Item 6 - Appendix 6g

Final Internal Audit Report

Expenses
Greater London Authority
February 2009

This report has been prepared on the basis of the limitations set out on page 19.

Contents
Page

Executive Summary

Observations and Recommendations

Appendix 1 Audit Framework

17

Appendix 2 - Staff Interviewed

18

Statement of Responsibility

19

This report and the work connected therewith are subject to the Terms and Conditions of the contract dated 20/06/2007
between Greater London Authority and Deloitte & Touche Public Sector Internal Audit Limited. The report is produced
solely for the use of Greater London Authority. Its contents should not be quoted or referred to in whole or in part without
our prior written consent except as required by law. Deloitte & Touche Public Sector Internal Audit Limited will accept no
responsibility to any third party, as the report has not been prepared, and is not intended for any other purpose.

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Executive Summary
Introduction & Background
1.

This audit forms part of the 2007/08 Internal Audit Plan, which has been
approved by the Mayor and the Audit Panel. The audit formed part of the
2007/08 internal audit plan, however due to a change in the taxi card
accounts system provider following the audit, further testing was
performed on the new system, therefore this report is agreed with
management to be issued during 2008/09.

2.

The plan entails a review of the systems and controls operating over the
management and administration of expenses incurred by the Mayor,
Assembly Members, and officers of the Greater London Authority (GLA).
This audit has also incorporated a review of the administration of the
GLAs taxi card accounts system.

3.

Section 127 of the Greater London Authority Act (GLA) 1999 empowers
the Director of Resources to issue an Expenses and Benefits Framework
to promote the proper administration of the financial affairs of the
Authority. Currently, the communicated framework document is dated
January 2007. The Framework stipulates that as a rule, expense claims
should only be for travel and subsistence and not as a means of avoiding
the ordering process.

4.

The Framework sets out the procedures for dealing with expenses at the
GLA and as a general rule travel and subsistence are the only expenses
that should be claimed back. It also encourages the use of public
transport by GLA employees; however, taxi cards are available to
Members, Executive Directors, and Senior Officers, to enable them to
use the taxi service provided by the contractor, Greater London Hire Ltd.
(GLH).

5.

The value of business expenses (Domestic Travel, Foreign Travel, Taxi,

and Other Expenses) incurred between 1st April 2007 and 31st March
2008 by the GLA was approximately 145,000 for Senior Employees and
76,000 for Members and the Mayor.

6.

Samples of prime source documents pertaining to the financial year

2007/08 and to date have been selected and tested to evaluate the
effectiveness of the controls in operation. A summary of the findings is
contained within the following paragraphs.
Policy and Procedures

7.

The Expenses and Benefits Framework outlines the policy and

procedures and provides adequate guidance regarding the process for
claiming expenses. The Framework is accessible to all staff via the
Intranet and it sets out the guidelines and limitations for claiming

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expenses, and provides standard pro-forma documentation that should

be used for processing expense claims.
8.

In addition to the Framework, three other supporting documents

providing summarised notes on all activities in respect of expense
claiming procedures are also available on the intranet. These documents
include Your Guide to Expense Claim Arrangements, Your Guide to
GLA Petty Cash Arrangements, and What expenses Can I Claim?.
These documents provide a summary overview of the process and
include the financial limits for claims.

9.

The Expenses and Benefits Framework also contains guidelines for the
users of taxi card accounts.

10.

The Expenses and Benefits Framework is reviewed periodically by the

Director of Resources, and the last review, prior to audit being
undertaken, was in January 2007. As part of the review, the rates
contained within the framework are amended annually to reflect the
prevailing market conditions.

11.

At the time of the audit, it was identified that staff are working from the
last updated Framework (January 2007), which is available on the
intranet. It was noted that a comprehensive review of the Framework is
currently underway to reflect the requirements of the new Mayor and
London Assembly. The current communicated version does not include
information regarding the new taxi company.

12.

The Exchequer department is responsible for processing the expense

claims and ensuring that the expenses incurred are in line with the
guidelines provided within the Framework. Audit identified that a key
member of staff, whom had been managing expense claims for the past
seven years, had recently left the organisation. Current processes were
not found to be documented, and it is recommended that an internal
procedure be developed to help ensure continuity in processing claims.
Two recommendations have been raised as a result of our work in this
area.
Validity of Expense Claims

13.

Expenses can be incurred via a number of methods including corporate

card purchases and petty cash advances. Expenses can be reimbursed
via Payroll and Petty Cash.

