Agenda item

The Head of Internal Audit to submit a report to update Members on

the progress made in delivering the 2021/22 Internal Audit Plan and

key findings arising from audit assignments completed.

Rachel Ashley-Caunt, Head of Internal Audit introduced the report, the purpose of which was to update Members on the progress made in delivering the 2021/22 Internal Audit Plan and key findings arising from audit assignments completed.

Ms. Ashley-Caunt highlighted key sections of the report, advising that a full copy of the report was at Appendix A:

·       All Internal Audit assignments (including current status/outcomes) for the financial year were set out at Appendix 1.  There had been 1 further audit (on Asset Management Leases) finalised since the last Committee meeting (on 30 November 2021) and the key findings were summarised at section 2.5 of the report.  The Council’s portfolio of properties generated over £300k income per annum (excluding the Cattle Market, which had been considered separately in previous years) and the audit had reviewed arrangements relating to managing the portfolio, ensuring leases were in place and that tenant relationships were managed effectively.  There were known inconsistencies in some of the procedures and an Action Plan had been implemented to deliver against the areas required.  This was a ‘work in progress’ at the time of the audit.  There were a number of leases which needed to be updated and plans were in place to address this.  Internal Audit had made recommendations to strengthen some of the controls such as holding a central record for tenancies and to improve the Council's Key Performance Indicators to ensure effective income recovery monitoring.  Internal Audit had issued a satisfactory assurance opinion and minor organisational risk based on the work being undertaken.

·       There was 1 amendment to the Internal Audit Plan in relation to the Housing Revenue Account (HRA) Business Plan (detailed at section 2.7 of the report), which had been discussed at a previous meeting of the Committee.  This audit would be deferred to 2022/23 and that Internal Audit review the Council’s recharges for mobile phone fees, which had been highlighted as an area of financial pressure/risk.

·       An update on the implementation of audit recommendations was detailed at Appendix 3.  There were 25 overdue actions, 4 of which were high priority and detailed at Appendix 4.

During discussion, the following points were noted:

·       Members noted that it was usual practice to undertake rent review processes alongside lease renewals.  Ms. Ashley-Caunt confirmed that this work was now being undertaken as part of recovery of income, in line with the latest (out of date) agreements, even though these were no longer valid.  Income had been recovered but perhaps not at the full market rate applicable had rent reviews been undertaken.

·       Landlord's Health and Safety 2019/20 had been an overdue high priority action for some time.  Asbestos management was an important strand of the Council’s responsibilities as a landlord.  There had been a review of approximately 400 historic asbestos surveys, which confirmed that they complied with requirements.  The Council had undertaken 30 new surveys and had identified a need for a further 100 surveys.  Improvements to the Council’s Housing Asset Management systems would facilitate efficient electronical records and future oversight.

·       Following this meeting, the Director for Housing and Communities would confirm with the Chair how many Council properties contained asbestos.

RESOLVED that the Committee

1)    NOTED the report and progress made by the Internal Audit team in the delivery of the Audit Plan;

2)    APPROVED the proposed amendment to the Audit Plan – to postpone the audit of the HRA Business Plan until 2022/23 and reallocate the audit days to deliver pro-active contingency work and support.