PAPER E

Committee : AUDIT AND PERFORMANCE COMMITTEE

Date : 10 OCTOBER 2006

Title : CAR PARKS FOLLOW-UP AUDIT

REPORT OF THE CHIEF INTERNAL AUDITOR

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PURPOSE

1. This report is to provide the Committee with information regarding the status of recommended actions following the recent audit review of car parks.

2. The Committee is invited to note the contents of the report and to seek clarification of any issues arising.

BACKGROUND

3. At the last meeting of the Audit and Performance Committee, members considered the audit report on car parks and requested that a follow-up audit be performed to determine the extent to which audit recommendations have been implemented. Attached as Appendix A is the follow-up audit report.

FINANCIAL, LEGAL, CRIME AND DISORDER IMPLICATIONS

There are no significant financial or legal implications of this report, given that it is a progress report on the Internal Audit function. The Committee is reminded that the Council is required by statute (the Accounts and Audit Regulations) to have an adequate and effective Internal Audit function.

RELEVANT PLANS, POLICIES, STRATEGIES AND PERFORMANCE INDICATORS

None.

CONSULTATION PROCESSES

None.

BACKGROUND PAPERS USED IN THE PREPARATION OF THIS REPORT

Audit project files held by G Richardson – ext 3683

APPENDIX A

AUDIT SERVICES INTERIM FOLLOW UP REPORT – CAR PARKS

1. INTRODUCTION

1.1 The Report on the audit review of car parks was issued on 18^th August 2006, and the main findings presented to the Audit & Performance Committee at their meeting on 21 September 2006.

1.2 The Committee requested that a report be brought to their next meeting to confirm that the issues raised in the report regarding income collection, recording and monitoring had been addressed.

1.3 A meeting was held with the Office and Finance Manager ( Parking Services) on the 29^th September to go through action plan ( attached this report ) and to establish the current position.

2 OVERALL CONCLUSION

2.1 The Office and Finance Manager (Parking Services) has identified actions required to address the issues raised in the original audit report. The majority of actions are now in progress.

2.2 The recording of income has been addressed and is now undertaken on a daily basis. Monitoring of income is also being carried out on a regular basis.

SUMMARY OF FOLLOW-UP AUDIT FINDINGS

Audit Report – Main Findings	Current Position
The routes used by the Inspectors are based on statistics that were produced several years ago.	During preparations for the de-criminalisation of parking new routes have been identified. In addition to this it is proposed to investigate the possibility of obtaining reports from SIDEM which can be used to decide future routes
There was no member of staff to cover for the absence of the Finance Officer	A system has been introduced to ensure that when a member of staff is absent, essential tasks are still carried out. The Office and Finance Manager (Parking Services) has identified the tasks to be carried out and the Officer responsible, and in addition has identified the other members of staff who may be required to perform these tasks should the Lead Officer not be present.
There are no performance measures for staff.	Performance measures are being developed and introduced.
No member of staff has responsibility for overseeing the computer systems, SIDEM and Park folio.	A systems administrator is to be appointed. Initially by part time secondment from another LA, then internally, possibly through an SLA with the IT section.
With the introduction of the Island Parking Permit the amount of coinage collected may reduce	The take up of the Permit has not been as high as anticipated. Combined with the increase in parking charges, the amount of coinage collected has actually increased.
Discrepancies on car park machines occur frequently – cash figures are assumed to be the correct amounts	Ways of recording and monitoring the discrepancies are being investigated, but are being delayed because of problems with the Park Folio system.
Cash reconciliation was not carried out on a regular and timely manner. A past history of failure to reconcile income due and identify income not received	Cash reconciliation is being carried out manually on a regular basis. It is anticipated that the reconciliations will be put on the system in future.
Where errors were found on the cash reconciliation, corrections were not carried out in a timely manner.	The Office Manager is aware that errors need to be identified and corrected in a timely manner, and staff are now aware of this.

