"Final Report Memo"
INTERNAL MEMORANDUM To: Brian Sandom Pele Bhamber Ian Dyer Stuart Simmonds Ref: E297/09 cc: Mike Hood Gary Waghorn Carol Ryan, Audit Manager – Audit Commission From: Lynda Baker Date: 19 March 2009 Audit Manager FINAL AUDIT REPORT PASSENGER TRANSPORT I am pleased to enclose the final report for your information. AUDIT OBJECTIVES AND CONCLUSIONS The aim of the audits was to provide assurance that: Appropriate financial records were being retained to support the income due to the Council (FINANCE) • Opinion: Limited Operators were complying with relevant policies (POLICY) • Opinion: Good Operators were complying with relevant legislation (LAW) • Opinion: Good Risks were properly identified and managed (RISK) • Opinion: Weak AUDIT OPINION Overall, our audit opinion is Limited Assurance. DETAILS Visit our Web Site for information on our services. http://intranet/Internal_Audit/home.asp Audits of 5 bus companies were planned for 2008/09. However due to problems in gaining access to (text deleted for confidentiality reasons), this company was not visited. Results of the visits and tests carried out were: COMPANY ISSUES ARISING Text deleted for This company operates in an efficient manner and has confidentiality good procedures and processes. One item arose in that reasons they were issuing return tickets in contravention of MKC rules (should have issued two single tickets). Minor losses resulted from this practice which the company agreed to stop and gave immediate instructions to their drivers. Text deleted for The company has good processes and procedures in confidentiality place. One duty driver consistently recorded lower reasons income compared to the other 4 duty drivers. However, on the one occasion another driver performed that duty the income was consistent with the normal declaration. Text deleted for The system for recording receipts was much improved confidentiality since the last audit. However, there was an issue with reasons not recording passes and concessions correctly which the company agreed to put right. The company had not submitted returns for 6 months at the time of the audit. Apart from one return in October 2007, the company has still not submitted returns. Text deleted for This company continues to give concerns. The partner confidentiality responsible for the financial returns is never present reasons during audits (previous years and current year) despite a specific request that he be there. In addition, original paper work was either not retained, lost or “thrown away by the new cleaner”. Some work was able to be done on the returns for May/June 2008. The company was aware of the audit planned for October and the subsequent returns for September/October showed consistently higher figures across all routes than those for May/June (see attached summary). Following further analysis, a return visit was planned for February/March 2009. However, this had to be cancelled as the company said it had not retained the required documentation, although it had been expressly requested. The company has now been asked to retain all original documentation for a rolling 6 month period and it is intended to carry out an in depth audit in Summer 2009. Text deleted for This company has given cause for concern in submitting confidentiality late and inconsistent returns. A visit was not able to be reasons carried out due to various reasons including a move to new premises and problems with the IT system. **text deleted for confidentiality reasons** it is intended to carry out an in depth audit in Summer 2009. C:\Documents and Settings\VRUSSEL\Local Settings\Temporary Internet Files\OLK19B\External version of Report memo.doc Please be advised that on a quarterly basis the relevant Corporate Director and the Audit Committee will be provided with a summary of Audit Reports issued. As a consequence of the Freedom of Information Act, final reports will also be accessible via the Council’s Internet. In the email to which this memo is attached, you will find three client feedback questions and we would appreciate you taking the time to respond with your comments. As a department we continually strive to improve our service and your comments are very useful to us. I would like to take this opportunity to thank you and your staff for their assistance during the audit. Lynda Baker Copy to: Member with Portfolio, Transport – Cllr Douglas McCall Member with Portfolio, Finance – Cllr Sam Crooks C:\Documents and Settings\VRUSSEL\Local Settings\Temporary Internet Files\OLK19B\External version of Report memo.doc