Audit Review of Sundry Debtors

Final Report
Executive Summary
The review of Sundry Debtors has found that generally controls in place are adequate. There
are concerns however over the administration of credit notes.
This review has highlighted one medium and one low priority control weakness.
There were three recommendations made in the previous review of Sundry Debtors, all of
which have been completed.
Controls Assurance Statement
On the basis of my work it is my opinion that, dependant on the implementation of the
recommendations, the framework of internal control gives reasonable assurance that the
resources managed are adequately controlled with due regard to value for money.
Signed __Debbie Wiltshire________________ Date___16 January 2009.___
(For Internal Audit Partnership)
Detailed Finding
Where controls have been assessed as adequately meeting the control objectives no further
report is included. Where detail is included, this explains the weakness found, the associated
risk and the recommended action.
Objective 1
AUTHORITY – That organisation has written rules and procedures for managing the
debtor process supported by financial regulations.
There is no reporting of aged debts to the Policy & Resources Committee. In addition to that
there is no performance target.
It is good practice for aged debts to be reported on at least a half yearly basis to the
appropriate committee where the report is scrutinised by members. This makes officers
responsible for debt recovery and monitoring and performance can be gauged by reporting a
debt recovery rate which can be expressed as a percentage of invoices produced rather than
in financial terms.
There is a risk that without a collection target and reporting of performance that there is no
catalyst to improve or maintain performance.
It has been recommended that within an agreed time monitoring of aged debt reports
is made to Policy & Resources.
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