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 7 March 2025.

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 7 March 2025.

The Head of Property Services & Major Projects will provide a verbal update on the property system.

Recommendation

Members are recommended to:

       i.          Note the Internal Audit Progress Report for the period to 7 March 2025

      ii.          Approve amendments to the Audit Plan as at 7 March 2025

     iii.          Agree changes to the implementation date for 5 audit recommendations (paragraph 2.5) for the reason set out in Appendices 3 to 5

    iv.          Agree removal of implemented audit recommendations (Appendices 3 to 5)

The Director of Finance introduced the report, confirming that all audits will be completed in time for the annual governance statement.

The Head of Property Assets & Major Projects provided an update; explaining the ongoing efforts to implement a new property management system, following the audit recommendation from 2019.  The officer highlighted the challenges faced since joining the Council in August 2021, including staff turnover and the need for improved record-keeping methods. A significant achievement has been the successful transition from a legacy garage management system to the new system, which is now fully operational. The officer emphasised the importance of maintaining audit scrutiny over the system’s implementation, and outlined plans to populate the system with commercial data and miscellaneous assets. A new staff member is set to join the team to assist with this effort, and the officer anticipates that by September, the system will be fully implemented.

Members raised concerns about delays attributed to insufficient data input resources and questioned whether earlier support could have expedited project completion. They also expressed concern about the sustainability of operations after the initial 12-month contract for the new hire. The officer acknowledged the validity of these concerns, explaining that previous staffing challenges contributed to delays. The officer mentioned a temporary worker who left for another opportunity, impacting progress. Looking ahead, the officer outlined a strategy to reassess the role and responsibilities of the new hire after six months, indicating a plan to adapt the position to meet evolving needs in property management.

Members addressed the potential implications of devolution on local authorities, specifically focusing on the management and export of data. The officer emphasised that regardless of the changes in governance structures, there is an expectation for the data held by authorities to be easily exportable into larger systems. While acknowledging that this transition may take years, the officer reassured that continuing current data practices will not disadvantage the authorities. The officer also pointed out that many unitary authorities tend to rely on legacy systems before fully integrating new information pooling strategies. Members further discussed the future of the Council and the effectiveness of current integration systems among neighbouring councils. Officers responded by confirming that some systems in use, like SAP for commercial properties are aligned, but acknowledged the uncertainty regarding the systems new authorities will adopt.

Members discussed the current status of the Treasury Management system, highlighting that the audit for its implementation has been cancelled due to insufficient progress. Officers confirmed improvements in the Logitech system, mentioning the recent change in Treasury Management advisors and the anticipated benefits of a new system for better forecasting. The conversation shifted to project completion rates, noting delays in two projects attributed to recruitment issues. Officers reassured that the new procurement card system in being implemented after recent training, despite previous capacity challenges within finance. The new system promises to streamline processes through technology, enhancing efficiency in financial management.

Members raised questions on the taxi licensing section of the report, pointing out the lack of updates on the taxi licensing recommendations, which had not been addressed since November 2024, and requested that the responsible officer attend the next Audit Committee meeting to provide clarity. Officers highlighted that all recommendations in question were of low priority, suggesting that while improvements are advisable, there is no immediate urgency for action.

Members also asked questions regarding the management of sundry debtors. Officers responded noting that while the debtors are not significant, steps are being taken to improve their management. An interim resource is currently reviewing the management processes to ensure effective oversight. Recent write-offs have been reported in the range of £10,000 to £20,000, which officers consider manageable, given the overall income.

Further concerns were raised regarding the delays in implementing outstanding recommendations for council tax recovery, and Members also questioned the potential cash benefit from the ongoing training. Officers responded by detailing the structural changes made to the revenue and benefits team, including a reduction in management tiers and the merging of roles to accommodate the new system. The emphasis is on maintaining service delivery while training staff, which was described as a comprehensive redesign, rather than just standard training.

The Committee also discussed the Council's current practices on debt recovery, questioning the effectiveness of chasing existing debts while referencing a recent incident where residents were notified in error of court action over negligible fines. Officers acknowledged the issue, confirming that it was an error, and explained that the Council is working with new enforcement agents to review old debts before deciding to write them off.

Councillor Tony Humphreys moved the recommendation as set out in the report.

On being put to the committee the motion was declared CARRIED by the Chair, the voting being by general assent.

RESOLVED:

Members are recommended to:

i.                 Note the Internal Audit Progress Report for the period to 7 March 2025

ii.                Approve amendments to the Audit Plan as at 7 March 2025

iii.               Agree changes to the implementation date for 5 audit recommendations (paragraph 2.5) for the reason set out in Appendices 3 to 5

iv.              Agree removal of implemented audit recommendations (Appendices 3 to 5)