Contentspolitics.leics.gov.uk/documents/s53415/L - Appendix - Audit Plan 2011-12.pdf · • Income Income generated and received, from calculation of amount due to collection of debt

Leicestershire County Council 2011-12 Audit Plan

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Contents

Introduction to Internal Audit Plan 2011-12 3

Adults & Communities 9

Chief Executive’s Department 14

Children and Young People’s Service 15

Corporate Resources Department 22

Environment and Transport Department 23

Corporate Finance 26

Corporate Governance 30

Corporate HR 34

Corporate ICT 38

Corporate Property 41

Pension Fund 42


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LEICESTERSHIRE COUNTY COUNCIL INTERNAL AUDIT SERVICE INTRODUCTION TO INTERNAL AUDIT PLAN 2011-12

1. This booklet contains the Leicestershire County Council Internal Audit Service Internal Audit Plan for 2011-12. Potential areas of audit coverage across the County Council’s activities are very wide, incorporating both direct and indirect financial risks as well as reputation and legal ones. It is therefore important that the staff time available is concentrated in areas where the need for coverage is considered high. To achieve this, a 4-year planning strategy has been devised, based on an assessment of levels of risk. 2011 marks the second year within the current cycle although the assessment allows for continual updating. The assessment works by mapping risk levels over the whole range of the County Council’s (and other client’s) activities against set categories. Scores are given based on materiality, impact, likelihood and exposure (MILE). The MILE scoring system has been developed within the Internal Audit Service (the Service). Consultation with department representatives and use of risk register entries are major factors in determining the relative scores that should apply.

2. The MILE system provides an indication of the frequency for allocating time over the 4 year period. This is then refined by

further consultation with departmental representatives to arrive at the annual plan. Joint work with the External Auditors and meeting the certification requirements of providers of external funds also has to be taken account of at this stage.

3. The Service can only plan its work up to a point. Issues needing special investigation will occur and the scale of them

cannot be predicted. A general allowance for frauds and special investigations has therefore been made within the plan. Over and above this a contingency has also been allowed for staff vacancies, audits that turn out to be more complex than anticipated and other unplanned occurrences.

4. Specifically for 2011-12, allowances have been made for the impacts of implementing the proposed shared Internal Audit

Service with Leicester City and the uncertainty around the volume of school academies take up.


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5. The following categorisation of audits has been used

• Governance From decision making to action confirmation, it includes budget preparation and control

• Personnel All personnel functions such as recruitment, attendance monitoring and training.

• Operational Performance and effective / efficient service provision

• Assets Maintenance, safeguarding and utilisation of assets, be they financial or physical. It also includes loans given

• Procurement Provision of services by others either by contract, service agreement, joint arrangement or partnership. It also includes amounts payable.

• Liabilities Covers financial liabilities e.g. loans and leases taken out and controls in place to reduce the exposure to potential liabilities such as claims

• Payments Payments both to employees and pensioners (insiders) as well as contractors and recipients of grants etc (outsiders)

• Income Income generated and received, from calculation of amount due to collection of debt. Includes funding from Government and other outside sources.

• Financial Financial systems including balance sheet (creditors and debtors), general ledger, cash & bank reconciliation, transmission of payments, linked non LCC accounts and grant claim certification

• Information Storage and safeguarding of information

• Development System developments being undertaken and establishment of new service sites

• Contingency Planning

Arrangements to ensure acceptable continuation of core activities in the event of system failures or emergency events

• Establishments Visits to schools, care homes etc and departmental ‘office audits’

• Advice Advice on system controls and risk reduction measures and department research

6. Although especially linked to the operational performance audits, the issue of ‘efficiency’ is relevant to all categories.


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7. In devising the Internal Audit Plan it is recognised that information and communication technology auditing is a very specialist area, where rapid developments are common and audit advice during development can be particularly helpful. It is an area where a higher degree of flexibility is needed.

8. It is recognised that during the year there will be a number of competing demands on department’s manager’s time.

Particularly where reviews and inspections are, or have recently taken place, efforts will be made by the Internal Audit Service to co-ordinate with these. However this cannot be at the expense of key audit requirements.

9. Much of the output from the Plan, particularly work under the heading Corporate – Finance, will be of direct relevance to the

work of the External Auditors, PricewaterhouseCoopers (PwC). Co-ordinating work helps in keeping down overall auditing costs. Against appropriate jobs a cross reference has been made to work required by PwC as well as that for external fund providers.

