Report - London Borough of Hillingdon

Audit Assurance Work
3. An unqualified opinion on the Council’s 2002/2003 accounts and Pension Fund
was issued in December 2003. This is the first time since 1996/97 that the Council
has received an unqualified opinion on its accounts. The Council’s draft accounts
were prepared for audit by August 2003 and supporting documentation was once
again of a good standard. The letter goes on to note that the Council is well placed to
tackle the challenge of the earlier audit opinions that will be required in future years.
4. The Council also received an unqualified opinion on the 2003/2004 Best Value
Performance Plan.
5. In relation to grant claims the letter says that overall, the audit of the Council’s
grant claims for 2001/2002 was successful. Claims were generally well prepared for
audit, accurate, and the audits conducted efficiently. However, there are still some
claims where the supporting documentation can be improved. The Director of
Finance is taking steps to ensure that the preparation of these claims is improved by
increasing the central review of the claims.
Financial Aspects of Corporate Governance
6. The letter comments that in recent years, the Council has developed a good track
record in financial management, exercised restraints where needed, and begun to
build its reserves.
7. However the letter also comments that the reserves are still too low to provide
protection against unforeseen cost pressures. The financial forecast for 2003/4
provides for further improvement on this, as does the longer term financial plan.
8. The letter comments that the Council’s arrangements for maintaining internal
financial control, for ensuring standards of financial conduct and the prevention of
fraud and corruption, and for maintaining the legality of financial transactions are
generally sound.
Inspections
9. The Audit letter comments that inspections undertaken on Housing Management
and ICT Service during 2003 show promising improvement prospects.
10. The Housing Management Service was found to have clear aims, good access,
an effective complaints system, good caretaking and cleaning services and
improving rent collection procedures.
11. The ICT service had promising prospects for improvement because:
• Senior officer, members and ICT staff are leading the e-government agenda;
• There is a good track record of partnership working to deliver e-government
plans;
• Additional funding has been committed to ICT developments.
PART I – MEMBERS & PUBLIC (INCLUDING THE PRESS)
Cabinet Reports - 4 th March 2003 Page 2