Issue - meetings

This report details progress made on delivery of the 2023/24 Audit Plan for the period July to September (inclusive) 2023. The report highlights that:

·       4 audit assignments have been finalised, including 1 ‘Partial’, 2 ‘Reasonable’ and 1 ‘Consultancy’ audit opinions;

·       27 audit assignments arein progress, including 7 at draft report stage;

·       £12.7M of grant expenditure has been certified, as required by the issuing Government department, as meeting grant conditions;

·       Internal Audit issued a report on seafront pop-up activity, incorporating ‘Bayside’ restaurant making 18 recommendations. The Director of Commercial Operations has led on implementing recommendations and has finalised other investigatory work. 

·       For a breach of Financial Regulation, previously reported to this Committee, an investigation has concluded and the Director of Commercial Operations has taken action in line with the disciplinary policy and procedures; 

·       Three apprentices have been successfully recruited, however, the resignation of an auditor means that there will be further impact on the delivery of the audit plan;

6 ‘High’ priority auditrecommendations have not been implemented by the original target date.  Explanations from respective Directors appear reasonable and revised target dates have been agreed.

[NOTE: Should the Committee wish to discuss the detail within the Confidential Appendix of this report, the meeting will be required to move into Confidential (Exempt) Session]

The Head of Audit and Management Assurance presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'G' to these Minutes in the Minute Book.

The report detailed progress made on delivery of the 2023/24 Audit Plan for the period July to September (inclusive) 2023 and brought the attention of the Committee to a schedule of key audits.

In particular, the report included the final investigation report relating to ‘Commercial Operations – Seafront : Review of Pop-Up / Temporary Activities Incorporating Bayside Restaurant’. The Committee was informed that the full report contained confidential exempt information and had therefore been provided separately to Councillors. A Briefing note had also been issued to Members ahead of the meeting. The Chair of the Committee was of the view, however, that, as far as possible within those constraints of confidentiality, the matters should be addressed in public. It was explained that the report contained eighteen recommendations, although found no evidence of fraud, and included explanation of actions already taken following issue of the report.

Members of the Committee expressed the view that the level of redaction within the report, though necessary for confidentiality, restricted the ability of Members to fully understand the report. It was suggested that this would be improved by allocating a reference to each person mentioned without actually including the names of particular individuals. Other Members were of the view that, since issue of the report with the agenda for the meeting, there had been insufficient time for them to give the report sufficient consideration prior to discussion and to prepare the detailed level of questioning that the public would expect. There was a contrary view from other Members of the Committee that sufficient time had been allowed.

There was also identified benefit in the Independent Person members of the Committee, whose appointment had not yet been confirmed by full Council, being involved in this discussion.

The Committee acknowledged the diligent work that had been undertaking by the Audit Team in production of the report.

It was proposed by Councillor Chapmanlaw, seconded by Councillor Armstrong and

RESOLVED that further consideration of the entirety of the report from the Head of Audit and Management Assurance entitled ‘Internal Audit - 2nd Quarter, 2023/24, Audit Plan Update’ and as set out in the agenda be deferred until the next meeting of the Audit and Governance Committee on 30 November 2023.

Voting: For – 5; Against 1; Abstain 2.