Shetland
Islands Council
INTERNAL AUDIT REPORT
To:
Acting Divisional Manager - Legal
cc:
Head of Legal and Administration
Head of Finance
Chief Executive
From:
Service Manager - Internal Audit
Confidential
EXECUTIVE SERVICES - LEGAL AND ADMINISTRATION - LEGAL
1. Auditee and Background
1.1
The auditee is the Acting Divisional Manager – Legal who has a line
reporting responsibility to the Head of Legal and Administration.
1.2
The Legal function exists to support the Council by providing legal services
including: general and specific legal advice to members and officials on a
diverse range of matters including employment, property, licensing law etc,
processing and recording property transactions e.g. conveyancing, leases,
searches etc, processing licensing applications and such other duties that
the Council requires.
1.3
Key legislation, guidance and procedures for Legal include:





1.4
Local Government (Scotland) Act 1973
Housing (Scotland) Act 1987, as amended
Housing (Scotland) Act 2001
Licensing (Scotland) Act (1976) to be replaced by Licensing (Scotland) Act
2005
Gambling Act 2005
The 2007/08 and 2008/09 budgets for which the Acting Divisional Manager
Legal Services is the Budget Responsible Officer (BRO) are as follows:
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General Ledger
Employee Costs
Operating Costs
Financing
Income
Recharges
Support Ledger
Employee Costs
Operating Costs
Financing
Income
Recharges In
Recharges Out
1.5
2008/09
£
2007/08
£
0
4,400
0
-66,528
59,912
-2,216
0
4,268
0
-24,425
57,558
37,401
401,318
44,189
0
-4,420
371,088
-812,175
0
375,014
53,414
0
-4,120
361,458
-785,766
0
The current establishment for Legal Services is detailed below:
Description
Acting Divisional Manager
Solicitor
P/T Solicitor
Paralegal
Total
FTEs
1
4
1
1
7
In addition Administrative Support is provided from a pool of Administrative
staff who provide service provision for Legal & Administrative Services.
1.6
The main software packages utilised at present are the Microsoft suite of
programmes including Word, Excel, Access, Outlook and Internet Explorer.
2. Audit Scope
2.1 This is an audit of Executive Services - Legal and Administration - Legal.
2.2 The audit encompassed a review of the administration and controls
surrounding the application of statute and Council policy, system access
controls and their alignment with job responsibilities and segregation of
duties, access to end-user systems and back-up routines, application of
value for money and service plans; Human Resource Management
including staffing arrangements, overtime and expense claims, staff
terminations and transfers, staff training, holiday entitlements,
performance reviews and absence management; Financial Management
incorporating purchase orders, budget monitoring, journals, virements,
invoices, petty cash and income; Legal administration incorporating
property acquisitions and sales, Council House sales, licensing
applications, property enquiry certificates and document security; and
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miscellaneous issues including statistical returns, travel and record
retention and destruction.
2.3 The audit scope period within which audit tests were performed was the
nine months to 31 July 2008.
Details of areas tested during the course of the audit are attached, Appendix 1.
3. Key Audit Issues
3.1 The review of staffing arrangements at Legal Services should be finalised
xxxxx.
3.2 Council house sales require to be more expeditiously dealt with.
4. Audit Issues
4.1 Return to work interviews should be carried out in accordance with the
Absence Management Policy
4.2 The Employee
implemented.
Review and
Development
Policy has
not
been
4.3 Service plans should be submitted in line with Council policy in a timeous
manner.
4.4 Travel should be booked in accordance with policy ensuring best value is
achieved.
4.5 Annual leave, overtime and TOIL must be dealt with in accordance with
Council policy.
5. Other Observations
5.1 We would like to take this opportunity to thank all staff for the time,
patience and assistance afforded to Internal Audit during the course of the
audit assignment. The positive attitude shown by staff was much
appreciated during the audit.
5.2 This audit will be followed up in approximately twelve (12) months time
when areas of concern identified will be reviewed.
6 Auditee Response
6.1 A written response is required, to the Head of Legal & Administration, with
copies to all recipients of this report by 5th November 2008
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6.2 Attached as Appendix 2 is an action plan that requires to be completed
and returned to Internal Audit.
Date: 8th October 2008
Report No: IAR/Legal/0809
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