14.

For all expense claims, a standard claim form is completed by the

claimant and approved by an authorised signatory with supporting
documents, before being submitted to the Financial Services department
for checking and reimbursement. From a sample of 20 claims submitted,
one form had the authorising signatory signing the form the previous day
to the claimant and one form did not have the individual arithmetic and
coding checks signed off, but the overall Financial Services section was
signed off. As both exceptions were still deemed to be authorised, no

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recommendation has been raised. For the remainder of the expense

claim forms, all were fully completed by the claimants and authorised by
an approved signatory, as identified in the approved list of signatory file
kept by Financial Services.
15.

Where foreign travel is to be undertaken, prior authority is obtained from

the appropriate head of department and a foreign travel approval form is
completed and signed by the authorised officer. From the audit sample
of 20, there was one circumstance in which the claimant was travelling
abroad, however no evidence of foreign travel approval was retained on
file. A recommendation has been raised.

16.

The framework states that petty cash advances may be given to officers
for incidental expenses incurred during the course of normal GLA
business; for example foreign trips of 3 days or more. Where a petty
cash advance is requested, finance is notified in advance, stating the
reason, value, and when it is required. A standard Petty Cash Advance
form is then completed by the claimant and authorised by an appropriate
signatory detailing the amount required. This form is presented to
Financial Services for the advance to be paid.

17.

In testing of five petty cash advances, it was identified that each was
authorised appropriately.

18.

Corporate credit cards are issued to eight senior officers to facilitate the
purchasing of goods and services in emergencies, and to those staff
frequently travelling abroad. Usage of the credit cards is to be performed
in accordance with the Expenses and Benefits Framework guidelines.

19.

On receipt of the monthly credit card statement for all GLA expenditure,
all credit card holders are required to complete a standard credit card
transaction log sheet, which details the purchases and expenses
incurred, and to which supporting documents and/or receipts are to be
attached. The log sheet is approved by the appropriate Head of the
department, before it is returned to Financial Services for processing.

20.

It was identified that there were some instances (eight from the sample of
20) where transactions were ordered via the corporate credit card, which
may have been ordered via the normal purchasing process.
In
accordance with the Expenses and Benefits Framework this is
discouraged, however as guidance was in the process of being updated
and communicated, no recommendation is raised (as per earlier
paragraph).

21.

From a sample of 20 transactions from February to June 2008, one

transaction log sheet was not on file (dated 27th June 2008); two further
transaction log sheets were not completed but had email evidence to the
Finance Manager to account for expenditure; and two amounts listed on
the journals were marginally different to the amount actually spent; one
was 33.17 on the journal but account statement showed 38.17; the
other Journal states 50.55, whereas the bank statement and transaction
log sheet state 59.55. A recommendation has been raised.

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22.

Furthermore there were 2 circumstances where the claimant was not the
corporate card holder. After discussions with the Head of Financial
Services, he stated that his card is a corporate card and as such will be
used for other staff members. When the guidance is updated this issue
should be addressed.
Two recommendations have been raised as a result of our review of this
area.
Validity of Taxi Account Journeys

23.

Greater London Hire Ltd have been appointed by the GLA to provide taxi
services to the Mayor, Assembly Members, Directors, and other Senior
officers, where public transport is unavailable or not practical. According
to the draft Framework, all officers, with the exception of the Head of
Financial Services, are to use taxis strictly on official GLA business and
not to share their cards with other staff.

24.

GLH provides monthly invoices and statements to the GLA showing the
taxi fares that have been registered on each cardholders account.

25.

Each cardholder is sent a monthly declaration memo band journey form

by Financial Services, to accompany the monthly invoice received from
Greater London Hire. Each cardholder is required to check the invoice
for accuracy and provide detailed explanation of all journeys undertaken;
including identification of private journeys. The declaration is signed and
returned to Financial Services for checking.
Declaration memos
completed by assembly members were found to also be signed by the
Head of Committee and Member Services.

26.

Where non-GLA journeys are undertaken by the officers, the Framework

requires the cardholder to reimburse the Authority on receipt of an
internal invoice from Financial Services.

27.

Whilst it was evident that many declaration memos and journey forms
were completed and sent to Finance, at the time of audit it was noted that
this was not always the case, with returns not being available in eight out
of 20 cases tested. In five circumstances the invoices relate to Assembly
Members, two related to the Director of Resources and one was for the
Director of Media and Marketing.

28.

