Report of: The Internal Auditor, BDO

Purpose of report: To update the Audit and Governance Committee.

Recommendation(s): that the Committee notes and discusses the report.

This report will be provided as a supplement to the agenda.

The Internal Auditor (JT) provided a comprehensive summary of the report and explanation of the scoring process used to monitor the progress of recommendations. The Council’s progress towards its outstanding recommendations was summarised and those of concern were emphasised, with a description provided for any delayed deadlines.  

The Interim Monitoring Officer, the Rapid Rehousing Manager, the Organisational Development Manager, and the Diversity and Inclusion Specialist were also present to respond to questions.  

The Group Finance Director echoed the comments from the Internal Auditors and the improvements needed on some recommendations from within the Council. Specific mention was made to delays to several recommendations from the Law, Governance and Strategy directorate and the requirement for managers to comment and report back to the Committee was noted.  

The Interim Monitoring Officer relayed an update from the Law, Governance and Strategy directorate, noting that the permanent Monitoring Officer would be returning soon, at which time the delays would be addressed. Updates relating to BDO’s ability to access shared documents following the cyber-attack were noted as reason for some miscommunication on delayed recommendations. The Interim Monitoring Officer recognised the legitimate concerns of Members in relation to these delays and echoed that responses should be timely.  

The Chair recommended that the matters be brought to the Monitoring Officer’s attention on her return. The Internal Auditor (JT) supported this and welcomed a direct meeting to discuss the delayed recommendations.   

The Internal Auditor (GD) noted the verbal update of the Interim Monitoring Officer and recognised that sharing of information could have been limited by recent internal server issues. The Internal Auditor (GD) committed to following up with the Monitoring Officer through a direct meeting. 

The Chair requested that members be informed if there is a long-term technology issue.  

 
Councillor Smith expressed concerns around the delayed recommendation relating to income generation and asked if this could be a result of issues with new IT systems. 

The Group Finance Director provided an update on the procurement process relating to the IT system and explained that the delays resulted from the procurement failing to comply with new regulations. As a result, the procurement was pulled and the process restarted. The Committee heard that the tendering process was expected to be completed within the first three months of 2026.  

The Organisational Development Manager commented in relation to recruitment and retention and clarified that recommendation 1A is now in progress, with the final steps being taken to CLT for approval; it was confirmed that this was on track. In relation to recommendations 2A and 2B, it was explained that the recommendation cannot be achieved as the capability does not currently exist until the system is changed; it is on the re-procurement list. The Committee heard that the contract with the current IT provider has been extended until a new system could be purchased and implemented.  

The Chair noted the delayed recommendations 3A, 3B, and 3C relating to homelessness, to which Rapid Rehousing Manager explained that progress is on track. The Committee were informed that a new framework is being established with new suppliers, and this information has been shared with the Internal Auditors. The Rapid Rehousing Manager outlined the challenges relating to the council’s terms and conditions and the impacts this has had on the ability to procure larger suppliers of emergency housing and temporary accommodation; negotiations are ongoing. The Committee were informed that with more suppliers, comes more competitiveness and value for money for the Council and the framework will be launched once it is deemed that there are enough suppliers to respond to demand. Finally, in relation to the recommendation for systems integration between QL and housing benefits systems, the Rapid Rehousing Manager explained that the possibility does not currently exist but that it could be discussed with IT colleagues for the future.  

Councillor Regisford left and rejoined the meeting during this discussion.  

The Diversity and Inclusion Specialist left the meeting and did not return. 

Councillor Ottino queried the problems with suppliers which were referred to, and the Rapid Rehousing Manager summarised complexities relating to terms and conditions, indemnities, and the size and scale of suppliers. 

The Chair thanked the Internal Auditors and officers and recommended that a meeting with the Monitoring Officer be scheduled soon after her return. 

The Committee reviewed and noted the report. 

The Organisational Development Manager left the meeting and did not return.