Agenda and draft minutes

The Minutes of the Audit Committee held on the 24^th of February 2025 were submitted for approval as a correct record.

Recommended – That the minutes be received and approved as a correct record.

The Minutes of the last Audit Committee held on the 24^th of February 2025 were submitted for approval as a correct record.

Resolved – That the minutes be received and approved as a correct record.

To inform Audit Committee of: the outcome of the Strategic, Generic and Operational Risk Registers review.

Recommended – That the committee note the following;

·         the content of the report;

·         and changes and additions to the Strategic Risk Register and the Operational Risk Register.

Mrs Susan Gardner, Scrutiny and Policy Officer presented the report to the committee.

Mrs Gardner informed the committee of the outcome of the Strategic, Generic and Operational risk register review and highlighted the changes that had been made to the risk register as per page 9 of the agenda.

There are a total of 107 risks:

            17 Generic Risks – 1 high, 4 medium and 12 low

            68 Operational Risks – 22 medium and 46 low

            22 Strategic Risks – 3 high, 10 medium and 9 low

4 Major changes had been made to the Strategic risk register.

            Risk 2041 was merged with risk 2045.

            Risk 2036 was reduced from high to medium.

            Risk 2048 was added to the register.

            The wording of risk 2047 was amended and changed to a medium risk.

5 Major changes had been made to the Operational risk register.

            Risk 60 was reduced from high to medium.

            Risk 26 and 122 were deleted off the register.

            2 New risks were added to the resister (2049 and 2050).

2 Minor changes had been made to the Generic risk register.

            Additional detail has been added to risks 2008 and 2016.

Members discussed the fact that devolution may benefit from being added to the risk register. A point which was supported by the External Auditor Daniel Watson from Forvis Mazars.

Mrs Gardner informed she would take this back to look into.

Resolved – The Committee noted the content of the report and the changes made to the risk registers.

To inform and update Audit Committee on the Annual Internal Audit Report and Audit Opinion for 2024/25 and to give details on the performance of the Internal Audit Team and final outturn position for 2024/25

Recommended – That the report be noted for informational purposes.

Mr Mark Beard, Head of Audit and Investigations presented the Annual Internal Audit Report and Opinion for 2024/2025.

Mr Beard noted that this is a statutory report that must be completed year on year. Page 24 in the agenda highlighted the Audit Opinion for 2024/2025 as Substantial Assurance and includes the Opinion Caveat.

The overall opinion score increased from the previous year 2023/2024 from 1.68 to 1.53.

Mr Beard also pointed out to the committee the improvement seen on the Satisfaction and Quality Questionnaire from previous years on page 36 of the agenda. Alongside the table on page 38 which compares performance for 2024/2025 with the 2 previous years.

Use of Audit time was also highlighted with focus given to the increase of non-audit time spent in the 2024/2025 year which was likely to be as a result of an election and a bi-election within this year. Table 6 on page 40 clarified to the committee what time was assigned to each area where recorded audit time was tracked.

Overall Mr Beard informed the committee that 90.43% of the audit plan was completed at year end which was a result of time lost to sickness, compassionate leave and additional purchased leave and amounted to a 3.24% loss.

Resolved – The committee noted the 2024/2025 Annual Internal Audit Report and Opinion.

To inform members of the Audit Reports issued during the period March 2025 – May 2025 and bring to the attention of the Committee what the key issues were.

Recommended – That the report be noted for informational purposes.

Mr Mark Beard, Head of Audit and Investigations presented the Audit Progress Report for March 2025 to May 2025.

The position for April 2025 was 7.35% and May 2025 6.57%.

Totalling a completion figure of 13.93% for the 2025/2026 year.

The 2 engagements which have been completed are;

            Parks and Open Spaces – Comprehensive Assurance

            ICT Assets – Substantial Assurance.

                        1 action was recommended on page 50 of the report.

Resolved – The Audit Committee noted the report for information.

To inform members of the outcome of routine follow-ups following the previously agreed action plans for completed audit reports. The follow-ups detailed within this report are those carried out during the period March 2025 to May 2025.

Recommended – That the report be noted for informational purposes.

Mr Mark Beard, Head of Audit and Investigations presented an update to the committee of the previously agreed action plans for completed audit reports for the period March 2025 to May 2025.

Page 54 of the agenda highlights the 2 areas which were reviewed.

            Treasury Management which have implemented the recommended action.

S106 Agreements which have implemented 2 of the 3 agreed upon actions and partially implemented the final action.

Resolved – The committee noted the report for information.

To inform members of the current position with the Quality Assurance and Improvement Programme (QAIP) which sets out how we manage any of the Global Internal Audit Standards (GIAS) that are not compliant, thus ensuring conformance with the GIAS overall.

Recommended – That the report be noted for informational purposes.

Mr Mark Beard, Head of Audit and Investigations presented the Quality Assurance and Improvements programme to the committee. Mr Beard noted that while the report title states Global International Audit Standards at the time the report was written these standards were not released and so the report uses numbering systems from the former Public Sector Internal Audit Standards.

Page 61 to 69 of the agenda details the table showing the councils internal audit scoring.

Resolved – The committee noted the report for information.

Verbal Update

External Auditor, Daniel Watson from Forvis Mazars updated the committee on External Audits position in reviewing the accounts.

Mr Watson informed that new guidance has been released and is being looked at which will allow the external auditors to form an audit plan which will be presented at the next meeting.

Similarly Mr Watson updated the committee to the change in value for money arrangements and stated a report will be brought to the committee for November 2025.

Mr Watson emphasised it will take a few years to get back into line with the outstanding audit opinions.

Resolved – The committee noted the update for information.