The Finance Officer collates the outstanding declaration and journey

forms onto a spreadsheet. At the time of the audit according to a
spreadsheet maintained by the Finance Officer, 32 declaration forms
were still outstanding, dating back to September 2007. After discussions
with the Finance Officer, he stated that he consistently chases the
responsible officers (or their Personal Assistants), however there are
delays evident. It was noted that taxi expenses and declarations will be
included in the comprehensive review of the framework currently
underway.
One recommendation has been raised.

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29.

Monthly exception reports were produced by Computer Cab Company,

the previous service provider, to allow Financial Services to monitor
details of any excessive usage of taxis. In particular, the reports
highlighted expensive journeys i.e. over 20, journeys that incorporate a
significantly long waiting time i.e. over ten minutes and journeys that
occur out of hours. Currently, the invoices issued by GLH provide more
detailed information including waiting time and cost. Therefore exception
reports are not considered necessary.

30.

The Head of Committee and Members Services may identify any

anomalies with the GLH invoices and has the opportunity to query them
with Finance, before referring to the employee responsible.

31.

GLH monthly invoices and account details are checked for completeness
and accuracy by exchequer services, and are date stamped upon receipt
to confirm when they were received. Audit testing identified that 18 out of
20 invoices tested had a visible exchequer stamp on the invoice. The 5
most recent invoices tested, from April and May 2008, do not have
stamps because Finance retains the invoices as e-copies. There were
also two un-stamped hardcopy invoices from the 2007/08 period; before
the introduction of the e-copy invoicing. A recommendation has been
raised in respect of checks being evidenced.
Two recommendations have been raised as a result of our review of this
area.
Processing and Authorisation

32.

The Framework requires each officer to complete a standard pro-forma

expense form for each claim submitted, and this form is then signed as
authorised by the appropriate designated signatory in accordance with
the GLA Scheme of Delegated Authority. Each completed form is
required to be submitted within 2 months of the expenditure being
incurred. Section 13.4 of the Framework stipulates that, any claim older
that 2 months should not be paid. Audit testing confirmed that from the
sample selected, all the expenses were sent and processed within two
months of the claims being incurred.

33.

Staff claims of less than 10 should be paid via the petty cash system
and expenses of a greater value than this are paid via payroll. All claims
once authorised are passed to Financial Services to be checked for
completeness and arithmetical accuracy.
This check should be
evidenced by the officer carrying out the check with their signature and
date. In 17 out of 20 expense claims forms tested, appropriate
authorisation was obtained. Of the exceptions, as stated earlier, one form
had the authorising signatory signing the form the previous day to the
claimant. One form did not have the individual arithmetic and coding
checks signed off, but the overall Financial Services section was signed
off. The above has already been addressed, as previously mentioned,
therefore no further recommendation is raised. Audit findings identified

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there to be no provision on the Expense Claim Form and Petty Cash

Advance Form for the responsible Finance officer to evidence that the
advance has been given to the Claimant. Audit also observed that the
standard spreadsheet used for recording petty cash transactions could
be enhanced through recording of a description as to what the cash
relates to, voucher number, and date cash was provided.
A
recommendation has been made accordingly.
34.

As mentioned above, petty cash advance forms are completed and

signed by both the claimant and the appropriate authorised head before
cash is released by Financial Services. Upon receipt, the Claimant signs
and dates the bottom of the Petty Cash Advance form. Following
expenditure being incurred, officers are required to complete an
expenses and receipts analysis form and attach original VAT receipts to
support all valid expenditure relating to the cash advance. The form and
any cash balances are sent back to Financial Services to process. It was
identified that these forms were sent to Finance and all five expenses
and receipt analysis forms tested were available and authorised
appropriately.

35.

Financial Services maintain a spreadsheet recording all petty cash

transactions and cash advances. Two officers are responsible for
maintaining this spreadsheet, and the Senior Exchequer Officer is
responsible for independent review of the Petty Cash. The Petty Cash
float is reviewed and documented on that spreadsheet on a monthly and
year end basis. Furthermore an end of year Petty Cash review is
performed and signed off. In addition to this, the Petty Cash spreadsheet
accounts for the segregation of duties via two signatories.

36.

On review of the credit card authorisation it was evident that when the
Exchequer Accountant had not received a signed log sheet, or
appropriate supporting documentation i.e. receipts, then the items are
temporarily placed in the suspense account. There is no specific
guidance as to how long these items can remain on the account, but the
Exchequer Officer stated that the normal maximum timeframe is one
month. A recommendation has already been raised under validity of
expense claims; refer to recommendation three.
One recommendation has been raised following our review of this area.
Payment of Expense Claim

37.

