Agenda item

To consider a report by the Head of Internal Audit (copy enclosed) updating members on Internal Audit progress.

The Chief Internal Auditor (CIA) introduced the Internal Audit Update (previously circulated). The report provides an update for the Governance and Audit Committee on Internal Audit’s latest progress in terms of service delivery, assurance provision, reviews completed, performance, and effectiveness in driving improvement.

The report provides an update on Internal Audit work carried out since the last update report to the Committee in September 2024; since the previous Governance and Audit Committee update in September, eight internal audit reports have been completed, with two being awarded a high assurance rating, three receiving a medium assurance rating, and three not being awarded an assurance rating as these are process reviews.

This year has been a challenging year for Internal Audit, with several factors outside the control of the team which include: -

• To date, there have been three whistleblowing complaints. After initial discussions with the Corporate Director of Governance and Business, Internal Audit has undertaken two investigations, with the other being carried out by the service.
• Three members of the team volunteered to support Highways and Environmental services with the rollout of the new waste service
• We have had an unusually high amount of sickness from 1 April to 31 December 2024, resulting in 136 days being lost, and
• Finally, one of the Career Pathway Senior Auditors resigned on 25 November 2024, which has affected the plan as the audit team now has one less auditor.

Since April 2024, two special investigations have been very challenging and demanding on Internal Audit resources. Due to the complexity of one of the complaints, we have paused the investigation, as additional factors need to be resolved before we can complete it. The second investigation has now been completed, and a report has been produced. The CIA met with the Head of Service and HR on 16 January 2025 regarding the investigation.

Following the introduction by the CIA, the committee discussed the following points further –

• The committee raised concerns about the staffing levels within the audit team and whether they would impact the team’s projected workload. The CIA stated that there were always contingencies built into the internal audit workload. There were 60/80 days of sickness contingencies; however, these had been surpassed. However, the CIA had confidence in this staff to maintain the work and complete more of the work they had planned.
• Responding to queries relating to the two investigations carried out, the CIA stated that they were still private and, therefore, could not be discussed currently; however, further details could be shared once the investigation was closed.
• Members raised the possibility of hiring expertise to assist the audit team, which was struggling due to illness to achieve the audit plan. The CIA stated that he had constant dialogue with the relevant head of service, and staffing was at the forefront. The CIA restated that he had confidence in his team to complete the work in the required areas to give assurances of the governance of those services and the Council.
• Members understood the plan; however, they felt that the target set was lofty and that not reaching it could be seen as a failure. They suggested that the plan should be set at a reasonable level.
• Some members raised that they wanted to discuss matters relating to the ongoing investigation. The Corporate Director: Governance and Business stated that if the committee wished to discuss the matters, then they would need to discuss them in a closed forum (part 2). Members agreed to discuss the matter at the end of the meeting to reduce any impact on the meeting.

RESOLVED that 

1. The committee considered the report and the content and assessed the Audit’s progress and performance.
2. The committee did not want any further assurances and discussed the audited areas