Agenda item

This report details the work completed by Internal Audit so far during 2022/23 and the progress made in implementing recommendations from audits completed in previous years.

The Committee is asked to note the Internal Audit Report to 31 December 2022 (Appendix 1).

Dave Philips, Head of Internal Audit introduced the report for Members.

In response to questions, Officers explained that the Corporate Management Team (CMT) had received the Internal Audit Update report and a CMT focus group to review longstanding audit actions was held the following week, to ensure completion where possible. It was noted that some actions with more complex issues took longer to resolve and could require additional resource to be brought in. It was also explained that the ideal target for recommendation follow ups would be for prior years to be cleared and only the current and previous year follow ups being actioned. Officers explained that follow ups would remain on the report until these were resolved or were no longer relevant due to a change in circumstance. Officers agreed that recommendations which continued to be blockers following the CMT focus group meeting could be escalated to the committee to encourage progress from lead officers.  The Committee Chair requested an exception report from CMT regarding their response and actions to the longstanding Internal Audit recommendations.

The Committee raised concerns regarding the 2018/19 Energy Recharges recommendations, particularly in relation to schools’ debt, the impact of this on the Council’s budget and third parties’ ability to pay. Officers explained this historical issue had been communicated to the third parties involved and resourcing was being brought in to complete this work. The Committee requested assurance on whether the schools and other third parties would be able to make the payments. Officers explained those conversations and negotiations would be part of the work programme, and that the project was expected to be completed within the next year. Officers agreed to bring quarterly reporting to the Committee to update on progress.

The Committee queried the Council’s capability to complete the Lettings and Allocations Assessment recommendations which remained 33% resolved. Officers explained this had been picked up on by the Corporate Director for Housing, the data protection issues were being explored and the turnaround time recommendation was predicated on the launch of the new Housing I.T system expected in May 2023.

In response to questions Officers explained the ‘Implementation of Priority 1 Recommendations and Follow up Table’ for members, stating that it was usual for recent years to have lower completion percentages, increasing each year as follow ups were completed.

The Committee raised concerns about there not being a formal timeline target to achieve the 90% completion and suggested that it would be useful to have this.  Officers agreed that a more aspirational target to achieve the 90% completion would be considered in next year’s Internal Audit Service Plan.

The Committee raised concerns about the outstanding issues in Expense Claims audit follow up and requested the average value. Officers explained overall it had been approximately £250k per year and that following the Audit, the Expense Claim Auditor had been turned on within the expense approval software which routed approvals to a second approver from CMT, Internal Audit (IA) or HR.  Officers advised a follow up Staff Expenses Audit would be included in the next year’s Service Plan.

RESOLVED, to note the Internal Audit Report to 31 December 2022.