PAPER B
Committee: AUDIT
AND PERFORMANCE COMMITTEE
Date: 21
SEPTEMBER 2006
REPORT
OF THE CHIEF INTERNAL AUDITOR
___________________________________________________________________
1.
This
report is to provide the Committee with a summary of Internal Audit activity
completed since the last outcomes report to the Committee in May 2006.
2.
The
Committee is invited to note the contents of the report and to seek
clarification of any issues arising from audits undertaken.
BACKGROUND
3.
In
keeping with good corporate governance practice, a Committee of elected members
should have oversight of the activities of the Internal Audit Service for the
following purposes:
·
The
Committee should monitor Internal Audit’s performance, both in terms of the
quality and quantity of its work;
·
The
Committee should satisfy itself that Internal Audit has devoted its attention
to the appropriate issues;
·
The
Committee should consider the results of Internal Audit reviews to ensure that
any significant findings are addressed, including control weaknesses and to
ascertain whether, in the opinion of the Chief Internal Auditor, adequate and
satisfactory responses have been given by the Authority’s management;
·
The
Committee should recommend, if necessary, that further attention should be
given to some of the issues raised;
4.
To
facilitate this process, attached as Appendix 1, are reports of significant
audit work completed since the May 2006 report to the Audit Committee.
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
APPENDICES ATTACHED
None
Contact Point:
Ged Richardson, ( 3683, Email: [email protected]
GED RICHARDSON
Chief Internal Auditor
A: AUDIT SERVICES
REPORT – CAR PARKS
1. INTRODUCTION
1.1 The audit was carried out as part of the Audit Plan. The plan was developed using a risk based approach with the Car Park Service being scored as a B on a scale of A - D with A being considered the highest risk.
1.2
A risk workshop
was held with two Auditors, the Traffic and Transportation Manager, the Car
Parks Manager and members of the Car Parks Service. At this workshop the main
objectives of the service were established, and the key risks identified and
scored for impact and likelihood. A Risk Register was produced that listed all
44 risks identified; 14 key risks were then identified and these were scored
for impact and likelihood.
1.3 Following the workshop an audit programme was developed that considered the risks facing the service identified at the workshop and included testing of financial management, supervision and control issues. This approach was used to ensure the audit covered the management of identified risks and financial and operational procedures.
2
OBJECTIVES
2.1 To provide assurance to the Authority that the management of the
Car Park Service is operating in accordance with the current regulations and
that risk mitigation strategies identified by the service are operating
satisfactorily.
3 OVERALL CONCLUSION
3.1 The risks identified in the workshop are clearly understood by
the service. However, tests carried out on financial management, supervision and control within the section
raised issues that need to be addressed. The following points should be noted:
1)
It is
recommended that the statistics regarding the locations of tickets issued are
examined to confirm that there have been no major changes in usage patterns.
2)
It is
recommended that a member of staff is designated as Deputy Finance Officer to
ensure continuity during any absence of the Finance Officer.
3)
It is
recommended that performance measures are introduced for all staff.
4)
A named officer
should be given responsibility for overseeing the computer systems, SIDEM and
PARKFOLIO.
5)
It is
recommended that the possibility of the acceptance of car park coinage be
considered as part of the requirements for the main banking contract when it is
renewed in 2007.
6) It is recommended that:
· The discrepancies on car park machines are recorded to identify any problems with specific machines.
· Cash reconciliation needs to be carried out on a regular and timely basis to identify errors, and
· Where errors are identified on the cash reconciliation account, corrections need to be made immediately to ensure that they are not overlooked.
7) With the departure of the temporary Finance Officer on the 17 March 2006, there were no contingency arrangements in place to ensure that their work was covered. Not only were reconciliations not carried out, but income was not being processed. This is unacceptable because:
· There has been a past history of failure to reconcile income due and identification of income that has not been received ( 2003/04 and 2004/05)
· The failure of the Car Parks Section to recognise their responsibilities in this area.
· Failure to process income has an adverse impact on the Council's bank reconciliation, which is a fundamental part of the end of year closedown processes. The requirement to carry out a regular bank reconciliation is also one of the criteria for judgment at Level 2 in CPA Use of Resources - failure to do so would mean we score 1 on Internal Control.