The Exchequer department populates a spreadsheet logging all the

expenses to be reimbursed via payroll. At the end of the month, this
spreadsheet is reviewed by the Finance Manager to help ensure that the
expenses are reimbursed to the appropriate claimant and coded to the
correct account code. This spreadsheet is sent to the Authoritys
nominated payroll provider (Northgate) who reimburse each expense
claim through the monthly payroll process. Each month, Northgate is
required to provide the GLA with a report, which highlights all expenses

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that have been paid for the period. The Exchequer Accountant
reconciles the report to the expenses spreadsheet that is maintained by
Financial Services.
Audit testing confirmed that the expenses
spreadsheet is updated monthly and authorised by the Finance Manager
and is reconciled back to the payroll report from Northgate by the
Exchequer officer in a timely manner.
38.

A mileage spreadsheet is maintained by Financial Services to monitor

individuals commuting by car. The Framework stipulates the rates to be
paid for mileage below 8,500 and thereafter. Audit testing confirmed that
sufficient documentary evidence is being maintained to support the
monitoring of mileage incurred by staff for the financial year.
No recommendations have been raised following our review of this area.
Management Monitoring and Reporting

39.

The monitoring of expenses is subject to scrutiny by the Assemblys

Audit Panel who meet on a quarterly basis. It is the responsibility of the
Director of Resources to prepare a report summarising the expenses
incurred by the Mayor and Elected Members on a quarterly basis, which
is presented to this Panel. Testing identified that reports for the last three
quarters have been prepared and presented to the Panel in a timely
manner.
No recommendations have been raised following our review of this area.

Audit Opinion - Substantial Assurance

Evaluation Opinion: While there is a basically sound system, there are areas of weakness
which put some of the system objectives at risk.
Testing Opinion: and/or there is evidence that the level of non-compliance with some of the
controls may put some of the system objectives at risk.

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Observations and Recommendations

In order to assist management in using our reports:
We categorise our opinions according to our assessment of the controls in place
and the level of compliance with these controls
Full
Assurance

There is a sound system of control designed to achieve the system

objectives
and the controls are being consistently applied.

Substantial
Assurance

While there is a basically sound system, there are areas of weakness

which put some of the system objectives at risk,
and/or there is evidence that the level of non-compliance with some of the
controls may put some of the system objectives at risk.

Limited
Assurance

Weaknesses in the system of controls are such as to put the system objectives
at risk,
and/or the level of non-compliance puts the system objectives at risk.

No
Assurance

Control is generally weak, leaving the system open to significant error or

abuse,
and/or significant non-compliance with basic controls leaves the system
open to error or abuse.

b) We categorise our recommendations according to their level of priority.

Priority 1

Major issues for the attention of senior management.

Priority 2

Other recommendations for local management action.

Priority 3

Minor matters.

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Policies and Procedures

1. Updated Framework
Recommendation
It is recommended that a
timetable be developed for the
review,
authorisation,
and
communication of the revised
and updated Expenses and
Benefits Framework.

(Priority 2)

Rationale
The production of a timetable for updating, approving
and communicating the Expenses and Benefits
Framework will help to ensure that necessary
changes are communicated to staff in a timely manner
to reflect structural and process changes within the
GLA.
Audit testing identified there to be a draft copy
(version 11) that was last reviewed in January 2007.
The Expenses and Benefits Framework is currently
under review. In addition to this, the previous Taxi
firm (ComCab) template was still found to be in use.
Lack of communication of reviewed and updated
procedures increases the risk that guidance does not
reflect current practices and inconsistent or ineffective
practices are adopted that fail to meet management
objectives.

Management response:
Agreed.
The Expenses and Benefits framework as it applies to the Mayor, the Assembly,
and staff has been revised and is to be submitted to the Mayor and the
Assembly for approval by 31 March 2009.

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2. Procedure Manual
Recommendation
It is recommended that guidance
specific to processing of expense
claims should be established
within the Exchequer department.
This
guidance
should
be
developed in line with the
Expenses
and
Benefits
Framework.

