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Audit & Technical Section – Audit Plan 2010 - 2011 - 1 -

APPENDIX 1


Contents

Introduction to Audit Plan 2010-11 3

Adults & Communities 11

Chief Executive’s Department 17

Children and Young People’s Service 19

Corporate Resources Department 27

Environment and Transport Department 28

Corporate Finance 32

Corporate Governance 37

Corporate HR 41

Corporate ICT 44

Corporate Property 47

Pension Fund 49


AUDIT & TECHNICAL SECTION

INTRODUCTION TO AUDIT PLAN 2010-11

1. This booklet contains the Internal Audit Plan for 2010-11. 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. 2010 marks the start of a new 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 Section. 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, schools financial management standards external assessments and meeting the certification requirements of providers of external funds also has to be taken account of at this stage.

3. The Section 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. Also allowed for is the secondment of a member of staff to the modernising financial services project.


4. The following categorisation of audits has been used (see pages 6 and 7 for each department’s scores within the categories):-

• 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 loans and leases taken out and controls and insurance in place to reduce the exposure to potential liabilities such as claims

• Payments Payments both to employees and pensioners as well as contractors and recipients of grants etc

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

• Financial Financial systems including general ledger, 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; research and post audit follow ups

• Recharge Specific items of work that are charged for

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


6. In devising the Plan it is recognised that computer 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.

7. It is recognised that during the year there will be a number of competing demands on service managers’ time. Particularly

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

8. 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.

9. Cross references have also been made where jobs specifically relate to issues highlighted in the corporate risk register.

Over and above these specific references many jobs contribute to mitigating the risks in the corporate risk register relating to the headings Financial Management; Value for Money (Efficiency) Gains; ICT; Economic Downturn; and Information Security.

Steve Hill 25/3/2010


LEICESTERSHIRE CC AUDIT 'RISK LEVEL MAP'

as at March 2010 Based on MILE (materiality, impact, likelihood and exposure)

