Tactical Audit Plan – 2007 08

Director Of Finance

Sujets

• management
• risk management
• managers

Informations

• Publié par: Anjoi
• Nombre de lectures: 12
• Langue: English

Extrait

THE HIGHLAND COUNCIL

Agenda

Item

AUDIT AND STANDARDS COMMITTEE – 21 MARCH 2007

Report

No

Tactical Audit Plan – 2007/08

Report by Head of Internal Audit and Risk Management

SUMMARY

This report contains details of the annual review which was undertaken during January and

February of this year in order to revise Audit Plans for the financial year 2007/08.

The revised Tactical Plan, attached, is the result of needs assessment undertaken, with the support

of Service Directors, in consultation with Audit Scotland, and includes consideration of the current

Risk Assessment methodology adopted by the Council.

1.

INTRODUCTION

Internal Audit activity is planned to enable an opinion to be given, in the form of an Annual

Assurance Statement, on the systems that:

achieve the corporate objectives of the Council

manage material risks (

both financial and non-financial

) faced by the Council.

The Head of Internal Audit and Risk Management is responsible for producing a risk assessment for

an annual plan to prioritise the work required to take into account the relative risks in the Council’s

activities and systems and to give the above opinion.

2.

AUDIT ENVIRONMENT

In order to take account of the changing environment within the Council, the audit environment

(Audit Universe) is reviewed on an annual basis, to allow for production of an agreed Annual

Tactical Plan before the commencement of the new Financial Year.

The review incorporates research of all the Council’s activities, and discussion with Service

Directors and Senior Management regarding new/defunct systems, initiatives, or risks.

3.

AUDIT NEEDS ASSESSMENT AND RISK ANALYSIS

The second phase of the exercise is to review the risk scores for all the auditable activities identified

against pre-determined risk factors. This part of the process was undertaken in consultation with

Service Directors and senior staff in Internal Audit. As previously advised, the long-term

development of this process should see it align more closely with the Council’s risk management

framework, until eventually the risk registers are robust enough to inform the plan directly.

4.

ALLOCATION OF RESOURCES

The next phase of the review exercise has two components:

to identify the number of audit days available in the forthcoming year,

to allocate the audit reviews identified in the Audit Needs Assessment stage, in

descending risk priority order, until the available staffing resource has been fully

committed.

In identification of the number of days available the total number of working days for the year is

reduced by:

Unavailable days (annual leave, public holidays, sickness)

Administration and Management days (Best Value review, Audit Manual etc.)

Commitments (Joint Boards, audit certificates, Eden Court, Island Councils)

Allowances for unknown demand (advice, consultancy and contingency).

A summary of the staffing resource is shown at Appendix 1.

The allocation of the remaining resource is shown in the Appendices 2 (Tactical Plan – Highland

Council) and 3 (Tactical Plan – Computer Audit).

5.

EVALUATION OF ADEQUACY OF RESOURCES

During the Best Value Review of Internal Audit a benchmarked target of 35% annual coverage of

the Audit Universe was identified. As part of the measures undertaken following this review our

Internal Audit Manual requires us to reassess the adequacy of staffing resources with regard to

attainment of this target on an annual basis.

The current staffing resource, detailed at Appendix 1, show that the amount of days available for

planned audit work is as follows:

General Audit

Computer Audit

912

174

representing a planned coverage of 25% of the Audit Universe for Highland Council.

The resource required to fulfil the 35% annual coverage target would be:

General Audit

Computer Audit

1197

242

This analysis highlights a total staffing shortfall of 353 days.

The section has also been operating (and will continue to operate for the foreseeable future) with a

vacant post, due to the cost-cutting measures employed by the Finance Service to facilitate required

budget savings.

It is important that the Council is clear that any shortfall due to this lack of staffing resource

constitutes an acceptance by the Council of the control risks in these areas, and that no assurance,

regarding the adequacy of the control framework in these systems, can be offered.

6.

CONCLUSION

The Tactical Plan shows the planned audits for 2007/08, and the chart below graphically illustrates

the spread of audit activity for the forthcoming financial year.