Audit Report – Main Findings	Current Position
Lack of contingency arrangements to cover loss of Temporary Finance Officer.	A system has been introduced to ensure that when a member of staff is absent, essential tasks are still carried out.
No action has been taken by the car parks service to recover an amount of £2,850 owed to the Council by the Post Office from 2003/04.	The Office and Finance Manager (Parking Services) is still investigating this.
The Car Parks service failed to take responsibility for recording and monitoring income.	The new Office and Finance Manager ( Parking Services) is aware of the necessity of taking responsibility for recording and monitoring income, and has ensured that the rest of the staff are also informed. Income is now recorded on a daily basis, and any errors are dealt with immediately.
Lack of forward planning for the introduction of the new Island parking permit at the same time as the Car Park Manager was to leave and no permanent finance officer.	The Office and Finance Manager ( Parking Services) is aware of the need for forward planning.

ORIGINAL AUDIT SERVICES REPORT ACTION PLAN: CAR PARKS DATE REPORT ISSUED: MAY 2006-05-02

Main Findings	Possible Consequences	Recommendations (Action Required)	Priority	Officer Responsible	Target date
The routes used by the Inspectors are based on statistics that were produced several years ago.	The deployment of staff may not match current car park usage. Potential loss of income.	The statistics should be reproduced to confirm if the current routes are still valid	Low	Office Manager	30/9/06
There was no member of staff to cover for the absence of the Finance Officer	Income records not up to date: loss of income to Council. Loss of internal control: SIC	A member of staff should be designated as Deputy Finance Officer.	High	Office Manager	30/6/06
There are no performance measures for staff.	Staff deployed ineffectively; Targets not set. Training needs not identified.	Develop and implement appropriate PI’s.	Medium	Office Manager	30/9/06
No member of staff has responsibility for overseeing the computer systems, SIDEM and Park folio.	Risk of failure of systems.	A named officer should be given responsibility for overseeing the computer systems.	Medium	Office Manager	31/7/06
With the introduction of the Island Parking Permit the amount of coinage collected may reduce.	If the reduction is significant, the possibility of including the banking of the coins in the Councils main banking contract should be explored.	Liaise with Officer responsible for negotiating main bank contract.	Low	Office Manager	30/9/06
Discrepancies on car parking machines occur frequently – cash figures are assumed to be the correct amounts.	Loss of income due to lack of accurate figures. Risk of Fraud. Loss of internal control.	Discrepancies should be recorded to identify which machines are causing problems.	Medium	Office Manager	31/7/06
Cash reconciliation was not carried out on a regular and timely manner. A past history of failure to reconcile income due and identify income not received	Loss of income to the Council. Risk of Fraud. Loss of internal control. Inadequate audit trail.	Income to be reconciled regularly on a timely basis.	High	Office Manager	Immediate

AUDIT SERVICES REPORT ACTION PLAN: CAR PARKS DATE REPORT ISSUED: MAY 2006-05-02

Main Findings	Possible Consequences	Recommendations (Action Required)	Priority	Officer Responsible	Target date
Where errors were found on the cash reconciliation, corrections were not carried out in a timely manner.	Corrections not completed. Incorrect / incomplete financial information.	Corrections to be actioned immediately.	High	Office Manager	30/6/06
Lack of contingency arrangements to cover loss of Temporary Finance Officer.	Failure to process income: Possible impact on both CPA and SIC. Lack of forward planning.	Actioned by Financial Services. Forward planning to be improved.	High	Office Manager	30/6/06
No action has been taken by the car parks service to recover an amount of £2,850 owed to the Council by the Post Office from 2003/04.	Loss of income.	Recovery to be implemented by car parks Section.	High	Office Manager	30/6/06
The Car Parks service failed to take responsibility for recording and monitoring income.	Failure to process income: Possible impact on both CPA and SIC.	Car Parks Service to recognise their responsibility for financial procedures.	High	Office Manager	30/6/06
Lack of forward planning for the introduction of the new Island parking permit at the same time as the Car Park Manager was to leave and no permanent finance officer.	The day to day work of the section disrupted at the end of the financial year.	Forward planning & management of service to be improved	High	Traffic & Transportation Manager	30/6/06