Internal Audit Progress Report 2024-25
February 2025
New Forest District Council
Contents:
|
1. |
Role of Internal Audit |
3 |
|
2. |
Purpose of report |
4 |
|
3. |
Performance dashboard |
5 |
|
4. |
Analysis of ‘Live’ audit reviews |
6-8 |
|
5. |
Executive summaries ‘Limited’ and ‘No’ assurance opinions |
9 |
|
6. |
Planning and resourcing |
9 |
|
7. |
Rolling work programme |
9-11 |
|
Annex 1 |
Adjustments to the plan |
12-13 |
|
|
|
|
1. Role of Internal Audit
The requirement for an internal audit function in local government is detailed within the Accounts and Audit (England) Regulations 2015, which states that a relevant body must:
‘Undertake an effective internal audit to evaluate the effectiveness of its risk management, control and governance processes, taking into account public sector internal auditing standards or guidance.’
The standards for ‘proper practices’ are laid down in the Public Sector Internal Audit Standards [the Standards – updated 2017].
The role of internal audit is best summarised through its definition within the Standards, as an:
‘Independent, objective assurance and consulting activity designed to add value and improve an organisations’ operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes’.
New Forest District Council is responsible for establishing and maintaining appropriate risk management processes, control systems, accounting records and governance arrangements. Internal audit plays a vital role in advising the Council that these arrangements are in place and operating effectively.
The Council’s response to internal audit activity should lead to the strengthening of the control environment and, therefore, contribute to the achievement of the organisations’ objectives.
2. Purpose of report
In accordance with proper internal audit practices (Public Sector Internal Audit Standards), and the Internal Audit Charter the Chief Internal Auditor is required to provide a written status report to ‘Senior Management’ and ‘the Board’, summarising:
· The status of ‘live’ internal audit reports;
· an update on progress against the annual audit plan;
· a summary of internal audit performance, planning and resourcing issues; and
· a summary of significant issues that impact on the Chief Internal Auditor’s annual opinion.
Internal audit reviews culminate in an opinion on the assurance that can be placed on the effectiveness of the framework of risk management, control and governance designed to support the achievement of management objectives of the service area under review. The assurance opinions are categorised as follows:
|
Substantial |
A sound system of governance, risk management and control exists, with internal controls operating effectively and being consistently applied to support the achievement of objectives in the area audited. |
|
Reasonable |
There is a generally sound system of governance, risk management and control in place. Some issues, non-compliance or scope for improvement were identified which may put at risk the achievement of objectives in the area audited. |
|
Limited |
Significant gaps, weaknesses or non-compliance were identified. Improvement is required to the system of governance, risk management and control to effectively manage risks to the achievement of objectives in the area audited. |
|
No |
Immediate action is required to address fundamental gaps, weaknesses or non-compliance identified. The system of governance, risk management and control is inadequate to effectively manage risks to the achievement of objectives in the area audited. |
3. Performance dashboard
|
Compliance with Public Sector Internal Audit Standards An External Quality Assessment of the Southern Internal Audit Partnership was undertaken by the Institute of Internal Auditors (IIA) in September 2020. The report concluded: ‘The mandatory elements of the International Professional Practices Framework (IPPF) include the Definition of Internal Auditing, Code of Ethics, Core Principles and International Standards. There are 64 fundamental principles to achieve with 118 points of recommended practice. We assess against the principles. It is our view that the Southern Internal Audit Partnership conforms to all 64 of these principles. We have also reviewed SIAP conformance with the Public Sector Internal Audit Standards (PSIAS) and Local Government Application Note (LGAN). We are pleased to report that SIAP conform with all relevant, associated elements.’
