Agenda item

Recommendation: The Audit Committee are requested to note the Progress Report on internal audit activity.

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

The Head of Internal Audit presented the report.

The Chair invited questions and comments from the Committee.

In response to Councillor de Winton, the Head of Internal Audit referred the Committee to page 146 which provided a response and update to contract management.

The Chair, Councillor Ryves commented the report provided an understanding of internal audit to the Committee. He referred to page 124 of the report and queried wording around the guildhall and the project cost and funding gap. Officers provided information relating to funding sources, the report being considered by the Cabinet and Full Council and the Capital Programme

Councillor Bearshaw referred to page 106 and sought clarification in the reasoning for the cancelled audits.

The Head of Internal Audit provided further detail around the cancelled audits, advised property services were currently being audited and an audit of car parking which had start in 2024/2025 was being completed in 2025/2026. She added areas such as electoral services were cancelled as there was recent successful elections therefore resources were used elsewhere.

Councillor Bearshaw referred to page 144 and thanked Officers for including a column in for the priority and asked for a risk to be associated with all recommendations.

The Head of Internal Audit explained this was included in the full version of the report rather than the overview which was presented. She added high recommendations were expected to be added to the risk register by the service area.

In response to a further question from Councillor Bearshaw, the Head of Internal Audit confirmed appendix 3 only included the high and medium recommendations.

Councillor de Winton referred to page 145 of the agenda and sought further clarification on debt recovery and it was explained that this had recently been presented to Cabinet and provided an overview of the methods for collecting debt. The Assistant Director added he was unable to confirm specific amounts as there are a variety of small and larger amounts of debt, with varying volumes.

The Chair, Councillor Ryves identified the one high priority recommendation which was the capital programme and asked for further detail and it was explained that this was an asset management plan which included Offices, Industrial Units and Infrastructure Units. He added further the management plan would take time to complete but progress had been made. He commented a risk-based approach was determined with consideration to future maintenance requirements.

In response to Councillor Ryves, the Monitoring Officer explained the corporate complaints process was being reviewed by the Chief Executive. She advised the Committee that recommendations were going to be logged and tracked.

In response to Councillor Ryves, the Head of Internal Audit explained the internal audits which had been deferred were based on being done time appropriate.

The Assistant Director for Finance provided further detail on the asset management plan and the effect Local Government Reorganisation had on the priorities of the asset management plan. He advised the Committee that selling Council land was a key decision and outlined the process of call- in for members.

The Vice-Chair, Councillor Nash referred to page 106 of the agenda and sought further information on insufficient resources to carry out an internal audit in relation to legal.

The Assistant Director for Finance confirmed this was resources in relation to internal audit team not the legal department.

The Head of Internal Audit confirmed the internal audits which had been carried out were prioritised and for further resources for internal audit would had incurred further expenditure.

The Assistant Director for Finance highlighted to the Committee further that estimating a budget for legal advice outside of the Council is an estimate and varies due to demand. For last year the outturn report shows the level of legal services was in excess of the budget as the authority undertakes compliance and enforcement activities.

The Monitoring Officer provided further detail on the budget which was set for the day to day cost of the legal services within the Council and there was further costs for enforcement.

The Committee discussed the legal department being in excess of the budget which was considered as a low risk.

The Assistant Director for Finance explained a budget is an estimated cost and expenditure in some departments was difficult to predict. He added there was contingencies to fund overspend in areas such as the legal department. 

The Vice-Chair, Councillor Nash questioned if a management plan for expenditure from enforcement departments could be put in place to track where money was being spent.

RESOLVED: The Audit Committee noted the Progress Report on internal audit activity.