Appendix A

STATEMENT ON INTERNAL CONTROL 2005/06 – DETAILED ACTION PLAN

FINAL INTERNAL AUDIT PROGRESS REPORT

AS AT 31st MARCH 2007

Issue

/

Action

/ Overall Current Progress
1.Major Projects
Additional costs from the XL Projects have been identified by the Audit Commission as a significant cost pressure and uncertainty for future years’ budget, particularly regarding Schools for the Future and Full Sail Ahead. / The Council is ensuring the impact of all major projects (including XL) on the Authority’s capacity and finances are fully evaluated and built into the Council’s medium term strategies. / Completed

Specific Improvement Tasks

/
Implementation Responsibility
/ Monitoring Responsibility / Completion / Review Date / Current Progress
Appendices to be added to the Medium Term Financial Plan to clarify
links to the Council’s strategic objectives and the longer-term financial
implications of major capital projects. / Management Team / Chief Executive / February 2006 / Completed
Independent review of the Borough’s programme management
arrangements and structures / Management Team - John Nash / Chief Executive / During 2006/07 / Completed
ANY ACTION/S FOR 2007/08
  • Specific improvement tasks have now been fully implemented and progress is complete. This item will not therefore be included or reported on in the Detailed Action Plan for the SIC 2006/07.

Issue

/ Action / Overall Current Progress

2.Full Sail Ahead

The Full Sail Ahead Project Board agreed various recommendations made by the Audit Commission in December 2005. These were that:
  • the project team and board should become more conversant with the financial model and have a better understanding of the financial outputs from the scheme;
  • decision making should be fully documented, clear and accountable;
  • decisions regarding the financial benefits be clearly documented;
  • the revenue effects of the scheme should be determined and included in the Council’s medium term financial plan.
/ The Council is taking action to implement the recommendations identified by the Audit Commission. / Audit Commission Report - Annual Audit & Inspection Letter (February 2007) states that ‘these have largely been implemented’
Specific Improvement Tasks /
Implementation Responsibility
/ Monitoring Responsibility / Completion / Review Date / Current Progress
To implement Audit Commission recommendations above. / Full Sail Ahead Project Team / Strategic Director - Andrew Flockhart / Largely implemented / Audit Commission Report February 2007 states ‘these have largely been implemented’
ANY ACTION/S FOR 2007/08
  • The Audit Commission has stated that the specific improvement tasks have “largely been implemented”. The Audit Commission has, however, raised two new recommendations relating to the Full Sail Ahead project in the Annual Audit & Inspection Letter (Feb 07), which will be included in the Detailed Action Plan for the SIC 2006/07.

Issue / Action / Overall Current Progress

3.Business Continuity Planning

Progress has been made on developing business continuity plans, for example, in Customer Services. However, there is a recognition that there is a lack of a Council-wide, co-ordinated approach to business continuity planning for critical business activities, in order to address accommodation, ICT and other requirements. / The Council has a strategy to develop corporate business continuity planning during 2006/07. / Ongoing as part of review of corporate business continuity planning arrangements.
Specific Improvement Tasks /
Implementation Responsibility
/ Monitoring Responsibility / Completion / Review Date / Current Progress
The Council’s insurers will be engaged to carry out a ‘healthcheck’ on compliance with business continuity best practice, providing recommendations for improvement. / Strategic Director – Peter Pawlowski / Management Team - Peter Pawlowski / Dec 2007
(Originally
March 2007) / Zurich Municipal performed its ‘Business Continuity Management Healthcheck’ in Oct 06. Management Team has now reviewed and agreed the implementation of an action plan.
ANY ACTION/S FOR 2007/08
  • The issue of effective and adequate Business Continuity Planning will be incorporated within the Statement of Internal Control and Detailed Action Plan for 2006/07.
  • Progress against this item will continue to be monitored and reported to the Service Provision Scrutiny and Audit Committee as part of the SIC 06/07 Detailed Action Plan every quarter throughout 2007/08.

Issue / Action / Overall Current Progress

4.Risk Management

Whilst the Authority has continued to promote Risk Management following the introduction of a formal system in 2004/05, it is accepted that further work is required to embed risk management into the organisational culture. / The Council is taking actions to further embed risk management, including production of a strategic and consolidated risk register. / Ongoing - a temporary resource has been secured to take this forward.
Specific Improvement Tasks /
Implementation Responsibility
/ Monitoring Responsibility / Completion / Review Date / Current Progress
Complete initial draft of Corporate Risk Register (to include strategic
and consolidation of high-level risks from Service Unit Risk Registers)
for review and agreement by Management Team. / Management Auditor / Management Team / 30 June 2006 / Complete
Validate Corporate Risk Register scoring and assign ownership
and completion dates to mitigating actions.
This has been superseded by:
Draft risk register to be used as the basis for review and update to
begin development of the corporate risk register for 2007/08 / Management Team - Peter Pawlowski / Cabinet / 30th June 2007
(Original task
31 July 2006) / Ongoing -
Corporate Risk Register (CRR), setting out the Council’s corporate business risks (linking them to strategic business unit objectives) and assigning ownership for these risks is planned to go before SPSAC and Cabinet in June 2007.
Review of Risk Management Strategy – this is an additional item added
December 06 / Bridget West / Cabinet / 31st May 2007 / Ongoing -
Revised draft has been prepared. Will be presented to Management Team for approval May 07, prior to SPSAC and Cabinet.
Engage Service Unit Heads in the development of a Corporate
Risk Register– this is an additional item added December 06 / TBA / Management
Team / 31st March 2007 / Completed –
Service Unit Heads were engaged through SD Theme Group meetings.
Enhance on line risk assessment tool to better enable review and
monitoring of risk registers– this is an additional item added
06 / IT Services / Bridget West / January 2007 / Ongoing –
IT Services have made a number of changes to the on-line system, but not all of the project mandate requirements have been completed.
ANY ACTION/S FOR 2007/08
  • Although some progress has been made in 2006/07, the need for ongoing development of the Risk Management process will be incorporated within the Statement of Internal Control and Detailed Action Plan for 2006/07. The new Detailed Action Plan for 2006/07 will incorporate the ongoing tasks above, as well as new tasks identified from the SIC compilation process for 2006/07.
  • Progress against these items will be monitored and reported to the Service Provision Scrutiny and Audit Committee as part of the SIC 06/07 Detailed Action Plan every quarter throughout 2007/08.

