Public reports pack Thursday 09-Jul-2015 19.00 Corporate Committee

Internal AuditReport 2014/2015Page 44FINAL8) Purchasing requisition forms – operating effectivenessFindingPrior to a purchase order being raised, a purchase requisition form should be raised by a member of thebusiness unit and approved by the Business Unit Manager.As part of our testing of invoices paid between 1 April 2014 and 21 January 2015, we reviewed 47 purchaserequisition forms.We noted that:2/47 purchase requisition forms were requested and authorised by the same individual. However, thepurchase order for the goods purchased was approved by a separate member of staff.RecommendationIt is good practice that a purchase requisition form should be completed and authorised by different membersof staff and forms should not be processed without this review taking place.9) Approval of purchase orders – operating effectivenessFindingPurchase orders require approval in line with the scheme of delegation which requires Heads of Service, ormore senior members of staff, to approve purchase orders in excess of £50,000.As part of our testing of invoices paid between 1 April 2014 and 21 January 2015, we reviewed 41 purchaserequisition forms.We noted that:34/41 purchase orders were approved by the Head of Finance. Only 3 of these purchase orders were inexcess of £50,000.Therefore, whilst this is in line with Lambeth Living’s scheme of delegation, a significant amount of theauthorising of purchase orders are centred on the Head of Finance. This time could be more effectively used.RecommendationFinancial responsibility should be encouraged to stretch wider than the core finance team as denoted in thescheme of delegation, allowing senior members of staff to effectively use their time.Internal audit report forLambeth Living Limited PwC 16