Agenda item

To consider the report of the Director of Resources (copy enclosed, Members’ Update to be circulated)*

The Committeeconsidered thereport ofthe Director ofResourcesandassociated Internal Audit reports from BDO LLP, attached on the agenda at 6a to 6g, Progress Report; Follow-up of Recommendations; Contract Management; Safeguarding; Strategic Performance Place; Community Safety and the Internal Audit Plan 2023/26.

The Chairman introduced the reports and deferred to the Internal Audit Partner to present the detail taking each report in turn, with questions after each one. He took the Committee through the pack starting with the Progress Report. It was noted that this report showed four reports finalised, one from last year and one from 2022/23. There had been one change in the Audit Plan whereby Workforce Management had been moved to next year due to timing and this had been replaced by a Review of Human Resource Management Systems.. All remaining work was on track to be reported at the June Committee.

The Follow-up of Recommendations report showed five recommendations outstanding which included three relating to Flood Management. He reported that Internal Audit would like to see these completed as soon as possible and reassured Members that actions were already underway to complete.

In response to issues raised Officers provided the following information:-

• That Scrutiny training was included in the new ‘Member Onboarding Training Programme’.

• That work on the Review of Service Delivery would address issues around outstanding recommendations e.g. under Flood Management to ensure timely completion going forwards. An update on this work will be circulated to Members outside of the meeting.

• That currently there was a review taking place of designated safeguarding officers together with a refresh of both the meeting structure and membership. Furthermore this area of work had been escalated to Overview and Scrutiny Committee for review. Officers reassured the Committee that response rates to Safeguarding reports was not adversely impacted by this ongoing work.

• That Internal Audit was happy to refine the wording in the Corporate Governance Section around the completed recommendations dealing with area planning committees. It was to be expected that the appeals statistics were largely delegated decisions as the majority of planning decisions were delegated as opposed to Committee decisions. It was noted that Planning Appeal statistics were considered at the performance meeting of the Performance, Governance and Audit Committee (PGA) through the Balance Scorecard report.

• That in line with a previous statement to Council regarding the Environment Agency’s process when reviewing flood risk management a full consultation will be undertaken engaging with all Ward Members.

There being no further queries the Internal Audit Partner presented the Contract Management Final Report. It was noted that this was outstanding from last year and attained a level of assurance as moderate on both design and effectiveness. Good practice and policies had been evidenced, however, from the sample audited there were inconsistencies in that performance monitoring meetings had not taken place for all sampled. A good management response had been received addressing these issues and an update would be provided at the June meeting.

In response to issues raised Officers provided the following information:-

• That a new Contract Policy was now in place, all procedures had been updated with guidance and training underway. It was noted that some of the contracts reviewed were up for renewal and Officers would ensure that robust Key Performance Indicators (KPIs) and monitoring procedures were in place for all renewed and existing contracts.

• That information around penalty clauses would be circulated to Members outside of the meeting. That the sample reviewed by Internal Audit were significant contracts to ensure they were being managed robustly.

• That in respect of safeguarding related issues around contracts, Officers liaised with the Lead Specialist Community to ensure appropriate safeguarding checks were in place.

The Internal Audit Partner then presented the Safeguarding Final Report that attained limited assurance on design and moderate on effectiveness. There had been improvements since the previous audit largely as a result of the new case management system that now tracked all documentation. A sample of five areas of safeguarding concern were tested and all had been managed appropriately. Whilst there had been improvement more was needed in respect of vetting volunteers/contractors, attendance at meetings and the safeguarding policy. A good action plan was in place to ensure all the aforementioned areas were addressed and this would be reported back in due course.

In response to issues raised the Lead Specialist: Community reassured Members that all safeguarding concerns were being managed appropriately. The processes were now in place to undertake appropriate verification checks on the volunteer list which will be completed by end of April 2023 and the approved version will be available on SharePoint for all to access, including Members. The Safeguarding Policy was due to be refreshed in 2023/24, taking account of gaps and actions highlighted in the audit.

The Internal Audit Partner presented the Strategic Performance Place report that attained substantial on design and moderate on effectiveness. Sound policies were in place, good practice and good reporting.  Issues for concern related to actions from PGA meetings and the need to evidence that actions requested by Members were addressed. Progress will be reported at the June meeting. It was noted that the Matters Arising report should assist in this regard. He then took the Committee through the  Community Safety report that had attained substantial assurance on design and moderate on effectiveness. This was a very positive report, good practice, a community safety plan in place, good risk assessment and good public engagement. The only recommendation coming forward was around low attendance at the Responsible Authority Group (RAG). This had been accepted as an issue and Internal Audit will follow-up in due course.

The Community Safety Partnership Manager in response said he welcomed the recommendation. Attendance from Maldon District Council was not in question as the Member representative had a 100% attendance record. It was imperative to have full representation so an agreed delegation was required.  All meetings were scheduled in advance so there was ample opportunity to organise substitutions. He advised that the  Audit report would be considered at the next RAG meeting and he would provide feedback on the outcomes of the discussion.

Officers agreed that a substitute for the Member representative on the RAG be considered at the Statutory Annual meeting of the Council.

The Internal Audit Partner concluded by presenting the Internal Audit Plan 2023/26. He reported that this had been discussed and agreed with Officers. It reflected  the Corporate Risk Register and that there was flexibility within the plan to move audits should more urgent issues arise. The Chairman congratulated Internal Audit for its proactive approach.

In response to issues raised Officers provided the following information:-

• That in terms of rating a likelihood of 4 and an impact of 4 was a very high risk rating, anything above that would be corporate failure. That in terms of R11 – Failure to protect commercially sensitive data - whilst the impact was a 4 the likelihood was lower because of the mitigations that have been put in place.

• That this report was the Internal Audit Plan that speaks to the Corporate Risk Register. The Corporate Risk Register was considered/monitored at the Performance meeting of PGA on a quarterly basis.

• That R4 - Failure to influence Community Safety Partnerships to address the key areas of public concern (including rural crime) and the negative impact of crime;and R10 - Failure to develop jobs to support the growing population will be audited again in 2 years’ time as the situation continuously fluctuates.

• That Capital and Commercial Project Management will be brought forward to Quarter 1 2024/25 to consider including an emphasis on delivering projects with challenging timelines to ensure all major projects were brought forward and completed to time.

·        That the reporting on Management of s106 Funds, currently reporting Q4 will be reviewed and brought forward.

• That IT Asset Management, to include the digital connectivity challenges, will be demonstrated on the updated Internal Audit plan.

• That Budget and Performance Management was covered through the audit of Main Financial Systems and reported regularly to Strategy & Resources Committee.

There being no further discussion the Chairman put the recommendations to the Committee and they were agreed by assent.

RESOLVED that the Committee considered, commented, and approved the following:

(i)               Internal Audit Progress Report – at  6a;

(ii)              Follow-up of Recommendations Report –at 6b;

(iii)            Contract Management –2021/22– at 6c;

(iv)            Safeguarding 2022/23 - at 6d;

(v)             Strategic Performance – Place 2022/23 - at 6e;

(vi)            Community Safety 2022/23 – at 6f;

(vii)          Internal Audit Annual Plan 2023/24 & Strategic Plan 2023/26 - at 6g.