0

50

100

150

200

250

300

Chief

Executive

Corporate

Services

Education

Culture and

Sport

Housing

Planning and

Development

Property &

Architectural

Services

Social Work

Transport,

Environmental

and

Community

Services

Central

Systems

(Finance)

Corporate

Activity

Planned Audit Activity by Service 2007- 08

Audit Days

Computer Audit Days

The graph demonstrates an even spread of activity across all Services. Central Systems, which

includes all the main financial systems and impacts on all Services, has by its nature, a higher

demand level.

Systems to provide monitoring of success against the plan are helping to ensure that audits are

completed within budget wherever possible. The effect of recent staffing changes are now

beginning to dissipate, however we do still have one vacant post which is effecting the level of

coverage that can be achieved.

RECOMMENDATION

Members are invited to consider the attached plan, raise any matters of interest with the Head of

Internal Audit and Risk Management, and approve the Tactical plan for the year 2007/08.

Signature:

Designation:

Head of Internal Audit and Risk Management

Date:

5 March 2007

Internal Audit Staff Availability 2007-08

Highland Council

Appendix 1

INTERNAL AUDIT

COMPUTER AUDIT

PRINCIPAL

AUDITOR

SENIOR

AUDITOR

AUDITORS

AUDIT ASSISTANTS

TOTALS

AUDITOR

AUDIT

ASSISTANT

TOTALS

WORKING DAYS

260

260

260

260

260

260

260

0

260

260

2340

260

156

416

LESS UNAVAILABLE DAYS

ANNUAL LEAVE

29

29

29

29

29

24

29

24

24

246

29

19

48

PUBLIC HOLIDAYS

10

10

10

10

10

10

10

10

10

90

10

7

17

SICK ABSENCE

5

5

5

5

5

5

5

5

5

45

5

2

7

STUDY LEAVE

5

10

15

SPECIAL LEAVE

1

1

1

1

1

1

1

1

1

9

1

1

2

OTHER ABSENCE

1

1

1

1

1

1

1

1

1

9

1

1

2

TOTAL UNAVAILABLE DAYS

46

46

46

46

46

41

51

0

41

51

414

46

30

76

AVAILABLE DAYS

214

214

214

214

214

219

209

0

219

209

1926

214

126

340

LESS ADMINISTRATION/ TRAINING

TOTAL ADMIN/ TRAINING

71

83

32

52

25

25

48

0

24

44

404

25

15

40

AVAILABLE AUDIT DAYS

143

131

182

162

189

194

161

0

195

165

1522

189

111

300

LESS COMMITMENTS

EDEN COURT

10

10

AUDIT CERTIFICATES

10

25

20

10

65

PERFORMANCE INDICATORS

25

15

40

NORTHERN CONSTABULARY

10

47

30

87

7

6

13

HIGHLANDS & ISLANDS FIRE

BRIGADE

15

28

43

3

4

7

ASSESSOR

5

15

20

ISLAND COUNCILS

0

30

30

TOTAL COMMITMENTS

10

0

72

15

15

25

73

0

45

10

265

40

10

50

LESS ALLOWANCES FOR UNKNOWN DEMAND

ADVICE

5

9

11

5

3

7

40

8

8

CONSULTANCY

20

10

8

6

11

55

33

33

SPECIAL INVESTIGATIONS

5

5

30

30

70

0

CONTINGENCY

22

22

22

22

22

22

16

16

16

180

25

10

35

TOTAL ALLOWANCES

32

46

43

60

27

72

21

0

21

21

345

66

10

76

AVAILABLE FOR PLANNED REVIEWS

78

83

69

89

149

99

72

0

134

139

912

83

91

174

Tactical Plan 2007-08

Highland Council

Appendix 2

2007/08

Organisation

Section

Audit Name

Proposed Audit Scope for 2007/08

Risk

Audit

Days

Highland Council

Corporate Activity

Joint Ventures / Partnerships

Arrangements for Joint Ventures/Partnerships (e.g. Joint

Children’s Committee)

