Issue - meetings

The External Auditor submits an Annual Report for the Certification of Claims and Returns for 2013/14. The Committee are asked to note the report.

The External Auditor, KPMG presented a report that summarised the work of the auditor and findings from the Certification of Claims and Returns 2013/14, set out in two main parts: the value of Claims and Returns, and the Certification Work Fees.

It was reported that for 2013/14 one claim (Housing Benefit) with a total value of £139,172,604 and one return (pooling of Housing Capital Receipts) with a total of £6,926,042 were certified.

Consideration was given to the remainder of the report, which covered the following areas:

- Summary of certification of work outcomes;

- Fees;

- 2013/14 Certification of Claims and Returns Action Plan

The External Auditor informed the meeting that issues produced in the appendix to the letter were not new and came up year after year, and management comments were contained in the letter. No new significant issues had been identified for the year. It was acknowledged that officers dealing with benefits claims, particularly the Quality Assurance Team, took a professional attitude and were proactive in correcting errors found through additional testing.

Members were informed the fees set out in the letter confirmed that final fees were in line with the indicative fee set by the Audit Commission, and was reduced in 2013-14 as localisation of the Council Tax Benefit meant it was no longer part of the Housing Benefit subsidy claim.

Members asked how prior year recommendations were being addressed, particularly  Point 2, Appendix 2, where the matter was still outstanding. The Director of Finance informed the meeting the issue referred to 2009 following a review of the benefits service. She said significant money had been injected into the service. The Quality Assurance Team handled a significant volume of transactions, and nine months of the year were spent servicing and auditing the grant claim. It was intended that a formal action plan would be drawn up in 2015, and the auditors would be asked to draw a line under the issue.

The Director of Finance also informed the meeting that discussions had taken place with KPMG to see if the Council could combine three or four tests to reduce the fee. Members were also told the Director of Finance had met with the Director General of the Department for Work and Pensions who were interested in looking at all aspects of the Council’s work with auditors, particularly as the Council moved towards the introduction of Universal Credit. The Director of Finance said she was interested in looking at all aspects for different ways of working, as long as it did not impact on the Council’s grant claim, and that service users did not suffer in terms of benefit processing. She added there was not a financial penalty for processing time, but there was for errors.

The Chair thanked the External Auditor for the report.

RESOLVED:

1.    that the report be noted.