Agenda item

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 audit recommendations 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 'C' 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 highlighted that four audit assignments have been finalised, including one ‘Partial’, two ‘Reasonable’ and one ‘Consultancy’ audit opinions. Additionally, it was reported that 27 auditassignments were in progress, including seven at draft report stage, and that £12.7M of grant expenditure has been certified, as required by the issuing Government department, as meeting grant conditions.

Six ‘High’ priority audit recommendations had not been implemented by the original target date but explanations from respective Directors appeared reasonable and revised target dates had been agreed. Finally, for a breach of Financial Regulation, previously reported to this Committee and in respect of which further information had been requested at the last meeting, an investigation had been concluded and the Director of Commercial Operations had taken action in line with the disciplinary policy and procedures.

The Committee then focussed particularly upon the report issued by Internal Audit on seafront pop-up activity, incorporating ‘Bayside’ restaurant and the 18 recommendations made as a result of the audit were set out and explained. The full and confidential Investigation Report was available to members of the Committee and the Head of Audit and Management Assurance responded to questions from the Committee, including the newly appointed Independent Person members, as far as questions could be raised during public session.

It was confirmed that the Director of Commercial Operations had led on implementing the recommendations and had finalised other investigatory work.  The Committee was given assurances that the new Service Director, appointed since the event forming the subject of the audit, had completely reviewed process and procedures, especially relating to financial waiver, and that a very vigorous set of replacement procedures was now in place with the type of discretion previously available to Officers no longer available going forward.

In general terms, the new Service Director also described the process now in place of regular review of all audit recommendations which ensured that audit recommendations were embedded across all service areas within the Directorate in accordance with agreed target dates. This was also in addition to corporate monitoring of performance.

At the conclusion of the report, the Committee was informed by way of update on resources within the Audit Team that three apprentices had been successfully recruited and were already making a positive and useful contribution within the team. Set against that, however, the resignation of an auditor was likely to further impact on the delivery of the audit plan.

RESOLVED that Audit and Governance Committee

a)    notes progress made andissues arising onthe deliveryof the2023/24 InternalAudit Plan;

b)    notes the explanations provided in Appendix 3, relating to High Priority recommendations not implemented by the initially agreed target date, and notes the explanation and assurance provided from the Service and Corporate Director.

Voting: Unanimous