Departments Corporate Establishments

Sub-Heading A&C Ch Ex CYPS Co.Res E&T Fin Gov HR ICT Prp Pens Fd Schls. Adults

1. Governance 81 49 72 49 64 48 72 64 64 42 56 56 36

2. Personnel 81 36 64 42 49 0 36 63 0 0 0 63 42

3. Operational 81 56 64 56 63 0 72 36 48 49 42 56 42

4. Financial Assets 30 36 24 24 36 72 0 0 0 40 63 35 0

5. Physical Assets 56 20 42 42 56 35 35 0 56 49 42 63 36

6. Procurement/Amount Payable 81 49 64 36 72 25 72 42 42 64 42 56 35

7. Financial Liabilities 56 20 48 15 63 56 0 0 0 0 0 64 0

8. Potential Liabilities 72 30 81 35 56 56 49 48 56 36 35 64 42

9. Payments to 'Insiders' 56 28 48 42 49 63 0 0 0 0 64 63 49

10. Payments to 'Outsiders' 64 36 54 36 56 63 42 25 36 48 49 64 42

11. Creditors 20 20 20 20 16 40 24 16 20 20 20 36 0

12. Income Received 56 42 56 42 49 48 0 0 0 25 64 64 24


Departments Corporate Establishments

Sub-Heading A&C Ch Ex CYPS Co.Res E&T Fin Gov HR ICT Prp Pens Fd Schls. Adults

13. Debtors 72 36 42 42 49 56 36 0 0 20 42 42 30

14. Amounts Due 81 36 42 36 42 24 24 0 0 35 35 56 28

15. Grants, Fund Form, Precepts 64 56 48 21 49 42 42 0 0 49 0 56 0

16. Accounting/General Ledger 30 25 36 25 30 49 0 0 0 30 56 36 0

17. Cash and Bank Reconciliation 30 18 24 18 18 56 0 0 0 0 30 56 35

18. Transp/Transmission of Payts 18 16 35 16 35 72 20 0 0 0 0 56 28

19. Loans Given 36 20 36 30 36 30 24 0 0 0 0 42 28

20. Information 72 56 72 30 42 36 49 64 81 42 49 56 36

21. Developments 72 56 72 49 72 72 72 72 81 72 56 56 0

22. Contingency Planning 42 28 36 25 42 56 56 0 63 35 0 30 0

23. Linked Org Accounts 24 0 20 0 24 25 0 0 0 0 0 56 56


AUDIT PLAN

Productive Days 2010-11 SUB - TOTAL TOTAL

Leicestershire County Council Departments

Adults and Communities 335

Chief Executive's 49

Children & Young People's 517

Corporate Resources 31

Environment and Transport 143 1075

Leicestershire County Council Corporate

Finance 178

Governance 130

Human resources 98

Information and communication technology 133

Property 69 608


Charged for Auditing

Schools - FMSiS assessments 120

Pension Fund 74

Eastern Shires Purchasing Organisation 100

East Midlands Councils 16

Combined Fire Authority 60

Bradgate Trust 10

Oadby & Wigston BC 75

Other District work 10

Connexions Ltd 30

Other Rechargeable Audits 3 498

Client and Unallocated

Client Audit Work 72

Audit Plan & Reporting 156

Work on Specific Audits by Head of Audit 30

Frauds & Special Investigations 130

Rechargeable Administrative Support 102 490


Technical and Departmental

Secondment to Modernising Financial Services 110

Technical 20

Departmental / Elections 10 140

Contingency

Contingency 146 146

TOTAL 2957 2957


Adults & Communities

2009/10 Brought Forward Audits

Category

Audit Title

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

Days

Departmental

Governance Efficiency & Service Reduction Programme

The pilot Gateway Review meets its objectives and milestones. Advice on controls and risks identified during the review

{Corporate risks –Value for Money (Efficiency Gains)}

12

Governance /

Liabilities

Risk Management The Department’s own risk management processes are robust; management has identified and is managing key risks, including local communities and self directed support safeguarding risks

14

Personnel Redundancy Procedures

Corporate policies and procedures are complied with in relation to consultation, cost, legality and the decision making process.

12

Personnel Workforce Planning

Decisions regarding staff transfer are agreed with consideration given to staff with the appropriate skills and training where necessary.

12


Adults

Governance Care Pathway Pilot

The pilot meets its objectives and milestones. Advice on controls and risks identified during the review

{Corporate risk – personalising adult social care}

8

Governance Health Partnerships

Integrated working with PCTs and the use of ‘Shared Service Centres’ is properly planned and implementation managed in accordance with agreed timescales.

10

Operational 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 Service Users' Self Assessments

Self directed support guidance and validation procedures are robust 12

Assets Older Persons’

Homes

The transfer project for the Older Persons’ Homes is properly managed and within agreed timescales.

12

Procurement Future Service Provision

Current contracted provision is reviewed and re-aligned to reflect future needs identified during self directed support reviews.

12


Procurement Community

Equipment

The arrangements for procuring community equipment ensure best value is obtained and within the Corporate Procurement guidelines and disabled facilities grant criteria.

12

Liabilities Mental Health Capacity Act

There are clear procedures to determine a person’s mental health capacity when making funding decisions jointly with Health.

12

Payments Individual Budgets

Methods for administering service users’ individual budgets are efficient and effective and avoid omission or duplication

12

Payments Electronic Home Care Payments

Payments are due, complete and accurate. Electronic feeds are robust and secure.

12

Payments Home Care Providers’ Systems

Providers ‘non-compliant’ electronic HC systems are secure and provide accurate inputs prior to the validation processes. ICT audit testing.

5

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


Income Learning Disability Funding

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

Income Fairer Charging Policy

All charges made under the revised Fairer Charging Policy are implemented within the agreed timescales and are in accordance with the revised policy.

