Agenda and minutes

There were no disclosable pecuniary interests.

To agree the minutes of the meeting held on 17^th March 2025

The minutes of the meeting held on 17^th March 2025 were agreed and signed as a true record. There were no matters arising.

Report of the Director of Finance and Resources (Section 151 Officer)

The Audit and Procurement Committee considered a report of the Director of Finance and Resources (Section 151 Officer), that provided details of the results of the annual review of effectiveness of the Council’s governance arrangements and sought approval for the Annual Governance Statement, attached as an appendix to the report, which formed part of the Statement of Accounts for 2024-25.

Coventry City Council was responsible for ensuring that its business was conducted in accordance with the law and proper standards, and that public money was safeguarded and properly accounted for, and used economically, efficiently and effectively. In discharging this responsibility, the City Council was responsible for putting in place proper arrangements for the governance of its affairs and facilitating the effective exercise of its functions, including arrangements for the management of risk. To demonstrate such arrangements, the City Council had adopted a Local Code of Corporate Governance, which was consistent with the principles reflected in the CIPFA / SOLACE framework and guidance ‘Delivering Good Governance in Local Government’ (2016).

The Annual Governance Statement (AGS) explained how Coventry City Council had complied with the Code and in doing so, reflected the requirements of the Accounts and Audit Regulations 2015 and the Accounts and Audit (Amendment) Regulations 2022, which required all relevant bodies to conduct a review of the effectiveness of its system of governance and prepare an Annual Governance Statement. The AGS also detailed key governance / control issues that the Council faced in the coming year.

For 2024-25, the Council was required to publish its unaudited Statement of Accounts by 30th June 2025.  The AGS formed part of the Statement and consequently was required to be approved at this time to support the Council in meeting this deadline.

Whilst processes were in place to monitor key elements of the governance framework through-out the year, for example through the work of Internal Audit, the Corporate Governance Steering Board and the Council’s Audit and Procurement Committee, an annual review was also undertaken as part of the production of the AGS for the year. The purpose of the review was to provide assurance that the arrangements set out in the Local Code of Corporate Governance continued to be fit for purpose and identified key governance issues for the forthcoming year. The annual review considered information from a number of sources with the outcomes reviewed and agreed by the Corporate Governance Steering Board and Leadership Team. Details of the matters for 2024-25 were set out in the report.

Based on the outcomes of the review, the overall opinion that had been reached was that reasonable assurance could be provided that the Council’s governance arrangements continued to be regarded as fit for purpose in accordance with the governance framework. The basis of this opinion, including the key findings from the review, were also set out in the report.

The AGS also set out the key governance issues that the Council faced in the coming year. Section 5.2 of the Statement provided details of these areas.  ...  view the full minutes text for item 3.

Report of the Director of Finance and Resources (Section 151 Officer)

The Audit and Procurement Committee considered a report of the Director of Finance and Resources (Section 151 Officer), that summarised the Council’s Internal Audit activity for the period April 2024 to March 2025 against the agreed Audit Plan for that year and the Public Sector Internal Audit Standards. It provided the Chief Internal Auditor’s opinion on overall adequacy and effectiveness of the Council's risk management, internal control, and governance arrangements for the financial year 2024-25, as set out in section 2.4 of the report. Appendices to the report provided details of the audits completed in 2024-25 and a summary of findings from key audit reports.

The key target for the Internal Audit Service was to complete 90% of its agreed work plan by 31st March 2025. Whilst the plan was originally developed on the basis of an estimate of 650 available audit days, this was subsequently amended to 625 days as a result of the rescheduling of work in relation to Digital Services (which is delivered externally. The change was reported to the Audit and Procurement Committee in March 2025 (minute 61/24 referred) and the performance of the Service assessed against the revised audit plan of 625 days. The Service delivered 89% of the plan, which was minimally below target but not viewed that it materially impacted on the ability to provide an annual audit opinion. Of the seven audits which formed part of the 2024-25 audit plan, and which were not completed by the end of March 2025, one has now been finalised, and the remaining six are ongoing / have been rescheduled. 

