Agenda Item No 9
The Vale of Glamorgan Council
Audit Committee: 27th July 2016
Report of the Head of Finance / Section 151 Officer
Building Services Update
Purpose of the Report
To provide the Audit Committee with an update on the continued progress being made in respect of Building Services.
THAT Members consider the content of the report and note the progress that has been made.
Reason for the Recommendation
To facilitate the monitoring of the Council's overall internal control environment.
In July 2013, the Audit Committee were informed of significant control weaknesses within Building Services. Since then, a number of audit reviews have been undertaken with Audit Committee receiving further reports on 16th September 2013, 7th July 2014, 18th November 2014, and 24th February 2015. Due to the issues raised, it was necessary to highlight the significant control weaknesses in the Council's Annual Governance Statement 2013/14.
As previously reported to Audit Committee, Building Services have been making steady progress in relation to implementing all the recommendations that have been made during the various reviews. The last review, reported in February 2015, concluded that Building Services have been working hard to implement the changes necessary to demonstrate that improvements have been made and based on the testing undertaken at the time, the outcome of the review concluded that reasonable assurance could be placed on the overall internal control environment. However, the report did identify that a further follow up on the area of Sub Contractors and Inspections would be undertaken within the 2015/16 audit plan.
Relevant Issues and Options
The latest follow up review was recently completed. The scope of this audit was to ensure that the recommendations made and agreed during the previous audit reviews (including follow ups) have been implemented and that satisfactory controls are in place and operating effectively in the follow areas: Mobile working; Status 10's; Sub-Contractors; Call out; Inspections; Ticketed work and Stock. The audit testing used data for the financial year, 1st April 2015 to 31st March 2016.
During 2015/16, 15,698 jobs were raised on ConSol by Building Services to a value of £4,683,996 of which 80% of jobs were responsive repairs undertaken by the mobile workforce. The audit review identified that the implementation of the Trackyou system, which is used to monitor vehicle use and movements, together with a software upgrade to improve the functionality of the handheld devices, have greatly improved the productivity and accountability of the mobile workforce. Therefore it is pleasing to report that the overall control environment in regard to mobile working, Status 10's, Sub-Contractors; call outs, Inspections; ticketed work and stock continues to be satisfactory.
Based on the testing undertaken, the outcome of the latest audit review concluded that reasonable assurance can be placed on the overall control environment and the planned on-going improvements will continue to strengthen the controls already in place. The Service should be commended for all their hard work and the resultant significant improvement.
Resource Implications (Financial and Employment)
Effective audit planning and monitoring are key contributors in ensuring that the Council's assets and interests are properly accounted for and safeguarded.
Sustainability and Climate Change Implications
None directly from this report.
Legal Implications (to Include Human Rights Implications)
Providing of an adequate and effective Internal Audit function is a legal requirement under the Accounts and Audit (Wales) Regulations 2014 amended from time to time.
Crime and Disorder Implications
Pursuing initiatives to prevent, detect and deter crime is encompassed within the terms of reference under which the audit function operates.
Equal Opportunities Implications (to include Welsh Language issues)
None as a direct consequence of this report.
The work of audit is intended to assist in the achievement of all corporate and service objectives.
Policy Framework and Budget
The proposals in this report are in accordance with the policy framework and budget.
Consultation (including Ward Member Consultation)
No further consultation is proposed.
Relevant Scrutiny Committee
Corporate Performance and Resources
Helen Smith - Operational Manager - Audit Tel: 01656 754901
Carys Lord - Head of Finance / Section 151 Officer