The purpose of this report is to enable the committee to provide independent assurance on the adequacy of the risk management framework together with the internal control of the financial reporting and annual governance processes by considering the head of internal audit’s annual report and opinion, and the level of assurance it gives over the council’s corporate governance arrangements.

The Head of Internal Audit (HIA) introduced the report, the following key points were noted:

·       Overall opinion on the governance, risk management and internal control environment in place at Herefordshire Council is Reasonable.

·       There were no ‘High’ residual organisational risks that had been identified throughout the year. or instances of material risks throughout the year where management did not accept the need for mitigating action.

·       82% of reports received either substantial or reasonable assurance, and there were three audits that were given a limited assurance.

·       The Council recently updated the Risk Management Strategy and Corporate Risk Register, SWAP would align the programme of internal audit work with the authority’s strategic risk register to provide coverage and assurance over these risks.

·       A significant number of actions (94) had been completed in 24/25 which felt reflected the commitment from management to implement agreed actions.

·       Feedback scores remained strong, especially in relation to SWAP’s professionalism and conduct, but return rates had fallen from the previous year. SWAP would work with the S151 Officer and other officers across the Council to seek an increase in 2025/26.

·       The HIA informed the committee that this would be her last meeting with Herefordshire and introduced her replacement. She expressed her enjoyment of having worked with the Council, both committee and officers, and thanked everyone for their continued support of the internal audit function.

In response to committee questions, it was noted:

1.     The HIA did not feel it was a particular directorate that was resistant in providing feedback and offered for feedback by Directorate to be included within future reports to the committee. It was explained that where an audit was cross cutting, two surveys would be sent to the relevant officers (normally director level).

2.     At quarter 4, 15 audits had been outstanding with the anticipation of 13 being completed by the annual opinion. It was thought that 12 audits had been completed, but this would be confirmed by written response.

The chairperson offered his sincere thanks to the HIA for her contributions over the last ten years in particular her assistance with the implementation of Auditboard.

The committee noted the report.

Actions

2023/24-058 The HIA to confirm the number of audits completed since the Quarter 4 report.