This report provides an update on key findings emanating from Internal Audit reports issued since the last quarterly progress report.

The Committee considered a report providing an update on the key findings emanating from the Internal Audit reports issued for the period 1 October to 31 December 2024 (Quarter 3).

The report summarised the findings, recommendations and management actions that had been put forward for each audit review and stated the overall assurance opinion level given by the Internal Audit team. A total of six audit reviews had been finalised in the period, as follows:

• Business Rates (Reasonable Assurance opinion given);
• Intercompany Accounting (Reasonable Assurance opinion given);
• General Ledger (Reasonable Assurance opinion given);
• Coroners Service ‘follow up’ review (Reasonable Assurance opinion given);
• Gifts, Hospitality & Declarations of Interest ‘follow up’ review (Reasonable Assurance opinion given);
• Commercial Leases & Rents (Limited Assurance opinion given.

In relation to Commercial Leases & Rents, the audit observed several variances between the rent roll that may impact the completeness and accuracy of the billing instruction.  Greater authorisation and verification controls were necessary to ensure independent oversight of the completeness and accuracy of the invoices prepared until these could be generated by the CPM system.  Although the Asset Portfolio team met the Income and Recovery team to review the debt status of those invoices recorded on the aged debt report, due to the existence of different budget holder responsibilities for each asset on the rent roll, the service did not have complete oversight of the overall debt status. This hindered effective and efficient monitoring and reporting of the overall debt risk of commercial rents and leases.

The report also detailed the audits that were currently in progress and gave a summary of Corporate Investigations Team’s work.  The Committee noted the recommended reduction in the size of the Corporate Investigations Team when the Manager retired in March 2025, which would deliver a budget saving.  There was concern expressed that an undesired consequence of the reduction in the Team’s capacity could result in fewer savings, both cashable and notional, being delivered by its activities, as described in the report.

Resolved:      That the audit findings be noted, and the recommendations and management action underway, as set out in the Internal Audit & Investigations 2024/25 Quarter 3 Update Report, be endorsed.