Agenda item

Members of the Committee heard from the Internal Auditor, who introduced the report. It was explained that the report provided an update on progress made throughout the year; the Committee were also assured that the audit programme remained on track for completion by March 2026. It was noted that one report had been finalised since the last meeting, the Follow-Up Audit had also been completed and was scheduled for presentation at the September 2025 meeting. It was also stated that three additional audits had been scoped and were progressing as planned.

The finalised report related to a Fraud Risk Assessment conducted by RSM. It was recalled that the initial assessment had identified several actions and recommendations, which had been incorporated into the audit plan for follow-up. Reasonable assurance had been provided, with three medium and one low priority management actions agreed. It was highlighted that these actions focused on the formal tracking of recommendations, including the assignment of owners, deadlines, and monitoring processes. At the time of the audit, it was explained that 18 actions remained outstanding, however, it was reported that a tracker had since been implemented, and progress was being monitored. The Auditor explained that the latest completion date on the tracker was noted as December 2025, with the expectation that all actions would be closed by year-end. The Committee was advised that a further update would be brought forward to confirm the mitigation of identified fraud risks.

A Committee Member raised a question regarding delays in audit work observed in other councils. In response, the Auditor clarified that delays in audit completion had historically been associated with External Audit processes. It was confirmed that the Internal Audit programme for the Council remained on track, with the previous year’s audits completed on time, and no anticipated delays for the current year.

Members of the Committee expressed satisfaction with the report and acknowledged the improvements made since the transition to the current Internal and External Auditors. It was observed that the Council had previously been at risk of falling into categories of concern due to delays, but that progress had since been made, and the current position was viewed positively.

The longstanding cooperation between the Council and its Auditors was noted. It was stated that, despite occasional timing issues with sign-off, a strong working relationship had been maintained, with Auditors consistently attending Governance and Audit Committee meetings. The Chairman agreed that the current situation represented an improvement over previous years, when uncertainty had existed regarding Audit attendance and progress.

The Chairman then drew attention to the outcome of the Fraud Risk Assessment, it was noted that the absence of an action plan tracker and the handover of the Section 151 Officer role had resulted in some Officers being unaware of Management actions, leading to 18 actions remaining unimplemented. A request was made for clarification on measures being introduced to prevent recurrence.

Reference was also made to page 73, where the Chairman stated that a low-priority item had highlighted the need for Management to ensure regular reporting of actions. It was emphasised that structural clarity was essential, particularly during periods of senior staff transition.

In response, the Internal Auditor confirmed that a tracker had already been implemented shortly after the audit, indicating that the issue had been taken seriously. Regarding ongoing assurance, it was stated that both Management updates and audit follow-ups would be used to monitor progress. It was confirmed that the completed Follow-Up Audit would not include the outstanding actions, but that these would be incorporated into the next Follow-Up Audit scheduled for early 2026. This would allow the Committee to receive assurance both from Management and from the Audit Team that the actions had been completed and could be formally closed.

In response to a question from a Member of the Committee, it was confirmed by the Internal Auditor that two Follow-Up Audits were conducted annually and that all actions from the prior year were included in the review cycle. Assurance was provided that no actions were omitted or overlooked. It was stated that the actions referenced in the current report, along with existing ones, would be incorporated into the audit cycle and scheduled for follow-up in January or February 2026.

Clarification was sought by the Chairman regarding the process for closing actions. In response, the Internal Auditor confirmed that once actions had successfully passed through two audit cycles with positive outcomes, they would be removed from the tracker. It was reiterated that all actions would be added to the tracker and reviewed during the scheduled follow-up period. A report would then be presented to the Committee indicating whether actions had been completed or required further attention.

A Member of the Committee expressed appreciation for the significant work undertaken by Officers. It was hoped that the outcome would result in substantial assurance due to the efforts made.

Having been proposed, seconded, and voted upon, it was unanimously

RESOLVED that the Governance and Audit Committee had reviewed the progress to date and the content of the report, be agreed.