5 REPORTING
AND COMPLIANCE
36. Internal Audit currently report on the level
of assurance which can be given in relation to spending on the
Administration Estimate to the Administration Estimate Audit Committee.
WE RECOMMEND
THAT INTERNAL
AUDIT AND
THE NEW
OPERATIONAL ASSURANCE
UNIT SHOULD
BOTH HAVE
AN OBLIGATION
TO REPORT
REGULARLY TO
THE MEMBERS
ESTIMATE AUDIT
COMMITTEE THEIR
FINDINGS IN
RELATION TO
ASSURANCE OF
SPENDING ON
MEMBERS' ALLOWANCES.
THE EXTERNAL
AUDITOR SHOULD
REPORT TO
THE MEAC AT
LEAST ANNUALLY.
THE MEAC'S
ROLE SHOULD
BE TO
ADVISE THE
ACCOUNTING OFFICER
ON THE
IMPLICATIONS FOR
HIS STATEMENT
ON INTERNAL
CONTROL OF
REPORTS RECEIVED
FROM THE
EXTERNAL AUDITOR
AND INTERNAL
AUDIT AS
WELL AS
ASSURANCE FROM
THE DEPARTMENT
OF RESOURCES
AND THE
OPERATIONAL ASSURANCE
UNIT.
37. Many instances of non-compliance with the
rules on spending of Members' allowances are likely to arise from
misunderstanding of the rules, miscalculation, mistaken duplication
of claims or other inadvertences on the part of Members or their
staff. Where an instance of apparent non-compliance is identified
through any aspect of the audit and assurance system, the first
response should be for the staff of the Department of Resources
to discuss the issue with the Member concerned. This should enable
genuine errors or differences of interpretation to be resolved
without the need for escalation.
38. We consider it important to be clear what
the process would be if any apparently serious instance of non-compliance
with the rules on Members' allowances (as set out in the Green
book and associated Resolutions) was identified through our recommended
system of audit and assurance. WE
RECOMMEND THAT
SERIOUS INSTANCES
OF NON-COMPLIANCE
IDENTIFIED BY
INTERNAL AUDIT,
EXTERNAL AUDITORS
OR THE
OPERATIONAL ASSURANCE
UNIT SHOULD,
WHERE APPROPRIATE,
BE REPORTED
TO THE
MEAC. THROUGH THE
MEAC, THE MATTER
WOULD BE
REPORTED TO
THE MEMBERS
ESTIMATE COMMITTEE
AND THEREAFTER
ONWARDS TO
THE STANDARDS
AND PRIVILEGES
COMMITTEE, IF
WARRANTED BY
THE CIRCUMSTANCES.
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