Agenda item

To consider a report by the Head of Internal Audit Services (copy enclosed) updating members on the latest progress of the Internal Audit Service in terms of its service delivery, assurance provision, reviews completed, performance and effectiveness in driving improvement.

10.30 a.m.

[Councillor David Simmons declared a personal and prejudicial interest in the Pavilion Theatre, Rhyl which had been referenced within the report and left the meeting during consideration of that item.]

 

The Head of Internal Audit Services (H:IAS) submitted a report (previously circulated) updating members on the latest progress of the Internal Audit Service in terms of service delivery, assurance provision, reviews completed, performance and effectiveness in driving improvement.  The H:IAS highlighted particular areas of the report as follows –

 

·         progress in delivering the Internal Audit Operational Plan 2012/13

·         recent internal audit  reports issued

·         management response to issues raised by Internal Audit, in particular the follow up review of Strategic Human Resources (HR), and

·         Internal Audit performance and key measures.

 

Members considered progress in delivering the operational plan and the H:IAS responded to questions as follows –

 

·         detailed the remaining follow up reviews planned for 2012/13 with others being followed up during 2013/14

·         the Procurement Audit programmed for March was currently being scoped commencing with an overview of the project during this year’s plan and developed further into next year

·         confirmed that the Public Realm audit raised the question of which services should be included as the audit had initially focused on grounds maintenance but was widened to include other areas.  The Corporate Improvement Manager added that work was ongoing with the Corporate Director Communities to develop a Public Realm Strategy which would define the services to be included within that area.

 

The H:IAS summarised the audit opinion in respect of the recent internal audit reports issued and the following matters were discussed in more detail –

 

Pavilion Theatre, Rhyl – The Head of Communication, Marketing and Leisure had requested a review of the Theatre to help inform its future development as part of the larger improvement agenda in Rhyl.  In noting the low assurance rating members sought clarification on a number of risk areas and sought assurances that a robust action plan was in place.  The H:IAS clarified issues in response to members’ questions and reported upon the escalation meeting to ensure a deliverable action plan to improve the service.  Due to the involvement of the Head of Service from the outset the H:IAS was confident that the service would address the issues concerned.  In view of the number of high risk areas identified the committee agreed to keep the matter under review and requested a report back on progress.  The H:IAS agreed it would be timely to report back to the committee’s May meeting after the follow up visit had been carried out.  Councillor Gwyneth Kenser felt that the Theatre had performed well under difficult circumstances.

 

Council Housing Responsive & Void Repairs – The H:IAS advised that the audit work was part of a wider improvement programme within Housing Services.  Work was carried out to measure repair work and in many instances jobs were not being completed right first time leading to actual repair completion times being way in excess of target times and those times recorded for performance management.  An escalation meeting had been held and an action plan put in place with funding now available to modernise the service.  Although the report gave no assurance significant improvements had already been made and internal audit would carry out a further review during April and May to measure performance one year on from the original testing together with an assessment of progress with the action plan.  Consequently an update on the report would be issued during the summer which would include a revised assurance rating.  Councillor Hugh Irving elaborated upon the positive escalation meeting to tackle the issues identified and measures which had been implemented since then to effect improvement including the relocation of customer contact staff and provision of new technology and equipment.

 

Councillor Ray Bartley was pleased to note the measures introduced to diagnose faults accurately and prioritise jobs expressing his concern over delays which had caused inconvenience and in some cases distress to vulnerable residents.  In response to a question from Lay Member Paul Whitham the H:IAS agreed to report back on how much rental income was lost as a result of the time taken to complete  void repairs.  Discussion took place on existing measures to assess performance and it was agreed that the H:IAS and Corporate Improvement Manager discuss the matter further outside of the meeting.  Finally Councillors Barbara Smith and Hugh Irving voiced their support of the relatively new Head of Housing & Community Development in addressing the long standing problems identified.

 

The H:IAS then introduced the follow up review of Strategic Human Resources (HR) (Appendix 2 to the report) which still gave a low assurance rating due to the lack of progress in implementing the agreed action plan.  In order to explain the lack of progress the Head of Strategic HR had been asked to attend the meeting and the Corporate Director Economic and Community Ambition (CD:ECA) and the HR Services Manager (HRSM) were in attendance in that regard.

 

The CD:ECA advised that concerns had been raised during the last HR Service Challenge about volume of work and a full review of HR work had since been undertaken.  The Corporate Executive Team (CET) concluded that HR was attempting to manage a large workload with limited resources and strategic guidance had been provided in prioritising those service pressures and demands together with the provision of additional resources.  The HR Improvement Plan had been identified as a priority and work was ongoing in a planned way to ensure that as capacity was identified lower priority issues could then be addressed.   The HRSM reported upon identified and dedicated resources specifically for managing the HR Improvement Plan and ensuring its delivery by December 2013 and completion of the Internal Audit Action Plan by October 2013.  She also provided some context to the report detailing the problems embedding the new HR service model implemented in April 2011 and the culture change required leading to difficulties in making that transition.  Councillor Barbara Smith provided further assurances that progress would be carefully monitored to ensure provision of a robust service in future.

 

Members acknowledged the additional pressures on HR services arising from periods of change attributed to the current climate and stressed the importance of ensuring that adequate systems were in place in order to manage human resources effectively.  During the ensuing discussion the HRSM responded to members’ questions as follows –

 

·         reported upon the three IT systems used for HR: Trent, CRM and EDRMS which were still under development and not yet working to capacity

·         elaborated upon training provided for managers and steps taken in an attempt to increase take up rates; it was hoped engagement with managers via the Senior Leadership Team would improve attendance

·         referred to the various process reviews within HR (facilitated by the H:IAS) which had been implemented

·         explained the inclusion of the employment of ex-employees in the Pay Policy approved by Full Council in September 2012 and elaborated upon the stringent criteria to provide a consistently balanced approach for re-employment; monitoring of re-employment would also be carried out

·         reported upon the merits of providing a centralised HR service to ensure continuity and consistency of approach

·         highlighted the revised implementation dates to ensure actions in the Internal Audit action plan were completed by October 2013.

 

Members accepted the assurances provided regarding the delivery of the action plan within the revised timescales but agreed that progress should be kept under close review and requested a report back to the committee’s July meeting.  The Chair thanked the officers for their attendance.

 

RESOLVED that –

 

(a)       subject to members’ comments above, the progress report on the Internal Audit Service be received and noted, and

 

(b)       progress reports on the Pavilion Theatre, Rhyl and Strategic Human Resources be submitted to the committee’s meetings in May and July respectively.

 

At this juncture (11.30 a.m.) the committee adjourned for a refreshment break.