Page 53 Agenda Item 6 · 2015. 5. 22. · £563k £394k £539k £309k £601k £320k Chargeable Days...

Report to: Audit Committee

Date:

26th September 2013

Report of: Chief Internal Auditor

Ward Location: N/A Author(s) and Contact Phone

Number(s):

David Dobbs 020-8770-6103

Area Served: Borough-wide Chair of the Committee:

Councillor Tim Crowley

Report title

Internal Audit: CIPFA Annual Benchmarking

Summary

This report summarises the results of the annual CIPFA benchmarking exercise in which

Internal Audit participated.

Recommendations

The Audit Committee is asked to:

a) Note the high level results of the benchmarking exercise, particularly the

comparable position across London

b) Consider and comment on the detailed benchmarking report (see Appendix).

Background Documents and Previous Decisions

None.

Signed:

Strategic Director

Date: 12 September 2013

Agenda Item 6Page 53

1. Background

1.1 Service delivery forms a key part of the corporate governance framework. Management and monitoring of performance have become a vital part of delivering better services. Whilst performance indicators give a pointer to the level of performance, benchmarking can also pinpoint areas of good or poor performance.

1.2 Internal Audit subscribe to the annual benchmarking exercise co-ordinated by the Chartered Institute of Public Finance and Accountancy (CIPFA). This service provides comparisons across a large number of local authorities and access to specific peer group data to facilitate analysis of performance

assist Councils in answering the following key questions:

How are we performing?

Are we performing better year on year?

What is our direction of travel?

How does our performance compare with our peer organisations?

Can we learn anything from other organisations?

Are we providing value for money?

1.3 Two datasets were submitted to CIPFA for analysis, namely:

a) Outturn data on costs, audit days and audit coverage was supplied for 2012/13

b) Estimated/planned data for costs, audit days and coverage, was supplied in relation to 2013/14

1.4 A main comparator group was selected based on the other participating London Borough Councils (11 including Sutton). The comparator group, with estimated turnover figures for 2013/14, comprised the following Councils:

LB Barnet - £865m

LB Bromley - £582m

LB Croydon - £1,028m

LB Enfield - £992m

LB Haringey - £980m

LB Lambeth £1,062m

LB Newham - £1,429m

LB Richmond upon Thames - £412m

LB Sutton - £435m

LB Tower Hamlets - £1,171m

LB Waltham Forest - £835m

Agenda Item 6 Page 54

2. Issues

2.1 The attached report contains the results of the CIPFA benchmarking exercise. In line with the data that was supplied by the Council, the results comprise outturn data based on the 2012/13 period and data in relation to 2013/14 based on the current audit plan and other estimates.

2.2 In reviewing the benchmarking reports it should be recognised that there are a number of variables that may affect the data across the comparator group and therefore caution should be exercised in how the results are interpreted. For example, significant differences between cost levels and audit resourcing may occur for a number of reasons, including:

Differing levels of risk and variability in the strength of governance frameworks across Councils will affect the organisational demand for Internal Audit and therefore comparative resourcing levels

Varying levels of co-sourcing/outsourcing and use of consultants/agency staff in service delivery can have a considerable effect on costs

Differing service responsibilities within Internal Audit teams will affect resourcing requirements

Subjectivity in the classification and categorisation of the individual elements of Internal Audit work may lead to some variability in the benchmarking data. Moreover whilst respondent data is subject to consistency and validation checks, it is not subject to detailed external verification.

2.3 There are other inherent limitations to benchmarking data. It does not attempt to measure service quality, neither does it indicate whether Internal

of service delivery are not straightforward biennial customer satisfaction survey, next scheduled to take place in early 2014.

2.4 The headline trends from the benchmarking reports, in terms of net costs and chargeable audit days, are shown in the following table. Net costs include any direct costs (e.g. pay and training) and also overhead costs (e.g. IT support and accommodation); any cash income (e.g. from selling services externally) is then deducted to calculate a net position. Chargeable days comprise the time spent on audit assignments (e.g. service audits and investigations); this excludes any time spent on training, in meetings or undertaking other administrative tasks.

London Comparator Group Averages

2011/12 (outturn) 2012/13 (outturn) 2013/14 (budget)

Average Sutton Average Sutton Average Sutton

Net Cost of Service

£563k £394k £539k £309k £601k £320k

Chargeable Days

1,549 1,114 1,516 1,179 1,825 975


2.5 costs were the lowest in the group for both 2012/13 (based on outturn) and 2013/14 (based on estimates). In relation to chargeable days, Sutton was the 4th lowest for 2012/13 and the lowest in group for 2013/14; excluding Sutton, the group average for planned audit days in 2013/14 is 1,910.

2.6 nationally that are most similar in size (as measured by gross revenue turnover), the resulting averages are net costs of c£440k and c1500 audit days for both 2012/13 and 2013/14.

2.7 comparative performance using the London comparator group and largely confirms the trends and analysis described in the preceding narrative. However, it also indicates that using benchmarks based on Council size,

London comparator group. This can be misleading since, although larger nerally not a direct linear

relationship, i.e. a Council twice the size of Sutton is unlikely to have an audit

2.8 Overall, S comparative position in terms of net costs and chargeable audit days reflects the strategy that was initiated during 2010/11, namely that

resources. This was achieved through formal re-organisation which reduced the grade mix and staff numbers, coupled with a leaner, risk based audit approach to audit planning. Further savings were achieved by removing the dependency on agency staff and consultants.

2.9 The detailed benchmarking report (refer Appendix) will be used as a means of seeking continuous improvement in service delivery. As usual, Internal Audit will use the data to assess the potential for further efficiencies and improvements in 2014/15 and beyond.

