Agenda item

This report details progress made on delivery of the 2023/24 Audit Plan for the 4^th quarter – January to March (inclusive) 2024. The report highlights that:

·        11 audit assignments have been finalised, including 2 ‘Partial’, 8 ‘Reasonable’ and 1 ‘Follow Up’ audit opinions;

·        25 audit assignments arein progress, including 9 at draft report stage;

·        Total additional council tax yield of £243,678 has resulted, to date, from the Single Person Discount pilot project;

·        14 of the 18 recommendations from the Review of Pop-up/Temporary activities incorporating Bayside Restaurant Review have been implemented;

·        A replacement Audit Manager has been successfully recruited and is now in post;

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

The Head of Internal Audit presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'D' to these Minutes in the Minute Book. The Committee was asked to note the progress against the implementation of the recommendations from the Review of Pop-up/Temporary activities incorporating Bayside Restaurant Review.

The report detailed the progress made on delivery of the 2023/24 Audit Plan for the 4^th quarter 2024. The Committee was advised of the key areas outlined in the report. It was noted that five ‘High’ priority audit recommendationshad not been fully implemented by the original target date but explanations from respective Directors appeared reasonable and revised target dates had been agreed. It was noted that whilst not preferred audits had been taken out on the basis of risk.

A number of areas within the Internal Audit 4^th Quarter Audit Plan were raised by the Committee and responded to or assurances provided that further information would be shared outside of the meeting. The scope of the in-progress audit entitled ‘Developer Contributions - Management of Spend Audit’ would be provided to members of the Committee outside of the meeting. It was noted that the business case template developed as part of the recommendations for the Review of Pop-up/Temporary activities incorporating Bayside Restaurant would be circulated to members to assure the Committee that it included the required content. A further concern was raised regarding the firewall risk outlined in the paper and an update would be brought to the next meeting.

Concern was raised that the number of high priority recommendations issued had increased from the previous year. It was explained that direct comparisons from one year to another could not be drawn, as many factors impact, such as type and scope of the audit, framing of the recommendation and only ‘key assurance’ audits are completed on an annual basis.

The Head of Internal Audit advised that he would not want to create any perverse incentives within the Internal Audit team to make or not make recommendations to align with previous year levels; he further explained it is his responsibility to ensure that the recommendations made were relevant and appropriate. If the number of recommendations reduced significantly there may be some concern as it may mean the right high-risk areas were not being targeted for audits. It was suggested by a committee member that the level of assurance was less due to the greater number of findings.  The Head of Internal Audit explained that such a stark conclusion could not be drawn given the impacting factors explained previously.

It was noted that it was hard to demonstrate that some of the recommendations had been completed and it was requested whether further tests could be put in place to check the recommendations were embedded.

RESOLVED that

a)    The progress made andissues arising onthe deliveryof the2023/24 InternalAudit Plan be noted.

b)    The explanations provided (Appendix 1) be noted and the Committee determined, in the case of High Priority recommendations not implemented by the initially agreed target date, if further explanation and assurance from the Service / Corporate Director is required.

c)     Note the progress against the implementation of the recommendations from the Review of Pop-up/ Temporary activities incorporating Bayside Restaurant Review.

Voting Nem. Con.