Neil Jones Interim Head of Audit 21/4/2011


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LCC Internal Audit Service - Risk Level Chart 2011-12

0 100 200 300 400 500 600 700 800

23. Linked Org Accounts

17. Cash and Bank Reconciliation

18. Transp/Transmission of Funds

19. Loans Given

11. Creditors

16. Accounting/General Ledger

4. Financial Assets

7. Financial Liabilities

14. Amounts Due

9. Payments to 'Insiders'

12. Income Received

15. Grants, Fund Form, Precepts

13. Debtors

22. Contingency Planning

5. Physical Assets

2. Personnel

10. Payments to 'Outsiders'

8. Potential Liabilities

3. Operational

20. Information

6. Procurement

1. Governance

21. Developments

Audit 'Universe' Category (see page 4 for descriptions)

Combined Departments and Corporate Functions MILE Score For Each Audit 'Universe' Category


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Internal Audit Plan

Productive Days 2011-12 Sub total Total

Leicestershire County Council Departments

Adults and Communities 306

Chief Executive's 57

Children & Young People's 539

Corporate Resources 30

Environment and Transport 150 1082

Leicestershire County Council Corporate Functions

Finance 185

Governance 188

Human resources 121

Information and communication technology 131

Property 50 675


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Leicestershire County Council Contract Management

Planning; Reporting & Corporate Governance Committee 67

Corporate and Departmental 85 152

Contingency

Contingency 152 152 Charged for Auditing

Pension Fund 70

Eastern Shires Purchasing Organisation 140

Combined Fire Authority 70

Connexions Ltd 24

North West Leicestershire DC – ICT Audit 15

Bradgate Park Trust 10

East Midlands Councils 8

East Midlands Regional Management Board (CFA) 3 340

TOTAL 2400 2400


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Adults & Communities

Category

Audit Title

Proposed audit scope i.e. confirm risks are managed to ensure that ……..

Days

Accounting / General Ledger

Modernise Financial Services – continuity of operations

That financial operations historically the responsibility of A&C Finance are being undertaken satisfactorily by the Technical Accounting Team / FAIT / A&C Business Partner Team (as appropriate). Examples included:

• monitoring income received for external grants

• receipt and verification of comforts fund year end statements

• monitoring imprest accounts, ie. Ensuring regular reconciliations undertaken, certified appropriately and temporary advances reclaimed. Also, process for changes in imprest bank account signatories

• authorisation and set up of pcards. To include the risks associated with loss of specialist knowledge in departments to the Resources Department.

6

Development Replace MIS – ICT controls

Relevant ICT controls and project management disciplines are employed within the procurement of a replacement social care management and information system (ICT audit review)

6

Development Review Libraries, Heritage and Arts Service

The ‘Review of Libraries, Heritage and Arts Service’ meets its objectives and milestones. Advice on controls and risks identified during the review. (Libraries Risk Register)

12

Development Adult Learning MIS Audit advice on the proposed procurement of a replacement management information system to ensure system requirements are met. Includes ICT advice.

6


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Development Adapt current MIS

Adaptations to the current management and client information system to manage requirements of the personalisation agenda are appropriately managed and have due regard for system security and data integrity. (ICT audit review).

6

Development E-marketplace

Ongoing advice in the development of E-marketplace. Includes ICT audit advice of 2 days.

6

Development Future Service Provision

Review of the financial modelling package to ensure good quality management information can be obtained to assess demand and gaps in provision.

12

Development

Assistive Technologies

Appropriate business continuity arrangements and ICT controls are employed within both the pilot exercise and future roll out (ICT audit review)

6

Financial assets

Cash funds Administration; processing; accounting; security and banking of imprest, GCF and private funds

15

Governance MTFS Savings

Efficiency, increased income and service reductions proposals and targets are achieved and progress is reported to senior management.

8

Income Residential Care Debt

Aged debt is controlled and monitored and income projections to senior management and members are robust. To include review of new process to inform debtors of accruing debts. This audit will assist the external auditors in their annual assessment of the likelihood of material misstatement in the Authority’s financial accounts

6


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Income Eligibility criteria

The proposed eligibility changes in thresholds for the provision of adult social care services are robust and applied consistently for both existing and new service users. (MTFS Savings Requirement)

12

Income Income

The system for collecting income from libraries and museums is robust and in accordance with financial procedure rules.

12

Income Mental Health Funding

Continued health care decisions are challenged in line with the ‘decision tool.’ 12

Information Information Governance

Procedures regarding the despatch of personal information are robust, and all staff are complying with policy/procedures.

12

Operational Personalisation -Brokerage Model

The use of the self directed support brokerage model has been agreed and all staff are aware of the decision making process.