3. Impacts and Implications:

Financial Implications

3.1 There are no direct financial implications arising from this report.

Legal Implications

3.2 There are no legal implications arising from this report.

Equalities Impact Assessment

3.3 There are no direct equality implications from this report.

4. Appendices

4.1 Appendix: CIPFA Benchmarking Report attached.


2013

Barnet Bromley

Croydon Enfield

Haringey Lambeth

Newham Richmond

Sutton Tower Hamlets

Waltham Forest

Tel: 020 3117 1859

Audit

Benchmarking Club

London Borough of Sutton

Copyright:

CIPFA Business Limited

3 Robert Street, London, WC2N, 6RL

COMPARATOR REPORT

Page 1 12/07/2013Audit

Agenda Item 67

Bar Charts: These are our standard method of displaying a full set of data

Salary Bandings

under 20k

20-25k

25-30k

30-35k

Time Series: These show trends in data.

Average = Black lines

Your values = crosses

Summary Bar Charts: These present summaries of non-numerical data

Please note: Depending on the type of data being displayed more than one bar may be highlighted black.

For example, we use this method to graph which categories you 'self-fund'. Where an authority 'self funds' all

the categories looked at, all the bars will show as black.

PREFACE

0% 2%

54% 26%

24% 61%

3.4

1.5

0

Key

FTE

0.9

% Avg

14% 15%

Was last LTA broken?

0% 20% 40% 60% 80%

Ran Course (34)Broken (13)

Na (1)

20-25k

0%

20%

40%

60%

80%

100%

This report compares your data with the group of authorities specified on the title page.

Throughout the report your figures are shown in tables and in graphical form. If you are not familiar with

our reports we hope this page will help you to better understand the way we present this data.

Averages: Almost all of our tables and charts compare your figure with a group average. The average is

the unweighted mean value for the group. This average value ignores missing data, or data that we have

excluded and for this reason sets of averages sometimes do not reconcile precisely.

Charts: We display a large amount of data on charts as this allows us to show the data for the entire

group efficiently and gives far more information than a simple average (i.e. range of data, individual

authority values etc.). Below we have annotated an example chart to help explain what they show.

Title.

Your authority's bar

highlights in black.

The group average is

shown by a horizontal

line.

'Missing bars' on the left

represent missing data or

excluded data and are not

included in calculating the

average.

'Missing bars' on the right represent

zero values and are included in the

average.

Each bar

represents an

authority's value.

Cost per £'m

£0

£500

£1,000

£1,500

£2,000

£2,500

£3,000

£3,500

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

The 2012/13 averages are the actual club

averages, the 2013/14 figures are estimates. For

previous years (before 2012/13), the averages

shown here are scaled up or down from the

2012/13 figure based on the average rate of

change in each year. This is calculated using data

from members who supplied figures in consecutive

years, otherwise the simple average in each year

would be distorted by changes in the composition

of the club from year to year.

Title

Options

The number in brackets is the number of

authorities that match this option.

The scale is shown

in percent, to help

judge the relative

size of each

category.

The bar is

highlighted in black

if this matches your

authority's position.



Summary

Cost Analysis

Audit Coverage

Counter-Fraud & Investigations

Staffing

Section Structure

Corporate Governance

Quartiles

Section 1 - Summary

Comparison of key cost benchmarks in 2012/13 and trends in these benchmarks.

Section 2 - Cost Analysis

This section shows the analysis of audit costs for 2012/13 actuals and 2013/14 estimates.

Section 3 - Audit Coverage

Section 4 - Counter-Fraud & Investigations

Section 5 - Staffing

Section 6 - Section Structure

Section 7 - Corporate Governance

Section 8 - Quartiles

153

CONTENTS

4

6

1

2

This section looks at audit days per £'m gross revenue turnover and the split by type of

audit. It then goes on to analyse the days spent on fundamental financial systems and

corporate governance.

This section shows salary bandings and staff qualifications.

This section looks at counter-fraud workload, NFI and the outcomes of investigations.

5 29

6 30

7

254

The main benchmarks are cost per audit day, cost per £'m turnover and chargeable days

per auditor.

8 40

32

This section shows contextual information about your audit section structure.

This section compares a member's figures with the quartile figures for the comparison

group.

This section shows information relating to corporate governance issues within the internal

audit function.



The trendlines and table below are based on the data received from all members of the club.

2012/13 Actuals

Timeseries

SECTION 1 - SUMMARY

Summary of cost headlines across the club (2012/13) and the trendlines between 2007/08 and the estimates for 2013/14.

Days/£'m

0.0

0.5

1.0

1.5

2.0

2.5

3.0

r f x m k a d s z e h

Net cost per chargeable day

£100

£200

£300

£400

£500

£600

a h f m x z s d k r e

Audit cost per £'m turnover

£0

£200

£400

£600

£800

£1,000

£1,200

f a x m r s z d k h e


£0

£200

£400

£600

£800

£1,000

£1,200

£1,400

£1,600

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

Cost per chargeable day

£0

£50

£100

£150

£200

£250

£300

£350

£400

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

Days/£'m

0.0

1.0

2.0

3.0

4.0

5.0

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14



2012/13 Actuals

Timeseries

KEY: Club Average - Black Line

Sutton - Crosses

Summary data 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14

In-house cost .. .. £644k £650k £382k £316k £300k

FTE auditors .. .. 10.1 7.3 5.7 6.4 5.5

Cost per auditor (in-house) na na £64,257 £68,063 £57,228 £49,375 £54,545

Average £54,223 £56,676 £57,619 £55,949 £55,627 £56,018 £55,687

Chargeable days per auditor .. .. 140 176 179 176 170

Average 155 162 170 174 173 174 182

Cost per £'m turnover .. .. £1,349 £1,211 £701 £711 £736

Average £954 £938 £938 £852 £796 £751 £750

Cost per chargeable day .. .. £347 £365 £330 £290 £328

Average £301 £306 £302 £308 £310 £317 £311

Mainline audit days .. .. 1,768 1,714 1,114 1,064 975

Turnover .. .. £455m £517m £525m £435m £435m

Days per £'m .. .. 3.9 3.3 2.1 2.4 2.2

Average 3.1 3.1 3.1 2.8 2.7 2.5 2.5

The 2012/13 and 2013/14 averages are the actual club averages. For previous years, the averages shown here are

scaled up or down from the 2012/13 figure based on the average rate of change in each year. This is calculated using

data from members who supplied figures in consecutive years, otherwise the simple average in each year would be

distorted by changes in the composition of the club from year to year.