12

Information Information Sharing

There is a clearly defined and agreed information sharing protocol and all partners comply with this. Includes ICT audit advice

12

Information Customer First Especially for sensitive data, protocols are established; there is vetting, training and guidance for users and a sound interface with specific A&C systems and staff. Includes ICT audit advice

12

Development Resource Allocation System

ICT audit advice on financial modelling in relation to the Resource Allocation System (RAS).

{Corporate risk – personalising adult social care}

6

Development Adaptations to MIS

ICT audit advice and testing on adaptations to the current management and client information system (SSIS)

6

Development Replace Adult Social Care MIS

ICT audit advice on the proposed procurement of a replacement social care management information system.

6


Development Telecare and

Telemeds

ICT audit of the systems used, to include: -

• application testing

• user testing

• system security

• feeds to other systems

• advice

12

Establishment Visit Plan The Officer in Charge/Manager is meeting their responsibility for administering sound financial processes that comply with departmental and corporate procedures

• 2 x Community Opportunities establishments

• 1 x Residential – Learning Disability (inc. Respite) establishment

• 1 x Inclusions Support Service Adult MH

• 1 x Mental Health hostel

• 2 x Older Persons Homes

35

Various Post Audit Follow Up

Any work arising after final reports have been issued, including confirmation that recommendations have been implemented.

3

Advice Planning and reporting

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

7


Advice Service Based Advice

Initiated by specific requests from Adults & Communities staff

5

Advice ICT Related Advice

• FASCIA post implementation review

• Other 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

11

Communities

Establishment Oadby Library Probity visit with coverage extended to include the risks associated with:-

� The arrangement with O&WBC to have a district council service shop on site;

New self-service library facility.

5

Income External grant funding

There is no lack of continuity or expertise due to departmental reorganisation surrounding applications for external funding (e.g. museums and heritage services). The department remains proactive in ensuring that existing grants are being utilised in accordance with grant conditions.

12

Total Adults & Communities

335


Chief Executive’s Department


Category

Audit Title


Days

Governance Budgetary

Control

There is a sound financial framework for the control of the departmental budget (including for those services transferred from Community Services Department-12 days).

To be undertaken in two stages so as to also cover changes resulting from modernising financial services (6 days)

(This may also provide assurance for the Joint Audit with PWC 2010/11)

18

Operational Community Planning

Review of Voluntary Community Sector payments:

- Application & Tender Process

- Monitoring & Evaluation

14

Development

YOT– Replacement System

ICT Audit advice on pilot and implementation of CM (case management) system 5


Development Shared Services Advice upon shared services developments (Community Planning)

4

Advice Advice Including Incorporation of Regularity services & ICT Audit Advice

5

Research

Research

“

2

Post Audit

Post Audit “

1

Total Chief Executives Department

49


Children and Young People’s Service


Safeguarding (response to the Laming Report); Safeguarding (schools readiness for OfSTED visits); Supply teaching control; Contact Point (adherence to the Organisational Accreditation Standard); School Meals Subsidy

Category

Audit Title


Days

Governance / Liabilities

Risk Management

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

12

Governance Efficiency & Service Reduction Programme

The departmental efficiency programme is adequately planned, regularly monitored and assumptions challenged where relevant. Departmental details are adequately reported through to the Organisational Efficiency Board and to the Departmental Management Team.

{Corporate risks –Value for Money (Efficiency Gains)}

12

Personnel Specialist Services Review

Changes to working practices are managed effectively.

{Corporate risk – Safeguarding}

12


Operational Schools Causing Concern

The Department’s procedures for identifying and working alongside schools causing concern are robust and effective.

12

Assets

Surplus Balances Surplus balances at the end of the 2009/10 financial year are computed accurately by the Finance Service and are clawed-back in line with (new) LA policy. Exceptions are in line with the policy framework.

