Agenda item

This report details progress made on delivery of the 2025/26 Audit Plan for the 2^nd quarter (July to September 2025 inclusive). The report highlights that:

·       18 audit assignments have been finalised, including 16 ‘Reasonable’ and two ‘Partial’ audit opinions;

·       25 audit assignments arein progress, including 3 at draft report stage;

·       Progress against the audit plan is on track and will be materially delivered to support the Chief Internal Auditor’s annual audit opinion;

·       10 ‘High’ priority auditrecommendations have not been fully implemented by the original target date and 3 ‘Medium’ priority recommendations have (or will) not be implemented within 18 months of the original target date. Explanations from respective services have been provided and revised target dates have been agreed.

The Revenues Compliance Team continue to identify and recover Single Person Discount errors and have so far achieved an additional council tax yield of £306,425 since December 2024 (both 2023/24 and 2024/25 NFI matches).

The Audit Manager (Deputy Chief Internal Auditor) 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 the delivery of the 2025/26 Audit Plan for the 2^nd quarter (July to September 2025 inclusive). It provided an update on the status of audit assignments and audit recommendations and the recovery of single person discount errors. It was noted that progress was on track and would be materially delivered to support the Chief Internal Auditor’s annual audit opinion.

The Audit Manager reported that the next quarterly report would update on the high priority recommendations of the two ‘Partial’ audit opinions. She referred to the adjustments made to the audit plan and explained that where high risk audits had been removed from the plan, other sources of assurance for this year had been identified. The Committee was reminded of its role in monitoring the implementation of audit recommendations. The  information provided in Table 11 of the report was designed to assist members in considering whether further explanation was required. The Audit Manager confirmed that the internal audit team was fully resourced at the present time, The full time equivalent (FTE) figure had reduced due to the planned recruitment of two of the three apprentices to permanent positions. The Committee commended this successful approach to recruitment. An Audit Manager post had been appointed on a part time basis.

The Head of Audit and Management Assurance (HAMA) was asked whether his role in leading the FuturePlaces investigation was impacting on the rest of the service area. He advised that it had been manageable over a short period of time as contingency was built into the service. It was not  sustainable in the longer term and was beginning to have an impact in some areas. Service managers were to be applauded for their capabilities in stepping up. It did also present opportunities for professional development. The Committee commended staff for their work during this time.

The Chief Financial Officer was asked why the full implementation of one high priority recommendation from the Asset Management estate management audit was not due until 2030. He explained that the timescale reflected the scale of the task involved in transferring paper records, including many from the Christchurch preceding authority, to electronic records. He also referenced the resources allocated to progress this, bearing in mind it was not deemed a council priority in terms of the budget. He reiterated that the recommendation was about the reconciliation between records, not the identity or transfer of specific assets.

Committee members discussed whether there was a need to follow up on any of the outstanding recommendations listed in appendix 1 of the report. It was noted that four recommendations had an original target date of 2024. Members agreed that asking the HAMA to seek more detailed explanation from the relevant directors in these four cases for inclusion in the next report may provide the committee with a better understanding of the issues before considering any further action.

RESOLVED that the Audit and Governance Committee:

a) notes progress made andissues arising onthe deliveryof the2025/26 InternalAudit Plan and

b) notes the explanations provided for non-implemented recommendations (Appendix 1) and requests further explanation and assurance from the Service/Corporate Director for recommendations with the original date in 2024.

Voting: Unanimous