Chargeable days per auditor

0

50

100

150

200

250

k d z m s f r x e h a

Cost per auditor (in-house) £'k

£20

£30

£40

£50

£60

£70

£80

£90

£100

£110

d e z a x m f h s k r


100

110

120

130

140

150

160

170

180

190

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14


£25

£30

£35

£40

£45

£50

£55

£60

£65

£70

£75

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14



2012/13 Actuals

Staff cost

in-house: Overheads

net to LA:

see Section 3

Basic data Benchmarks

Gross turnover £'m Mainline audit days per £'m gross t/o

FTE staff (on payroll) Cost per £'m gross turnover

FTE agency staff Chargeable days per auditor (on payroll)*

Staff cost (on payroll) £'k Cost per auditor (in-house)

Agency staff cost £'k Staff cost per auditor (in-house)

Overheads cost £'k Overheads cost per auditor (in-house)

Bought-in cost £'k In-house means staff on payroll and agency staff, excluding bought-in.

*see page 6 for details

Chargeable

audit days

In-house

Bought-in*

Gross

Charged out

Net to LA

Excluded work

Mainline audit

£4,219

£481

£280

Sutton

£217

1,127

Audit

days

52 £18

Cost

£'k

£17,847

1,064

115 £25

£289

Cost/

day

£309

Days per auditor (on payroll)

2.45 1.68

£394

£435

£346

174

Mainline audit days per £'m

gross turnover

see Page 8

176

£52,999£0

£17,847

£290

£283

£391

£18

0.0

Avg.

176

£649

£72,684

1.682.45

Sutton

174

0

1,064 £309

£0

40.8%Avg.4.4%* Bought-in days are shown inclusive of non-chargeable

days to show a consistent cost/day figure.Sutton

£334

£27

£711

1,179

£372

£464£316

Avg.

6.4

£4,219

£45,156

Cost per auditor (in-house) £52,999

£464£280

£711

£49,375

see Page 9

SECTION 2 - COST ANALYSIS

£649

£72,684£49,375


£391

This tree diagram displays a number of key cost benchmarks. For each benchmark two figures are given, the first

being the authority's value and the second (in italics) is the group average.

£45,156

£290

Mainline audit cost

per £'m gross

turnover

% chargeable days bought-in

0%

20%

40%

60%

80%

100%

d e a x k h z f m r s



2012/13 Actuals

Days/£'m

0.0

0.5

1.0

1.5

2.0

2.5

3.0



0

50

100

150

200

250

k d z m s f r x e h a


£100

£200

£300

£400

£500

£600

a h f m x z s d k r e


£0

£200

£400

£600

£800

£1,000

£1,200



£20

£40

£60

£80

£100

£120

d e z a x m f h s k r

Staff cost per auditor £'k

£0

£10

£20

£30

£40

£50

£60

£70

£80

e h f a z k m s x r d

Overheads per auditor £'k

£0

£5

£10

£15

£20

£25

£30

£35

d x e m z a s f h r k



Chargeable Days per Auditor

2012/13 Actuals "Non-chargeable days"

Staff (payroll)

Agency staff

Chargeable Days - Staff on Payroll

Total days pa

Non-productive days:

Bank holidays

Annual leave

Special leave

Sickness

Training

Available days

Other non-chargeable days

Chargeable days

Agency Staff Days

Total agency staff days

Non-chargeable days

Chargeable agency staff days

Total Chargeable Days (In-House)

Total days

Sutton Average

0.0

168

1,127

20

185

14.1

3.1

1,295 202.3

0.0

1,127

Days

0.0

Days

28.2

10

10.1

8.6

0.61.6

28.9

90

10.064

FTE

0.0

6.4

Avg.Days

262.11,664 260.0

Days/

FTE

*This is displayed as a percentage of all available days,

including agency staff and bought-in audit.

42.726.3

11.2%12.5%

176.1

6.2

173.5

208.4

Bank holidays

0

2

4

6

8

10

12

z x s r m k h f e d a

Sickness

0

5

10

15

20

25

30

x m h k z d r a s e f


0

50

100

150

200

250

k d z m s f r x e h a Annual leave

0

5

10

15

20

25

30

35

40

s z e a r d k h x m f

Other non-chargeable days*

0%

5%

10%

15%

20%

25%

30%

k a h x f r m s e d z

Training

0

2

4

6

8

10

12

14

16

r f s h m e d z a k x

Available days per auditor

160

170

180

190

200

210

220

230

a f k d m e h z r s x



Overhead Costs - 2012/13 Actuals

£'k per FTE

Transport & travel

Other running costs

Accommodation

IT

Other central charges

1

2

27

23

0

1

17.8

4.0

1.7

4.2

7.3

3.6

0.0

0.2

0.3

2.9

£'k £'k/FTE

0.70.2

Avg.

Transport & travel

£0.0

£1.0

£2.0

£3.0

£4.0

£5.0

x z f h e k a m r s d

Other running costs

£0.0

£2.0

£4.0

£6.0

£8.0

£10.0

x d e m r k h a z s f

Accommodation

£0.0

£1.0

£2.0

£3.0

£4.0

£5.0

£6.0

z a m x s f e h k r d

IT

£0.0

£2.0

£4.0

£6.0

£8.0

£10.0

x a f m z h e s r k d


£0.0

£5.0

£10.0

£15.0

£20.0

d e s m x a z h f r k

Overheads

£0

£5

£10

£15

£20

£25

£30

£35

d x e m z a s f h r k



Staff cost

in-house: Overheads

net to LA:

see Section 3

Basic data Benchmarks

Gross turnover £'m Mainline audit days per £'m gross t/o

FTE staff (on payroll) Cost per £'m gross turnover

FTE agency staff Chargeable days per auditor (on payroll)*

Staff cost (on payroll) £'k Cost per auditor (in-house)

Agency staff cost £'k Staff cost per auditor (in-house)

Overheads cost £'k Overheads cost per auditor (in-house)

Bought-in cost £'k In-house means staff on payroll and agency staff, excluding bought-in.