(Priority 3)
Rationale

The establishment of procedures will help to ensure

that continuity of operations occurs in the event of
staff leaving the GLA and successful succession
planning occurs. It will also help to ensure that the
Expenses and Benefits Framework is implemented
effectively.
Audit testing identified there to be no established
procedures relating to processing of expense claims
within the Exchequer department. It was noted that a
key member of staff responsible for managing the
expense claims for the past seven years has now left
the GLA and responsibility was passed over to an
interim member of staff for a short period of time.
Lack of documented procedures may result in
essential processes and checks on expense claims
being overlooked in the event of staff members
leaving the GLA.
There is also a risk of key
operations being omitted due to the time taken to
handover seven years worth of knowledge to another
staff member.

Management response:
Agreed.
Written procedures on the processing of expense claims will be prepared for the
Exchequer team.
Deadline: 31 March 2009.

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Validity of Expense Claims

3.

Credit Card Transaction Log

Recommendation
There
should
be
regular
monitoring
of
return
of
transaction
log
sheets
for
corporate
credit
card
expenditure.

(Priority 2)

Rationale
According to the Framework, details of all purchases
and expenses shown on the statement for the credit
card must be recorded on the credit card transaction
log sheet and transaction receipts must be submitted
to core finance.

Guidance should be developed, Audit testing confirmed the existence of completed

including timescales for chasing and authorised transaction log sheets to support the
items on the suspense account.
transactions in the credit card statements in 17 out of
20 cases tested. One transaction log sheet was not
on file and two further transaction log sheets were not
completed; however the second two exceptions did
have email evidence to account for expenditure.
When employees could not evidence receipts or a
completed corporate log then the expense amount is
held in the suspense account for an indefinite period
of time by the Exchequer Accountant.
Where completed and authorised transaction log
sheets are not submitted to Financial Services in a
timely manner, there is a risk that the GLA may be
reimbursing officers for personal expenses; thus
resulting in financial loss.

Management response:
Disagreed.
This is already in place, as the credit card expenses cannot be coded on to the
Directorates cost code if the credit card transaction log is absent. The costs on
any missing transaction logs are coded to suspense, card holder is chased and
suspense cleared down when the information is received.

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4.

Foreign Travel Approval

Recommendation

(Priority 3)

Rationale

Foreign travel authorisation forms All foreign travel expenses should be appropriately
need to be completed, authorised authorised prior to the journey in accordance with the
and filed before the journey takes Expenses and Benefits Framework.
place.
Audit identified that for one circumstance from a
sample of 20 expense claims that involved foreign
travel, there was no foreign travel expense form on
file.
There is a risk that employees could be travelling to
unauthorised destinations at a cost to the GLA.

Management response:
Agreed.
All GLA staff will be reminded of the need to obtain approval prior to committing to
travel expenditure.
Deadline: Staff will reminded of the need to obtain prior approval to travel as part
of the re-launch of the revised Expenses and Benefits framework. 31 March
2009.

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Validity of Taxi Account Journeys

5. Declaration memos
Recommendation
The process in place for seeking
user
declarations
for
taxi
journeys should be reviewed to
avoid forms being outstanding for
a longer period of time than is
necessary.

(Priority 2)

Rationale
As per the Expenses and Benefits Framework, the
(taxi journey) declaration must be signed, and the
completed form must be returned within 2 weeks of
receipt of the statement. Monitoring of the returned
forms helps to ensure that correctly completed and
authorised forms are returned in a timely manner.
Audit testing showed that completed declaration
memos and journey forms were maintained within the
Exchequer department, however audit was unable to
obtain documentary evidence in eight out of 20 cases
selected. At the time of the audit according to a
spreadsheet maintained by the Exchequer
accountant, 32 forms were still outstanding, dating
back to September 2007.
In the event that declaration memos are not duly
completed and signed by the claimant, there is a risk
that the GLA will not be reimbursed for private
journeys.

Management response:
Agreed.
The current process will be reviewed and escalation procedures implemented for
Senior Staff and Elected Officials who fail to submit their declarations on time.
Deadline: By 31st March 2009.

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6. Taxi Usage Processing

Recommendation

(Priority 3)

Rationale

Staff should be reminded to date Date stamping of invoices helps exchequer services
stamp all taxi account invoices to monitor the timeliness of processing and
received by exchequer services.
payment.
Audit testing identified that 18 out of 20 invoices
tested had a visible exchequer stamp on the
invoice, however two invoices had no evident date
stamp.
In the event that invoices are not date stamped,
there is an increased risk that exchequer services
will not be able to monitor the timeliness of
processing invoices and making payments.

Management response:
Agreed.
A reminder will be issued by the Finance Manager, Exchequer to remind
Exchequer staff of the need to date stamp all invoices.
Deadline: By 28 February 2009.

