To update members on the progress of internal audit work and to bring to their attention any key internal control issues arising from work recently completed. To enable the committee to monitor performance of the internal audit team against the approved plan.

The committee considered the progress report on internal audit activity.

Representatives of South West Audit Partnership (SWAP) presented the report and highlighted the following key points:

i.           Since the last update, eighteen audits had been completed, two audits were at report stage, eleven audits were in progress, and two follow ups had been completed.

ii.         For the audits completed: two were limited assurance; six were reasonable assurance; three were substantial assurance; four were grant certifications and were reasonable; two were advisory audits; and one was a Covid-19 advisory audit.

iii.        In the period covered by the report, six priority 2 recommendations had been made: Section 106 agreements had two; Education Health Care Plans had one; commercial investments had two; and accounts receivable had one.  No final reports identified high corporate risks.

iv.        The pandemic and associated additional work had impacted on some of the timescales for the completion of audits, with priority being given to the completion of the 2020/21 audits ready for the annual opinion.

v.         Attention was drawn to: the approved changes to 2021/22 quarter 1 internal audit plan, as a result of requests for additional pieces of work, including grant certifications; the proposed 2021/22 quarter 2 plan; and the counter fraud update.

Questions and comments were invited from committee members on the priority 2 findings, and responses were provided by the attending officers, the principal points included:

Section 106 agreements

1.         It had not been found that resourcing in legal services had impacted upon the delivery of Section 106 agreements.

2.         Reference to ‘external organisations’ related to bodies such as the Environment Agency and Herefordshire and Worcestershire Clinical Commissioning Group in the sentence ‘With regards to reporting on the Section 106 monies paid to external organisations, the Planning Obligations Manager will write to those organisations on a biannual basis outlining what money they have received and asking them to advise the council on what the monies have been spent’ (agenda page 32).  It was confirmed that the finding arose from gaps in information and the need for improved recording. 

3.         The committee was advised that the action dates reflected the need to develop and implement an appropriate software system.

4.         The action ‘information in relation to Section 106 monies held by council should be reported on a biannual basis to senior management’ (agenda page 31) would be delivered through the council’s management board, rather than cabinet.

5.         It was reported that the council held £9.1m in Section 106 monies, split across twelve service areas; the largest funding pot being for transport / highways of £4.2m.  It was noted that some agreements had expiry dates but others did not.  It was requested that details of the proportion that had passed the repayment date be circulated to committee members. 

6.         The committee was advised that the infrastructure funding statement identified the financial contributions secured and the monies spent on an annual basis.  The committee discussed the need to monitor each service area to ensure that the monies were spent  ...  view the full minutes text for item 7