12

Operational Contract Monitoring Procedures

Contract monitoring procedures are robust, and there are controls in place to ensure there is adequate vetting of staff employed to work with service users, eg. CRB checks. (Inherent Risk Register)

12

Operational Personalisation - Safeguarding

Safeguarding – There are adequate controls within the new operational model to identify and react promptly to safeguarding issues. (Personalisation Risk Register)

12

Operational Personalisation – Personal Budgets

There are robust procedures in place for the review and monitoring of personal budgets, and these are consistently applied.

12


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Operational Domiciliary Care Contracts

There are adequate procedures in place for the regular monitoring and review of domiciliary care contracts.

12

Operational Supported Living

To ensure compliance with agreed procedures with regard to accessing supported living providers from the Approved Provider List.

12

Payments to outsiders

Quality Assurance Framework (QAF)

There is an agreed criteria for assessing independent sector providers, and this criteria is applied consistently.

12


P-cards

8

Personnel Personalisation – Organisational re-design

Transition planning is ‘fit for purpose’ to ensure managers are able to take on their new roles and responsibilities that the new structure demands and to ensure a smooth transfer of workloads.

12

Potential Liabilities

Personalisation - Managed Accounts

There are robust arrangements in place for the monitoring and management of ‘Provider Managed Accounts.’

12

Potential liabilities

Residents money Residents’ money is secure and is accounted for 10

Procurement Replace MIS - procurement

Corporate procurement process rules and procedures are adhered to when making key decisions. (Personalisation Risk Register)

12

Advice Planning and reporting

Discussing and arranging audits and reporting and meeting on progress with the AD Strategy & Commissioning.

7


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Advice Service Based Advice

Initiated by specific requests from Adults & Communities staff

5

Advice ICT Related Advice General ICT related advice on all A&C systems & developments

4

Advice Research and Development

A mixture of proactively keeping abreast of developing issues and service auditors’ responses to requests for advice on unknown subject areas

15

Total Adults & Communities

306


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Chief Executives

2010/11 Brought Forward Audits

Budgetary control

Category

System/Audit Area

Proposed audit scope ie to confirm that risks are adequately managed to ensure that…

Days

Departmental

Governance Risk Management The Department’s own risk management processes are robust; management has identified and is managing key risks.

10

Planning, Historic & Natural Environment

Debtors Developers Fees Review of developer contributions and associated corporate monitoring database to provide assurance over effective receipt of contributions and transparency.

12

Youth Justice & Safer Communities

Procurement DAAT To be agreed- 14

Regulatory Services

Information ‘Tell Us Once’ To ensure sensitive and confidential data is secure during collection and transfer amongst partners

12


Coroners Advice regarding changed payment method to feed into the proposed SLA 5

Advice Advice Includes both general advice & ICT advice (1 day ICT advice) 2

Advice Research Research and Planning 2

TOTAL CHIEF EXECUTIVE'S DEPARTMENT 57


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Children and Young People’s Service


Specialist services review;

Category

Audit Title


Days

Department Management Team High Priority


Zero-Based Budgeting in Specialist Services

The move to setting budgets on a “zero-based” budgeting model in Specialist Services has led to a robust challenge to historical spend. Service managers remain effective budget managers under the new system.

12


Modernisation of Financial Services – continuity of operations

That financial operations historically the responsibility of CYP Finance are being undertaken satisfactorily by the Technical Accounting Team / FAIT / CYP Business Partner Team (as appropriate) (e.g. school advances, reconciliation of 980-1 control accounts, charge card applications). To include the risks associated with loss of specialist knowledge in departments to the Resources Department.

6

Development

Framework-i

The continued development of Framework-i seeks to minimise risk to the LA in all key areas:-

� Finance modules about to come on-line (e.g. payment of creditors, payments to children, payments to foster carers etc., etc.). [Payments to Insiders, Payments to Outsiders, System Developments]

12


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� Is F-I being used to its full capabilities (e.g. placement decisions, social worker case notes)? [Operational]

� F-I is better at providing operational data to managers than to director level (e.g. number of CIC, how many are boys etc., etc.). Now purchased EDRMS as a bolt-on which it is understood will provide the tools to enable better high-level reporting and analysis.

Development ICT Governance within Frameworki

Relevant ICT controls and project management disciplines are employed within the continued roll out of frameworki (ICT Audit Coverage)

6

Financial Liabilities

Deficit Budgets

The CYP Business Partner Team effectively challenges, approves and monitors schools’ deficit budget plans with a view to supporting schools out of deficit within an agreed timescale:-

� Review the role of the CYP Business Partner team in challenging and

approving deficit budget plans, and the assumptions contained within them;

� Review how the CYP Business Partner team can encourage behavioural change in schools to the end that schools seek approval to go into deficit proactively, not reactively;

� Review the role of the CYP Business Partner team in reviewing progress "mid term" against approved deficit budget plans and the steps taken to address where actual spending falls outside of the plan.