*see page 9 for details

Chargeable

audit days

In-house

Bought-in*

Gross

Charged out

Net to LA

Excluded work

Mainline audit

£14,084£3,636

2013/14 Plan

Sutton Sutton

£20

1.72

£628

£54,064

170

£328 £369

£439

£20 £500

£300

£697

£320

£320975

0

£0

na

£321

£417

£0

£328 £375

40

975

40.8%

0

* Bought-in days are shown inclusive of non-chargeable

days to show a consistent cost/day figure.Sutton Avg.4.1%

975 £320

5.5

£435

0.0

935

Cost

£'k

£20

Audit

days

£0

£280

£50,909

Avg.

Cost/

day

£68,218£54,545

178

Avg.

£736

2.24 1.72

£628

Mainline audit days per £'m

gross turnover

see Page 12

2.24

This tree diagram displays a number of key cost benchmarks. For each benchmark two figures are given, the first

being the authority's value and the second (in italics) is the group average.

£439

£369

£54,064

£54,545


£321

£68,218

£14,084

£736

Days per auditor (on payroll)

Cost per auditor (in-house)

£3,636

£50,909

£328

Mainline audit cost per

£'m gross turnover 178

see Page 13

170

% chargeable days bought-in

0%

20%

40%

60%

80%

100%

d e a k x z f h r s m

Page 10 12/07/2013Audit


2013/14 Plan

Staff cost per auditor £'k

£0

£10

£20

£30

£40

£50

£60

£70

£80

a e z f k m r s x h d

Overhead per auditor £'k

£0

£5

£10

£15

£20

£25

£30

e d z m x a s f r k h


£20

£30

£40

£50

£60

£70

£80

£90

£100

e d z a m s x f k r h


100

120

140

160

180

200

220

d z h m f k x s r e a


£0

£200

£400

£600

£800

£1,000

£1,200

f m r a x k s z d e h

Days/£'m

0.0

0.5

1.0

1.5

2.0

2.5

3.0

f r x m d k e h z s a


£150

£250

£350

£450

£550

£650

a s f m z k d x r e h

Page 11 12/07/2013Audit


Chargeable Days per Auditor

2013/14 Plan "Non-chargeable days"

Staff (payroll)

Agency staff

Chargeable Days - Staff on Payroll

Total days pa

Non-productive days:

Bank holidays

Annual leave

Special leave

Sickness

Training

Available days

Non-chargeable days

Chargeable days

Agency Staff Days

Total agency staff days

Non-chargeable days

Chargeable agency staff days

Total Chargeable Days (In-House)

Total days

Sutton Average

Days/

FTE

262.6

169.9

Avg.

261.0

should be 261

28.7

*This is displayed as a percentage of all available days,

including agency staff and bought-in audit.

14.0% 9.5%

0.0

Days

0.4

5.5

7.1

31.6

3.5

28.5

213.1

177.8

34.7

16.5

198.6

6.5

7.6

1.1

42

174

1,093

FTE

5.5

0.0

Days

1,436

6

935

158

91

30

Days

0.0

935

0.0

Available days per auditor

160

170

180

190

200

210

220

230

240

f x d e k m h z s r a

Bank holidays

0

2

4

6

8

10

r z x s m k h f e d a

Annual leave

0

10

20

30

40

s z r e k h m d x a f

Training

0

5

10

15

20

r m e f s h z a d k x

Sickness

0

1

2

3

4

5

6

7

h z r m d x k f a s e

Other non-chargeable days*

0%

5%

10%

15%

20%

25%

a s r x f k m h e d z


100

120

140

160

180

200

220

d z h m f k x s r e a

Page 12 12/07/2013Audit


Overhead Costs - 2013/14 Plan

£'k per FTE

Transport & travel

Other running costs

Accommodation

IT


0.50.2

Avg.£'k

1

1

0

4.2

£'k/FTE

0.0 1.9

2.9

2 0.4

16

14.1

2.5

6.1

20 3.6

0.2

Overheads £'k

£0

£5

£10

£15

£20

£25

£30

e d z m x a s f r k h

Transport & travel

£0.0

£0.5

£1.0

£1.5

£2.0

x e f z a r m s h k d

Other running costs

£0.0

£2.0

£4.0

£6.0

£8.0

£10.0

m e d z x k r f h a s

Accommodation

£0.0

£1.0

£2.0

£3.0

£4.0

£5.0

£6.0

z a m x s e f h k r d

IT

£0.0

£2.0

£4.0

£6.0

£8.0

x a e m z f s r h k d


£0.0

£5.0

£10.0

£15.0

£20.0

£25.0

d e s a m x z f r h k

Page 13 12/07/2013Audit


Overall Audit Costs (Internal and External)

2012/13 Actuals

Overall audit costs

Internal audit cost (mainline)

External audit

Planned audit fee

Estimated grant certification fees

Total fees

Overall audit cost

Ratio of external/internal 33%

352

1,063

153

462

34%

Avg.

967

649

265

53

317

£'m/

GRT

711

283

69

£'k

309

123

30

Internal audit cost per £'m turnover

£0

£200

£400

£600

£800

£1,000

£1,200


Overall audit cost per £'m turnover

£0

£200

£400

£600

£800

£1,000

£1,200

£1,400

f a x r m z k s d h e

External audit cost per £'m turnover

£0

£100

£200

£300

£400

£500

x r f m e a k h z d s

Ratio of external/internal audit cost

0%

10%

20%

30%

40%

50%

e h k z x r d s m f a

0

200

400

600

800

1,000

1,200

1,400

0 200 400 600 800 1,000 1,200 1,400 1,600

Gross revenue turnover £'m

Overall audit cost per£'m

turnover

Other Organisations

Sutton

Page 14 12/07/2013Audit


Audit Days per £'m 2012/13 Actuals

by type of audit

Gross turnover £'m:

Audit days per £'m

Fundamental financial systems

Strategic & operational risks

Corporate governance

IT audit

Procurement/commissioning

Counter-fraud & investigations

Consultancy/advice

Grant certification

Corporate support

Establishments - non-schools

LA schools

Other

Contingency*

*Contingency is shown as a percentage of the total no. of days

0.09

0.09

0.07

0.53

0.38

0.09

0.05

0.01

0.21

0.06

1,064 2.45 1.68

0.0%

SECTION 3 - AUDIT COVERAGE

Avg.

