Agenda item

The Head of Internal Audit introduced a report which updated Members on progress in relation to the work undertaken by Internal Audit for the period April to June 2023 and showed this in the context of the Audit Plan for the year.  The report also set out significant revisions to the Plan to date, audit work carried out for the period, progress on the implementation of management actions arising from Internal Audit recommendations and Internal Audit performance information, as detailed in Sections 1 to 4 of the report, respectively.

The Head of Internal Audit provided an update and summarised each of the four sections of the report and responded to questions and comments from Members as follows:-

Section 1 – The Audit Plan / Revisions to the Audit Plan

The Head of Internal Audit reported that an officer with the right skills and attributes had recently been seconded to the Senior Auditor post within the Internal Audit team.  He stated that he was hopeful that the officer would be appointed to the post permanently in the future, which would assist with the team’s programme of work.  In response to a question from the Chair, the Head of Internal Audit confirmed that he was satisfied with the current level of resources in the Internal Audit team, however, in the future he was hoping to increase capacity within the team. The Committee was supportive of this.

Section 2 – Audit Work undertaken for the period

The Head of Internal Audit highlighted the work undertaken by the Internal Audit team following a review of the Taxi Licensing Service during 2022/23, as outlined in detail at paragraph 2.7 of the report.

Further to questions from the Vice-Chair, the Head of Internal Audit clarified that Internal Audit had carried out a review of the Taxi Licensing Service, as part of Internal Audits planned risk assessment work for 2023/24 in relation to safeguarding risks in the Taxi Licensing service. He gave assurance that this matter was not now an area of concern as significant progress has been made in this area and with Internal Audit’s oversight of the situation, the major problems have now been resolved, with an updated software system, providing longer term improved service. He explained the rationale for a partial assurance being given in relation to the service and not a limited opinion due to the improvements made, the major one being the processes for routinely checking taxi drivers current DBS status had been brought into line with best national guidance

The Committee whilst acknowledging the significant progress made to the Taxi Licensing service area, requested that a progress report be presented to a future meeting of the Audit Committee.

Section 3 – Implementation of Management Actions arising from Audit Recommendations

The Head of Internal Audit reported that implementation of the agreed overdue management actions has been maintained at extremely low levels and the existing arrangements were operating well. However, he highlighted a high-risk level overdue management action in the Place Directorate, as set out at Appendix B of the report. He gave assurance that the work would not be signed off by the Internal Audit team until they were satisfied that the reconciliation arrangements had become embedded.

In response to questions raised by Dr Green, the Head of Internal Audit clarified the reasons for the delay in implementation of the actions and work undertaken by the Internal Audit team relating to high-level risk relating to Strategic Properties/land Income 2021/22, as outlined at Appendix B of the report was due to staffing vacancies in the Assets and Property Team but would be mitigated by improved ICT solutions. 

Dr Green welcomed the work being undertaken by the Internal Audit team and following a further question raised by Dr Green, the Head of Internal Audit advised that he was unable to provide financial information regarding the level of income raised in this area. However, he gave an undertaking to provide this information at a later stage.

Councillor Farmer queried whether revenue received by the Council from Section 106 agreement contributions from developers was included as part of Internal Audits audit of the Council’s properties / land income 2021/22. She highlighted the importance of this issue being included on the Audit Plan, particularly in view of the number of planning applications being submitted and housing developments currently being built in the city with Section 106 agreements and stated that it was imperative that an audit be carried out of Section 106 monies generated from housing developments to ensure that each area in the city received the right allocation of monies in a timely manner. In response the Head of Internal Audit advised that the auditing of Section 106 agreements and monies received by the Council through Section 106 agreements was not included in the Audit Plan for this year as currently this area was not regarded as a high risk. However, Members were informed that an internal review was currently being undertaken by Officers regarding the governance, and decision-making process in respect of Section 106 agreements. The Internal Audit team would have the opportunity to contribute to this process and to look at ways to make improvements. The outcome of the review would determine whether Section 106 agreements would be included in next year’s Internal Audit Plan.

Section 4 – Internal Audit Performance

It was noted that the performance indicators for the period April to June 2023 were positive, with major recommendations and customer satisfaction remaining positive.

In relation to Internal Audits performance, the Head of Internal Audit confirmed that he was satisfied with that the work delivered in the year to date and had not identified any new areas of concern that should be considered for inclusion in the Annual Governance Statement for 2023/24.  Additionally, work completed at the end of the year had not identified any reason to result in a negative or limited assurance opinion over the Council’s risk, governance, and control arrangements. The Head of Internal Audit hoped that the positive position regarding the Council’s governance arrangements would be maintained in the future.

RESOLVEDto note:-

(1)   the position of the Internal Audit plan;

(2)   the Internal Audit work completed in the period;

(3)   the position with regards the implementation of management actions arising from Internal Audit recommendations;

(4)   the current position regarding the ability to deliver the annual opinion over the council’s risk, governance, and control arrangements; and

(5)   a progress report on the Taxi Licensing service area be presented to a future meeting of the Audit Committee and be included on the Committee’s Work Plan.