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. 

It was reported that the committee have updates of the work that the internal audit team had conducted on behalf of Herefordshire Council on three reports on public rights of way (PROW); housing benefit and council tax reductions, and temporary accommodation. Several audits are in progress, with 40 open agreed actions—down from 47 last quarter.

Committee members focused particularly on the PROW audit, noting three outstanding management actions:

• Improved strategic?level performance monitoring (priority 2).
• Creation of procedural documentation for PROW maintenance, governance, grants and routes to market (priority 3).
• Development of an annual service plan to support continuous improvement (priority 3).

Members expressed difficulty locating these actions clearly within the summary report and suggested improving the way actions are presented in future committee papers.

Discussion acknowledged that although the operational risk rating for PROW is low, councillors emphasised the significant reputational and statutory risks arising from the council’s legal duty to maintain the PROW network amid financial constraints. They stressed the need for continued visibility and follow?up.  Members asked that Internal Audit continue to follow up these actions and consider including a further PROW audit in next year’s risk?based plan.

The Committee noted the Council has a legal requirement to maintain our public rights of way to the level of the expected traffic along them.  £1?million has been allocated to support parishes, but the committee indicated that only a small portion can be used for PROW, mainly for gate repairs, and the wider network requires much more work. Long?term underinvestment, combined with current financial constraints, means the council faces a continuing risk in meeting its statutory obligations.

It was asserted that the Cabinet champion public access and the Local Access Forum is becoming a more effective body in advocating on behalf of PROW.  It was acknowledged, however, that the underlying tension between legal requirements and limited resources persists.

Members turned to the Housing Benefit and Council Tax Reduction audit, focusing on whether certain concerns should be treated as formal actions. There was uncertainty about whether some issues identified were the responsibility of Hoople or Herefordshire Council.  Officers confirmed that the council is accountable for services delivered by Hoople through the Service Level Agreement (SLA).

The discussion broadened to the importance of supporting residents through Council Tax Reduction and other relief measures, with around 11,000 residents using CTR.  Members praised Internal Audit for identifying issues beyond the scope and emphasised that such findings, while not formal actions, are still valuable for the committee to consider.

Members discussed challenges presented within the Temporary Accommodation audit, particularly around recharges and insufficient detail in records, which, it was suggested, limits effective oversight.   The committee noted positively that the Temporary Accommodation Service has introduced a plan to reduce B&B use, in line with government guidance, supported by the council’s recent capital investment. This includes refurbishing the John Venn building and purchasing several additional accommodation sites, with a further £10 million proposed for 2026/27 to expand suitable housing options. Members highlighted both the financial and ethical importance of reducing reliance on B&Bs, especially for young families.

Concerns were raised about the ongoing need to place families in temporary accommodation and asked how long it would take to substantially resolve the issue.

The committee discussed the status of several internal audit reports nearing completion. Officers confirmed that while many reports are progressing, there is no fixed deadline for internal audit work itself.  Officers clarified that the audit plan has not been changed at this stage; internal audit is only one tool within the broader risk?management framework. Instead of adding new audits, the council is strengthening actions and mitigations within service areas, such as ensuring there is adequate project?delivery capacity.

Resolved, that the Committee:  is satisfied that necessary improvements and assurances provided, and the recommendations presented in the report be noted.

Actions:

2025/26-07 DOF to bring detail (ICT preparedness) to the next committee (24 March).

2025/26-08 DOF and Internal Audit to explore what greater detail can be provided to the committee to explain process and provide further assurances.

2025/26-09 DOF and Internal Audit to consider the presentation/tracking options for clearer internal audit reporting.