0.26

0.54

435

0.37162

170

Days Days/£'m

0

0.170.25

1.4%

110

0.06 0.0525

0.0625

40

0.39

231

167

20

44 0.10

0.040.0520

0.0750 0.12

Days per £'m

0.0

0.5

1.0

1.5

2.0

2.5

3.0



0.00

0.10

0.20

0.30

0.40

0.50

f r m a k d h x e z s


0.00

0.20

0.40

0.60

0.80

1.00

s a f z d k e x h r m

Procurement/commissioning/contracts

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.16

e d h z s x a k m r f


0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

h r s z d a f e m k x

Counter-fraud & investigation work

0.00

0.20

0.40

0.60

0.80

1.00

x r m z d s k h f e a

IT audit

0.00

0.05

0.10

0.15

0.20

0.25

a f s d r e x z m h k

Page 15 12/07/2013Audit


Audit Days per £'m 2012/13 Actuals

by type of audit

Corporate support

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

f m k r e d s z x h a

Consultancy/advice

0.00

0.10

0.20

0.30

0.40

0.50

r f e k d m x z s a h

Grant certification

0.00

0.01

0.02

0.03

0.04

0.05

0.06

0.07

r d k s z m e x h f a

Other

0.00

0.05

0.10

0.15

0.20

0.25

k a x r z s m h f e d

Contingency

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

m a k z x s r h f e d


0.00

0.05

0.10

0.15

0.20

0.25

LA schools

0.00

0.05

0.10

0.15

0.20

0.25

0.30

Page 16 12/07/2013Audit


Fundamental Financial Systems - with no adjustment for size of authority

2012/13 Actuals


Payroll

Debtors

Creditors

Main accounting

Cash/bank

Budgetary control

Core integrated system

Council tax

NNDR

Procurement

Housing rents

Benefits admin. & council tax subsidy

Treasury management

Others

Total

14

10

10

4

20

5

5

5

13

162

20

0

2

35

13

9

23

18

Days

5

5

5

15

Avg.

17

13

16

200

11

29

3

37

Payroll

0

5

10

15

20

25

30

s h f e a k x m d z r

Debtors

0

5

10

15

20

25

m a f k h e x d z r s

Creditors

0

5

10

15

20

25

30

35

z m a k h f d e x s r

Main accounting

0

10

20

30

40

50

60

70

s z a k r e d f x m h

Cash/bank

0

5

10

15

20

k h e f m d a z x r s

Budgetary control

0

5

10

15

20

25

d z h e x m a f r s k


0

5

10

15

20

25

x a r m z s k h f e d

Page 17 12/07/2013Audit


Fundamental Financial Systems (continued) - with no adjustment for size of authority 2012/13 Actuals

Council tax

0

5

10

15

20

25

h r k m x a e f z d s

NNDR

0

5

10

15

20

25

h r d k a f e m z x s

Housing rents

0

5

10

15

20

25

30

a k s e x d z r m h f

Benefits administration & council tax

subsidy

0

20

40

60

80

100

s r a h x m e d k f z

Treasury management

0

5

10

15

20

25

30

35

h k z f e d a x m r s

Procurement

0

10

20

30

40

50

60

x m d k a f z s r h e

Others

0

20

40

60

80

100

k d r m f z x e h s a

Page 18 12/07/2013Audit


Corporate Governance Breakdown - with no adjustment for size of authority

2012/13 Actuals


Audit of annual governance statement

Audit of risk management process

Performance management

Information governance

Other

12

12

0

44

8

8

24

53

No. of days Avg.

20

0

4

9


0

5

10

15

20

25

r z f m d x s k h e a


0

5

10

15

20

25

30

35

40

s d h x f m z r k e a


0

10

20

30

40

50

60

h s r d z x m k f e a

Other

0

20

40

60

80

100

120

z s a e h k m x r f d


0

5

10

15

20

25

30

m d s h r z x k f e a

Page 19 12/07/2013Audit


Audit Days per £'m 2013/14 Plan

by type of audit

Gross turnover £'m:

Audit days per £'m




IT audit

Procurement/commissioning

Counter-fraud & investigations

Consultancy/advice

Grant certification

Corporate support


LA schools

Other

Contingency*

*Contingency is shown as a percentage of the total no. of days

435

Days

25

50

80

185

44

40

20

200

176

2.24

0.05

0.25

25

0 0.0%

0.06

20

110

975

Avg.

0.21

Days/£'m

0.18

0.43

0.10

0.09

0.05

0.46

4.8%

0.06

1.72

0.11

0.02

0.06

0.04

0.15

0.06

0.24

0.50

0.07

0.11

0.09

0.40

0.12

Days per £'m

0.0

0.5

1.0

1.5

2.0

2.5

3.0

f r x m d k e h z s a


0.00

0.10

0.20

0.30

0.40

0.50

f m z s x k d a e r h


0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

e s z m d f x h r a k

Procurement/commissioning/contracts

0.00

0.05

0.10

0.15

0.20

f s e d z m a h x r k


0.00

0.05

0.10

0.15

0.20

h r z e d k s a f m x

Counter-fraud & investigation work

0.00

0.20

0.40

0.60

0.80

1.00

x r h z d m a s k f e

IT audit

0.00

0.05

0.10

0.15

0.20

0.25

f a k d e s r x z m h

Page 20 12/07/2013Audit


Audit Days per £'m 2013/14 Plan

by type of audit

Consultancy/advice

0.00

0.10

0.20

0.30

0.40

0.50

0.60

f r k m a x z e s h d

Grant certification

0.00

0.01

0.02

0.03

0.04

0.05

0.06

0.07

r k a m x d e s z h f

Corporate support

0.00

0.05

0.10

0.15

0.20

0.25

f m r e k z d h x s a

Contingency

0%

2%

4%

6%

8%

10%

12%

d m a k h e f x s z r

Other

0.00

0.05

0.10

0.15

0.20

0.25

0.30

k s a x r h z m f e d


0.00

0.02

0.04

0.06

0.08

0.10

0.12

LA schools

0.00

0.05

0.10

0.15

0.20

0.25

0.30

Page 21 12/07/2013Audit


Fundamental Financial Systems - with no adjustment for size of authority

2013/14 Plan


Payroll

Debtors

Creditors

Main accounting

Cash/bank

Budgetary control


Council tax

NNDR

Procurement

Housing rents

Benefits admin. & counci tax subsidy

Treasury management

Others

Total

Avg.

