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 28 April 2026 on the audits completed since the previous update as at 21 January 2026 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 a copy of the five assurance reports finalised in the period in relation to Financial Systems – Treasury Management (Substantial Assurance), Financial Systems – Payroll (Reasonable Assurance), Managing Strategic Risk – Safeguarding (YM10) – First Follow-Up (Reasonable Assurance), Disabled Facilities Grants – Second Follow Up (Limited Assurance), and Financial Management (Reasonable  Assurance).

The Head of Audit and Risk presented the report and summarised the outcome of the audit reviews completed in the period. She highlighted the substantial assurance received for  Treasury Management, noting that this level of assurance is uncommon and that only one moderate action had been identified.

She reported that the second follow up review of Disabled Facilities Grants (DFGs) had resulted in a Limited Assurance opinion. Some progress had been made in improving DFG arrangements; however, administrative weaknesses remained, particularly in relation to the central database which was incomplete and not reconciled with financial data. This had led to errors in information provided to Legal Services, creating risks of incorrect or unenforceable land charges. A further follow up review is planned for September, 2026.

The Head of Audit and Risk outlined the audits currently in progress and confirmed that work continues to support services in addressing outstanding issues and risks. A separate comprehensive report was submitted to the meeting on this matter. She also set out the short and medium term priorities, including finalising delivery of the 2025/26 Internal Audit Strategy, preparing the annual audit opinion for June 2026, consulting on the 2026/27 strategy and progressing the Counter Fraud, Bribery and Corruption Strategy. Longer term priorities include completing the full conformance assessment to ensure compliance with the new Global Internal Audit Standards during 2026/27.

The committee considered the Limited Assurance second follow up review of Disabled Facilities Grants and questioned the pace of progress in addressing the issues raised by Internal Audit. Members sought assurance that a plan is in place to ensure that the remaining outstanding issues are fully addressed and that improvements are implemented.

The Head of Housing Services acknowledged that progress had been slower than anticipated. Improvements had been made, including strengthening payment controls to prevent duplicate payments. However, administrative progress had been limited, with only one officer undertaking work that had previously been carried out by a team. He confirmed that administrative and supervisory support for the officer have now been strengthened. Although progress fell short of the level required, he emphasised that the focus is on ensuring that the administrative improvements take effect. He expressed hope that the follow up review scheduled for September would confirm this.

In response to further queries by the committee, the Head of Audit and Risk clarified that the Chief Internal Auditor for Denbighshire County Council had been consulted on the follow-up review of Safeguarding, as one of the issues raised was the lack of assurance regarding the effective operation of the North Wales Safeguarding Board. As Denbighshire County Council is the host authority for the Board the protocol for regional arrangements requires the host authority to audit regional matters. The Chief Internal Auditor for Denbighshire County Council has confirmed that they expect to provide this assurance in the next few months. The Head of Audit and Risk also confirmed that the IT Asset Management audit, which had been postponed at the request of the Chief Digital Officer, is expected to commence in June or July 2026. She advised that an update would be provided to the committee at the July 2026 meeting.

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