Agenda item

To receive a report from the Internal Auditor on Internal Audit Progress & Follow-up Report.

Recommendation: That the Committee is requested to:

• Receive and note progress with the 2025/26 Internal Audit Plan and outstanding recommendations.

• Approve the change to the Internal Audit Plan

The HIA updated the Committee on matters since the report was written, namely that the procurement report had started, a drat report on Corporate Governance audit has been issued, the PPM audit remains behind, and the draft report is awaited. There are 2 final executive report summaries for the follow up work relating to risk management and workforce strategy and development audits. In addition, the HR application audit planned had been cancelled as the new system had not being purchased at this point. She noted the 25 outstanding recommendation and explained that the recommendation relating to land charges had been closed.

Cllr Heinrich asked for clarification on the outstanding recommendations relating to Cyber Security. The Chair noted those recommendations were due at the end of the month. DFR confirmed the actions were due in the next 7 days and understood oi related to documenting all data and assets, noting that this would be necessary for LGR in any event. The DSD added that the recommendations are reviewed monthly and there is a slight lag in terms of what is reported to this Committee.

The Independent Person noted the executive summary on risk management and asked whether the intention was to include some of those insights into the Committee’s June session on risk management generally, together with his previously submitted thoughts on improving risk management. The HIA noted that the Committee received a monthly report on risk management. The Independent person reflected that the insights from this audit would be useful for the June discussions.

Cllr Cushing referred to page 82 and the key control and assurance relating to sums due under penalty charge notices administered by KLWNBC. The DFR confirmed to the Committee that KLWNBC provided an outsource service and that the agreement included a 60/40 split of penalty charges.  He believed the audit recommendation related to a lack of information to reconcile the payments, however there was no evidence to suggest NNDC was not receiving the correct sums. Recently there had been greater momentum of information from KLWNBC.

The Chair asked for further information relating to the S.106 arrangements (page 88). The DSD confirmed that the issue for potential clawback was under control and audit recommendations in this regard would be closed off at the next update. The Chair noted the requirement to ensure regular reporting. The DSD updated the Committee on the EXACOM system and appropriate staffing in this area and that the recommendation in this regard is close to be completed.

The Independent Person asked for an explanation of the conditions that need to exist to close a recommendation. The HIA explained that for some recommendations, such as “implement a procedure”, these were easier to identify closure evidence which would be signed off by the auditor.  Some recommendations were not as clear and where some difficulty appears as there may not be so clear evidence and requires a conversation between Officers and HIA to assess closure.

Cllr Tooke proposed and Cllr Fisher seconded that the Committee note the progress with the 2025/26, Internal Audit Action Plan and outstanding recommendations and approve the change to the Internal Audit Plan.  It was resolved unanimously to do so.