Issue / Action / Overall Current Progress

5.Benefit Fraud Inspectorate (BFI)

The BFI review of the ‘Benefits Service Security Arrangements’ in October 2005 concluded that there were significant management & performance issues which needed to be addressed urgently. Whilst prompt action has been taken to implement many of the recommendations, there is a need to ensure that these are embedded and performance against the targets agreed with members improves as a result. / The identified action plan continues to be implemented and monitored. Agreed performance targets continue to be monitored and reported, and remedial action taken if required. / Ongoing – 1 recommendation out of 25 still to be actioned.

Specific Improvement Tasks

/
Implementation Responsibility
/ Monitoring Responsibility / Completion / Review Date / Current Progress
Detailed action plan identifies responsible officers/ implementation
target date/current progress. / Various as per detailed action plan attached / Chief Executive / May 2007 - To be put in Striving for Excellence 2007/08
(Originally
31 March 2006) / 24 out of 25 recommendations have been completed and progress is being made on the remaining item. Significant improvements have been made under the ‘performance standard’ – the score for security enablers has increased from 47% (score 2) to 95% (score 4).
ANY ACTION/S FOR 2007/08
  • 24 out of 25 of the recommendations have been fully implemented. Good progress is being made against the last remaining recommendation – the incorporation of a reference to the prevention and detection of benefit fraud within the corporate strategy for 2007.
  • The outstanding item is on course to meet target implementation date of May 2007 and confirmation of its implementation will be made to a future SPSAC meeting.
  • This item will not therefore be incorporated within the Statement of Internal Control and Detailed Action Plan for 2006/07.

Issue / Action / Overall Current Progress

6.Supporting People Inspection

The Audit Commission carried out an inspection on the Supporting People Programme during 2005/06, which concluded that the service was ‘fair’, with ‘uncertain prospects for improvement’. A number of areas of improvement were identified including to develop the strategy and strengthen performance management arrangements. / The Council has agreed an action plan to address the recommendations in the report, which are currently being implemented. / Ongoing - 3 out 4 sections completed. Remaining section on course for completion June 2007.
Specific Improvement Tasks /
Implementation Responsibility
/ Monitoring Responsibility / Completion / Review Date / Current Progress
Detailed action plan identifies responsible officers/ implementation
target date/current progress. / Various as per detailed action plan attached / Strategic Director - Jan Thurgood, Chair of Supporting People Commissioning Body / June 2007
(Originally
October 2006) / Recommendations in three out of four of the sections have been fully implemented. Progress being made on remaining recommendations.
ANY ACTION/S FOR 2007/08
  • Recommendations in 3 out 4 of the sections have been fully implemented and good progress is being made against the last recommendation – to add clear outcome measures to the 5 year strategy.
  • The outstanding item is on course to meet target implementation date of June 2007 and confirmation of its implementation will be made to a future SPSAC meeting.
  • This item will not therefore be incorporated within the Statement of Internal Control and Detailed Action Plan for 2006/07.

Issue / Action / Overall Current Progress
7.Comprehensive Performance Assessment - Use of ResourcesThe CPA Use of Resources Judgement identified that:
  • The Council’s strategic objectives need to be explicitly linked to the Medium Term Financial Plan and clarified within budgets;
  • The longer-term financial implications of all financial projects should be built into the Council’s medium and longer-term planning;
  • The Council needs to update its asset management plan to detail existing asset management arrangements and outcomes, and plan action to improve corporate asset use.
/ Appropriate action has been identified, and is being taken to improve the issues identified in the CPA Use of Resources Judgement. / Ongoing to compile Renewal of authority’s Asset Management Plan
Specific Improvement Tasks /
Implementation Responsibility
/ Monitoring Responsibility / Completion / Review Date / Current Progress
Appendices to be added to the Medium Term Financial Plan to clarify links to the Council’s strategic objectives and the longer-term financial implications of major capital projects. / Head of Accountancy - Ian Milner / Head of Financial Services - Bob Jackson / February 2006 / Completed
Draft 2006-09 Asset Management Plan for circulation and comment. / Property Services / Strategic Director - Peter Pawlowski / July 2007
(Originally
31 October 2006) / Completed
I&DeA draft report on Asset Management received in Dec 06.
Production of Asset Management Strategy and Plan / Property Services / Strategic Director – Peter Pawlowski / Oct 07 / Project brief developed and strategic partner engaged to produce Asset Management Strategy and Plan.
ACTION FOR 2007/08
  • The need for the production of an Asset Management Strategy and Plan will be incorporated within the Statement of Internal Control and Detailed Action Plan for 2006/07.
  • Progress against this item will be monitored and reported to the Service Provision Scrutiny and Audit Committee as part of the SIC 06/07 Detailed Action Plan every quarter throughout 2007/08.

Shaded area represents completed action1