12

Governance

Education Bill / Academy Freedoms

The LA is prepared for potential outcomes from the Education White Paper / Education Bill / Academies Bill, including:-

� The opting-out of some schools from LA control � The effect of opting-out on dedicated schools grant (funding top-slice)

12


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� Diseconomies of scale to traded and support services � Potential for continued trading with academies � Transfer of both premises and of staff issues � Wider issues surrounding other departments (e.g. Resources, ESC,

Legal).

Governance Central Government Green Paper on SEN

The impact and outcomes of the (anticipated) Central Government Green Paper on SEN are considered and actioned by the LA.

3

Governance

Personalisation Agenda

Developments in personalisation for children, young people and families are managed effectively (Includes 6 days ICT input)

12

Governance

Behaviour and Attendance Partnerships

The governance model established to support the KS4 pilot in S. Leics. and NW Leics. to devolve budgetary responsibility down to area-based partnerships is soundly-based and the pilot partnerships is operating effectively.

8

Governance

Targeted SIP Support / Improving Pupil Attainment

The reconfigured School Improvement Service continues to function effectively as support for schools moves from universal to targeted. One of the three overarching priorities for the CYP Service is to improve pupil attainment.

10

Governance

Merger of Primary and Secondary Pupil Referral Units

The merger of the primary and secondary PRUs progresses satisfactorily, and the LA continues to develop the management and governance of the PRUs into a more “school-like” model, in line with Central Government preference (e.g. establishment of governing bodies, delegated budgets etc.).

6


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Governance

MTFS Savings

Follow-up to 2010/11 audit to give assurances that the Department’s efficiency, increased income and service reduction programme remains on track.

6

Grants Play Capital Grant Undertake relevant and sufficient testing to support certification of the Play Capital Grant Determination

3

Linked organisations

Teachers’ Pension Scheme

The annual return to Teachers’ Pension Service is complete and accurate This audit will assist the external auditors in their annual assessment of the accuracy of the Authority’s return to the TPS on outsourced payroll calculations of pension contributions.

12

Linked organisations

Financial Management Standard

This audit will provide evidence so that the Director of Corporate Resources can certify that FMSiS re-accreditation has been achieved by the required percentage of primary and secondary schools as at 31st March 2012.

10

Operational Redundancy Procedures

Applications received from schools to the central budget for severance costs are challenged effectively by HR staff to gain assurances that there is a true redundancy situation and there is a clear process for HR to follow in assessing and approving calls on the finite pot (clear audit trail of requests approved and declined, consistency etc.).

10

Operational OfSTED Preparedness

The LA is proactive in its preparation for external assessments (e.g. OfSTED and Specialist Services) and in preparing its partners for assessment (e.g. OfSTED Inspection of Children’s Centres). There is ongoing review of compliance against the requirements of all inspections.

10

Payments to Data matching The risk of unidentified duplicate payments is reduced through running a 5


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Outsiders

sample of data sets through the Internal Audit data interrogation software (IDEA), for example payments to foster carers, service users and other CIC providers.

Payments to Outsiders

Single Funding Formula

The new single funding formula for calculating payments to Early Years providers is operating satisfactorily. Payments are timely and accurate.

8


Safer Recruitment by Schools (Themed Audit)

Schools recruit effectively, with a focus on (i) safer recruitment (safeguarding), (ii) getting the best staff and (iii) minimising the risk of any legal challenge. Would focus on schools being able to provide adequate evidence of:- � CRB checking / adherence to latest rules re. CRB checking (rechecks,

portability etc) (safer recruitment) � Challenging gaps in employment history (safer recruitment) � Evidencing right to work in the UK (legal risk - £10k per ineligible, safer

recruitment) � Verifying qualifications (getting the best staff, safer recruitment)

12


Safeguarding - information sharing

There is good information sharing between external partners (e.g. Police) and Specialist Services, particularly regarding safeguarding, so that child protection issues of potential criticality are dealt with as a matter of urgency. One of the three overarching priorities for the CYP Service is safeguarding.

12


Externalisation of music tuition

There is no risk of financial penalty to the LA as a result of employment decisions taken to externalise music teachers (i.e. from employees to consultants). The employment status of individuals is correctly assessed and any redundancy costs accruing from the transfer are valid and consistent.