H

20

Highland Council

Social Work

Residential & Nursing Care

Overview of Commissioning Strategy

H

20

Highland Council

Corporate Activity

Corporate Governance

Compliance with Local Code, which should include new

arrangements from CIPFA and the Good Governance

Standard for Public Services

H

7

Highland Council

Corporate Services

Employee Policies and Procedures

Early retirement procedures

H

5

Highland Council

Education Culture & Sport

Devolved School Management

Overview of operations (inc. Budget monitoring)

H

30

Highland Council

Planning & Development

Development Management

Compliance with planning policy (Local Plan), exception

arrangements, code of conduct for Members, Site Visits,

Appeals - in view of new legislation

H

20

Highland Council

Social Work

Adoption

Overview of operations

H

20

Highland Council

Corporate Activity

Fees and Charges

Fees and charges set by TEC Services and Social Work

H

20

Highland Council

Corporate Activity

Risk Management

Compliance with Risk Management Strategy and

associated guidance at Service level.

H

7

Highland Council

Central Systems

VAT

Process for input and output Vat returns

H

15

Highland Council

Property & Architectural

Services

Health & Safety/Risk Assessment

Gas Safety Framework

H

12

Highland Council

Central Systems

Procurement

Overview in terms of McLelland and Best

Practice.Compliance with individual setting of targets within

each Service, including efficient use of PECOS.

H

30

Highland Council

Corporate Activity

Job Evaluation

Overview of the arrangements to put in place the agreed

outcomes of Job Evaluation and Single Status

H

7

Highland Council

Property & Architectural

Services

Energy procurement/Billing/Recharging

A Best Value review of energy management

H

30

Highland Council

Housing

Rent Accounting and Arrears Management

New procedures introduced

H

20

Highland Council

Education Culture & Sport

School Transport

Contract payments

H

20

Highland Council

TECS

Ferries

New income system

M/H

5

Highland Council

Social Work

In-house Catering

Best value review of catering arrangements in residential

accommodation and day centres

M/H

30

Highland Council

Central Systems

Purchase Cards

Compliance with Council policy

M/H

10

Highland Council

Social Work

Direct Payments

Compliance with Council Policy and Procedures

M/H

20

Highland Council

Property & Architectural

Services

Revenue Maintenance

Process for spending Service allocations,

Planned/Unplanned

M/H

20

Highland Council

Education Culture & Sport

School Meals

Catering DSO, stock control and income systems

M/H

20

Highland Council

Property & Architectural

Services

Disabled Access Programme

Prioritisation of spend and project control

M/H

20

Tactical Plan 2007-08

Highland Council

Appendix 2

2007/08

Organisation

Section

Audit Name

Proposed Audit Scope for 2007/08

Risk

Audit

Days

Highland Council

Social Work

Home Care

Overview of operations

M/H

20

Highland Council

Corporate Services

Contract for Temporary Employees

Overview of the operation of the Contract for Temporary

Employment for all payrolls, including the Global Contract

(including vfm)