5

Assets School Closures Formal ‘closedown’ processes exist and the movement of school assets, financial and otherwise, is clearly evidenced in the event of school closures:

• ICT hardware and software

• Vehicles

• Cash and bank assets

• Unofficial fund balances

• Disable Accounting Codes

12

Procurement To be confirmed

The commercial and reputation interests of the Authority are protected. Review compliance following training/guidance on writing specifications and creating a procurement audit trail.

12


Liabilities

Contingent Liabilities

Contingent financial liabilities are identified at an early stage and managed accordingly, especially in the event of school closures:

• Joint-use arrangements (e.g. premises sub-leases)

• Long-term leases of equipment or vehicles

• Long-term contracts (e.g. cleaning)

• Deficit budget balances

9

Liabilities OfSTED Review The key risks within Specialist Services are identified and managed proactively knowing that a sub-standard OfSTED judgement in some areas can lead automatically to a reduction in the LA’s overall inspection rating (e.g. safeguarding).


12

Liabilities Health & Safety in Schools

The recommendations coming from the corporate review of health & safety in schools and at other educational establishments have been fully implemented.


6

Payments I-Procurement Verification that sections are using I-Procurement effectively. Hierarchies are reasonable and in line with Scheme of Delegation.

6


Income ParentPay The LA’s increased use of ParentPay in the collection of parental income

electronically (e.g. school meals) is functioning effectively.

6

Financial

School BA2 Balances Reconciliation

The Finance Service is involved in the regular reconciliation of BA2 balances to the General Ledger.

3

Financial

School Meals C&D Reconciliation

Collection and Deposit accounts in relation to school kitchens (LA contract) are routinely reconciled by Exchequer Services and differences promptly followed-up with establishments.

5

Information Customer First

Especially for sensitive data, protocols are established; there is vetting, training and guidance for users and a sound interface with specific CYPS systems and staff. Includes ICT audit advice

10

Information

Contact Point Assurance work surrounding both the in-house procedures / use of ContactPoint, and the role of the Local ContactPoint Team in accrediting external partner organisations. Includes ICT audit advice.

{Corporate risks – Safeguarding}

12


Development Framework-I

ICT audit review of the procured replacement management information system to include: -

• application testing

• user testing

• system security

• feeds to corporate systems – e.g. foster care payments

• advice

12

Development Capita-One ICT audit assurance work surrounding further developments with Capita-One with particular focus on information management and the Early Years Payment Feed.

6

Financial Teacher’s Pension Scheme

The annual return to Teacher’s 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


Establishment

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

• 6 x Upper Schools

• 8 x High Schools

• 43 x Primary Schools

• 2 x Special Schools

• 1 x Nursery School

• Secondary Pupil Referral Unit

• Primary Pupil Referral Unit

• Children’s Social Care Family Centre (non-delegated)

230

Establishment

Themed Visits Primarily that income is collected in full and recorded accurately. Assurances to be gained from visiting a sample of:-

• School Food Support Service catering sites

• Adult and Community Learning locality visits

20

Various Post Audit Follow Up

Work arising after final reports have been issued, including confirmation that recommendations have been implemented.

4


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 Advice

Initiated by specific requests from CYPS based staff.

Including impact of the transfer of Learning Skills Council funding

{Corporate risks – machinery of government}

15

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.

15

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 un-researched subject areas.

25

Total Children & Young People’s Service 517


Financial Management Standard in Schools (FMSiS)

Fee earning Light-touch assessments

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 2011.

Undertake and review LTAs at schools. Based on 70 schools @ 1.5 days per school.

Close down 2009/10 round of schools (cohort 1 reassessments).

Plan approach for 2010/11 round of schools (cohort 2 reassessments).

DCSF requirement for Section 151 Officer to report annually whether schools meet the Standard.

105

5

10

Total FMSiS External Assessments 120


Corporate Resources Department


Category

Audit Title

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

Days

Governance / Development

Shared Service Preparation

ICTS Shared Service Procedures are properly planned, implemented and managed.

14

Payments Payroll

Variations to payroll are appropriately authorised within the Department and payroll management information is adequate and received by relevant managers. To be carried out after ORACLE HCM implementation.