5

Procurement EMBC Re- The EMBC contract for schools’ internet connectivity and infrastructure is re- 12


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tendering

tendered within prescribed timescales. Procurement rules and legislation are followed (includes three days ICT audit advice re security & business continuity).

Schools

Establishment

Visit Plan The Headteacher and Governors are meeting their responsibility for administering sound processes that comply with both School Policy and LA governance and financial procedures:-

• 9 x Upper / Secondary Schools

• 7 x High Schools

• 62 x Primary Schools

• 3 x Special Schools

• 1 x Children’s Centre (due to close August 2011)

263

Establishment Sixth Form Pupil Numbers YPLA role?

Site visits to three schools with sixth forms to check pupil numbers, learning aims etc. that drive an establishment’s post-16 formula funding.

12

Establishment

Shared Service Reciprocal visit with City Council audit team. 3

Advice Planning & Reporting

Discussing and arranging audits and reporting and meeting on progress with the Finance Business Partner – CYPS.

7

Advice Schools Based Advice

Initiated by specific requests from school staff, governors or bursars. Includes termly Audit Matters bulletin for schools, and periodic governor briefing papers.

15

Advice

Bursar Meetings Preparation, attendance and presentations at meetings. 6

Advice Service Based Initiated by specific requests from CYPS based staff. 5


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Advice

Advice ICT Based Advice

Other ICT related advice on all CYPS systems & developments

4

Advice Research & Development

A mixture of proactively keeping abreast of issues and responses to requests for advice on previously non researched subject areas.

10

Advice ‘Financial Management Standard in Schools’ Advice

General advice to all schools and guiding schools on external assessments and issues arising thereafter. Includes FMSiS newsletters.

10

Total Children & Young People’s Service (excluding FMSiS)

539


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Corporate Resources


Payroll variations to pay

Category

Audit Title


Days

Governance

MTFS savings Efficiency, increased income and service reduction proposals and targets are achieved and progress is reported to senior management.

10

Development

EMSS

The project adheres to timetable and documentation e.g. PID, business case 14

Advice ICT Based Advice

Other ICT related advice

4

Advice Advice General advice

2

Total Corporate Resources 30


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Environment & Transport

Category

Audit Title


Days

Departmental

Development

Department re-structure

Review changes in processes within the department as a result of the departmental re-structure

12

Governance MTFS savings

Efficiency, increased income and service reduction proposals and targets are achieved and progress is reported to senior management.

10

Advice Department advice Departmental advice / developments

9

Advice ICT specific ICT specific advice

2

Advice Research Planning, Research & Reporting

3

Total Departmental

36

Category

Audit Title


Days

Transportation


Concessionary Transport

Review the processes that have been implemented for the administration and operation of the English National Concessionary Travel Scheme.

6


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PTU Client Transport

To provide an efficient and accurate system for the payment of contractors within the integrated transportation services of PTU incorporating the feed from STADS into Oracle Financials (Includes four days ICT audit time).

14

Grants

Bus Service Operator’s Grant

Review of the claims covering October 2010 to March 2011 and April 2011 to September 2011.

6

Operational Passenger Transport

Review financial management / systems of the Passenger Fleet processes, to include pricing and external work.

12

Total Transportation

38

Highways

Governance Capital Programme Transport Area Management schemes are effectively identified, prioritised, approved and monitored.

12


Midlands Highways Alliance

Payments made under the Highways Agency ‘MSF1’ for Birstall Park & Ride and Loughborough Inner Relief Road are accurate, valid, prompt and paid only once.

12

Development Transformation of Highways Works

Review the structural changes, implemented business processes and level of efficiency savings that are being made.

20

Development

Fleet Management Project

Control advice to ensure that all relevant business processes have been included in the review.

14

Total Highways

58


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Environment

Procurement Waste PFI Review evidence to confirm that procurement has followed the Contract Procedure Rules and the requirements of EU Directives

6

Grants 6 C’s Green Infrastructure

Review funding claimed and use of funding received (including the post of manager)

6

Development Recycling Credits

Monitor the new payment process to Districts.

6

Total Environment

18

Total Environment and Transport 150


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Corporate Finance


Modernising finance post implementation

Category

Audit Title


Days

STRATEGIC FINANCE

Governance Budget monitoring

Capital and Revenue budgets are monitored regularly by FAIT and information provided by budget holders is challenged and accurately summarised to DMT.

