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.  To assure the committee that action is being taken on risk related issues identified by internal audit.

The Assistant Director and the Principal Auditor of South West Audit Partnership (SWAP) introduced the Report of Internal Audit Activity for 2021/22, as of 21 April 2022, with attention drawn to the following:

i.             Since the previous update (minute 68 of 25 January 2022 refers), twenty-seven audits had been completed, bringing the total to fifty-two.  Details of the audits completed, with the assurance ratings and audit objectives were provided at pages 183-185 of the agenda pack.

ii.            Three audits were at draft report stage and eight audits were in progress; the aim was to complete five of those in progress for the annual opinion 2021/22, with the other three rolled over to the next financial year.

iii.          Sixteen priority 2 actions had been agreed across the following audits: Pool Cars; Disaster Recovery (ICT); Green Homes Grant: Local Authority Test and Trace Support Payment Scheme Funding Grant Determination; and Hereford City Centre Transport Package (HCCTP).  Summaries of the priority 2 actions were provided at pages 186-189 of the agenda pack.

iv.          No High Corporate Risks had been identified to date.

v.           Five follow up audits had been completed, with one priority 2 action (Accounts Receivable - Debt Recovery Policy and Reporting Processes) and three priority 3 actions in progress.

vi.          Thematic findings were highlighted in relation to data quality, procedure document / policy, and coding of grant income and expenditure; for the latter, further work had been undertaken and all the actions had been completed.

vii.         Two changes had been made to the internal audit plan 2021/22, reflecting requests for additional audits in relation to: South Wye Transport Package LEP Settlement; and Revenue Grant Determination (Ring-fenced) Protect and Vaccinate Grant Determination.  Consequently, the following audits had been deferred into the internal audit plan 2022/23: Schools Thematic Audit; and Condition Funding Grant Determination.

viii.       The HCCTP Summary Report was included at Appendix 2, agenda pages 211-223.  It was noted that this was a Special Investigation and one priority 1 action, eight priority 2 actions, and one priority 3 action had been agreed.  The key findings were detailed on page 212 of the agenda pack and were summarised at the meeting.  The Investigation Findings - Control Weaknesses and Agreed Actions was included at Appendix 3, agenda pages 225 – 235.

In response to questions and comments from committee members:

1.           The Principal Auditor said that clarification could be provided to committee members on the current position with unspent grant funding in relation to the Green Homes Grant.  Later in the discussion, the Director of Resources and Assurance commented on challenges in relation to identifying appropriately qualified contractors to deliver the service and the households wanting to have such works carried out within the narrow timeframes involved.

2.           The Principal Auditor confirmed that the scope of the additional audit was around the South Wye Transport Package LEP Settlement arrangements and commented on two previous pieces of audit work on the project and related follow up audits.  Later in the meeting, the Director  ...  view the full minutes text for item 96