19

13

Days

24

2

2

10

2

2

2

22

14

7

4

13

12

24

80

38

2

10

16

202

19

7

8

2

2

2

2

2

Payroll

0

5

10

15

20

25

30

35

40

e f r s a k z x m d h

Debtors

0

5

10

15

20

25

30

s m a k z e x f d r h

Creditors

0

5

10

15

20

25

30

35

s m a k z f d x r h e

Main accounting

0

20

40

60

80

100

120

140

160

s z a d x r f m k h e

Cash/bank

0

5

10

15

20

25

30

z s k x f e m d a r h

Budgetary control

0

5

10

15

20

25

30

z h f a x m r s k e d


0

5

10

15

20

25

x m a r z s k h f e d

Page 22 12/07/2013Audit


Fundamental Financial Systems (continued) - with no adjustment for size of authority

2013/14 Plan

Council tax

0

10

20

30

40

50

s k m f a e z x d r h

NNDR

0

5

10

15

20

25

d k e a f z x m r s h

Housing rents

0

5

10

15

20

25

30

a k e z x d r s m h f

Benefits administration & council tax

subsidy

0

10

20

30

40

50

s m z a e d k f x r h

Treasury management

0

5

10

15

20

k z a f d x m r s h e

Procurement

0

10

20

30

40

50

60

70

80

x m s d k a r z h f e

Others

0

20

40

60

80

100

120

140

z k d m f e r x h s a

Page 23 12/07/2013Audit


Corporate Governance Breakdown - with no adjustment for size of authority

2013/14 Plan






Other

Avg.No. of days

20

0

6

8

12

12

23

5944

0

9

15


0

5

10

15

20

25

r k z f x d m s h e a


0

5

10

15

20

25

30

d h k e f x m z s r a


0

5

10

15

20

25

30

35

h e k r d z x s m f a

Other

0

10

20

30

40

50

60

70

80

90

h z s a e m x r k f d


0

5

10

15

20

25

30

35

40

45

m s d e h k a r z x f

Page 24 12/07/2013Audit


Counter-Fraud & Investigations Workload - 2012/13 Actuals

Workload

Prevention

Detection

Investigation

Total

NFI Workload

NFI workload

Total days NFI - 2012/13 Actuals

28%

83

SECTION 4 - COUNTER-FRAUD & INVESTIGATIONS

Avg.

17%

Avg.

66%

314

% of totalNo. days

16%

71

No. days % of total

54

Avg. days

65

36%

83

231

110

36%

Avg. days

188

48%41 15%

Prevention

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

k h f e d a x r z m s

Investigation

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

k h f e d a s m z x r

Total days

0

100

200

300

400

500

600

700

800

h f a k e d x m z r s

Detection

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

k h f e d a r z x m s

% fraud days NFI

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

k h f e d a r z m x s

Page 25 12/07/2013Audit


Investigations & Outcomes

2012/13 Actuals

Sutton

Housing benefit fraud

Housing fraud

Council tax fraud

National non-domestic rates fraud

Procurement fraud

Fraudulent insurance claims

Social services fraud

Payroll & employee contract fulfilment fraud

Expenses fraud

Disabled parking concessions (blue badge)

Recruitment fraud

Theft/loss of equipment

ICT misuse and cyber fraud

Other investigations

Total 34%

na2

63%

100%

50% 0%3

12

Number

referred

0

Number

completed

0

0

0

0

01

5

0

0

4

2

2

3

0

6

2

2

6

2

3 3

0

1

13

0

20 19

0

3

0

Avg.

na

Number

prosecuted

0

0

0

0

0

Number

proved

0

na0 0

0

1

0

0

na

0%

0

4

0

0

0

0

1

0

%

prosecution/

sanctions

na

0

1

4

0

na

na

0%

na

na

na

na

0%

100%

na

nana

100%

0

3

0%

na

na

na

na

na

% completed that led to prosecution/sanctions

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

k h f e d a x r z m s

Page 26 12/07/2013Audit


Number of Investigations Completed per £'m of Gross Revenue Turnover

Sutton

Housing benefit fraud

Housing fraud

Council tax fraud

National non-domestic rates fraud

Procurement fraud

Fraudulent insurance claims

Social services fraud

Payroll & employee contract fulfilment fraud

Expenses fraud

Disabled parking concessions (blue badge)

Recruitment fraud

Theft/loss of equipment

ICT misuse and cyber fraud

Other investigations

Total

Internal/External

Sutton

Claimants

Employees

Members

Suppliers

Other parties

28%

2%

0.024

%

breakdown

0%

Avg.

0.124 0.0%

0.0% 25%

Avg.

0.007 5.3%

0.000 0.0%

5%

0%0.0%

0.001

0.000

0.0% 0%

0.001 21.1%

9%

15.8%

0.010

0.001

10.5%

0.005

0.001

0.002

3%

10.5% 3%

29%31.6%

0.0%

0.000

0.0%

0.054

1

0

0

2

4

Number

completed

0 0.000

Completed/G

RT

0.000

0

0.002

4%

5.3%

3%

Number

1%

0.000

0.009

0.003

6

0.005

0.005

0%

30%

% of

referred

0.000

0.000

0.000

0.007

0

0.000

0.002

4%

0.014

0.044

30%

2

0

3

1

9%

0

0

0%

6

0%

Avg.