· Lack of processing of income indicates an internal control
weakness - on that basis, the assurance statement for Engineering Services may
now have to be updated to include income processing as a weakness for inclusion
in the Council's published Statement on Internal Control.
8) The
£2,850 outstanding from the Post Office for 2003/04 should be recovered.
9) The Car Parks Section appears to have taken no action to limit the effect of the introduction of the car parking permit on their day to day work.
It had been known for six months that the Car Parks Manager was due to leave on 31 March 2006, and that the secondment of the Finance Officer was only temporary. In addition, although the final details had not been confirmed, the introduction of the parking permits was anticipated. As such it is unacceptable that detailed contingency arrangements were not in place.
It is recognised by Internal Audit that
actions have been taken by management to address many of the issues raised in
this report. The variation to the job description for Office Manager and the
subsequent appointment of a Manager who has considerable experience of
financial issues is to be welcomed, and it is felt that these actions will go a
long way to mitigating the financial risks identified in this report.
ACKNOWLEDGEMENTS
I would like to take this opportunity to thank the Traffic and Transportation Manager and the staff of the Car Parks Service for their assistance during the currency of this audit.
AUDIT SERVICES REPORT
ACTION PLAN: CAR PARKS
DATE REPORT ISSUED: 18
AUGUST 2006
|
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 |
30/12/06 |
|
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. |
A member of staff should be
designated as Deputy Finance Officer. |
High |
Office Manager |
30/12/06 |
|
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 |
30/12/06 |
|
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 |
31/12/06 |
|
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 |
30/10/06 |
|
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 |
31/10/06 |
|
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 |
|
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 |
30/10/06 |
|
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 |
30/10/06 |
|
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 |
30/10/06 |
|
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 |
30/10/06 |
|
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 |
30/10/06 |
AUDIT SERVICES REPORT
B: BEST VALUE PERFORMANCE INDICATORS
EXECUTIVE SUMMARY
1.1 Introduction
The audit was carried out as part of the
2006/07 Audit Plan. The plan was developed using a risk based approach with
Performance Indicators ranking as a top priority. Best Value Performance
Indicators provide a measure of actual achievement against targets for the
local authority as directed by central government prescribed definitions.
1.2 Objectives
To provide assurance to management that the
Isle of Wight Council’s Best Value Performance Indicators are calculated in
accordance with ODPM and Audit Commission definitions and have been correctly
applied.
1.3 Summary
of Findings
A sample of
Performance Indicators was reviewed. From the information available three BVPIs
may be amended because the definition had not been correctly applied in terms
of data collection, and each BVPI relied upon the same collected data. Five
BVPIs were identified where corrections have been required or data requiring
further clarification.
1.4 Overall
Conclusion
There were two
generic recommendations made both of which have been agreed by management.
These are detailed in the attached action plan.
1.5 Acknowledgements
I would like to thank the Performance
Improvement team and those departments involved for their help during this
audit.
Internal
Audit Action Plan
Title of Report: Best Value Performance Indicators
Date Final Report issued: 19
June 2006
|
Scope of PI |
Main Findings |
Possible Consequences |
Recommendation Reference |
Action Required |
Priority |
Responsibility |
Target Date |
|
Pedestrian crossings with disabled facilities |
Administrative error |
Incorrect supporting working paper |
14.0 |
That corrected BVPI information is received in time for
this years inspection. |
4 |
PI
Co-ordinator responsible |
30/06/06 |
|
Cleanliness of highways |
Definition incorrectly applied |
BVPI amendment |
14.1 |
That account is taken of the finding to ensure the
correct definition is applied to future years. |
4 |
PI
Co-ordinator responsible |
Unable
to correct |
|
Homelessness |
Incorrect numbers used |
BVPI amendment |
14.0 |
That corrected BVPI information is received in time for
this years inspection. |
4 |
PI
Co-ordinator responsible |
Implemented |
|
Abandoned vehicles |
Incorrect numbers used |
BVPI amendment |
14.0 |
That corrected BVPI information is received in time for
this years inspection. |
4 |
PI
Co-ordinator responsible |
Implemented |
|
Conservation areas |
Incorrect numbers used |
BVPI amendment |
14.0 |
That corrected BVPI information is received in time for
this years inspection. |
4 |
PI
Co-ordinator responsible |
Implemented |
Priority Rating :-
1 – Serious
control weakness requiring immediate action.