In addition to the delivery of the Plan, the Service has a number of other key performance indicators (KPIs) which underpinned its delivery. These KPIs were aimed at ensuring that the audit process was completed on a timely basis. A table in the report detailed the performance of Internal Audit for 2024-25, compared with performance in 2023-24. There were three areas where performance was below expectations, although performance had improved in comparison to 2023-24. The ongoing monitoring of internal audit work and identifying opportunities for improvement remained a key focus for management, in line with the professional Internal Audit Standards.

The Public Sector Internal Audit Standards were based on the Global Internal Audit Standards. Following a review of the Global Standards by the Institute of Internal Auditors, a new set of standards had come into force from 1st April 2025 (The Global Internal Audit Standards in the UK Public Sector.) As a result, the Internal Audit Service would be reporting on a revised set of performance indicators from 2025-26 onwards which are aligned to the new standards. A further update on this would be provided to the Audit and Procurement Committee in due course.

The Public Sector Internal Audit Standards required that the Internal Audit Service developed and maintained a quality assurance and improvement programme that covered all aspects of the internal audit activity. Details of the matters included in the 2024-25 Programme were detailed in  ...  view the full minutes text for item 4.

Report of the Director of Finance and Resources (Section 151 Officer)

The Audit and Procurement Committee considered a report of the Director of Finance and Resources (Section 151 Officer), that provided the draft Internal Audit Plan for 2025-26 with the Audit and Procurement Committee to allow the Committee to express its views on the extent and nature of the planned coverage and to share the Internal Audit Strategy 2025-28. Appendices to the report provided the draft Internal Audit Plan for 2025-26 and the draft Internal Audit Strategy for 2025-28.

The Audit and Procurement Committee, within its terms of reference, was required to 'Consider the Head of Internal Audit’s Annual Report and Opinion, and a summary of internal audit activities (actual and proposed) and the level of assurance given within the Annual Governance Statement incorporated in the Annual Accounts'. In terms of proposed audit activities, the draft Internal Audit Plan documented the outcome of the audit planning process for 2025-26. The report provided the mechanism for allowing the Audit and Procurement Committee to discharge its responsibility but also enabled the Committee to support delivery of the Internal Audit Charter by approving the Internal Audit plan. 

The Global Internal Audit Standards in the UK Public Sector came into force on 1st April 2025.  The Standards required the Internal Audit Service to develop and implement a strategy which included a vision, strategic objectives and supporting initiatives for the Internal Audit function and which aligned with the expectations of senior management and the Audit and Procurement Committee.

Internal Audit was an essential part of the Council’s corporate governance arrangements. In considering the Global Internal Audit Standards in the UK Public Sector, Internal Audit was defined as "An independent, objective assurance and advisory service designed to add value and improve an organisation’s operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of governance, risk management, and control processes.” 

The priorities of internal audit activity were determined through the development of an annual risk- based Internal Audit Plan. The report documented the planning process and identified the outcome of this process, namely the draft Internal Audit Plan for 2025-26. Details of the objectives that the Service aimed to achieve, were set out in the report.

Draft Audit Plan 2025-26 – The results of the initial assessment of priorities for the Draft Audit Plan 2025-26 were set out in an appendix to the report, with the key points for noting highlighted in the report.

As a result, it was believed that the draft Audit Plan for 2025-26 was sufficient for the work required to report on governance, the management of risks and internal controls in the year and to prepare the annual conclusion and report.

Draft Internal Audit Strategy 2025-25 - The draft Internal Audit Strategy,  detailed in a further Appendix to the report, had been developed in collaboration with the Internal Audit team and had been presented to Leadership Board.  Whilst the Strategy covered a three-year period (2025-28), the specific initiatives detailed would form part of  ...  view the full minutes text for item 5.

There are no outstanding issues

There were no outstanding issues.

Report of the Director of Law and Governance

The Audit and Procurement Committee considered a report of the Director of Law and Governance that detailed the Work Programme of scheduled issues to be considered by the Committee during the Municipal Year 2025/2026.

Members noted that the External Auditor, Grant Thornton, would be submitting their 2024/25 External Audit Plan Report to the next meeting of the Committee scheduled for 21^st July 2025.

RESOLVED that the Audit and Procurement Committee notes the Work Programme for 2025/2026.

There were no other items of public business.