19

0

20

15%

55%11

3

39%

Total completed by gross revenue turnover

0.0000

0.0500

0.1000

0.1500

0.2000

0.2500

k e d m x z r s h f a

Page 27 12/07/2013Audit


What areas of fraud is the Head of Internal Audit the notifiable officer for?

Does your authority have a dedicated Counter-Fraud resource?

Fraud Qualifications at 31 March 2013

Qualifications

PinS

CIIP

Fraud diploma

Other specialists

0.0

%FTE Avg.

na 50%

na

0%

0%na

na

50%

0.0

0.0

0.0

0.0

IA staff with a fraud qualification

0%

20%

40%

60%

80%

100%

x k s z r m h f e d a

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Whistleblowing / Hotline

(PIDA) (7)

Anti-Money Laundering

(8)

Anti-Bribery (9)

RIPA (4)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes (9)

No (1)

Page 28 12/07/2013Audit


Staff Salary Bandings at 31 March 2013

Band

under £20k

£20-25k

£25-30k

£30-40k

£40-50k

£50-60k

£60-80k

over £80k

6%

0.0 19%

6.4

1.0

0.0 4%

9%

0%

FTE

23%

0%

3%

0%

16%

%

0.0

0%

SECTION 5 - STAFFING

1.0 16%

1.0

3.4

Avg.

0.0 2%

16%

35%53%

< £20,000

0%

20%

40%

60%

80%

100%

h z x s r m k f e d a

£20,000 - £25,000

0%

20%

40%

60%

80%

100%

r s a z x m k h f e d

£25,000 - £30,000

0%

20%

40%

60%

80%

100%

d e m f h z x s r k a

£30,000 - £40,000

0%

20%

40%

60%

80%

100%

a x m r k f s z h e d

£40,000 - £50,000

0%

20%

40%

60%

80%

100%

z k s h x f r m e d a

£50,000 - £60,000

0%

20%

40%

60%

80%

100%

f z r s x m k h e d a

> £80,000

0%

20%

40%

60%

80%

100%

e x z s r m k h f d a

£60,000 - £80,000

0%

20%

40%

60%

80%

100%

h m r k a z s x f e d

% staff in each pay band

0%

10%

20%

30%

40%

50%

60%

under

£20k

£20-25k £25-30k £30-40k £40-50k £50-60k £60-80k over £80k

Your values

Average

Page 29 12/07/2013Audit


Part Time Staff at 31 March 2013

Staff

Full time

Part time

Audit Qualifications at 31 March 2013

Qualifications

CCAB/CMIIA

CIPFA DPA/PIIA

Part Qualified/AAT

QICA/CISA

Other specialists

Trainees (actively training)

Non-Qualified

Practising Certificate

% Staff in Training at 31 March 2013

Training

CCAB

CMIIA

PIIA

AAT

DPA

CISA

Other

All

5%

0%

0%

16%

0%

0%

19%

0%

6.4

13%

25%

2%

5.0 78% 79%

FTE

1.4

Avg.%

22%16%

0%

0.0

Avg.

7%

5%

1.0 16%

11%

41%

0%

14%

22%

%

0%

0%

7%

0%

0.0

16%

0%

0.0

0.0

0%

0.0

0%

0%0.0

1.0 16%

FTE

0.0

0.0

0.0

1.0

1.0

21%22%

FTE

% Avg.

2.6

0.8

1.0CCAB/CMIIA

0%

20%

40%

60%

80%

100%

d h e s f x m r k z a

Part Qualified/AAT

0%

20%

40%

60%

80%

100%

d m k r z h s x a f e

CIPFA DPA/PIIA

0%

20%

40%

60%

80%

100%

d f k z s m x r h e a

% staff who are part time

0%

20%

40%

60%

80%

100%

e f m a s r z x k h d

% of staff in training

0%

20%

40%

60%

80%

100%

d e f h k m r a s z x

Page 30 12/07/2013Audit


Bought-in Audit Days - 2012/13 Actuals

Bought-in audit

General

IT

Contract

Schools

Counter-fraud:

Proactive

Reactive

Other

Bought-in Audit Days - 2013/14 Plan

Bought-in audit

General

IT

Contract

Schools

Counter-fraud:

Proactive

Reactive

Other

100%

0%

0 0%

0%

0

40

0 1%

0%

4%

3%

0

0

0%

66%23%

0%

0%

23%

6%

%

0%

1%

Avg.

60%

5%

0%

7%0%

0%

77%

1%

18%

4%0%

0

40

No.

40

Avg.%

0

No.

0

12

52

0

0

0

General

0%

20%

40%

60%

80%

100%

s m a k x e f z h d r

IT

0%

20%

40%

60%

80%

100%

s r f a z x d k e h m

All other

0%

20%

40%

60%

80%

100%

s h d z e x k a r m f

General

0%

20%

40%

60%

80%

100%

s m e f x k h a z d r

IT

0%

20%

40%

60%

80%

100%

s m r f a z k x d e h

All other

0%

20%

40%

60%

80%

100%

s m d h z x e k a r f

Page 31 12/07/2013Audit


Bought-in Audit Days - 2012/13 Day Rate

Bought-in audit

General

IT

Contract

Schools

Counter-fraud:

Proactive

Reactive

Other

Average Cost of Agency Staff

Agency

Hourly rate

Staff Turnover

Staff turnover

Joining audit section

Leaving audit section

Average turnover

CRB Checks

298

297

0

466450

245

£26

0 334

397

0

334

2930

0

£ Avg.

Avg.

N/A

£

5.1%0.0

5.7%

Number % Avg.

0.0

0.0%

6.4%0.0%0.0

0.0%

To which level are audit staff checked?

0% 10% 20% 30% 40% 50% 60% 70%

None (2)

Basic (1)

Enhanced (7)

Average cost per hour of agency staff

£0

£5

£10

£15

£20

£25

£30

z x s k h e d a r m f

IT

£0

£100

£200

£300

£400

£500

£600

x s m a k e h z f d r

Staff turnover %

0%

5%

10%

15%

20%

25%

m x f a z s r k h e d

Page 32 12/07/2013Audit


Level of Outsourcing within Internal Audit

How is your Internal Audit function structured?