14

Operational Modernising Finance

To be ICT processes specified within the project are operating as intended, having due regard for system security and segregation of duties

12

Governance Community Budgets

Advice that Partners contributions are accurate and received and there is a robust mechanism to account for commissioning

4

Accounting/General Ledger

LCC Joint Audit Agreed programme of work undertaken with PWC, which provides coverage of: o Cash Accounts (GCF; Payables; Treasury) o Debtors (agreed ‘material’ feeder systems; GL reconciliation; and aged

debtors – material system) o Payables (feeder systems and GL reconciliation) o Treasury Management (Cabinet reporting on Strategy and performance) o General Ledger (Brought forward balances, allocations, suspense

30


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accounts, material feeder systems) o Highways Operations (Payroll ; Creditors; Income)

This audit will assist the external auditors in their annual assessment of the likelihood of material misstatement in the Authority’s financial accounts


S151 Joint Audit S151 Assurance on completion of key reconciliations for periods 8 - 11 (excluding pension fund) for 2010/11 Assurance Statements. This audit will assist the external auditors in their annual assessment of the likelihood of material misstatement in the Authority’s financial accounts

20

Financial Assets Financial Liabilities

Treasury Management

Lending and borrowing activities are valid, authorised and consistent with Policy and access to the Bankline system is controlled.

12

4


Insurance Insurance cover is aligned to the outputs from the corporate risk management process and takes account of assurances provided and the continuously evolving nature of the services provided by LCC Link to Corporate Governance audit of corporate risk management framework

12

Potential NFI Data Checking NFI2011 data checking 20


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Liabilities

Participation in the National Fraud Initiative is a requirement of the Audit Commission

Development Insurance Claims Handling System

Appropriate business continuity arrangements and ICT controls are employed within the new application (ICT audit review). Project Board representation in a critical friend capacity

6

FINANCE SHARED SERVICES


Payables Invoices are input accurately and promptly, amendments to suppliers are authorised and access within FSSC to I-proc and Payables is consistent with users business needs.

12

Debtors

Debt Recovery Adequate actions are taken to collect debts promptly and payments are accurately recorded.

12

Debtors Income Remittance Statements

Information received electronically on receipts is complete and processed accurately into Oracle.

6

Development

Oracle E-Business Suite - Business Processes and Security

The findings of the PwC GATE review are appropriately addressed within an acceptable timescale (ICT Audit)

6

Advice Advice Advice including ICT Audit (of 4 days) 10

Research Research Research and Planning 5


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Total Corporate – Finance 185


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Corporate Governance


Carbon footprint; Corporate Governance; corporate procurement

Category

Audit Title


Days

Contingency Planning

Key Partners and Suppliers

Business Continuity arrangements are robust for Partners and Suppliers providing critical services on behalf of LCC.

12


Work Area Recovery Project

The Project to evaluate WAR for critical services is adequately managed and monitored.

6


Resiliency within Eastern Annex

The project to improve resiliency within the Eastern Annex addresses all the key issues in a timely manner (PM/ICT Audit)

6


Penn Lloyd Generator

Issues highlighted to CMT in respect of power outage have been addressed in order to mitigate risk to an acceptable level (PM/ICT Audit)

2

Development Shared Service Initiatives

Initiatives are appropriately managed in order to mitigate risks and ensure corporate goal congruence and are appropriately costed (Project Management Review)

12

Development Control of Project Risks & Issues

The approach affords a consistent approach to recording & addressing risks & issues across projects (PM Audit)

12


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Development Change Management Key Project Documentation

Key project documentation is appropriately compiled and incorporates relevant principles from project management disciplines (particular emphasis on tolerances, benefits & risks and issues capture, analysis & reporting

6

Development

Oracle ERP Steering Group

That the Oracle ERP ‘roadmap’ remains on track to deliver an effective usable solution in accordance with specification within the relevant project documentation - Project Board representation in a critical friend capacity

12


Localism Bill Review of EU service directive and Mineral Waste Development Framework

14

Governance Corporate Governance

Corporate controls are in place in relation to rule making, information, provision, decision making, performance monitoring, standards of conduct, community focus & risk management (to include review of community engagement forums).

12

Governance Partnerships Governance arrangements for significant partnerships, including risk management.

• Ensure LCC has identified its key partnerships.