2 – Control weakness requiring action
within follow up period.
3 – Low
priority control
weakness requiring action within timescale determined by establishment.
4 – Other
-Systems related matters, value for money, administrative.
AUDIT SERVICES REPORT
C: BANK RECONCILIATION
EXECUTIVE SUMMARY
1.1 Introduction
The audit was carried out as part of the 2006-07 audit plan and the plan was developed using a risk based approach with the bank reconciliation system being scored as risk factor 46, classing the audit as important to tackle.
The bank reconciliation is a control to ensure that entries that pass through all the Council’s bank accounts are correctly recorded in the Isle of Wight Councils books of account. This process should be done in a timely manner to ensure that any variances are corrected at the earliest opportunity.
1.2 Objectives
To provide assurance to management that the
Isle of Wight Council’s bank reconciliation processes are completed in an
appropriate and timely manner.
1.3 Summary
of Findings
There were findings
with six recommendations as detailed in the attached action plan.
1.4 Overall
Conclusion
There is room for improvement in
some administrative processes.
1.5 Acknowledgements
I would like to thank staff at the Sandown
cash office and all those involved in bank reconciliation at County Hall.
Internal
Audit Action Plan
Title of Report: Bank Reconciliation
Date Final Report issued:
01/09/06
|
Finding Reference |
Main
Findings |
Possible
Consequences |
Recommendation Reference |
Action
Required |
Priority |
Responsibility |
Target
Date |
|
2.2 |
No up to date procedure manual |
Failure to take the required steps for satisfactory
completion of the bank reconciliation |
3.1 |
That the systems Team Leader in conjunction with other
staff document a procedure manual preferably electronically and version
controlled and securely held |
3 |
Systems Support Team Leader |
30th September 2006 |
|
2.3 |
Staff guidance as to process target dates not issued |
Slippage of overall target date for bank reconciliation
completion |
3.2 |
That the target dates are issued to staff |
3 |
System Support Team Leader |
30th September 2006 |
|
2.7 |
Late receipt of bank statements |
Failure to complete the Income and Bank Reconciliation
within expected target dates |
3.4 |
That steps are taken to ensure statement details are
received earlier |
3 |
System Support Team Leader |
30th September 2006 |
|
2.9 |
Possible unnecessary report production |
Increased storage required |
3.6 |
A review of the method of production of this report and others |
4 |
System Support Team Leader |
30th September 2006 |
|
2.12 |
Cheque payment details were not being received by Newport
Cashiers within a reasonable time |
Unprocessed cheque data hindering the satisfactory
completion of the bank reconciliation. Lack of audit trail |
3.3 |
That cheque request slips are completed in all instances |
2 |
Revenue Team Leader |
Now implemented |
|
2.16 |
Inadequate staff cover for completion of the Income
reconciliation |
Slippage of bank reconciliation completion |
3.5 |
That adequate training is
given to another member of staff to cover sickness or annual leave at the
Sandown Cash Office. |
2 |
Revenue Team Leader |
30th September 2006 |
Priority Rating :-
1 – Serious
control weakness requiring immediate action.
2
- Control weakness requiring action
within follow up period.
3 – Low
priority control
weakness requiring action within timescale determined by establishment.
4 – Other
-Systems related matters, value for money, administrative.
AUDIT SERVICES REPORT
D: CREDITOR PAYMENTS
EXECUTIVE SUMMARY
1.1 Introduction
The audit was carried out as part of the
2005/06 Audit Plan. The plan was developed using a risk based approach with
Creditors ranking as B on a scale of A-D, A being the highest risk category.
The administration of the system is carried by the Creditor Payment Section.
1.2 Objectives
To provide assurance to management that the
Isle of Wight Council’s creditor payment system is operating in accordance with
management control arrangements and that they are adequate to ensure the
integrity of the Authority’s Financial Accounting System.
1.3 Summary of Significant Findings
There was not a
robust enough procedure in place to adequately chase suppliers for certified
copies of VAT invoices to ensure recovery of the VAT element in all cases. New
procedures have now been documented and responsibility for the process rests
with the Creditor Payments section.
Recommendations of
a less significant nature have also been made which are included in the
attached action plan.