|
4. Analysis of ‘Live’ audit reviews
|
Audit Review |
Report Date |
Audit Sponsor |
Assurance Opinion |
Total Management Action(s) |
Not Yet Due |
Complete |
Overdue |
||||||
|
|
|
|
|
|
|
L |
M |
H |
|||||
|
Fleet Management (follow-up phase 2) |
May 23 |
SM (W&T) |
Reasonable |
9 |
0 |
7 |
2 Actions to be re-evaluated. |
||||||
|
Engineering Works |
Aug 23 |
SM (C) |
Limited |
10 |
0 |
7 |
3 Actions to be re-evaluated. |
||||||
|
Commercial Activities – Appletree Holdings |
Oct 23 |
SM (E&V) |
Substantial |
1 |
0 |
0 |
1 Action to be re-evaluated. |
||||||
|
Open Spaces and Playground Safety Checks |
Dec 23 |
G&SM |
Limited |
12 |
0 |
7 |
5 Actions to be re-evaluated. |
||||||
|
Housing Asset Management – Electrical Safety Checks |
Feb 24 |
SM (HM) |
Reasonable |
8 |
0 |
6 |
2 low priority actions progressing. |
||||||
|
Business Continuity |
Mar 24 |
SM (E&R) |
Reasonable |
2 |
0 |
0 |
2 Actions to be re-evaluated. |
||||||
|
Transformation Programme – Governance Arrangements |
May 24 |
ADT |
Reasonable |
3 |
0 |
0 |
3 Actions to be re-evaluated. |
||||||
|
Corporate Governance Framework – Fraud Framework |
May 24 |
SM (CSR&B) |
Reasonable |
5 |
0 |
5 |
3 further actions completed (pending Audit Committee Approval)* |
||||||
|
Accounts Payable |
Jun 24 |
FIN |
Reasonable |
5 |
1 |
3 |
1 Action to be re-evaluated. |
||||||
|
Animal Welfare Licencing |
Jun 24 |
SM (E&R) |
Reasonable |
6 |
1 |
5 |
|
|
|
||||
|
Housing Rent Reconciliations |
Jul 24 |
SM (HO) |
Reasonable |
5 |
0 |
3 |
3 actions completed. 2 high priority actions progressing. |
||||||
|
Parking and Enforcement * |
Aug 24 |
EE&AM |
Reasonable |
7 |
0 |
7 |
1 further action completed. |
||||||
|
Health and Safety |
Nov 24 |
SM (HR) |
Reasonable |
6 |
3 |
3 |
|
|
|
||||
|
Contract Management – Leisure Contract |
Nov 24 |
SDCR&T |
Substantial |
1 |
1 |
0 |
|
|
|
||||
|
Budget Planning/Setting |
Dec 24 |
ADFIN |
Substantial |
3 |
2 |
1 |
|
|
|
||||
|
Risk Management |
Dec 24 |
ADFIN |
Limited |
14 |
1 |
11 |
5 further actions completed. 2 actions to be re-evaluated in light of the agreed risk management policy. |
||||||
|
HR – Recruitment/Statutory Responsibilities |
Dec 24 |
SM (HR) |
Substantial |
2 |
1 |
1 |
1 action completed |
||||||
|
Payroll and Expenses |
Feb 25 |
SM (HR) |
Substantial |
2 |
2 |
0 |
|
|
|
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|
Total |
|
|
|
||||||||||
* Denotes audits where all actions have been completed since the last progress report
Update on the overdue actions
There are some long standing actions in particular which need to be reconsidered within the current context facing the Council. As time progresses, on occasion, the actions and timescales originally agreed become less relevant and outdated and it therefore becomes increasingly difficult to track the actions through to completion. Over the next quarter, we will work with the Council to agree a process to expediently re-assess, where relevant, if the originally agreed actions:-
· are still relevant and if so, the expected timescales for completion,
· have become superseded due to alternative action(s) taken which has addressed the risks identified,
· will be taken forward within wider corporate initiatives and if so, how best to monitor the progress and completion, or
· whether action(s) will no longer be taken and any residual risk is accepted.
It is imperative that the Council continue to own their actions, any decisions made are fully documented, endorsed by the relevant Director/EMT and reported through to the Audit Committee. Internal Audit will provide support and advice when needed but must remain independent of the decision-making process.
|
Audit Sponsor |
|
Audit Sponsor |
|
|
Chief Executive |
CX |
Assistant Director Place Development |
ADPD |
|
Communications Manager |
CM |
Service Manager (Development Management) |
SM (DM) |
|
Strategic Director Housing & Communities |
SDH&C |
Service Manager (Policy & Strategy) |
SM (P&S) |
|
Assistant Director Housing |
ADH |
Building Control Manager |
BCM |
|
Service Manager (Housing Maintenance) |
SM (HM) |
Climate Change Manager |
CCM |
|
Service Manager (Housing Options, Rents Support and Private Sector Housing) |
SM (HO) |
Strategic Director Corporate Resources & Transformation |
SDCR&T |
|
Service Manager (Strategy & Development) |
SM (S&D) |
Service Manager (Estates & Valuation) |
SM (E&V) |
|
Greener Housing Development Manager |
GHDM |
Service Manager (Customer Services, Revenues & Benefits) |
SM (CSR&B) |
|
Anti-Social Behaviour Manager |
ASBM |
Assistant Director Finance |
ADFIN |
|
Tenant Engagement Manager |
TEM |
Strategic Procurement Manager |
SPM |
|
Rent, Accounting & Home Ownership Manager |
RA&HOM |
Assistant Director Transformation |
ADT |
|
Service Manager (Estate Management & Support) |
SM (EM&S) |
Service Manager (Human Resources) |
SM (HR) |
|
Service Manager (Environmental & Regulation) |
SM (E&R) |
ICT Operations Manager |
ICTOM |
|
Strategic Director Place, Operations & Sustainability |
SDPOS |
Data Development & Delivery Manager |
DDDM |
|
Assistant Director Place Operations |
ADPO |
Transformation & Improvement Manager |
T&IM |
|
Service Manager (Waste & Transport) |
SM (W&T) |
Assistant Director Governance & Monitoring Officer |
ADG&MO |
|
Service Manager (Coastal) |
SM (C) |
Service Manager (Democratic & Support Services) |
SM (D&SS) |
|
Environment Enforcement & