The report of the Head of Policy and Governance is attached.

Contact:  Barry Hanson 07990 086409

The Committee received the report of the Head of Policy and Governance which summarised Internal Audit’s 2024/25 work to date. He reported that delivery was in line with previous delivery records and that lower assurances from reviews were highlighted within the report, providing members with an opportunity to challenge.

The Head of Policy and Governance informed the meeting that revisions to the internal audit plan for 2024/25 provided a total of 1,266 audit days.  73% of the revised plan had been completed (see Appendix A, Table 1), which was in line with previous delivery records (71% 2023/24, 64% 2022/23) and the team were on track to deliver a minimum of 90% of the revised annual plan by year end.

The Head of Policy and Governance reported that 10 final reports had been issued during the period (set out in paragraph 8.6) and of those reports, 83 recommendations had been made, one of which was fundamental. There were 6 draft reports awaiting management responses and would be included in the next monitoring report along with any other finalised internal audit work that had been completed.  He drew attention to Appendix A, table 3 which set out the limited and unsatisfactory assurance levels and he reported that the Place Directorate had the highest number of lower assurance levels with 6 limited and 2 unsatisfactory audit opinions.  Members were asked whether they wished to seek further assurances in those areas, and this was supported.

The Head of Policy and Governance updated members in terms of the resourcing within the team and members expressed concern about the reduction in audit staff.

A query was raised about the section 38 road adoption process (referred to on page 92 of the report) and when it was next due to be audited.  In response, the Head of Policy and Governance reported that this would be followed up routinely as per the normal audit programme and the Internal Audit Manager explained that this was the first time this area had been looked at since 2018/19.  She went on to explain the follow-up audit process that was now followed for unsatisfactory and limited audits and confirmed that this area was due to be looked at in quarter 2 of 2025.  So, although they could not yet give independent assurance, the Committee could ask the service manager for an update.

A brief discussion ensued in relation to resourcing and recruitment.  Members were extremely concerned that the team were down by four posts, yet no recruitment was planned until the new operating model was finalised and they felt that recruitment should be prioritised as it was now at a critical level.  The Head of Policy and Governance reassured the Committee that there was enough coverage to provide a year-end opinion, and he clarified that there was no link between the limited audit opinion and the size of the internal audit team.  The only way to improve the assurance opinion was by the Council having an improved control environment.

Councillor Lumby suggested a further recommendation however it was agreed to take this resolution after the Internal Audit Plan report.

RESOLVED:

To endorse the performance of Internal Audit against the 2024/25 Audit Plan and to seek further assurances in those areas discussed.