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									E-8.1.2                                                                                                              Appendix 4

                                                          Audit Action Plan
                                       Review of Place Group Income Arrangements 2009/10
                                   Responsible: Local Services Group, Sustainable Transport Service


Our recommendations are summarised below and are categorised as:

       High: a fundamental control issue, or other matter, that must be addressed immediately.
       Medium: a significant control issue that must be addressed within three months.
       Low: an issue that must be addressed within the next year.

No.              Recommendation              High Med Low      Responsible           Responsible Officer(s)            Timescale for
                                                                Officer(s)                  Comments                  Implementation
    1    As per section 6.1.2 of the audit    *                 Lynn Ryan       Validity of the action point to be     30 June 2011
         report, car parking fee income                        (Sustainable     rectified with the newly
         should be reviewed to establish                        Transport       appointed VAT adviser at
         the instances where VAT has                             Service)       HMRC. Derek Brown to meet
         been charged in error on on-                          Hazel Young      with the adviser.
         street car parking and if there                        (Business       Should the corrective action be
         are any instances where VAT                            Support –       needed, Lynn will provide
         has been not charged in error on                     Local Services)   detailed information to Hazel
         off-street car parking; depending                                      and also will ensure that the
         on the overall outcome, any tax                                        cash collection procedure in
         overpaid to HMRC should be                                             terms of the recording of ticket
         recovered or a voluntary                                               machine income is amended as
         disclosure made to HMRC if                                             the car park attendants
         necessary.                                                             currently count and record the
                                                                                on and off-street income

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                                                                together and all relevant
                                                                spreadsheets are updated to
                                                                reflect the correct VAT type.
                                                                Hazel to work on VAT
                                                                adjustments required for
                                                                previous periods and liaise with
                                                                Derek Brown if a Voluntary
                                                                Disclosure is needed.

 2    As per section 6.1.5 of the audit   *       Terry       Validity of the action point to be   30 June 2011
      report, VAT should be charged             Rogerson      rectified with the newly
      on land charges. The VAT not             (Sustainable   appointed VAT adviser at
      charged in error should be                Transport     HMRC. Derek Brown to meet
      investigated and a voluntary               Service)     with the adviser.
      disclosure made to HRMC if               Hazel Young    Should any corrections be
      necessary.                                (Business     needed, Hazel will deal with
                                                Support –     VAT adjustments and liaise with
                                              Local Services) Derek Brown if a Voluntary
                                                              Disclosure is required.
                                                              Terry will amend his charges to
                                                              reflect correct VAT application.
 3    As per section 6.1.9 of the audit   *       Kevin       No recognition of the term           30 June 2011
      report, Section 184 fees should           McSparron “Notice” with the relevant
      be reviewed to establish whether         (Sustainable members of staff. VAT is
      there are instances where VAT             Transport     charged at STD rate for old
      should not have been charged               Service)     builds and no VAT applied to
      and any tax overpaid to HMRC             Hazel Young new builds.
      should be recovered.                      (Business     Validity of the action point to be
                                                Support –     rectified with the newly
                                              Local Services) appointed VAT adviser at
                                                              HMRC. Derek Brown to meet
                                                              with the adviser.

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                                                                Hazel to work on VAT
                                                                adjustments required for
                                                                previous periods and liaise with
                                                                Derek Brown if a Voluntary
                                                                Disclosure is needed.
 4    As per section 6.2.4 of the audit   *    Mike Jeffrey     All boats are under 15 tons.       30 June 2011
      report, mooring and launching            (Sustainable     VAT charged correctly at STD
      fees should be reviewed to                 Transport      rate from April 2011 which
      establish whether there are                 Service)      could be confirmed by copies of
      instances where VAT has not              Hazel Young      invoices issued for fees and
      been charged in error and a               ( Business      permits.
      voluntary disclosure made to               Support –      Hazel to work on VAT
      HRMC if necessary.                      Local Services)   adjustments required for
                                                                previous periods and liaise with
                                                                Derek Brown if a Voluntary
                                                                Disclosure is needed.
 5    As per section 6.2.7 of the audit   *    Mike Jeffrey     VAT is charged correctly at        30 June 2011
      report, the VAT charged in error         (Sustainable     Exempt rate from April 2011
      on concessions should be                   Transport      which could be confirmed by
      investigated and any tax                    Service)      copies of invoices issued for
      overpaid to HMRC should be                Lynn Ryan       licenses within Mike’s area.
      recovered.                               (Sustainable     VAT is included as Standard-
                                                 Transport      rated in License agreements
                                                  Service)      within Lynn’s area. It is in
                                               Hazel Young      agreement with the Legal team.
                                                ( Business      Hazel to work on VAT
                                                 Support –      adjustments required for
                                              Local Services)   previous periods and liaise with
                                                                Derek Brown if Voluntary
                                                                Disclosure is needed.



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 6    As per section 6.2.8 of the audit   *           Mike Jeffrey   VAT is charged correctly at        30 June 2011
      report, the rents, lets and                     (Sustainable   Exempt rate from April 2011
      wayleaves income at Plessey                       Transport    which could be confirmed by
      Woods Country Park should be                       Service)    Cash Collector spreadsheets.
      reviewed to establish if VAT has                Hazel Young    Hazel to work on VAT
      been charged in error and any                    ( Business    adjustments required for
      tax overpaid to HMRC should be                    Support –    previous periods and liaise with
      recovered.                                     Local Services) Derek Brown if a Voluntary
                                                                     Disclosure is needed.
 7    As per section 6.3.3 of the audit   *            Elliott Hall  We have notified Information       31 May 2011
      report, the VAT charged in error                (Sustainable Centres that VAT must not be
      on replacement bus passes                        Transport     charged on cost of replacement
      should be investigated and any                    Service)     concessionary bus passes.
      tax overpaid to HMRC should be                  Hazel Young Monthly monitoring of
      recovered.                                       (Business     transactions now in place to
                                                       Support –     ensure no recurrence.
                                                     Local Services) Elliott will work with Hazel to
                                                                     recover overpaid tax with
                                                                     immediate effect.
 8  When the VAT errors identified in *                 Mia Kelly                            01 July 2011
                                                                     To notify Transactions Manager
    sections 6.1.2, 6.1.5, 6.2.7 and                   (Business     of the outcome of the audit
    6.3.3 of the audit report have                     Support –     report.
    been corrected and the possible                  Local Services)
    VAT errors identified in sections
    6.1.9, 6.2.4 and 6.2.8 of the audit
    report have been resolved, the
    Transactions Manager in
    Finance Group should be
    notified of the outcomes.
Response Completed by ___Mia Kelly_______________________________Date ____11/05/2011________
Please return this form to: Audit Service, Finance Group, County Hall, Morpeth, NE61 2EF.

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