1.4 Overall
Conclusion
Overall we can give assurance that
the system of internal control within creditor payments is operating in a
satisfactory manner.
1.5 Acknowledgements
I would like to thank the Creditor Payments
section and Property Management Department for their help during this audit.
Internal
Audit Action Plan
Title of Report: Creditors Date Final Report
issued: 10/07/2006
|
Finding
Reference |
Main Findings |
Possible Consequences |
|
Recommendation Reference |
Action Required |
Priority |
Responsibility |
Target
Date |
|
2.1 |
A specified limit Regarding invoice authorisation was not on file |
Breach of financial regulations. |
1 |
2.5 |
That the Payments and Exchequer officer ensures that the
appropriate authorisation is received. |
2 |
Payment and Customer Accounts Manager |
30/04/2006 |
|
4.1 |
There is not a robust procedure in place to ensure that
VAT due to the Council is reclaimed in all cases. |
Loss of income Loss of internal control |
2 3 |
4.3 4.4 |
That there is a documented procedure regarding the system
of VAT recovery and responsibility should rest with a named officer. Those invoices currently on file should be reviewed
immediately to recover the outstanding VAT. |
1 1 |
Payments and Customer Accounts Manager Payments and Customer Accounts Manager |
30/04/2006 30/04/2006 |
|
5.7 |
Invoices were passed without evidence of a purchase order
being raised |
Breach of financial regulations Loss of internal control |
4 |
5.11 |
That no payment is made without the appropriate evidence
of a purchase order having been raised in line with financial procedure rule
3.4.2 and the order reference is written on the invoice.(subject to
recommendation 5.12 below) |
2 |
Payments and Customer Accounts Manager |
Immediate |
|
5.9 & 5.10 |
No reference has been made to the principles regarding
periodical and utility payments in the financial procedures |
Failure to ensure appropriate procedures are documented |
5 |
5.12 |
That the Financial Procedure 3 (Buying Goods and
Services) is amended to include reference to the procedures regarding
periodical types of expenditure |
4 |
Programme Lead Performance Improvement |
30/06/2006 |
|
10.3 10.6 |
A payment was made twice in respect of a periodical
payment It is questionable whether the creditor payments section
should carry the responsibility of raising payment requests on behalf of the
Property Services Department |
Lack of internal control Inappropriate payments Failure to make efficient use of resources |
6 7 |
10.7 10.8 |
Review the current procedures to ensure that the systems
are appropriately managed and robust in respect of periodical payments. That a review incorporates the feasibility of using
Technology Forge to replace the current system surrounding periodical
payments |
2 4 |
Payments and Customer Accounts Manager Payments and Customer Accounts Manager Office Manager Property Services |
31/08/2006 31/08/2006 31/08/2006 |
|
10.5 |
No plans to have insurance owners on the Technology Forge
system |
Failure to make efficient use of resources |
8 |
10.9 |
That the Technology Forge system includes details of the
appropriate insurer |
4 |
Senior Insurance and Risk Officer Corporate Property Manager |
31/08/2006 |
Priority Rating :- 1 – Serious control weakness requiring
immediate action. 2 - Control weakness requiring action
within follow up period.
3 – Low priority control weakness requiring action
within timescale determined by establishment.4 – Other -Systems related matters, value for money,
administrative.
EXECUTIVE SUMMARY
1.1 Introduction
This audit was carried out as part of the 2006-07 Audit Plan. The
purpose of the audit is to provide assurance to Management that there are
adequate controls and procedures in place and that they are implemented
effectively by Housing Staff.
Local councils are required by law
to give Disabled Facilities Grants to eligible applicants to make houses
suitable for disabled people.
Disabled Facilities Grants are
available to owners and tenants in both private and social housing subject (in
England) to a limit of £25,000.
For year 2005-06 the number of completed grants was 112. The 2006-07 budget is £800,000 and this is expected to cover 133 applications.
2005-06 saw the introduction of the Home Improvement Agency, Anchor, who were awarded the contract following a tender process. During the financial year 2005-06, Anchor’s involvement in grants was minimal.
However, they now have a more prominent involvement in the process. Anchor act as the clients agent and are paid 10% of the final grant value. If the maximum grant is awarded it must include all fees.