M/H

10

Highland Council

Social Work

GIRFEC

Overview of the implementation of this initiative

M/H

20

Highland Council

Social Work

Joint Futures incl. Resource Transfer

Overview of process

M/H

20

Highland Council

TECS

Civil Engineering + TECS Capital Contracts

A review of a number of specific projects as a follow up to

the Overview work conducted in 2006/2007

M/H

20

Highland Council

TECS

Lighting Services

Overview of operations

M/H

15

Highland Council

Chief Executive

Mobile Phones

Policy and procedures for control over the use of mobile

phones

M/H

5

Highland Council

Housing

Capital Contracts - Housing

Contract Management Procedures / Governance

M/H

20

Highland Council

Property & Architectural

Services

Capitalised Maintenance

Overview of process

M/H

20

Highland Council

Central Systems

Debtors

Payments by Direct Debits, use of performance

management information

M/H

20

Highland Council

TECS

Grounds Maintenance

Contracting arrangements

M

20

Highland Council

Chief Executive

Common Good Funds

An overview of their operation and the need to substantiate

the Balance Sheets

M/H

20

Highland Council

Social Work

Throughcare and Aftercare Payments

Overview of operations

M/H

12

Highland Council

Central Systems

Council Tax

Property database update procedures

M/H

10

Highland Council

Central Systems

General Ledger

Bank, Imprest and Balance Sheet Reconciliations

M/H

10

Highland Council

Education Culture & Sport

Ambitious Excellent Schools Framework

Compliance with Scottish Executive agenda

M/H

10

Highland Council

Property & Architectural

Services

Capital Contracts - Property & Architectural

Services

Contract Management Procedures including Nairn

Academy

+ Kingussie and accessibility strategy projects

and D.D.A. for Schools

M/H

30

Highland Council

Central Systems

Housing Benefit Claim Administration

Procedures for processing of HB across a

number of sites

after implementation of ECDM

M/H

20

Highland Council

Property & Architectural

Services

Accommodation Account

Asset management, Building Inspectors (Compliance with

Fire Safety Regs.) and DDA Compliance

M/H

20

Highland Council

TECS

Refuse Collection

Route planning and charging

M/H

20

Highland Council

Corporate Activity

Anti- Money Laundering

Compliance with relevant legislation (inc Proceeds of Crime

act)

M/H

5

Highland Council

Corporate Activity

Consultants

Appointments, benefits analysis

M/H

15

Highland Council

Corporate Activity

Members Allowances & Expenses

Salary payments and re-imbursements

M/H

10

Highland Council

TECS

Environmental Health Team

Overview of operations

M/H

10

Tactical Plan 2007-08

Highland Council

Appendix 2

2007/08

Organisation

Section

Audit Name

Proposed Audit Scope for 2007/08

Risk

Audit

Days

Highland Council

Central Systems

Establishments Central Systems

Operation of main financial systems in individual

establishments

M/H

50

Highland Council

Chief Executive

Business Improvement Team

Overview of operations

M/H

10

Highland Council

Central Systems

Creditors

Review revenue contract compliance by examining creditor

payments by value (descending - highest first).

(15 days)

Plus an overview of the operation of the BACS system to

ensure compliance to controls and effectiveness of use. (10

days)

M/H

25

Highland Council

Property & Architectural

Services

Property & Architects Rent Collection

Overview of all rent collectable, including rent setting,

collections and void management. This will include all

commercial property under the control of the Council i.e.

industrial estates, common good etc.

M/H

20

Highland Council

Planning & Development

Development & Building Control Fee Income

Overview of new arrangements following Area

restructuring.

M/H

7

Highland Council

Corporate Activity

Information Management (Data Protection /

Freedom of Information)

Compliance with legislation, registration with DPR, dealing

with requests from public/collection of fees,

retention/disposal of records

M/H

10

Tactical Plan 2007-08

Computer Audit

Appendix 3

2007/08

Organisation

Section

Audit Name

Proposed Audit Scope for 2007/08

Risk

Audit

Days

Computer Audit

Social Work

CARE FIRST

Post Implementation Review

H

16

Computer Audit

Social Work

e-Care System (HEART)

Post Implementation Review

H

16

Computer Audit

Corporate Activity

Data and Software File Controls

Logical Access Audit

H

18

Computer Audit

Corporate Activity

Compliance - legal/Council

Chapter 10 of the Council's ISSF and chapter 15

of BS7799

H

24

Computer Audit

Corporate Activity

Networks

Network Audit -Chapter 8 of CIPFA CAG

H

16

Computer Audit

Central Systems

ECDM

Implementation audit

H

16

Computer Audit

Central Systems

BACS Payments

Application Audit

M/H

12

Computer Audit

Central Systems

Revs & Bens

Application Audit

M/H

14

Computer Audit

Education Culture & Sport

Phoenix System

Application Audit

M/H

12

Computer Audit

Central Systems

Treasury Management System

Programme/Project Management Audit

M/H

10

Computer Audit

Corporate Activity

Programme/Project Management Controls

Application Audit

M/H

10

Computer Audit

Central Systems

ACR / EPOS

Application Audit

M/H

10