The risks involved in the process of Administering Grants are found to be well controlled, in that:
•	Staff dealing with enquiries are knowledgeable about the grant process and are able to give callers a general indication as to their likely qualification to a grant.
•	Enquirers wishing to be considered for a grant are added to the general enquiry book.
•	Recorded enquiries are reviewed periodically by the Senior Urban Regeneration Officer (SURO), in the order that they are received although this is dependent on the targeted area.
•	The SURO visits the property to ensure that the required works fit within the remit of a grant.
•	Upon signing out a client case, the SURO completes the corresponding index card to indicate that the file has been taken.

•	A 'Schedule of Works' is completed after visiting a property.  Each SURO has available  a  'Specification of Works' set of guidelines for referral.
•	The completed 'Schedule of Works' is proofread and signed by the officer completing it before sent to the enquirer along with the relevant application form.
•	A file and corresponding index card are only set up when an inspection has been completed and an application has been received.
•	Staff scrutinise application forms prior to processing and receipted incomplete, incorrect or unsigned are returned to the applicants with relevant instructions. 
•	Where proof of income details are supplied, these are reviewed and noted on the application form by staff. 
•	Applicants needing help with completion of the form are visited by a member of the Strategy team who assists in its completion.  Any supporting documentation requiring scrutiny by the Strategy team is also reviewed during the home visit.
•	Land registry enquiries are made to establish ownership of a property prior to the awards being granted.
•	A minimum of two estimates must be supplied by suitable contractors in most instances.
•	All calculations made in respect of the award and invoices received, are checked prior to payment being processed.  
•	Amounts paid correspond to the amounts calculated and are approved.
•	The Head of Private Sector Housing initials the progress sheets at both  approval and payment stages of the process.
•	Interim payments are granted to listed builders only when the owner has signed to indicate satisfaction with the works carried out to date and the relevant URO has carried out an inspection. 
•	A specific drawer 'Awaiting Further Information' is maintained for the purpose of monitoring the stages of applications in progress.  This is reviewed regularly by Strategy staff.

•	When a situation arises where a property requires urgent repair works, efforts are made to secure an approval for the case as soon as possible.
•	Approval letters are signed by the Head of Strategy.
•	Commencement of works forms are completed in cases where this is required.
•	Upon installation of a stairlift or other specialised equipment, the owner has the option to sign over its ownership to the Council in return for its maintenance and service at no charge.  When the item is no longer required by the owner, it is removed and reallocated by the Council.
•	The contents of files are maintained in chronological order and contain full documentation, which is signed, dated and authorised where required.
•	Progress sheets are well completed and initialled by the Officer completing the record. For ease of reference, files are stamped with the type of grant on the front cover.

•	Index cards are updated at each stage of a case and as such are a useful guide to the current status of a case.
•	Once the final payment has been made in respect of a grant, the index card is filed in the completed card index drawer. 
•	Strategy staff do not give information regarding the award of grants to third party enquirers.  Those parties requiring legitimate information are asked to put their enquiry in writing.
•	Incoming correspondence is responded to promptly and outgoing replies are signed by the Programme Co-ordinator. 
•	Quarterly and annual returns are compiled by the Principal Strategy Officer for submission to the DETR as a requirement of the Housing Act 1996.
•	Inspectors working on site are issued with safety shoes and hard hats and all have mobile telephones.
•	Staff are aware of the need to inform the office of the expected time of their return from site visits.
•	Personal alarms are available to all  members of staff working on site.
•	Staff are encouraged to visit certain areas of the city in pairs.

It is noted that a significant number of index cards relate to works from the 1970’s and 1980’s.  These rarely attract enquiries, although the cards are used for reference on occasion, and there are no corresponding files.  It is acknowledged that the retention of the old cards could be condensed.

There is a general lack of security over both the current and completed files.  Although there is a lockable cabinet in the Strategy office containing files, this is not locked and current files are often left on desks overnight.
Completed files for the previous three years  are retained in the office, mainly in roller shutter cabinets which are not lockable.

As documentation is required to be kept for ten years, previous files are stored in an adjacent storeroom.  The room is left unlocked during working hours as the photocopier is also located here, and as a result none of the information contained in the files is adequately safeguarded. 	 

The possibility of putting the records onto Microfiche or the use of a document imaging system should be considered. 

Whilst the office is unattended, cabinets which are lockable should be kept locked.  Current files should be stored away overnight.  A review of the security of the current storage system should be undertaken.

Arrangements should be made to improve the current security provision for the completed files.