The legislation covering these grants is the Housing Grants Construction and Regeneration Act 1996.
The audit was carried out by interviewing relevant officers and carrying out testing on selected areas to determine the level of compliance with Council policy and procedures.
1.2
Summary
of Significant Findings
Anchor was rarely used during 2005-06 but now
play a more prominent role in those applications dealt with so far in 2006-07.
Because of the limited instances of dealing with Anchor the relationship
between them and the council is in its early stages. Due to this, a number of administrative errors have arisen. These are being dealt with and as the relationship
progresses, procedures will become embedded to provide the expected levels of
control.
The Councils own systems for referrals, the
checking of applications, obtaining estimates and invoice payments are sound
with a comprehensive control framework in place.
1.3 Overall Conclusion
There were no major areas of concern from
this audit, six minor recommendations of a mainly administrative nature have
been made which are detailed in the attached action plan.
1.4 Acknowledgements
I would like to take this opportunity to thank all staff involved in Housing for their co-operation and assistance in carrying out this review.
INTERNAL AUDIT ACTION PLAN
Title
of Report: Disabled
Facilities Grants
Date
draft Report issued:
|
Report Reference |
Main Findings |
Possible Consequences |
Action Required |
Priority |
Responsibility |
Target Date |
|
4.3 |
An inaccurate invoice payment was made due to unclear
documentation. |
Decreases availability for future grant funding. |
1. Obtain credit note for payment on DFG/90/05. 2. Persistent diligence in checking future payments |
1 |
Housing Renewal Manager |
Immediate |
|
7.1 |
Discretionary recovery of funds where an applicant has
not remained in the altered home does not occur. |
Recovered monies would assist in providing funding for
future applications. |
1. Adjust in
house documents to highlight the requirements of remaining in the altered
home. 2. Ensure that
visiting officers explain the circumstances in which recovery may occur and
that this is documented on the summary form, as a tick box for example. |
3 |
Housing Renewal Manager |
February 2007 |
|
7.2 |
There were financial errors involving cost of works and
invoicing whilst working in partnership with the Home Improvement Agency. |
Unobserved overspends. |
1. Embed new
working practices to allow smoother transactions between the Home Improvement
Agency and Housing staff. 2. Assiduous
checking of all incoming financial documentation. |
3 |
Housing Renewal Manager |
February 2007 |
Priority
Rating: - 1 Serious control weakness
requiring immediate action.
2 Control weakness requiring action within follow up
period.
3 Low priority control weakness requiring action within timescale
determined by establishment.
EXECUTIVE SUMMARY
1.1 Introduction
This audit was carried out as part of the 2006-07 Audit Plan. The
purpose of the audit is to provide assurance to Management that there are
adequate controls and procedures in place and that they are implemented
effectively by the Street Lighting Service .
The audit was carried out by interviewing relevant officers and carrying out
testing on selected areas to determine the level of compliance with Council
policy and procedures.
1.2 Summary
of Significant Findings
There were no significant findings from this
audit, minor recommendations of a
mainly administrative nature have been made which are detailed in the attached
action plan.
1.3 Overall Conclusion
There are no significant areas of concern relating to the provision of
this service. The risk of a substantial increase in electricity costs has been
identified appropriately by the service. The recent tender awards in respect of
the maintenance of street lighting have complied with all relevant regulations
and policies.
1.4 Acknowledgements
I would like to take this opportunity to thank all staff involved in Street Lighting for their co-operation and assistance in carrying out this review.
Internal
Audit Action Plan
Title of Report: Street Lighting / Electrical Services
Date draft Report issued: 28 June 2006
|
Main Findings |
Possible Consequences |
Action Required |
Priority |
Responsibility |
Target Date |
|
Further information will be required by the Audit
Commission to verify the Best Value Performance Indicators |
Amendment / Qualification of BVPI |
Ensure tickets issued by the contractor are available for
the Audit Commission |
2 |
Principal Engineer – Street Lighting |
BVPI Inspection |
|
. There is occasionally a significant delay between the
award of contract and notification to Legal Services. |
Delay in preparation of formal contract |
Develop procedures to reduce the period of time taken to
pass information to Legal Services. This may be considered during forthcoming review of
contract management. |
3 |
Operational Manager - Maintenance |
Ongoing |
|
. Stores systems used either have out of date minimum and
maximum stock levels or no levels at all. |
Too much or too little stock held delays in ordering
stock. |
Review FIDO stores system and stores system used by
Street Lighting. Include lead in period / re order levels. Information to be
passed to the Systems Support Team Leader who will ensure the FIDO stores
system is updated. |
2 |
Principal Engineer – Street Lighting & Systems Support Team Leader |
September 2006 |
|
There has been no resolution to the ongoing situation
regarding Street Lighting on the ex prison estates |
Significant maintenance costs may be incurred |
Obtain consensus with Central Government on
responsibility for Street Lighting |
3 |
Operational Manager - Maintenance |
Ongoing |
Priority
Rating: - 1 Serious control weakness
requiring immediate action.
