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 from 1 January to 31 March 2026 (Quarter 4).

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 four audit reviews had been finalised in the period, as follows:

• Capital Programme & Monitoring (Substantial Assurance opinion given);
• Housing Benefits (Substantial Assurance opinion given);
• Health & Safety (Reasonable Assurance opinion given);
• Commercial Leases Rent Roll – Follow-up (Limited Assurance opinion given);

In relation to Commercial Leases, the follow?up audit had reviewed progress in addressing weaknesses identified in the previous commercial leases audit. Limited Assurance remained appropriate, as while some improvement had been made, weaknesses persisted in rent roll management, billing controls, data quality and reconciliations. Governance and insurance arrangements also required strengthening, and a number of recommendations had been re?raised to reflect the ongoing level of risk.

The report also detailed the audits that were currently in progress and gave a summary of the Corporate Investigations Team’s work and School Audits. 

It was noted that, for the Commercial Leases audit, the audit tracker had shown the recommendations which had been agreed at the last audit marked as completed but, on the follow-up audit, it had been discovered that they had not been completed.  The Committee was informed that the relevant Executive Director had been very disappointed to discover this and the relevant Director was having fortnightly meetings to ensure that the actions were implemented.  The Committee requested an update to the next meeting on the situation with the Commercial Leases Rent Roll from the relevant Director to give assurance.

Resolved:      

(1)    That the audit findings be noted, and the recommendations and management action underway, as set out in the Internal Audit & Investigations 2025/26 Quarter 4 Update Report, be endorsed.;

(2)    That a report giving an update on the situation with the Commercial Leases Rent Roll be submitted to the next meeting.