Is there a view to change this structure in the next 12 months?

Who does your Head of Internal Audit report to?

SECTION 6 - SECTION STRUCTURE

Proportion of IA function that is outsourced

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

f e d k a x h r z s m

0% 10% 20% 30% 40% 50% 60%

Not Outsourced (3)

A public-public SSA (1)

A public-private SSA (0)

Outsourced to a private company (6)

Outsourced to a public-public SSA (0)

Outsourced to a public-private SSA (1)

0% 10% 20% 30% 40% 50% 60%

Chief Executive (2)

Section 151 Officer (6)

Deputy Section 151 Officer (1)

Monitoring Officer (1)

0% 10% 20% 30% 40% 50% 60% 70%

Yes (4)

No (7)

Page 33 12/07/2013Audit


What is your Head of Internal Audit responsible for?

Where does the Audit function fit into your structure?

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Internal Audit only (0)

Risk Management (2)

Counter-Fraud (2)

Risk Management and

Counter-Fraud (3)

0% 10% 20% 30% 40% 50% 60%

Stand alone (0)

Combined with Risk Management (1)

Combined with Counter-Fraud (2)

Combined with Risk Management and Counter-Fraud (4)

Page 34 12/07/2013Audit


The Council

Has risk maturity been assessed?

If so, what was the outcome?

Annual Statement

Does Internal Audit take the lead in preparing the Annual Governance Statement?

Do you audit the Annual Governance Statement?

SECTION 7 - CORPORATE GOVERNANCE

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Yes (9)

No (2)

0% 10% 20% 30% 40% 50% 60% 70%

Yes (7)

No (4)

0% 10% 20% 30% 40% 50% 60% 70% 80%

Yes (3)

No (8)

0% 10% 20% 30% 40% 50% 60%

Risk Naïve (0)

Risk Aware (1)

Risk Defined (3)

Risk Managed (5)

Page 35 12/07/2013Audit


Does Internal Audit take the lead in compiling the risk register?

Do you audit the risk register?

Audit Review

Have you conducted a review of Internal Audit effectiveness in the last 12 months?

If yes, which of the following were involved?

0% 10% 20% 30% 40% 50% 60% 70% 80%

Yes (3)

No (8)

0% 10% 20% 30% 40% 50% 60% 70%

Yes (7)

No (4)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Yes (9)

No (2)

0% 20% 40% 60% 80% 100% 120%

Self assessment (7)

Peer review (4)

External audit review (1)

Elected member group (1)

CFO/officer group (1)

Other (0)

Page 36 12/07/2013Audit


Reporting to Members

Do you have a specific Audit Committee?

How many times did the Audit Committee meet in 2012/13?

How is your Audit Committee constituted?

Where does the Audit Committee report to?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Yes (10)

No (1)

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

1 2 3 4 5 6 7 8 9Number of times Audit Committee met

Number of organisations

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Dedicated Committee

or Sub-Committee

(9)

Part of committee

with other functions

(2)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Full Council (10)

Scrutiny & Overview (0)

Other Committee (1)

Page 37 12/07/2013Audit


Is your Audit Committee politically balanced?

How is the chairperson selected?

How many members are on the Audit Committee?

Audit Committee

Elected Members

Unelected Members

Total

Audit Committee

Turnover per member

5.0 7.0

87 128

£ Avg.

Avg.No.

0.70.0

6.35.0

0% 10% 20% 30% 40% 50% 60% 70% 80%

Yes (8)

No (3)

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Elected at Full Council (5)

Appointed by Cabinet (3)

Opposition Member (2)

Independent Member (0)

Independent Non-Member (0)

Other (1)

£'m turnover per audit committee member

£0

£50

£100

£150

£200

£250

k z a s d h x e r m f

0

1

2

3

4

5

6

4 5 6 7 8 9 10 11 12 13 14+Members on the Audit Committee

Number of organisations

Page 38 12/07/2013Audit


Audit Plan

What is the timeframe of your formally approved audit plan?

How often is your audit plan formally reviewed during the year?

0% 20% 40% 60% 80% 100% 120%

1 year (11)

2 years (0)

3 years (0)

4 years (0)

5 years (0)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Weekly (0)

Monthly (1)

Quarterly (6)

Page 39 12/07/2013Audit


Comparator Group

2012/13

Cost/auditor £'k

Pay

Overheads

Total

Days per auditor

Cost per day (net to LA)

Days per £'m

Cost per £'m

2013/14

Cost/auditor £'k

Pay

Overheads

Total

Days per auditor

Cost per day (net to LA)

Days per £'m

Cost per £'m

£54.55

£179.83£177.77

£14.08

£57.33

£52.00

£353.69

£1.45

£736.11 £627.91 £558.77 £572.25 £729.18

£2.24 £1.72

SECTION 8 - QUARTILE FIGURES

£197.17

£60.59

£170.97

£3.64 £21.83

£75.67

£1.62

£395.47

£1.91

£67.17

£18.86

£169.91

£68.22

£333.86

£54.06£50.91

£328.37 £369.44

£3.64

£48.11

£744.72£649.17

Average

£575.10

MedianUpper

QuartileSutton

£537.04

Lower

Quartile

£710.80

£1.68£2.45 £1.50 £1.64 £1.82

£73.43 £80.13

£441.85

£194.11

£390.88

£67.48

£394.63

£178.27£146.67£176.09

£290.41 £328.07

£173.52

£49.38

£10.93£17.85

£72.68

£53.00£45.16

£4.22

£60.06

£24.75

£51.33£47.30

£19.00

AverageLower

QuartileMedianSutton

Upper

Quartile

Page 40 12/07/2013Audit


Page 53 Agenda Item 6 · 2015. 5. 22. · £563k £394k £539k £309k £601k £320k Chargeable Days...

Documents

Transcript of Page 53 Agenda Item 6 · 2015. 5. 22. · £563k £394k £539k £309k £601k £320k Chargeable Days...