Agenda item

This report provides an update on the delivery of the internal audit work programme for 2024/25, and on counter fraud activity undertaken so far in the year.

The committee considered a report that provided an update on the delivery of the internal audit work programme for 2024/25, and on counter fraud activity undertaken so far in the year.

The Assistant Director of Audit Assurance highlighted Annex 1 to the report which provided an update on progress made in delivering the internal audit work programme. This included a summary of completed work, work currently in progress, and work currently scheduled for the remainder of the year. It also reported on developments in the internal audit profession, and on the outcomes from the follow-up of actions agreed in previous audit reports.

It was noted that since the last update progress had been made in delivering the internal audit work programme in that nine internal audit reports had been finalised and a further four were currently in draft. Officers also referenced the consultation relating to the Public Sector Application Note for the new Global Internal Audit Standards as highlighted on pages 196 and 197 of the agenda pack. Officers expected no significant changes under the new regime, but they would explain in future reports how they had responded and adapted.

The Head of Internal Audit presented the counter fraud progress report which was contained in Annex 2. A range of work was detailed, including activity to promote awareness of fraud, work with external agencies, and information on the level of fraud reported to date. It was noted that 186 referrals of suspected fraud had been submitted and 50 cases had been completed so far.

A detailed discussion took place regarding Section 106 agreements and Veritau confirmed they had no significant concerns over any Section 106 payments. Following further questions relating to EXACOM which was introduced to monitor and report on Section 106 contributions and payments, officers agreed to provide further information on what proportion of total monies was reflected on EXECOM. Veritau also confirmed that they do consult with service departments as part of the audit process and the Director of Finance noted that work was ongoing to improve the process and develop a coherent system. It was recognised that this topic could potentially be referred to scrutiny to investigate further.

Concerns with the health and safety internal audit were also raised and Members requested assurance that the actions were being tracked and implemented. Officers confirmed that they monitored the actions and were developing a comprehensive narrative on any significant findings which would be reported to Audit and Governance Committee.

Following further discussion around the current audit priorities as listed on pages 200 to 203 and the investigative work from page 223 of the agenda pack, the press and public were then excluded from the meeting during consideration of Annexes 3 to 11 of the report, where further questions from members were answered.

[An adjournment took place between 7:34pm and 7:40pm.]

Members thanked officers for the report, and it was:

Resolved:

(i)           That the progress made in delivering the 2024/25 internal audit work programme, and current delivery intentions over the remainder of the year be noted.

(ii)  That the current and planned counter fraud activity be noted.

Reason: To enable members to consider the implications of internal audit and counter fraud findings, and to review planned activity for the remainder of 2024/25.