Agenda item

Officers introduced the Internal Audit progress report for Q2.

Six reviews had been completed to the final report stage since the previous meeting. Five additional reports were currently out in draft.

Of the six completed reviews, two were advisory, three had limited assurance, and one had no assurance.

The advisory reviews included:

• The first stage of A two-stage audit with findings to be included in the second stage
• A review of a recently changed area within the Council’s structure to identify areas of improvement.

The limited assurance reviews included:

• A thematic schools audit which focused on the use of SEND funding in schools. There was insufficient evidence to fully verify that funding had been spent in line with national guidance.
• Section 202 and 204 Appeals which examined the appeals process for housing eligibility decisions. Findings related to timeliness of appeals, documentation, and feedback processes.
• Overtime, expenses, and mileage – this was a joint review with Counter Fraud, identifying control weaknesses in policies, approval processes, and evidence for claims.

The No assurance review related to asset management. This review was requested by the Director as it was a known area of improvement, highlighting insufficient governance controls, policies and no centralised asset management system. This meant that different services had different records of what assets the Council held, in particular where things were purchased or disposed of.

Officers noted that several changes had been made to the audit plan due to ongoing transformations and external reviews. Some audits were postponed to 2025/26, and others were removed to avoid duplication. The plan remained flexible, with meetings scheduled in December to refresh the plan and address emerging risks. Officers highlighted that there had been a planned review of post-Oracle implementation. This has been removed as there was an external review happening instead.

Officers were due to have meetings with CMT in December to start planning for next year and to look at remaining audits for this year to pick up any emerging risks.

Members inquired about the insufficient evidence in the thematic schools audit. Officers noted that within their report they included recommendations and outlines for what schools should include and record. This included information going to the Schools’ Forum; making sure that provision maps were clearly specifying exactly what they were claiming, and that this was in line with the national guidance; and making sure that the schools were retaining evidence.

Members asked about the decision-making process for what was included in the audit plan. Officers noted that it was up to the Head of Internal Audit to decide what was included in the plan. This took into consideration the risk register; any external information; engagement with other teams; discussion with CMT; any new legislation; and referrals from the Audit Committee.

Members asked about the tools available for smaller-scale investigations. Officers noted that it was flexible as to whether to do a high level or smaller scale audit.

Members asked about uninspected B&Bs and the status of inspections. Officers noted that this was a known area, and it was unsurprising for it to be no assurance. This involved looking at procurement of B&Bs and looking at their documentation such as safety certificates. A lot of the issue was around documentation being stored and record keeping such as those relating to temporary accommodation placements.

Members discussed the challenges of planning audit work amidst ongoing changes and suggested breaking the annual plan into halves for better flexibility. Officers noted that while the plan was annual, the tracker was continuous. A lot of things were planned up until Q3 of next year’s plan.

Members noted some difficulty in keeping track of what had been agreed at the start of the year, noting that in April there were 43 pieces of audit work noted, and currently there were 34, suggesting that there was an apparent decrease in the amount of work in the plan. Officers advised that a lot of things had been moved into next year because of some of the transformational change. Although there was a smaller number of audits, lots of these went into a lot more detail because of the changes and transformation, and so things were taking longer. No assurance reports took longer than substantial assurance reports.

Members asked if there were any areas of concern. Officers noted that there were none.

The Chair noted that the KPIs were looking good.

Members asked about staffing, and if there were any vacancies or any issues. Officers noted that there were no vacancies, but there was one person currently on sick leave.

RESOLVED: That the Audit Committee noted the IA progress since the last Committee meeting