• Risk management principles have been applied to significant partnerships through the completion of risk assessments that meet LCC standards

• For a sample of partnerships review LCC’s evidence of verification of partnership governance and risk management arrangements

(Review will exclude governance and risk management arrangements for Leicestershire Together)

12


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Governance Public Service Structure

Giving assurance around the Chief Executive’s Department role and responsibilities (as lead and ‘accountable body’) in project planning, engagement of stakeholders, governance arrangements and information sharing arrangements

14

Governance Risk Management Framework

Review of corporate framework for risk management with potential alignment for Internal Audit planning Ties in to corporate finance insurance audit

14

Governance Performance management framework

Provide advice as part of Authority’s commitment to a robust framework under Government and LGA self regulation

6

Governance Organisation Efficiency Board

Overview of the role of the Board in reviewing and challenging departments MTFS savings programmes

2


Big Society Robust mechanisms to ensure accountability 14


Leicester and Leicestershire LEP (Prospect /Leicestershire Promotions)

Local enterprise partnership with a strong private sector involvement - review of joint arrangements between City and County audit teams

9

Procurement Contract Procedure Rules

Contract procedure rules are embedded and applied 14

Advice

Advice Advice including ICT Audit advice (of 4 days) 4


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Research

Research Research and Planning 5

TOTAL CORPORATE GOVERNANCE

188


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Corporate HR


Category

Audit Title


Days

Strategic Human Resources

Governance

HR Shared Service There is an adequate governance structure designed to minimise any financial or reputational risk to the Authority with regard to the provision of a HR service to Charnwood Borough Council.

8

Personnel

Employee Investigations

HR is proactive in dealing with investigations surrounding employees and there is effective liaison with other parties on the “critical path” to the end that investigations are concluded promptly:-

� Suspensions / disciplinary hearings � Grievances � Dignity at work issues

8

Operational

Operational Relationship (ESC & HR)

There is a clear demarcation of responsibilities between the ESC helpdesk and Strategic HR officers. There is a clear protocol for the ESC in referring queries “upwards” to the end that the ESC deals with routine procedural business and only “true” HR business is referred upwards. Confirmation that HR is able to meet its SLA targets for dealing with referrals.

8


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Operational

Self-Serve Electronic self-serve is used by all employees to account for annual leave and the ORACLE system is capable of providing accurate and complete year-end data on annual leave required under International Financial Reporting Standards.

6


Corporate Restructuring & Redundancy Policy

Follow up audit to ensure recommendations to review and refresh the Corporate policy and procedures are embedded and being applied consistently

6


File Management HR and ESC – filing of personal information is kept up-to-date, files are held securely and indexed logically to aid retrieval; and information held on file is reasonable and in accordance with Data Protection principles.

6


Corporate Health & Safety Policy

Health & Safety policy has been strengthened, key risk assessments undertaken and evidenced, and policy cascaded down to managers in order to minimise the risk of injury or harm in the workplace to LCC employees, visitors etc.

8


Terms and Conditions

Proposed changes to terms and conditions are implemented correctly, with a focus on where changes affect employees’ pay, expenses or conditions.

8

Employee Service Centre (ESC)

Development

Electronic processing of CRB checks

There is sufficient security of personal information with the new method of Schools and central LCC services initiating CRB checks via an internet portal. Checks to include the flow of information (results of disclosure) by the ESC back to the originator.

6


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Development Project Control Advice

Ensure appropriate agency engagement, design, build, testing and sign off of agency payrolls within the August and November go live phases (ICT/PM Auditing)

12

Development

Oracle HCM Provide assurance regarding the continued accuracy of the payroll function following the implementation of Oracle HCM (human capital management).

6


Employee Service Centre - GL

Provide assurance upon the integrity of the General Ledger in relation to payroll produced information, as part of the Joint Audit with PWC. To include:

• 2010/11 Accounts – Periods 8-12 (To be undertaken and reported upon with the Joint Audit under Corporate Finance)

o LCC Cash ; General Ledger; Exception reports; Suspense o Agencies GL and Exception reports

• 2011/12 Accounts – Periods 1 - 7 o Cash; General Ledger; Exception reports; Suspense o Agencies GL and Exception reports o Payments via cheque and BACS (the latter to link with BACS

audit work undertaken within Corporate Finance) o Additional Testing on Oracle / Trent starters, leavers and

variations to pay This audit will assist the external auditors in their annual assessment of the likelihood of material misstatement in the Authority’s financial accounts

See Corp Finance

Plan

20

10

Payments to I-Expenses The new I-Expenses system is calculating expense payments correctly, and 6


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Insiders

individuals are submitting claims in accordance with LCC policy:-

� Claims submitted monthly � Claims independently authorised � VAT fuel receipts held � VAT recovered in qualifying circumstances (e.g. car parking)

General

Advice Advice General Advice

2

Research Research Research and Planning

1

Total Corporate Human Resources

121


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Corporate ICT

Category

Audit Title


Days


Key ICT Controls

Key ICT Controls are in evidence for financial systems This audit will assist the external auditors in their annual assessment of the likelihood of material misstatement in the Authority’s financial accounts

12


Menu of Recovery Options – DR Project Phase 2

The menu of ICT service recovery options and the business requirements for such have been identified and appropriately aligned (refers to Phase 2 of the ICT DR project)

6

Development Electronic Movement of Files

The chosen solutions for electronic movement of files address corporate need whilst having due regard for adequate information security.

