Download Appendix 5 – Action Plan

Annual Governance Report
2010/11 – Action Plan Update
th
19 December 2011
Recommendations
Recommendation 1
The Council should review all material systems and make sure controls are in place for all assertions made by the Council when approving the
financial statements. This will reduce the amount of audit testing required and provide the Council with assurance that its finances are being properly
safeguarded.
Responsibility
Corporate Head of Financial Management
Priority
3
Date
31 March 2012
A review of procedures / systems relating to the approval of related party transactions, controls over the outsourced Payroll
system and capital accounting issues will be undertaken and improvements will be implemented by the end of the financial
year
Comments
Progress
The review of procedures / systems relating to the approval of related party transactions has been clarified with the Audit
Commission and this is being implemented in Agresso.
COMPLETE: Following a review of Payroll, a new shared service arrangement was put in place with Hambleton and
Richmond Council from 1st April 2012. This is operating effectively. Recommendations from the internal audit report
(currently at draft stage) will be picked up in due course. The new arrangements offer better value for money through cost
savings, use of in-house payroll expertise to increase efficiency and reduction of errors to improve effectiveness. The new
shared service arrangements also provide future resilience for the Finance Team.
Capital accounting issues are being addressed as part of the Agresso upgrade, staff training and implementation of the
Improvement Plan for the 2011/12 Statement of Accounts. Internal Audit have been heavily involved in the review of fixed
assets and the upgrade. The work is currently nearing completion. (see Recommendation 7).
Recommendation 2
The Council should consider its arrangements for preparing the financial statements and make sure that robust processes are in place for providing
financial statements that meet the requirements of the Code.
Responsibility
Corporate Head of Financial Management
Priority
3
Date
31 March 2012
Comments
The Finance Team will continue to improve the approach to producing financial statements. This will be done through
reviewing the process for the 2010/11 accounts and implementing necessary changes to improve the process, enhancing
the skill set of those involved, and ensuring that weaknesses in the preparation of the financial statements is addressed as
part of the Financial Services Review .
Progress
A detailed Improvement Plan has been agreed and these measure are being put in place as part of 2011/12 closedown
and final accounts process.implemented. Training opportunities are being undertaken on an ongoing basis. The Financial
Management Services Review is under consultation, this consultation period will end on 2nd July 2012.
Recommendation 3
Management should ensure that any related party transactions are rigorously reviewed before they take place, rather than simply reporting them in
the accounts after the fact.
Responsibility
Corporate Head of Financial Management
Priority
3
Date
31 March 2012
Comments
See Recommendation 1 above.
Progress
See Recommendation 1 above.
Recommendation 4
Treasury Management decisions should be reviewed before they are made.
Responsibility
Principal Accountant - Capital
Priority
1
Date
31 January 2011
Comments
Treasury management decisions are made in line with the Treasury Strategy Statement, Policy and Practices. The
Statement, Policy and Practices will be revised in accordance the new CIPFA Code of Practice and submitted to Council
for approval.
Progress
COMPLETE: Report on Statement, Policy and Practices has been approved by Council.
Recommendation 5
Audit trails should be maintained so that the Council knows where its information has come from, and so that it can be presented for audit if required.
Responsibility
Principal Accountant – Revenue
Priority
2
Date
With immediate effect
Comments
This recommendation relates to information on leave entitlements outstanding as at 1 April 2009 which was misplaced.
This was a one-off instance and audit trails are maintained as a matter of course.
Progress
COMPLETE: Principal Accountant – Revenue ensures that maintenance of audit trails is ongoing.
Recommendation 6
Management should ensure that all key reconciliations are completed and reviewed on a timely basis.
Responsibility
Principal Accountant - Revenue
Priority
2
Date
With immediate effect
Comments
Processes have already been put in place to ensure key reconciliations are completed and reviewed on a timely basis.
Progress
COMPLETE: Principal Accountant – Revenue ensures that key reconciliations are completed and reviewed on a timely
basis.
Recommendation 7
The information in the asset register module should be thoroughly reviewed to ensure that it is correct.
Responsibility
Principal Accountant - Capital
Priority
3
Date
31 December 2011
Comments
Review and corrections to be actioned immediately. This work will be verified by the Internal Audit Service.
Progress
Review and corrections have been undertaken by the Principal Accountant – Capital. This work is currently being verified
by the Internal Audit Service.
Recommendation 8
The Council should consider what instructions should be given to the in-house valuer to ensure that all valuations are completed on the correct basis
for the financial statements in accordance with paragraph C32 of module 4 of the Code.
Responsibility
Corporate Head of Financial Management
Priority
2
Date
30 November 2011
Comments
To be implemented following discussions with Property Services.
Progress
COMPLETE: Requirements identified and communicated to Property Services.
Recommendation 9
The Council should decide how it intends to account for Belle Vue Mills, and provide this information to me as soon as possible.
Responsibility
Corporate Head of Financial Management
Priority
3
Date
30 September 2011
Comments
This information has been provided to the Audit Commission.
Progress
To be dealt with as part of the 2011/12 Final Accounts process.