Audit woes


The Council's Audit Committee meets next week (not webcast, and recordings are banned) and on the agenda, alongside the draft Statement of Accounts which I mentioned last week, are a couple of worrying internal audit reports.

As is usual, the details are sparse and the wording sanitised, and it will be up to the Committee to ensure they are fully briefed rather than simply accept bland assurances from the attending officers.

There are two reports, concerning the failure to follow the Council's Procurement and Contract Procedural Rules .

With a total annual budget of £200m for the supply of goods and services, the first report highlights failure to comply with Contract Procurement Rules. A specimen analysis of several contracts was undertaken and concluded that, in some instances;
* contracts or frameworks are not in place;
* where there are frameworks they are not always utilised correctly;
* contractors have not always been appointed in accordance with the framework call off
policy,
*quotations were not always obtained or not always retained.

In addition, the cumulative level of spend across the departments is not known and could be failing to comply with EU tendering thresholds, and also failing to provide value for money.

The second report is similar. The total Capital Maintenance budget for the council is £3.25m per annum and again there are failures and a lack of clarity over how contracts are awarded, particularly under the Responsive Minor Works and Disabled Adaptions Contractors Framework.

A framework enables a contract to be awarded ('call-off) within the list of providers, either directly or through a mini-tendering exercise. According to the report, there appears to be little or no record of how the jobs were awarded, and neither was there any record of post-completion monitoring (ie was the work done, and was it done properly). The report states that "Given the significant amount of money spent on Capital Maintenance schemes it is imperative that the Authority takes responsibility for ensuring works are completed to the agreed specification. " Yes indeed.

This is not the first time there have been problems with proper compliance with the awarding of contracts and procurement of services. Similar issues were identified back in March 2014 and more recently with the Supporting People Grants and, most notoriously, with Pembrey Country Park.

Given that only a sample of contracts were analysed, one can only guess what the true picture might be across the Authority. Incidentally, there is a third report on the agenda dealing with Coedcae Area Sports Centre, where management issues remain 'ongoing' and no guarantee can be given that all income is accounted for. As with the first two reports, no further details are provided.

So, Members of the Audit Committee, it's over to you.


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