2 Control weakness requiring action within follow up
period.
3 Low priority control weakness requiring action within timescale
determined by establishment.
EXECUTIVE SUMMARY
1.1 Introduction
This audit was carried out as part of the 2006-07 Audit Plan. The purpose of the audit is to provide assurance to Management that there are adequate controls and procedures in place and that they are implemented effectively by the Street Cleansing Section.
Litter collection and street cleaning on the IW is carried out under contract by Island Waste Services. The current contract commenced on 2 April 2001 at which time the existing contracts within the old South Wight and Medina Borough areas were combined and common standards adopted. The new contract included the addition of 270 kilometres of rural highways that were not previously cleaned. The contract includes the emptying of litter and dog bins. The contract was awarded for an 8 year period with the option to extend for a further 4 years, therefore the contract will again be subject to competitive tendering in either 2009 or 2013.
The audit was carried out by interviewing relevant officers and carrying out
testing on selected areas to determine the level of compliance with Council
policy and procedures.
1.2 Summary of Significant Findings
Significant findings have already been
reported in the Best Value Performance Indicator audit, these findings are
reiterated here and recommendations made to ensure the process for 2006-07 is
amended to ensure indicators are not qualified by the Audit Commission.
The inspections carried out for BVPI 199a, b and c for 2006-07 must be amended to ensure the requirements of the BVPI are met.
Recommendations of a less significant nature
have also been made which are included in the attached action plan.
1.3 Overall Conclusion
There is only one significant
area of concern relating to the provision of this service. In general the service is performing well,
and the standard of contract performance is good. Positive relationships with
the contractor ensure that resources are deployed effectively. There is generally
a high level of satisfaction expressed by the public regarding the cleanliness
of Island Streets.
1.4 Acknowledgements
I would like to take this
opportunity to thank all staff involved in Street Cleaning for their
co-operation and assistance in carrying out this review.
Internal
Audit Action Plan
Title of Report: Street Cleansing & Litter Management
Date Final Report issued: 21 July 2006
|
Main Findings |
Possible Consequences |
Action Required |
Priority |
Responsibility |
Target Date |
|
Inspections carried out in respect of BVPI 199 for
2005-06 were not, in a small number of instances, in accordance with guidelines issued by DEFRA. |
Amendment / Qualification of BVPI |
Ensure 2006-07 follow guidance issued by DEFRA. |
1 |
Operational Manager - Maintenance |
Immediate |
|
. Effects of the requirements of the BVPI on the inspection
regime may have an adverse effect on the quality of contract monitoring. |
Reduction in quality of service received. |
Monitor any effects on ability to inspect the contract. |
3 |
Principal Contracts Management Officer |
Ongoing |
|
. The last full inspection of weigh bridge tickets relating to the Street Cleaning Contract was carried out in 2002 |
The authority is incorrectly charged for refuse disposal. |
Should sufficient resources exist then a further review
should be carried out in 2006-07 |
3 |
Senior Waste Management & Contracts Officer |
March 2007 |
|
There is a potential overspend within the budget of
£30,000. Other sources of income are being identified but should this not be
possible then a reduction in the level of service should be negotiated. |
Budgets are overspent for 2006-07 |
Identify other income streams or reduce level of service |
2 |
Operational Manager – Maintenance &Business
Development Manager - Finance |
September 2006 |
Priority
Rating: 1 Serious control weakness
requiring immediate action.
2 Control weakness requiring action within follow up
period.
3 Low priority control weakness requiring action within timescale
determined by establishment.