Agenda item

To present the report of Audit Wales together with the management response.

The report of Audit Wales on the findings of its examination of the Council’s arrangements for commissioning services was presented for the committee’s consideration.

The Strategic Performance and Projects Manager presented the Audit Wales report which concludes that overall, the Council is not able to demonstrate that it routinely secures value for money through its commissioned services. Three services where the Council has taken the decision to commission services externally were reviewed as part of the audit  – waste management and street cleaning, young people’s homelessness service, and school transport (buses). Those services disagreed with the audit findings stating that processes are in place to review arrangements and monitor contracts regularly to ensure value for money. Although feedback was provided to Audit Wales, the comments were not accepted.

Lora Williams, Audit Wales confirmed that all feedback from local authorities on draft reports is considered by Audit Wales. The review was undertaken at each council in Wales and a summary of national findings will be available in January 2026.

During discussion, the committee’s members raised concerns that the audit’s evidence base was insufficient to support an overall conclusion on the Council’s commissioning arrangements and that the three services selected were not representative of the Council’s wider range of contracts. Some members therefore felt unable to accept the findings. Concern was also expressed that the Council’s feedback had not been incorporated in the report.

Lora Williams noted that only two local authorities had commented on the size of the sample. She explained that the audit assessed corporate commissioning arrangements; therefore even with a larger sample, if one service followed local service standards rather than corporate ones the overall conclusion would remain that the council does not have corporate  commissioning arrangements that are recognised as best practice and ensure value for money. She added that the three services were selected in consultation with the Council

and that Audit Wales follows international auditing standards in conducting its audits which require consideration, but not acceptance of the audited body’s views.

The committee asked whether any internal audit processes could provide assurance. The Head of Audit and Risk advised that although the 2025/26 internal audit plan does not include a review of commissioning arrangements, such an audit could be considered for the 2026/27 plan if requested.

The Director of Function (Resources)/Section 151 Officer noted that despite disagreement about the sample size, management has considered the report and recommendations, provided a response and is progressing the associated actions. He outlined the current procurement position and confirmed that a procurement strategy has been adopted but a permanent procurement manager is yet to be appointed with the post currently being filled on an interim basis. The vacancy has been advertised, and once in post, the manager will develop a process to evaluate the Council’s compliance with procurement legislation with the findings to be reported to the committee for assurance.

It was resolved that the committee was unable to accept the conclusions of the Audit Wales report but noted and accepted that the Council will implement the action plan in response to the recommendations.