6

Development Business Objects Project Implementation

The project remains on track to deliver an effective usable solution in accordance with specification within the relevant project documentation (Project Board representation in a ‘critical friend’ capacity to challenge)

6

Development Business Intelligence

Business needs are appropriately identified and a suitable future proof product is promptly procured and implemented

12


- 39 -

Development Middleware Solution

Business needs are appropriately identified and a suitable future proof product is promptly procured and implemented within the ERP Platform

12

Development Managed Telephony Service

The project to select a chosen provider for the Managed Telephony Service (Fixed and Mobile) address corporate need whilst having due regard for adequate information security – advisory only

6

Information Policies New and revised ICT related policies address relevant control issues – predominant emphasis being on information security related aspects. (To include Information Security programme of work)

12

Information Individual Risk Assessments

Individual Information Security Risk Assessments identify and appropriately control the risks associated with the system (based on risk)

12

Information Annual Code of Connection Assessment

The requirements of the annual Government Code of Connection (CoCo) assessment have been identified and implemented as appropriate within the required timetable.

10

Information ITIL Service Management and Delivery (SIP Project)

ITIL best practice principles are adopted within ICT Service Management and Delivery. Will incorporate Phase 2 of ICT Change and Configuration management as well as Release Management and Service Catalogue)

12


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Governance Risk Assessment Process

A revised process for evaluating key information security risks identifies and addresses areas of concern, engaging all relevant in a timely manner in order for prompt sign off by senior user. Second phase of a two phase audit that commenced in 2010/11.

6

Governance

MTFS savings A programme of work is in place to identify and address efficiency, increased income and service reduction savings (both within ICT & corporate savings enabled by ICT)

6

Personnel Service & Development Requests

The revised system for the request services allocates resources in a consistent manner balancing risk, service needs and abilities

9

General advice Provision of general ICT advice across the service 4

Total Corporate - ICT

131


- 41 -

Corporate Property


Facilities management

Category

Audit Title


Days

Development Oracle Asset Management

Review project management to ensure business needs are appropriately identified and a suitable future proof product is promptly procured and implemented

6

Development

Work Well -Office Accommodation

The various deliverables of the project are being achieved e.g. efficiency savings, procurement, flexible working, reduction in car mileage, etc.

14


School Replacements

Payments are in accordance with the agreed contract to maintain accuracy, validity and promptness Melton Longfield, Melton John Ferneley & Countesthorpe SEN

12

Procurement

Other Capital Builds

Procurement complies with the agreed framework and the Contract Procedure Rules, Children’s Centres, School Accommodation Programme (Basic Need & Mobile Replacement)

12

Advice Advice Departmental Advice

4

Research

Research

Planning and Researching

2

Total Corporate - Property

50


- 42 -

Pension Fund

Category

Audit Title


Days

Governance/ Assets

Investments - Governance

To review the controls in place for the new Investment Sub Committee, including:

• Membership and training

• Decisions taken

12

Governance/ Procurement

Investments - Funding

To review controls in a number of areas, which may include:

• Payments to Fund Managers and Advisors

• Bank account authorisation and segregation

12

Payments / Income

Transfers In / Out

Transfers in and out of the Pension scheme are valid and accurate.

12

Financial Pensions Joint Audit

Agreed Programme of work undertaken with PWC, which provides coverage of:

• Completeness of contributions (LCC, Districts, Agencies)

• Completeness and accuracy of Pension Fund Ledger

• Bank account reconciliations

• Accuracy of the Quarterly Valuation reports

• Reconciliation of the Payroll system to the pension fund GL (LCC and Agencies)

• S151 Assurance for period 11, 2010-11 on key reconciliations

20


- 43 -

Development Contribution Banding Exercise

The annual changes made to Oracle regarding LCC employee contributions, is properly tested and appropriately signed off prior to implementation.

6

National Fraud Initiative

NFI (comparison with Dept for Work and Pensions records) 3

Client management

Planning - meetings, MILE, update R&D High Importance recommendations External Audit liaison

Provide advice & information

5

Total Pension Fund

70

Documents

Contentspolitics.leics.gov.uk/documents/s53415/L - Appendix - Audit Plan 2011-12.pdf · • Income Income generated and received, from calculation of amount due to collection of debt