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 assure the committee that action is being taken on risk related issues identified by internal audit. This is monitored through acceptance of agreed management actions and progress updates in implementing the action plans. In addition, occasions where audit actions not accepted by management are documented if it is considered that the course of action proposed by management presents a risk in terms of the effectiveness of or compliance with the council’s control environment. 

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

·       Two audits had been completed in respect of the MERS (Mutual Employment Recognition Scheme) and Polygamous Working Follow-Up.

·       Three audits were waiting for management response and sign off.

·       A number of audits were in progress with one having just been issued as a draft report and would come to the next meeting of the committee.

·       There had been good progress with agreed actions, fifteen having been completed since the last meeting.

In response to committee questions, it was noted:

1.     The Director of Finance (DOF) explained that the success of MERS and the delivery of the savings was not included in the scope of the audit however the reporting of the achievement of the savings target was considered. The MERS savings target was estimated at £4.5M, of which the Council reached £2.375M. It was explained that the savings gap was monitored through quarterly monitoring reports to Cabinet and had been fully mitigated.

2.     MERS is an ongoing scheme which employees can apply for, and the council will consider. The scheme was widely promoted to staff in 2024/25 as a method of accelerating savings but there was no plan for a targeted MERS as an individual savings and proposal in the 2627 budget.

3.     The nature of the three audits awaiting management response / sign off were highlighted and that the actions were across multiple services which would impact the time to respond. The findings would be considered from those reports and a plan to identify actions to respond to the risks and weaknesses Grant Thornton had identified.

Resolved

The committee noted the report.