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Processing and Authorisation of

Expense Claims
7. Petty cash reimbursement
Recommendation
Forms should be enhanced to
include a unique reference and
description for what the advance
is to be used for, to enable sign
off by the Finance officer and the
Claimant, and to evidence the
petty cash balance to be carried
forward in petty cash records.

(Priority 3)

Rationale
Updating claim forms to include generation of a
unique reference number and sign off by both the
Finance officer and the Claimant, will help to ensure
that a clear audit trail is maintained for all petty cash
issues.
Audit findings identified there to be no provision on
the Expense Claim Form and Petty Cash Advance
Form for the Exchequer officer to evidence that the
advance has been given to the Claimant. Audit also
observed that the standard spreadsheet used for
recording petty cash transactions could be enhanced
through recording of a description as to what the cash
relates to, voucher number, and date cash was
provided.
Where there is no clear audit trail as to the
reimbursement of Petty Cash and the payment of
cash advances, there is a risk that misappropriation of
funds may go undetected.

Management response:
Agreed that all petty cash payments will be allocated a unique reference number
The petty cash advance form will be amended to capture the reason for the
advance and the signature of the Finance Officer issuing the advance.
Deadline: 31 March 2009.

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Appendix 1 Audit Framework

Audit Objectives
The audit was designed to ensure that management has implemented adequate
and effective controls over the administration and management of the expenses
incurred by the Mayor, Assembly Members, and officers of the GLA.

Audit Approach and Methodology

The audit approach was developed with reference to the Internal Audit Charter
and by an assessment of risks and management controls operating within each
area of the scope.
The following procedures were adopted:
identification of the role and objectives of each area;
identification of risks within the systems, and controls in existence to allow the
control objectives to be achieved; and
Evaluation and testing of controls within the systems.
From these procedures we have identified weaknesses in the systems of control,
produced specific proposals to improve the control environment and have drawn
an overall conclusion on the design and operation of the system.

Areas Covered
Audit work was undertaken to cover controls in the following areas:

Policies and Procedures

Validity of Expense Claims

Validity of Taxi Account Journeys

Processing and Authorisation

Payment of Expense Claims

Management Monitoring and Reporting

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Appendix 2 - Staff Interviewed

We would like to extend our thanks to all staff that provided assistance during
the course of this audit.

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Statement of Responsibility
We take responsibility for this report which is prepared on the basis of the limitations
set out below.
The matters raised in this report are only those which came to our attention during
the course of our internal audit work and are not necessarily a comprehensive
statement of all the weaknesses that exist or all improvements that might be made.
Recommendations for improvements should be assessed by you for their full impact
before they are implemented. The performance of internal audit work is not and
should not be taken as a substitute for managements responsibilities for the
application of sound management practices. We emphasise that the responsibility for
a sound system of internal controls and the prevention and detection of fraud and
other irregularities rests with management and work performed by internal audit
should not be relied upon to identify all strengths and weaknesses in internal
controls, nor relied upon to identify all circumstances of fraud or irregularity.
Auditors, in conducting their work, are required to have regards to the possibility of
fraud or irregularities. Even sound systems of internal control can only provide
reasonable and not absolute assurance and may not be proof against collusive fraud.
Internal audit procedures are designed to focus on areas as identified by
management as being of greatest risk and significance and as such we rely on
management to provide us full access to their accounting records and transactions
for the purposes of our audit work and to ensure the authenticity of these
documents.
Effective and timely implementation of our recommendations by
management is important for the maintenance of a reliable internal control system.
The assurance level awarded in our internal audit report is not comparable with the
International Standard on Assurance Engagements (ISAE 3000) issued by the
International Audit and Assurance Standards Board.
Deloitte & Touche Public Sector Internal Audit Limited

St Albans
February 2009
In this document references to Deloitte are references to Deloitte & Touche Public
Sector Internal Audit Limited.
Deloitte & Touche Public Sector Internal Audit Limited is a subsidiary of Deloitte LLP,
which is the United Kingdom member firm of Deloitte Touche Tohmatsu. Deloitte
Touche Tohmatsu is a Swiss Verein (association), and, as such, neither Deloitte
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2009 Deloitte & Touche Public Sector Internal Audit Limited. All rights reserved.
Deloitte & Touche Public Sector Internal Audit Limited is registered in England and
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Street, London EC4A 3TR.

Internal Audit Report: Expenses 2007/08

Appendix 6g Page 19

Audit Ref: 822