Agenda item

To consider the Internal Audit Annual Report for 2024-25 by the Chief Internal Auditor (copy enclosed).

The Chief Internal Auditor, introduced the report (previously circulated). He explained the report covered the work done during the year 2024-25. He suggested in the future that the Annual Audit report was presented on a separate occasion to any internal audit update reports to reduce duplication.

The new Global Internal Audit Standards (GIAS) together with the GIAS in the UK Public Sector require the ‘chief audit executive’ to deliver an annual internal audit opinion and a report that the organisation can use to inform its annual governance statement. This Committee’s terms of reference require it to consider the annual report of the Chief Internal Auditor. The Chief Internal Auditor stated when forming an overall opinion a number of areas are considered including the scope of the outcome of internal work throughout the year, follow up actions from the previous years audits, the effectiveness of management to any risks and issues internal audit had raised, work completed around special investigations and assurance received from external regulators.  

The Chair stressed the importance and risks associated with fraud and the potential for it to grow. He informed Members, Audit Wales were due to conduct a report on fraud. He suggested to the committee that an annual report on counter fraud and all that goes in to the work involved with investigations and preventing fraud was presented to the Governance and Audit committee. The Chief Internal Auditor confirmed that was a report that could be included to the work programme.

Members heard access to the Strategy for the Prevention and Detection of Fraud, Corruption & Bribery and response plan was on the Denbighshire County Council web page. Links would be sent to Members following the meeting. The Chair stressed the importance of officers and Members being able to access the information or having knowledge of where to look.

The Chief Internal Auditor confirmed that an update of the strategy was due last October but had unfortunately been delayed. He confirmed an e-learning module was due to be introduced in May for all employees to complete. It was hoped the module would be made mandatory for all staff. All polices and procedures would be updated in the summer months.

The Chair asked in future reports, Members had sight of the mapping of risks to internal audit work. It would allow Members to align risks to audit work. The Chief Internal Auditor stated the document would sit better as an attachment to the Internal Audit Annual Plan which was due to be presented at the June committee meeting.

An observation was made with regards to the drop in audit agreed actions

that had been implemented by services recorded on the performance

management system Verto. The Chief Internal Auditor informed members, audit officers had always asked for the relevant audit number to be included on entries on Verto. Unfortunately, this had not always been included so it made it difficult for audit officers to pull all information from the system.

Going forward the Chief Internal Officer stated he would try and state when the last time a particular audit was previously undertaken. Data was only held by the authority for 7 years so if an audit  had taken place over that time frame the exact date would not be available. Which may be the case given the flexible plan within the audit work.

Members raised concern that several audit officers were involved in the roll-out of the new waste service, taking time away from completing audits.

It was confirmed that a discussion between the Head of Service and Chief Internal Auditor had taken place and a decision that Internal Audit could support the role out at the time was agreed. At the time the Chair and Vice-Char were not consulted upon. It was stressed at that time the department were fully staffed, and work was up to date, it was deemed the service had capacity to support the Environmental Service. The auditors involved were able to apply their audit skills in another area and felt it was a valuable exercise.

The Chair informed the committee he had made his concerns known to the Chief Executive during his regular one to one catch ups.

Members heard the money recovered from the National Fraud Initiative had been found in overpayments from council tax, CTRS and housing benefits with the majority from council tax overpayments. The recovery will be made by Department of Working Pensions. The money recovered will not be available to the authority.

The Chief Internal Auditor confirmed in his opinion agile working, worked well for the service. The level of sickness in the department was for a variety of reasons.

The Monitoring Officer confirmed the level of sickness across the council was recorded and reported on a regular basis, the level as an authority historically has always been good compared to other public sector organisations and authorities in      Wales. Without the data in the Monitoring Officers experience, agile working enabled staff to remain in work during minor ailments for example.

RESOLVED that, the Committee considered and commented on the Chief Internal Auditor’s annual report and overall opinion.