The Audit Manager led Members through the Internal Audit report to 31 December 2022 that gave details of audit matters and any emerging issues, not only in relation to audit but risk management and corporate governance.  As a result of resourcing issues within the Internal Audit Team, it would not be possible to deliver all the audits planned for 2022/23.  Two audits, namely ICT Asset Management and Licensing, would be carried out as part of the 2023/24 Audit Plan.  Main Accounting had been reassessed and would be reported differently in future.  All remaining audits were on target to be completed by March 2023.

Five audit reports were issued in the quarter and an overview of the findings arising from each was given in the Executive Summaries in Appendix A to the report.  Homelessness Prevention Initiatives, Treasury Management and Cyber Security provided substantial assurance, but Community Infrastructure Levy (CIL) and Public Conveniences Cleaning Contract only received a limited assurance rating.  These ratings were attributed to collection and, enforcement issues (CIL), and insufficient record keeping and problems with the contract sum (Public Conveniences). Detailed reasons were outlined in the report.

As requested at the last meeting, Appendix B to the report updated Members on the Capital Projects and review position.

Appendix C to the report updated Members on progress made on implementing the audit recommendations reported at previous meetings.  Eight long outstanding recommendations remained.  Unfortunately, progress continued to be slow; steps had been introduced to ensure that these recommendations were monitored and resolved as quickly as possible.  Progress on the current year recommendations remained good, with two-thirds completed.

The audits scheduled to take place in the first quarter of 2023/24 were yet to be determined and would be selected from the new Audit Plan.

Members were given the opportunity to ask questions and the following points were noted during the discussions:

•     Members were disappointed that there were still ‘Old Years’ recommendations outstanding.  Members recommended and agreed that where no progress had been made on audit recommendations after a period of nine months, the relevant officer should provide an explanation to the Committee as to the reasons why;

•     more resources were required to monitor audit recommendations, and this would be taken forward by the newly established Corporate Policy and Projects team; 

•     a change in culture was required to encourage all managers to take responsibility for the delivery of targets by their department.  The Council was keen to establish a no-blame culture and for explanations to be provided if delivery was not achieved;

•     as part of the Service Review Programme, savings across areas were being considered; and

•     further information was required about the Capital Projects that had been put on hold and this would be provided at the next meeting.

RESOLVED: That:

1)   the Internal Audit report to 31 December 2022 be noted;

2)   an update on Capital Projects be reported at the next meeting; and

3)   where no progress had been made on Internal Audit recommendations within nine months, the relevant officer would provide an explanation to the Committee as to the reasons why.