Minutes:
The Service Director Finance (Section 151 Officer) and the Head of Internal Audit, Anti-Fraud and Assurance submitted a joint report on the review of accounts payable/payment processing and detailing the management action taken to address issues identified following an internal investigation relating to a major fraud committed against the Council.
It was noted that there had been a wide-ranging review of the circumstances of this incident and appropriate action had been taken to ensure that a stronger control framework was in place to minimise the risk of such a fraud being successful in the future.
The report engendered a full and frank discussion during which matters of a general and detailed nature were raised and answers were given to Members questions where appropriate.
Arising out of this discussion, particular reference was made to the wording within the Annual Governance Statement in relation to this incident. The Service Director Finance (Section 151 Officer) noted these comments and stated that the AGS would be amended to reflect the wording contained within the External Auditor’s ISA 260 report.
RESOLVED:
(i) That the circumstances of the fraud, the management actions taken to respond, and the results of the Investigation and Internal Audit review of the controls and procedures in the Accounts Payable process be noted;
(ii) That a further report be submitted to future meeting at the conclusion of the outstanding areas detailed within the report now submitted; and
(iii) That a report on the outcome of Internal Audit’s follow-up review of the Accounts Payable system and processes be submitted to a future meeting.