	 

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Agreed.  All cards over ten years old will be disposed of.  Consideration will be given to the document imaging of records older than three years as part of future developments of the team.

Agreed.  Arrangements will be made to acquire lockable cabinets for the storage of current files and those up to three years old.

It is acknowledged that lockable  facilities are required for the storage of older files.  This will be addressed as part of the forthcoming accommodation review.

Risks associated with the Maintenance of the Builder’s List are controlled effectively in that:
•	Application forms are sent to builders who ask to be considered for inclusion on the Builder's List.
•	Previous works carried out by builders and their financial records are reviewed by both a member of the Strategy Team and an independent qualified person prior to being accepted onto the Builder’s List.
•	The Accountant reviewing the builder’s previous two years accounts submits his recommendation in writing to the Strategy Team.
•	Health and Safety Guidelines are sent to each builder joining the List with the requirement that they must adhere to them.
•	Contractors are informed in writing as to whether or not they have been awarded a particular job.
•	Contractors not returning estimates for scheduled works within the specified 21 days are sent a second request by Strategy staff. 
•	Contractors persistently late in providing estimates are sent a written warning by the Programme Co-ordinator.
•	The Builder's List is reviewed on an annual basis with manual performance indicators used to judge builder’s performance.  It is acknowledged that improvements to this system will be possible with the full implementation of UNIFORM.
•	Details of any difficulties arising with builders and accompanying correspondence are noted on the builder’s individual files.
•	Persistent under- performance by builders results in a recommendation being submitted to Housing Committee for their removal from the list.

Although a spreadsheet is maintained of the current builders and the payments received in respect of the builder's annual fees, this had not been updated on the system database for some time and a photocopy of the latest available version had been updated by hand.

From the latest recorded dates of payments received from a small number of builders on the list, it was apparent that the builders in question were seriously late in paying their annual fee. At the time of audit investigation, it was unclear whether payment had actually been received from the builders.  The Head of Strategy and the Housing Accountancy Section also maintain details of which builders have paid.  However, there are no reconciliations between the information held by the various parties.

The spreadsheet should be updated at frequent intervals to ensure that recorded information is up-to-date and accurate.

A formal system of reconciliation should be established to ensure that details of received payments held by Strategy correspond with those held by Accountancy.  Any discrepancies arising can therefore be investigated.	 

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Agreed.  A checklist will be introduced to ensure that all monies received are updated onto the spreadsheet.

Agreed.  Negotiations will take place between the Housing Strategy Team and the Accountancy Section to improve the reconciliation system and the tracking of income received. 	 

Risks associated with the process of Budget  Monitoring are mitigated effectively in that:
•	The Programme Co-ordinator monitors the grants expenditure by the maintenance of the budget on a spreadsheet.  This is updated regularly.
•	Regular meetings are held with the Housing Accountant in order to review the budget.
Every effort is made to achieve spending targets within a given year.  The meetings also address forward budget planning.
•	Unauthorised access to the budget spreadsheet is adequately safeguarded against.
•	Back-up procedures are in place to safeguard the loss of data held on the PCs within the office.

The Management of Associated Datastores is controlled effectively in that:
•	Each member of the Strategy team maintains a unique password to the network, and has a further confidential password for access to UNIFORM, which is the general system currently being introduced to record each progressive stage of the grant system.
•	The Principal Strategy Officer checks the server and the tape facility on a periodic basis.
•	As UNIFORM is not yet fully operational, the final security measures for integrity of the system have not yet been introduced.  Arrangements are in hand to restrict access to parts of the system appropriately. 

The FERRET computer package, which is  used to calculate an applicant’s contribution to a grant, is operated by only one member of the Strategy team.  Although the Principal Strategy Officer is able to use the system, there is no assurance that, in the case of prolonged staff absence, this part of the grant application procedure can be completed.
Although the FERRET system works effectively, it is has been installed on only one computer and the system is not protected by a password.  As the financial details of grant applicants are held on FERRET, confidentiality of this information cannot be guaranteed.

Procedures should be in place to ensure continuity of service should key members of staff be absent from work.

Arrangements should be made to increase the integrity of the FERRET system by introducing the requirement to enter a password in order to gain access.  This should ensure that only relevant staff are able to access the package.

	 

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Agreed.  Steps will be taken to ensure that two members of staff are trained in all steps of the process.  

Agreed.  The possibility of installing FERRET onto a second machine will be investigated.  Password protection will be applied to the screen savers. Instructions will be issued to staff regarding the need to maintain password integrity.