Walsall Council could do better - internal audit report

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Audit: Walsall Council could do better
The YamYam 15 Nov 09
The results of the first ever internal audit of how Walsall Council operates have revealed that the council has failed to score top marks in any of the 19 categories under scrutiny. The investigation, which took place in February and March, could only offer a “significant assurance opinion” on the state of current corporate governance.

Using an adaptation of the CIPFA SOLACE delivering good governance in local government framework, the audit was unable to give “full assurance” that systems of internal control are consistently applied in any of the criteria. A significant assurance means that there is a generally sound system of control, but that weaknesses and inconsistency exist within the system.

In three areas, delegation, the conduct of members and officers and communication between the council and stakeholders, only a limited assurance could be given regarding effectiveness.

The internal report will be presented to Walsall Cabinet on Wednesday together with an action plan to address a lack of awareness of the standards of conduct expected from councillors and council officers in the areas of the anti fraud and corruption policy and conflicts of interest. A recent internal survey at Walsall Council found that 83% of council staff had never heard of the anti fraud and corruption policy and 67% did not know how to declare a conflict of interest.

Following the scandal surrounding the departure of Peter Francis in 2006, the report states that the council whistle blowing policy was reviewed and contact names were added, namely the Chief Internal Auditor, Executive directors, and Head of Human Resources. However, communication channels such as phone numbers, e-mail addresses or postal addresses were not provided in the document. A questionnaire sent to staff highlighted that 67% of respondents were unaware of the existence of a whistle blowing policy. With regard to the 33% that were aware of the policy, the respondents were unsure of where to find the policy and to whom the policy would apply. The whistle blowing policy remains as an appendix to the code of conduct despite recommendations that it should be a stand alone policy. The internal audit finds that this situation warrants a “significant assurance opinion” of effectiveness.

With regard to communication between the council and stakeholders, the report states: “The absence of up to date consultation strategies may result in an ineffective and disjointed approached to consultation. Citizens/stakeholders are unable to partake in current consultation exercises. Decisions are therefore taken without due consultation processes being followed.”

It should be stressed that the internal report carried out by employees of the council, offers only opinions and an action plan to improve the situation. The investigation took place before the appointment of a new council leader and subsequent cabinet re-shuffle. Any similar exercise in the future may wish to reconsider the opinions offered, particularly those that address value for money, the responsibilities of members and officers, whistle blowing, legality, leadership and, most importantly, accountability.

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Tags: Council