Agenda item

Click here to find the recording of this item on YouTube.

The Head of Internal Audit presented the report to the Committee and highlighted the change to the 2024/2025 Audit Plan which was the applications audit of the Revenues and Benefit System. She explained this was deferred due to staff illness and capacity to fulfil the audit.

She explained in Quarter 1, all five audits had reached the final stage of reporting and Appendix 1 outlined the assurance opinion given and the number of recommendations. She added Quarter 3 was on track and work had commenced. The Head of Internal Audit explained not all the audits in Quarter 4 may be completed as some audits are behind and are moving into other quarters. She highlighted the Contract Management audit had been given a limited assurance opinion.

The Chair thanked the Head of Internal Audit invited questions and comments from the Committee.

Councillor Long commented the limited assurance opinion on the Contract Management audit related to the work carried out by Corporate Performance Panel’s Informal Working Group which was to be discussed at their next meeting.

Councillor Bearshaw sought clarification on the backlog of findings and what was the trend of theses. He additionally asked if a risk-based strategy would be taken on the audits which were being considered for deferral and cancellation.

The Head of Internal Audit responded to Councillor Bearshaw question and confirmed the audits which would be deferred or cancelled in quarter 4 would be considered on a risk basis. She indicated that the audit on elections as an example and advised this could be deferred as there had been elections carried out with no issues.

Councillor Morley, Portfolio Holder commented there was a weakness and organisational issues in contract management within the Borough Council. He explained the difference between procurement and contract management. Councillor Morley advised the Procurement Act 2023 has not yet been sanction by Central Government. He explained before the Procurement Strategy and Transformation was to be presented to Corporate Performance Panel after the Act was sanction by Central Government. Councillor Morley commented a designated Officer was to manage the contractors which had not always happened.

The Chair, Councillor Ryves sought clarification on a timetable for the procurement transformation.

Councillor Morley, Portfolio Holder commented it was likely to be in the new year provided the Procurement Act 2023 was sanction.

The Monitoring Officer addressed the Committee, and the procurement changes were to be implemented in February 2025 but was being considered as a two-year programme. She advised a project team along with the transformation programme was underway and referred Members to the pre-Council briefing which was held previously. She explained there was an implementation plan and a Communication and Engagement Plan. She provided assurance to Members that further information would be provided on procurement and contract management. She added included in the implementation was upskilling and training of Officers.

Councillor Devulapalli commented she felt reassured by the Officers comments but noted the inconsistency with the progress report and Officers comments.

The Senior Internal Auditor commented this progress report related to the contract management element audit for this financial year and not procurement. He highlighted the Monitoring Officer and Councillor Morley were referring to the procurement transformation strategy does not contract management.

Councillor Bearshaw asked if this was to be covered in the recommendation report.

The Senior Internal Auditor explained the six recommendations from this report would be followed up as part of the next follow up activity when those recommendations become due.

RESOLVED: The Audit Committee received the Progress Report on Internal Audit activity