Report of the Director of Finance and Resources (Section 151 Officer)
Minutes:
The Audit and Procurement Committee considered a report of the Director of Finance and Resources (Section 151 Officer), which provided an update on the internal audit activity for the period April to December 2024, against the Internal Audit Plan for 2024-25. The report was presented in order for the Audit and Procurement Committee to discharge its responsibility 'to consider summaries of specific internal audit reports as requested' and 'to consider reports dealing with the management and performance of internal audit'.
The Internal Audit Plan for 2024-25 was presented to the Audit and Procurement Committee at its meeting on 22nd July 2024. The Plan provided for 650 days of internal audit work in 2024-25. However, it was acknowledged that this could be subject to change due to emerging risks, requests from service areas to reschedule work, and any exceptions. It was important for the Internal Audit Service to retain a flexible approach in order to ensure it could respond to issues on a timely basis and add value. Any significant changes to the Plan were reported to the Audit and Procurement Committee. In 2024-25, the agreed Audit Plan originally included 25 days in respect of ICT and Digital Services. Further discussions on the two specific planned audits with Digital Services have resulted in agreement for this work to be undertaken in 2025-26. This reflects the timing of planned activity within Digital Services which needed to be included in the scope of the work to maximise the value of the audit process. As a result, the Audit Plan had been amended to 625 days, although this would not directly impact on resources within the Internal Audit Service as this work would be undertaken by specialist IT Auditors.
The key target facing the Internal Audit Service was to complete 90% of its work plan by 31st March 2025. As at the end of December 2024, the Service had completed 59% of the Audit Plan against a benchmark of 75% (which reflected delivery of 100% of the plan). It was recognised that performance was below expectation, although the quarterly targets did not take account of the varying length of audits and, as such, performance would vary across the year. Performance had also been impacted by vacancies within the Internal Audit structure. Whilst the Audit Plan for 2024/25 took account of this in terms of available audit days, draft reports were taking longer to complete due to competing management demands. Notwithstanding this, based on an assessment of performance, as at February 2025, it was predicted that the Service would be close to meeting the target by the end of March 2025.
Appendix 1 of the report provided a list of the audits finalised between April and December 2024, along with the level of assurance provided. At 31st December 2024, the following audits were in progress:
· Group Governance Review
· Section 17 Payments
· Equality Impact Assessments
· Implementation of new IT systems
· Homelessness
· Housing Benefits / Council Tax Support
· Health Visitors Contract
· Energy Billing
· Management of Plant and Equipment
· SEN Transport Entitlement
· Formal Follow Up Pre-Employment Checks
· Formal Follow Up Enabling Attendance
· Formal Follow Up Transparency Code
Details of a selection of key reviews completed in this period were provided at Appendix Two. In all cases, the relevant managers had agreed to address the issues raised in line with the timescales stated. These reviews would be followed up in due course and the outcomes reported to the Committee.
RESOLVED that, the Audit and Procurement Committee:
1. Notes the performance at quarter three against the Internal Audit Plan for 2024-25.
2. Notes the summary findings of the key audit reviews attached as Appendix two to the report submitted.
Supporting documents: