Agenda item

The Internal Auditors from Veritau presented a report, the purpose of which was to:

·        Provide Members with an update on the delivery of internal audit and counter fraud work, and on reports issued and other work completed since the last update to the Committee.

·        Provide Members with an update on the new Global Internal Audit Standards and the approach to adopting them.

The Internal Audit Progress Report was shown at Appendix 1.  This included a summary of current work in progress, internal audit priorities for the year, completed work, and follow-up of previously agreed audit actions.

It was explained that from 1 April 2025, internal audit teams in the public sector would be working to new internal audit standards. These would be a combination of the new Global Internal Audit Standards (GIAS) and the “Application Note, Global Internal Audit Standards in the UK Public Sector” published by CIPFA.  Whilst 1 April 2025 was the effective date for the new standards, internal audit teams would not be expected to demonstrate full conformance on this date.  Moreover, teams were to start working in accordance with the new standards from this date and, by doing so, build up their conformance over time.

To conform with the new standards, the audit charter and audit manual were being updated, and training would be provided to staff.  Working practices would also be reviewed to ensure that they complied with the standards.  It was anticipated that an updated audit charter would be presented at the July 2025 Audit Committee meeting, along with an update on actions to achieve conformance.

The Counter Fraud Progress Report was shown at Appendix 2.  A range of work was detailed, which included activity to promote awareness of fraud, work with external agencies, and the result of investigative work undertaken for the Council.

The Committee was appraised of the work and progress being achieved, with particular attention being drawn to Appendices A-E of the submitted report.

During discussion, Members raised several points, as follows:

·        A Member referred to Annex B and queried the schools audit detailed on page 10.  In response, it was explained that this referred to budget management and supply teachers.

·        A Member referred to the misuse of blue badges and felt that this matter should be reviewed annually.  It was queried how many instances of this had occurred.  In response, it was indicated that on the inspection date, 38 badges were checked, with one being investigated further.

·        A Member referred to the audit of buses and queried what this referred to.  In response, it was explained that the audit focused on bus service operators/ department for transport, and the assurance of Council expenditure in relation to those.

·        A Member referred to page 73 and the action outstanding for over three-months in respect of the Transporter Bridge.  The Member commented that this had been raised at the Corporate Health and Safety Committee.  In response, the Head of Policy, Governance and Information explained that this matter should be explored via the Council’s scrutiny function; the Member would raise this at a future Place Scrutiny Panel meeting.

·        The Chair referred to the four reports that were to be finalised this quarter, prior to March 2025, and queried whether the reports could be circulated to the Chair and Vice-Chair.  The Auditor agreed that these could be supplied.

·        The Chair referred to page 66 of the report and the Treasury Management audit.  It was queried whether the expected reporting date of July 2025 was correct.  In response, it was explained that it was – the report had been finalised on 7 March 2025 and would come to the July Audit Committee meeting.  The Chair requested that this report be forwarded to the Chair and Vice-Chair, alongside the other four.  The Auditor agreed that this too could be supplied.

·        A Member referred to training for Audit Committee Members and queried whether further training in respect of this topic could be provided.  In response, it was explained that this would be provided in July 2025.

The Chair thanked the auditors for the information provided.

AGREED as follows:

1.     That the Internal Auditor would forward the five completed audit reports to the Chair and Vice-Chair, for information.

2.     That the information, as presented, was noted.