Agenda item

To present the report of the Head of Audit and Risk.

The report of the Head of Audit and Risk providing an update as at 30 June, 2024 on the audits completed since the previous update as at 31 March 2024 was presented for the Committee’s consideration. The report also set out the current workload of Internal Audit and its priorities for the short to medium term going forward. Members of the Committee were provided under separate cover with copies of the three internal audit reports finalised since the last update in relation to Destination – Maritime Team – Income Processes (Reasonable Assurance); IT Audit – IT Supplier Management (Limited Assurance); Robustness of estimates and adequacy of reserves assessment (Section 25 of the Local Government Act 2003) (Reasonable Assurance). The Limited Assurance report was accompanied by an action plan to address the issues/risks raised by the internal audit review.

The following were points of discussion by the Committee –

• That the Corporate Self-Assessment assessed procurement and contract management as meeting expectations whereas the internal audit review of IT Supplier Management has identified a number of procurement issues/risks that require management action.
• The capacity of Internal Audit and the savings derived from the vacancy set against the costs of engaging third party expertise.
• The issues raised by the audit review in relation to Destination – Maritime Team – Income Processes. This matter was taken in private at the end of the meeting the Chair having proposed and the Committee approved under Section 100 (A) (4) of the Local Government Act 1972 that the press and public  be excluded from the meeting during the discussion on the grounds that the matter involved the disclosure of exempt information as defined in Paragraph 14 of Schedule 12A of the said Act as it refers to the business affairs of the Council which could prejudice the interests of the Council commercially, financially and legally. Members raised questions about the income generated set against the costs of the service and they also sought assurance regarding the vulnerabilities highlighted by the audit review and the actions required to overcome them.

The Committee was advised as follows –

• That the new Procurement Act 2023 places a number of responsibilities on local authorities and public sector organisations. Due to limited capacity, the Council has commissioned an external consultancy to review the Council’s procurement arrangements and its readiness for the changes which the new legislation will introduce. They have developed a two-year improvement programme to ensure the Council complies with the new requirements and have been re-engaged to provide support in delivering the improvement plan. Not all requirements have to be met by October 2024 when the legislation comes into effect. The IT Team Manager updated the Committee with regard to the 2 issues pertaining to the IT Unit from the IT Supplier Management review and confirmed that they are progressing in line with the timeframe.

• That the savings in Internal Audit are from the vacancy at Senior Auditor level due to the continuation of a long-term secondment which are being used to commission third party support, as necessary. The delivery of the risk and insurance function is also being reviewed which may produce savings that could be applied to Internal Audit.

• The Head of Audit and Risk elaborated on the issues raised by the Destination – Maritime Team – Income Processes review and confirmed that actions to address those issues and to improve income processes had been agreed with management in an action plan that is available separately.

It was resolved to note the outcome of Internal Audit’s work, and to accept the assurance provided and priorities going forward.

Additional Action – Head of Audit and Risk to provide the Committee’s members with a copy of the Destination – Maritime Team – Income Processes review action plan.