12

Advice

Advice Including ICT 4

Post Audit

Post audit follow up

Work arising after final reports have been issued, including confirmation that recommendations have been implemented.

1

Total Corporate Resources Department 31


Environment and Transport Service


Efficiency Programme Governance

Category

Audit Title


Days

Departmental

Advice Departmental Departmental advice / developments

9

Advice ICT specific ICT specific advice

2

Research Research Planning, Research & Reporting

3

Post Audit Post Audit

Post Audit Follow-up

1

Total Departmental

15


Category

Audit Title


Days

Transportation

Liability Concessionary Transport

Review the processes being implemented for the administration and operation of the English National Concessionary Travel Scheme.

12

Income Parking Enforcement

Re-allocation of on / off street income between LCC and Districts is accurately undertaken, including the comparison of District supplied information on operating costs.

12

Financial

Bus Service Operator’s Grant

Annual review of claim.

NB – may need longer if this year’s claims not through in time

4

Total Transportation

28


Highways

Governance Capital Programme

Capital programme schemes are effectively identified, prioritised, approved and monitored.

12

Procurement

Midlands Highways Alliance

Payments made under the Highways Agency ‘MWF3’ for Birstall Park & Ride (as a ‘medium scheme’) are accurate, valid, prompt and paid only once.

{Corporate risk – growth agenda}

12

Liabilities Winter Maintenance

To review the impact of the severe winter conditions upon the processes and costs for the Winter Maintenance service.

12

Development Oracle HR & Payroll

Provide control advice in the transition from weekly pay to monthly pay, which may cover areas such as:

• Employees continue to be paid accurately and in a timely manner (that follows appropriate consultation)

• Claim validity

• Accurate job costing

6

Development Transformation of Highways Works

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

14


Development

Fleet Management Project

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

14

Development

Depots Review To review the progress of the project and monitor the level of efficiency savings that are being made.

12

Total Highways

82

Waste Management

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

{Corporate risk – waste management}

6

Development Waste PFI

Provide advice with regard to detailed reporting and invoicing arrangements.


6

Development Recycling Credits

Monitor the new payment process to Districts.


6

Total Waste Management

18

Total Environment and Transport Service 143


Corporate - Finance


Category

Audit Title


Days

STRATEGIC FINANCE

Governance

Monitoring of Efficiencies

To link with the departmental Efficiencies Programme audits.

{Corporate risk –financial management}

4

Assets/ Liabilities

Treasury Management

Regularity audit of lending and borrowing activities.

{Corporate risks –financial management & economic downturn}

12


Financial 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 accounts, material feeder systems)

o Highways Operations (Payroll ; Creditors; Income)


{Corporate risk – financial management}

30

Financial S151 Joint Audit S151 Assurance on completion of key reconciliations for periods 8 - 11 (excluding pension fund) for 2009/10 Assurance Statements.



20


Development Modernising

Finance - prior to GO LIVE

Modernising Finance – post implementation

Work to be undertaken in two stages:

A. To cover the following areas prior to GO LIVE:

1. Provide control advice during the ‘Conference Room Pilot’ stage

2. Review desk top instructions produced from a control viewpoint

3. Comment upon testing and training arrangements as they are happening

4. Review changes to ORACLE FIS across a number of areas: approvals/hierarchies, user profiles, tolerances, etc.

B. After Implementation

To review the validity and accuracy of transactions/reporting under the new arrangements in key risk areas (may include budget monitoring, payments and debtors processes). This links to audit work within the Finance Shared Services (see below).

{Corporate risk – organisational change}

14

14

Development / Liabilities

Insurance Claim Handling System – Replacement Package

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

{Corporate risk – ICT}

6


Irregularities NFI Data

Checking NFI2010 data checking

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


28

FINANCE SHARED SERVICES

Payments BACS

Regularity audit to follow-up on previous findings and to undertake testing on the validity, accuracy and timeliness of BACS runs


10

Payments

Payments Regularity audit of areas to be agreed which may include the following: Payables and IProc access rights, vendor set up, batch approval. This audit may also provide part of the audit coverage on changes resulting from the MFS project.


