Get documents about "Conveyancing - Milton Keynes Council
Document Sample
CONVEYANCING
Final Distribution
Head of Legal and Property Services
Principal Solicitor
Business Support Team Leader
Head of Finance
Audit Manager, Audit Commission
Assistant Chief Executive
Lynda Baker – Audit Manager
Nicholas Baines - Auditor
November 2006
MKC INTERNAL AUDIT SERVICE CONVEYANCING
EXECUTIVE SUMMARY
1 INTRODUCTION
1.1 Background
The Conveyancing section forms part of the Legal Department. The service
deals with legal matters concerning buying and selling of land and properties
on behalf of Milton Keynes Council. High volume property transactions dealt
with by the section are the sale of council houses under right to buy legislation
and shared ownership properties. There were 164 “Right to Buy” and shared
ownership properties sold between April 2005 to April 2006.
1.2 Objectives and Scope
The objectives of the audit were to ensure that:
a) All Conveyancing jobs are processed efficiently.
b) Money from sales is accounted for.
c) MKC acquires proper title documents to purchased property.
d) Recharges to client departments are accurate.
e) Management is properly controlling the function.
Key: 1 = Poor, 3 = Good
2 AUDIT OPINION
Good - Control objectives are largely met with a minor recommendation for
improvement. No major areas of risk.
AUDIT REPORT – E130/06 1 NOVEMBER 2006
MKC INTERNAL AUDIT SERVICE CONVEYANCING
3 CONCLUSIONS
3.1 Good controls are in place at the Conveyancing section particularly with
regard to Conveyancing jobs being completed within the required timescale.
However the section are currently not monitoring the set Performance
Indicators. The section will not know whether the required standard is being
achieved.
4 WAY FORWARD
4.1 All recommendations are in the Management Action Plan (Page 4). Good
controls are shown in section 5, overleaf.
4.2 Management is properly controlling the function
Performance Indicators should be monitored on a regular basis and action
undertaken if they are not being met.
AUDIT REPORT – E130/06 2 NOVEMBER 2006
MKC INTERNAL AUDIT SERVICE CONVEYANCING
FINDINGS SUMMARY
5 GOOD INTERNAL CONTROLS
The following areas were tested and confirmed as having good internal
controls with no problems to report:-
5.1 All Conveyancing jobs are processed efficiently.
Reasons why expected completion dates are not met are recorded in the
instruction file.
5.2 Money from sales is accounted for.
All income due from the sales of Right to Buy properties had been received
and correctly entered onto the SAP system.
The section ensures all debts are paid, including outstanding rent, over paid
housing benefit, council tax and former tenant arrears before selling the
property.
5.3 MKC acquires proper title documents to purchased property.
MKC hold the deeds to all acquired properties.
5.4 Recharges to client departments are accurate.
Fees for Conveyancing are included in the invoice for the purchase of a
property. Conveyancing fees are received at the completion of an instruction.
AUDIT REPORT – E130/06 3 NOVEMBER 2006
MKC INTERNAL AUDIT SERVICE CONVEYANCING
MANAGEMENT ACTION PLAN
The recommendations are categorised on the following basis:
Essential - Implementation is required with immediate effect to address a weakness that fundamentally undermines the control of that system.
Important - Implementation is required within a short period of time to address weaknesses that seriously undermine the control of that system.
Standard - Management need to take recommended action within a reasonable period to address weaknesses that may undermine system control.
Ref Findings Risk/ Implication Recommendation Management Comments Manager
Responsible &
Target Date
1 Management is properly controlling the It is not known Standard Agreed although the section has Principal Solicitor
function whether the section Performance Indicators should be difficulty monitoring their 30/11/2006
If the Conveyancing section is unable to is meeting the monitored on a regular basis and performance indicators due to the
monitor Performance Indicators using the required standard. action should be undertaken if they are Solcase system not currently
Solcase system then the section should not being met. being able to run the required
either change the reporting on the Solcase reports.
system or use a different method to
monitor Performance Indicators.
NB Any cost implications arising from implementation of the recommendations by HBS must be agreed in advance with the appropriate Client Officer and the Partnership Delivery Manager
AUDIT REPORT – E130/06 4 NOVEMBER 2006
