal audit opinion, reported to members of the Governance Committee in June 2009, raised new or ongoing concerns in a number of areas which are summarised below.
Data quality
4.2 The 2008/09 annual report highlighted that roles and responsibilities for data quality had not been assigned and a Data Quality Strategy was not in place. Roles and responsibilities have now been assigned to the Risk Intelligence Team who are also in the process of drafting a Data Quality Strategy as part of the development of a broader Data Management Strategy.
4.3 Issues arising from the implementation of the new national Incident Recording System on 1 April 2009 has resulted in the need to review the quality of incident data in particular. This review is currently underway with updates provided to senior management. The outcomes of this review may inform the development of the Data Quality and Management Strategies and as a result, progress has been slower than expected in finalising the strategies. A further audit of data quality is currently planned for quarter four.
Fleet Maintenance Centre
4.4 Concerns have been raised over the Fleet Maintenance Centre (FMC) in previous reports, in particular over the resilience and ability of the stock control system to produce useful and timely management information. No formal audit work was carried out in 2008/09 due to the relocation of the FMC and management changes.
4.5 The planned review for 2009/10 has subsequently been delayed following the appointment of external consultants to review the FMC's performance, management structures and associated ICT systems. The external consultant's review was reported to the Performance Review and Scrutiny Committee in September 2009. The internal audit review of the FMC has been placed on hold pending the implementation of the external consultant's recommendations for improvement.
Fuel issues
4.6 It was reported in the 2008/09 annual opinion that the majority of concerns had been addressed and inadequate management information for fuel stocks would be addressed with the acquisition of a new fuel management and monitoring system. The system acquisition has been delayed therefore as an interim solution, we understand that controls have been improved with the enhancement of manual monitoring.
5 Significant matters arising from 2009/10 internal audit work
5.1 A number of recommendations have been made as a result of the 2009/10 audit work. Whilst they have been significant to the systems concerned, the recommendations are not material in the context of the Authority as a whole.
6 Irregularities
6.1 There have been no irregularities reported during the first half of the year.
7 National Fraud Initiative
7.1 Data matches reported by the Audit Commission as a result of the 2009 National Fraud Initiative have been risk assessed and are in the process of being investigated. No significant issues have been raised to date. The exercise will be completed in quarter three and results reported in January 2010.
8 Priorities for the remainder of 2009/10
8.1 Our priority for the remainder of the year is to complete the internal audit plan to enable us to provide an internal audit opinion for 2009/10 in line with the internal audit strategy. The resources are in place to achieve the audit plan.
9 People Impact assessment
9.1 The proposals in this report are considered compatible with the provisions of the European Convention on Human Rights, the Human Rights Act 1998 and the Race Relations (Amendment) Act 2000.
10 Resource implications
10.1 The cost of preparing the internal audit progress report are provided for in the Authority's revenue budget.
10.2
Appendix A
Hampshire Audit Services internal audit update - summary of main issues reported during the period 1 April 2009 to 30 September 2009
System |
Assurance |
Opinion on the framework of control (note 1) |
Controls operating in practice? |
Main Issues Appropriate action has been agreed, or, is under consideration by relevant managers to address these issues and progress is being monitored by management |
Key financial systems: |
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Budget management and financial planning |
In progress | |||
Departmental systems: |
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Strategy and planning |
In progress | |||
Retained Firefighters |
In progress | |||
Capital contracts |
In progress | |||
Unofficial funds |
Full |
Appropriate |
With exceptions |
Some social club cheques have been pre-signed leaving the risk that funds could be misused. We understand that a reminder will be sent to all staff during quarter three to not pre-sign cheques. |
Emergency Catering |
Full |
Appropriate |
Yes |
No costing exercise has been completed since 2007 leaving the risk that charges levied do not reflect the actual cost of the service. Management plans are for a full costing exercise to be completed before the end of 2009/10. |
Overtime |
Full |
Appropriate |
Yes |
None |
Establishments Wholetime |
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Winchester |
Full |
Appropriate |
Yes |
None |
Andover |
In progress | |||
Havant |
In progress |
Note 1 - the definitions for opinions are given in Appendix B.
Appendix B
Audit opinion definitions:
Appropriate |
Sufficient controls exist to manage the key risks identified in an effective and efficient manner. |
Incomplete |
One or more key controls are missing therefore there is a need to introduce additional key controls to manage the risk to the organisation. |
Inadequate |
Controls are considered to be insufficient to manage the risks identified, with the absence of at least one critical control mechanism. Failure to improve controls could lead to increased risk of major loss or embarrassment to the organisation. |
Section 100 D - Local Government Act 1972 - background papers
The following documents disclose facts or matters on which this report, or an important part of it, is based and has been relied upon to a material extent in the preparation of this report.
NB the list excludes:
Published works.
Documents which disclose exempt or confidential information as defined in the Act.
None