12

Income

Debtors Regularity audit of areas to be agreed which may include: debtor set-up, input of invoices, Receivables and Cash Receipting access rights. This audit may also provide part of the audit coverage on changes resulting from the MFS project.

{Corporate risks –financial management & economic downturn}

12

Advice Advice Advice including ICT Audit 9


Research Research Research and Planning 5

Post Audit Post Audit Post Audit follow up

2

Total Corporate - Finance 178


Corporate - Governance


Partnerships Governance including Risk Management

Category

Audit Title


Days

Governance Corporate Governance

Corporate controls are in place in relation to rule making, information, provision, decision making, performance monitoring, standards of conduct, community focus/engagement & risk management

12

Governance Change Management Key Processes

The project management developments, within the Change Management Programme. The 5 key processes have been effectively implemented, these being:

• Quality

• Benefits

• Risk & Issue management

• Stage reporting

• Highlight reporting


14


Personnel / Payments

Members Allowances Review of member allowance allocation and payment


4

Operational Carbon Footprint

(Carbon Management Programme)

Review of Performance Indicator information (defined within the Sustainable

Community Strategy). Controls for establishing the baseline and the

arrangements in place for reporting progress against the reduction commitment

target.

{Corporate risk – environment}

12

Operational LAA2/SCS To ensure robust governance arrangements are in place to ensure effective and efficient delivery of LAA2. (Review the performance framework for the key 59 indicators to ensure supported by a robust system that can provide for quality data.)

{Corporate risks - value for money & partnership working}

18

Procurement Corporate Procurement

There are arrangements in place to ensure that there is an effective link between Departmental DMTs and Category Managers for the achievement of Departmental efficiency savings targets. Review coverage:

• Preparation of category works plans by Category Managers which identify procurement savings ( derived from the Corporate Savings Tracker)

• Monitoring and reporting arrangements to DMTs

{Corporate risk - value for money}

12


Procurement Financial Management (LAA2)

Review of selected LAA2 partners to ensure payments are in line with agreed

delivery plans


12

Financial LAA1 Reward Targets

To provide assurance to support the Head of Audit opinion:

• Local Area Agreement (LAA1) assurances for reward target certification (2nd round)


6

Financial Efficiencies

(NI179)

To provide assurance to support the Head of Audit opinion:

• Review of NI179 efficiencies statement at LCC level as required by CLG


6

Development Change Management Key Project Documentation

Project documentation to be ‘risk assessed’ for any further major control implications


6

Development

Oracle ERP Steering Group

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


12

Development Total Place Control advice relating to Total Place developments

4


Advice Advice

Departmental Advice 6

Research Research Research and Planning 4


2

Total Corporate - Governance 130


Corporate - HR


Customer First Implementation of the CRM; ESC Payroll Processes; ESC Processing CRB applications

Category

Audit Title


Days

Strategic HR

Governance Operation application of the Corporate Redundancy Policy

The advice given to management by Human Resources in support of the rationalisation of the workforce is commensurate with the Corporate Redundancy Policy and there is evidence that the Policy is being followed to minimise any risk of employment tribunal cases being brought against the Authority.

