Issue - meetings

Report of Assistant Director of Finance (Section 151 Officer)  

Purpose of report

This report includes the Head of Internal Audit annual report (appendix 1), which summarises internal audit work undertaken in 2024/25 and provides an opinion on the overall adequacy and effectiveness of the council’s framework of governance, risk management and control.

It also includes an updated internal audit charter (appendix 2), for the committee to approve. The charter has been updated to ensure that it reflects the requirements of the Global Internal Audit Standards in the UK Public Sector, which came into effect on 1 April 2025.

Recommendations

The Accounts, Audit and Risk Committee resolves to:

1.1           Note the results of internal audit work undertaken, and the opinion of the Head of Internal Audit that Reasonable Assurance can be provided on the adequacy and effectiveness of the council’s framework of governance, risk management and internal control.

1.2           Note the outcome of Veritau’s quality assurance and development arrangements, including the confirmation that the internal audit service conforms to public sector internal auditing standards.

1.3           Note that two significant control weaknesses have been identified by internal audit during the year which are considered relevant to the preparation of the Annual Governance Statement, these being: the council’s health and safety management system and its handling of strategic site applications (pages 5-6, appendix 1).

1.4           Approve the draft internal audit charter.

Resolved

(1)            That the results of internal audit work undertaken, and the opinion of the Head of Internal Audit that Reasonable Assurance can be provided on the adequacy and effectiveness of the council’s framework of governance, risk management and internal control be noted.

(2)            That the outcome of Veritau’s quality assurance and development arrangements, including the confirmation that the internal audit service conforms to public sector internal auditing standards be noted.

(3)            That the two significant control weaknesses that had been identified by internal audit during the year which were considered relevant to the preparation of the Annual Governance Statement: the council’s health and safety management system and its handling of strategic site applications, be noted.

(4)            That the draft internal audit charter be approved.

The Assistant Director of Finance (Section 151 Officer) submitted a report which presented the Head of Internal Audit’s Annual Report for 2024/25. This summarised internal audit work undertaken in 2024/25 provided an opinion on the Council’s System of Internal Control. The report also included an update to the internal audit charter, which had been updated to ensure that it reflects the requirements of the Global Internal Audit Standards in the UK Public Sector, which came into effect on 1 April 2025

In introducing the report, Connor Munro, Assistant Director – Audit Assurances at Veritau advised the Committee that the paper reported on the outcomes of the internal audit work carried out and the strength of opinion on the Council’s arrangements for risk management, governance and internal controls. The Committee was advised that for the 2024-25 financial year the Head of Internal Audit’s opinion was that this framework provided “Reasonable Assurance” but that there were two areas which needed to be considered for inclusion in the Annual Governance Statement.: Health and Safety Management system; and the Management of strategic site applications.  

In response to a question regarding the possibility of including a timeline of overdue audit recommendations to show how quickly these had been actioned, the Assistant Director – Audit Assurance confirmed that this was something Veritau intended to include in future reports.

Resolved

(1)            That the results of internal audit work undertaken, and the opinion of the Head of Internal Audit that Reasonable Assurance can be provided on the adequacy and effectiveness of the council’s framework of governance, risk management and internal control be noted.

(2)            That the outcome of Veritau’s quality assurance and development arrangements, including the confirmation that the internal audit service conforms to public sector internal auditing standards be noted.

(3)            That the two significant control weaknesses that had been identified by internal audit during the year which were considered relevant to the preparation of the Annual Governance Statement: the council’s health and safety management system and its handling of strategic site applications, be noted.

(4)            That the draft internal audit charter be approved.