Agenda item

The report outlined the work undertaken between 1 April 2021 to 30 March 2022. The public sector internal audit standards required the HoA, as the responsible officer, to provide an annual opinion based on the Council’s system of internal control. The HoA disclosed that internal control systems were generally satisfactory, with some improvements required. The HoA also disclosed that:

·  52 Audits were agreed at the start of the plan and the same number took place;

·  Five audit topics were changed during the year; and

·  44 of the audits were at draft report stage by 31 March 2022, which marginally exceeded the target of 80%.

The target of having 100% of the audits reported by 31 May 2022 was not achieved. The figure was 98%. This was owing to the late addition of an audit to the plan.

All the internal audit reports gave different levels of assurance. Most reports were classed as providing ‘substantial assurance’ or ‘reasonable assurance.’ However, the HoA cautioned that 11 reports gave ‘limited assurance’ and two were rated as ‘no assurance.’

The HoA explained that the two audits that were rated ‘no assurance’ related to issues with sub-letting leaseholders and housing repairs and maintenance.

In relation to sub-letting leaseholders, there was concern in relation to the quality and reliability of data. The Council’s insurer required accurate data on the number of sub-letting leaseholders and, where this was not up to date, there could be repercussions for the Council in the event of a claim.

The audit also established that there was no policy or register in relation to the registration of sub-letting leaseholders, and that no new sub-letting leaseholders had been registered since March 2020. Following the audit, it was agreed that a protocol be drafted to create a framework for the collation and sharing of information between departments, requiring good quality data on sub-letting leaseholders. The protocol had since been drafted and work was under way to implement this.

In relation to housing repairs and maintenance, productivity and customer satisfaction metrics were lower than in comparable services. There had also been an increase in the backlog of repairs and maintenance. In addition to this, there had been issues with the quality of repairs and maintenance.

The HoA acknowledged, following questioning, that the September 2020 deadline for addressing the ‘no assurance’ audits was challenging, but added that the timescales were set following discussion with managers. If the issues had not been addressed by the deadline, and there was no good reason, officers could be summoned to the Assurance Group or to the Audit and Standards Committee to explain themselves.

The Chair noted that the parking legislation review audit, which dealt with the roll out of controlled parking zones (CPZ), cited a lack of benefits realisation as a high risk. Noting that the roll out of CPZ was controversial, the Chair asked that the HoA update the Committee at its next meeting on 12 October 2022, on the outcome of the actions.

The Committee expressed concern at the problems identified in the audit of William Ford School, particularly noting:

·  The lack of key financial information;

·  The absence of governance-related information;

·  The lack of control processes; and

·  That training had been postponed on numerous occasions.

The Committee sought clarification as to how these issues would be addressed.

The HoA indicated that communications had been undertaken with the Director of Education and the Director of Finance. The Assurance Group had also been notified, meaning that the Council’s senior officers had been made aware of the problems. The School had worked with internal audit on actions needed to address the issues raised and a new audit would take place to ensure that the action plan had been implemented and adhered to. As the Council’s internal audit priorities were risk-based, William Ford School would continue to be subject to enhanced oversight.

The HoA stated that the Committee would receive a further update at the next meeting on 12 October 2022.

The Committee noted the update.