{Corporate risks – staff & members and organisational change}

12

Personnel Pre-Employment Checks

Recruitment and induction processes are robust in relation to the confirmation of:-

� References

� Qualifications

� Right to work in the UK

� CRB clearance

� Medical clearance (where the job makes this relevant)

{Corporate risks – staff & members}

12


Employee Service Centre (ESC)

Payments

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:

• 2009/10 Accounts – Periods 8-11

(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

• 2010/11 Accounts – Periods 1 - 7

o As periods 8-11 above plus payments via cheque and BACS (the latter to link with BACS audit work undertaken within Corporate Finance)



See Corp

Finance Plan

20

Payments Employee Service Centre - Payroll

Provide assurance upon the integrity of the payroll transactions by selecting a sample from key processes, which may include:

• Recruitment

• Starters

• Leavers

• Claims

• Helpdesk (This may also provide assurance for the Joint Audit with PWC 2010/11)


20


Development / Payments

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

{Corporate risks –organisational change and financial management}

12

Development / Payments

Project Control Advice

Provide for continuing control advice within the ESC for ORACLE:

• Design and implementation of the business processes (including review of procedural documentation / hierarchies / workflow design / self-service)

• Testing and Training strategy

• Security

{Corporate risk – employee shared service centre}

6

Development / Information

Attendance Management

Data on sickness is input accurately to the Oracle HR module and quality information is duly disseminated to departments to promote the effective monitoring and control of staff absence.

{Corporate risks – organisational change and staff & members}

12

Advice Advice General Advice 2

Research Research Research and Planning

1


1

Total Corporate - HR

98


Corporate - ICT


Category

Audit Title


Days

Governance Risk Assessment Process

The process in place ensures all relevant stakeholders play an active role in identifying and controlling risks in a manner that enables economic effective and efficient use of resources.

12

Governance

ICT PIR Recommendations

Recommendations produced in respect of the ICT Post Implementation Review have been appropriately addressed.

12

Financial

Joint Audit Key ICT Control - LCC

PWC Key ICT Controls


{Corporate risks – ICT & information security}

12


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)

{Corporate risk – information security}

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.

12

Information Change and Configuration Records

ICT change and configuration records are correctly maintained in accordance with policy with due regard for relevant areas of ITIL (information library) best practice


12

Development / Information 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

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


6


Development Agile IT/Mobile and Flexible Working control Advice

Control advice within any of the technological developments


6

Development Project Control Framework

The implementation of a Project Control Framework addresses corporate wide project governance and management requirements, with particular emphasis on ensuring the availability of appropriately trained people in a timely manner.

12

Contingency Planning 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)

12

Post audit follow up 3

General advice 4

Total Corporate - ICT

133


Corporate - Property


School Replacements

Category

Audit Title


Days

Procurement / Payments

School Replacements

Payments are in accordance with the agreed contract to maintain accuracy, validity and promptness

Melton King Edward VII, Melton John Ferneley

{Corporate risk – value for money}

12

Procurement

Other Capital Builds

Procurement complies with the agreed framework and the Contract Procedure Rules

Children’s Centres, School Accommodation – Basic Need & Mobile Replacement


12

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.

{Corporate risks – organisational change and staff & members}

14

Development

Concerto System – Control advice

Control advice on the development and changes to departmental processes within the Property management information system replacement

6


Concerto System – Project management

ICT Audit Resource for Project Board representation in a ‘critical friend’ capacity to challenge that the project remains on track to deliver an effective usable solution in accordance with specification within relevant project documentation

{Corporate risks – ICT and environment}

6

Development / Operational

Facilities Management

The contract management / performance monitoring of the new FM processes


12

Advice Advice Departmental Advice

4

Research

Research

Planning and Researching

2

Post Audit Post Audit Post audit follow-up

1

Total Corporate - Property

69


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 Pensions / Lump Sums

Review the validity and accuracy of payments for new pensions, lump sums and death grants (reflecting the appropriate split of 1/80th and 1/60th scheme membership).

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, 2009-10 on key reconciliations

20

Development Contribution Banding Exercise

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

6

Development Deceased Report Checking

Review the accuracy of the reports and the processes followed by Pensions. 6

Advice Advice Departmental Advice

1

Research Research Planning and Research

1


Post Audit Post Audit Post Audit Follow Up 1

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

Total Pension Fund 74

appendix 1 - politics.leics.gov.ukpolitics.leics.gov.uk/documents/s44963/h - appendix...• income...

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