Issue - meetings

Report from the Head of Fraud, Audit, Insurance and Risk (FAIR) is attached

The Head of FAIR presented the Internal Audit Annual Report.

The report summarised the work undertaken by Internal Audit throughout 2024/2025 and also provided an overall opinion of the Authority’s control environment.

The table at page 7 gave an overview of where the audit time has been spent throughout the year.

It was explained that there had been a couple of over-runs, with additional work than originally thought being rolled into the year from 2023/24 and additional work requests received from housing which were undertaken. 

There was an over run on schools, additional time was required to complete the reviews due to extra testing being required as the schools examined resulted in a limited assurances, additionally, the audits were undertaken by two team members whilst training a new member to the team. 

The number of allowable days per school has been increased for 2025/26 (primary 10 and secondary 14 days)

At the end of 2024/25 there were 17 audits still in progress which have been carried forward and will be finalised during 2025/26.

During the year, 27 audit reviews, making 165 recommendations were considered when forming the overall opinion. 67% of audit reviews had overall opinions falling in the lower quartiles, moderate and limited assurance.  48% gave limited assurance and 19% gave moderate assurance.

Of the 165 recommendations, 121 recommendations appeared in reports giving an overall limited assurance.

For reports with an overall opinion in the bottom two quartiles – 97 recommendations were made which were graded either fundamental or significant recommendations, therefore 59% of recommendations issued relate to reports with an overall opinion in the lower two quartiles.

Appendix B shows the first follow ups completed in the year and appendix C shows the second follow ups completed in the year.  23 first follow ups were completed, and of the 90 recommendations revisited, 43 (48%) were identified as either being outstanding or partially implemented. It was explained the report stated that 17 second follow ups were also completed and out of 39 recommendations followed up 17 (44%) were identified as either still being outstanding or partially implemented, this is incorrect, and the table in the appendix is accurate – the report should state that out of 39 recommendations, 26 were outstanding or partially implemented, which is 67% had not been implemented.

During the year a Governance and Assurance Board was established and all fundamental and significant recommendations outstanding after second follow up are reported to this Board. The Board reports to the Members Assurance Group, so all outstanding recommendations are scrutinised in depth, in addition to the scrutiny given by this Committee.  

The remainder of the report outlines other areas where audit work has been undertaken during the year, Persona, Schools, investigations and advice. The report also refers to the PSIAS review undertaken of the Internal Audit Service. 

Based upon the results of the audit work undertaken during the year, taking into account the findings reported in 27 audit reports, 23 first follow-ups and 17 second follow ups, the  ...  view the full minutes text for item 87