Report of: The Internal Auditor, BDO

Purpose of report: To inform the Audit and Governance Committee of progress made against the 2025/2026 internal audit plan.

Recommendation(s):

·       That the Committee notes and discusses the report.

The Internal Auditor (BDO) had submitted a report to inform the Audit and Governance Committee of progress made against the 2025/2026 internal audit plan. 

The Internal Auditor was present to respond to questions. 

Phil McGaskill, the Revenues Service Delivery Manager, was also present.   

The Internal Auditor summarised the report and noted that a moderate opinion had been determined overall, noting some areas for improvement.   

The Chair invited questions from the Committee.  

Councillor Munkonge, in relation to page 69 and account payables, noted his concern at the information relating to issues with payment cards, and in relation to page 72, noted the management response which implied other priorities were taking precedent. It was asked when this matter would be addressed.  

The Internal Auditor explained that a separate and full review of purchasing cards has been completed and will be presented at the next meeting in October. The Committee heard that this report would highlight some concerns but recognises that progress is being made.  

The Group Finance Director explained management have taken action to suspend purchase cards where necessary until such time that the responsible officer has been able to meet approval requirements. The Committee heard that the Group Finance Director is confident that the information will be updated as required and is seeking to ensure that the issues does not emerge again. The Revenues Service Delivery Manager explained that payment card instructions are also being reissued to all officers holding payment cards with procedure notes. Regarding easements, the Committee heard that other areas have taken precedent, and whilst timelines cannot be confirmed, there is a plan to review the easement accounts by the end of the financial year.  

The Chair queried how many purchase cards exists within the Council to which the Group Finance Director estimated between 50 and 60. The Chair asked whether this could be reduced to which the Revenues Service Delivery Manager confirmed that a process is currently ongoing to assess the need for each card and explained that assessment is being made of whether some could be swapped for purchase order arrangements instead. The Committee also heard that credit card limits are being reviewed but caution is being paid to ensure support for teams which may need higher limits to respond to emergency situations is maintained. The example of provision of urgent temporary accommodation was provided. The Chair recognised the link between this matter and ongoing work to set up long term agreements with temporary housing providers. The Chair also supported the need for emergency transactions to be enabled via purchase cards as required.  

The Internal Auditor provided a summary of the affordable housing management project which involves a review of how arrangements are overseen, including work with OX Place. It was noted that some low areas of concern had been identified and these were summarised, as noted in the report.  

Councillor Harley joined the meeting. 

Finally, the Internal Auditor informed the Committee that there may be an additional review of housing allocations in 2025/26. The Group Finance Director explained that was taking place at the request of the Housing Director in response to expectations of the Housing regulator. The Committee welcomed the suggestion. 

The Audit and Governance Committee noted the report.