Report of the Acting Head of Finance and Head of Assurance

This report gives details of the progress made in implementing the recommendations of the internal auditor.

The Committee received a report of the Acting Head of Finance Shared Services which included the Shared Internal Audit Service’s progress report.

The Audit Manager updated Members on the latest performance information as the information within the report had been collated over three weeks ago.  He brought to the Committee’s attention the generic response about the outstanding IT recommendations and the removal of two planned audits from the 2015/16 Audit Plan.  The Committee would be provided with information about the replacement audits at its next meeting. 

Following a question from Councillor Khan, the Director of Finance explained that Capita would continue to provide IT support until the end of June 2016.  Officers were currently working on options appraisals for the way forward.  The Council had the same options available if the company did not perform as required.  It was important to ensure that the IT systems remained operational.

Councillor Khan referred to the Shared Services Joint Committee and how issues were raised at those meetings.  He was concerned that the Council’s systems might be open to significant threats.

The Director of Finance advised that back ups and patches were part of Capita’s contractual requirements.  The back ups had improved.  The Council had not attained Public Services Network (PSN) compliance in the previous year.  The Council was working with the Cabinet office to meet the requirements.  Where possible the Council would bring in resources to assist with the work.  She advised Members that if there were any specific issues they wished to raise they should forward them to her and she would ensure a response was provided.

Councillor Khan expressed his concern that the company might not be ‘bothered’ to continue carrying out the required work.

The Director of Finance informed the Committee that the Council was working with an external consultant.  The improvement works were not part of the original contract and the Council would do that work now.

The Portfolio Holder assured Members that the Council would not wait until June, but would work on a way forward and implement an alternative strategy.

Councillor Silver noted that the disaster recovery work still needed to be done.  He asked for further information.

The Director of Finance explained that as part of the contract with Capita there had been discussions about moving the servers to Capita’s data centre.  It had been agreed that it would not be sensible to carry out the disaster recovery test prior to the servers being moved.  The servers were old and the company was unable to provide the Council with sufficient confidence that the move would go ahead without any issues.  This matter would now be reviewed as part of the work with the consultant or other appropriate groups.

Councillor Khan asked for clarification about the decision-making process and which committee would receive the reports.

The Director of Finance responded that a report was due to be presented to Cabinet in November, which would provide an update on the latest position and the procedures should any decisions be required. 

Paul Dossett commented that Grant Thornton had audited the Council’s accounts for eight years.  The Council had struggled with IT whether it was outsourced or an in-house service. 

Councillor Khan added that there had been a lack of resources.  The solution was to ensure that the right resources were in place.

The Committee and Scrutiny Officer informed the Committee that the Outsourced Services Scrutiny Panel had recently received the report about the termination of the contract with Capita.  It had asked officers to ensure that the Panel was kept informed of on-going developments. 

Councillor Williams asked for clarification on the risk register actions.  He had mentioned this subject at the last meeting.

The Director of Finance advised that she would ask the Head of Democracy and Governance to provide a response to be circulated to the Committee.

Councillor Williams then sought clarification on the latest position regarding the housing associations carrying out their own short listing of applicants.

The Director of Finance stated that she would ask the Interim Housing Section Head for a further update for the Committee.

RESOLVED –

1.      that the Internal Audit Progress Report against the 2014/15 Audit Plan be noted.

2.      that amendments to the Audit Plan as at September 2015 be approved.

3.      that the removal of the implemented recommendations be agreed.

4.      that the changes to the implementation date for 12 recommendations, as set out in paragraph 2.5.1 of Appendix 1 for the reasons set out in Appendix 4, be agreed.

5.      that the status of the 16 IT audit recommendations (paragraph 2.5.2 of Appendix 1) be noted.