Agenda item

This report details:

a)     Progress made by the Shared Internal Audit Service (SIAS) in delivering the Council’s annual audit plan for 2024/25 as at 15 November 2024.

b)     Proposed amendments to the approved 2024/25 Annual Audit Plan.

c)     Implementation status of all previously agreed audit recommendations from 2019/20 onwards.

d)     An update on performance management information as at 15 November 2024.

Recommendation

Members are recommended to:

• Note the Internal Audit Progress Report for the period to 15 November 2024
• Approve amendments to the Audit Plan as at 15 November 2024
• Agree changes to the implementation date for 5 audit recommendations (paragraph 2.5) for the reason set out in Appendices 3 to 6
• Agree removal of implemented audit recommendations (Appendices 3 to 6)

Darren Williams, Head of SIAS introduced the report.

Members expressed disappointment regarding a number of unresolved recommendations in the action plan, with one dating back to 2019. They highlighted issues such as resource shortages, staff vacancies, and a lack of accountability among team members as potential reasons for delay. They questioned the senior leadership’s actions to ensure progress is made on these recommendations.

The Head of SIAS acknowledged the internal audit’s focus on addressing control weaknesses, and reported that out of 19 recommendations, 8 had been implemented. He noted ongoing resource challenges, and emphasised the importance of managing risks associated with the unimplemented recommendations, while ensuring timely updates from officers.

In relation to the outstanding 2019/20 recommendation on Property and Lease Administration, the Director of Finance advised that a permanent Property and Asset Manager had been appointed in the Asset and Property Management team. The person has been in position for a few weeks.

Members emphasised the importance of accountability by suggesting that the owner of the longstanding recommendations be invited to the next Audit Committee meeting to explain delays in implementation. Members also expressed concern over the level of explanation in some of the officer updates and suggested that the committee request more detailed updates for unresolved recommendations, reinforcing the need for transparency and diligence in addressing audit findings. The Director of Finance stated that the relevant officer will be invited to attend the next Audit Committee meeting if the recommendation is still not implemented.

Members also pointed out the importance of receiving regular updates on outstanding recommendations during committee meetings. They expressed concern about the instance where an update had not been received. The Head of SIAS responded by indicating that the previous update suggested that the recommendation would be implemented and in reality, this could only be confirmed through future audits of this area. Councillor Keith Martin proposed that he will draft a note summarising the discussed points and requesting updates on unresolved issues by March.

Members addressed issues regarding the functioning of the Audit Committee within the Council, emphasising the need for adequate resources to ensure effective governance.

In discussion about internal governance, Members also highlighted the need for a greater focus on internal processes due to reduced external audit checks. The Director of Finance reassured the Committee that despite the lack of financial account audits, the focus on value for money and governance remains intact, with the new external auditors  providing assurance on governance arrangements within their work.

Members pointed out the importance of understanding the status of internal audit recommendations, particularly those classified as medium and high risk. They highlighted the need for clarity and resolution on outstanding issues, referencing past instances where legitimate delays occurred due to staffing shortages.

In response to a request by Members, Councillor Keith Martin summarised what had been agreed in terms of reviewing the audit recommendations that have passed their due dates, and to communicate with the Chair about the necessary actions. Furthermore, it was agreed that follow ups will be made with staff if updates are not provided before the next Audit Committee meeting.

The Chair moved the recommendation, subject to the committee reviewing the changes to the implementation date for the audit recommendations.

RESOLVED:

Members are recommended to:

• Note the Internal Audit Progress Report for the period to 15 November 2024
• Approve amendments to the Audit Plan as at 15 November 2024
• Agree changes to the implementation date for 5 audit recommendations (paragraph 2.5) for the reason set out in Appendices 3 to 6
• Agree removal of implemented audit recommendations (Appendices 3 to 6)