Agenda item

To provide to the Audit Committee with a summary of the work completed by Risk Services in quarter four of the 2015/2016 financial year.

Ms Greenhalgh, Chief Internal Auditor, presented the Committee with an overview of the Risk Services Report for the fourth quarter of 2015-2016. 

Ms Greenhalgh provided the Committee with a summary of the key points contained within the report and advised Members that a major incident exercise had been undertaken on 19 January 2016, which had involved a wide range of services. It was reported that the outcome of the exercise had been collated and would help with future learning, especially in relation to Property Management and the development of the Major Emergency Plan.

Ms Greenhalgh reported on the Key Performance Indicators for the service. It was noted that the percentage of professional and technical qualifications held was lower than the target and, upon questioning from Members, Ms Greenhalgh explained that the reason was due to two members of staff with professional qualifications having left the Service. She advised that as a result, junior members of the team were being afforded more opportunities and training.

Members also raised questions relating to the number of trained Emergency Response Group Volunteers and it was reported that plans to increase resilience through employing joint arrangements with Lancashire County Council and Blackburn with Darwen Council, were being investigated. Members were also advised that the possibility of providing incentives for volunteers was also being explored. Mr Jack noted that the volunteers were only required for emergencies occurring outside of office hours and that there would be appropriate numbers of staff to be able to deal with emergencies during office hours.

Members noted that the percentage of risk registers revised and up to date at the end of the quarter was slightly below target and were assured that the indicator was expected to be on target by the end of the Risk Services Quarter One Report 2016/2017.

Members also raised questions in relation to the Corporate Fraud Statistics and were advised that the National Fraud Initiative was a national exercise on data matching. Ms Greenhalgh explained that of the 2,752 referrals that Blackpool had received, 553 had resulted in an investigation of some form. Ms Greenhalgh advised that a risk assessment was completed on every referral received, upon which any further investigation depended. She noted that the Corporate Fraud Team would record if no further action was taken on a referral. The Committee requested that an additional column be inserted into the table of Corporate Fraud Statistics, indicating the number of referrals received, but that no further action had been taken.

Ms Greenhalgh provided the Committee with an overview of the Internal Audit reports issued during Quarter Four, with particular reference to the inadequate statements that had been issued.

The Committee considered the Internal Audit report of the Coastal Communities Fund, for which the controls in place had been assessed as being inadequate due to the lack of a robust income stream that left the project at risk of being unsustainable. It was also noted that there were concerns that the project did not follow a formal project management methodology and key documents, such as project plans and actions plans were not in place. Members noted that it was a three year project with an aim to become self-sufficient in the future, but raised concerns that there was still not a project plan in place after the first year. The Committee discussed plans for income generation for the project and requested that the relevant officer be invited to the next meeting of the Committee to provide an explanation for controls being inadequate and to provide a progress report detailing how the concerns of the audit had been mitigated.

The Committee also considered insurance claims data and Ms Greenhalgh advised that there had been a reduction in the number of tripping claims. It was considered that the reduction in claims was due to a number of factors, which included the impact of Project 30, although at a slower rate than had initially been anticipated, and the Jackson reforms, which had arisen following a review of civil litigation costs. Ms Greenhalgh reported that it was expected that the Highways Road Asset Management Strategy would continue to have an impact in reducing claims further. Members questioned whether Project 30 would deliver the savings that had initially been targeted and were advised that initial targets had been aspirational and there remained a gap between the savings currently achieved and the savings initially forecast.

The Committee agreed:

1) To note the report.

2) To request that an additional column be inserted into the table of Corporate Fraud Statistics, indicating the number of referrals received but that no further action had been taken.

3) To request that the Director of Place be invited to attend the next meeting of the Committee in order to provide an explanation for controls being inadequate in relation to the Coastal Communities Fund internal audit review and to provide a progress report detailing how the concerns of the audit had been mitigated.

Background papers: None.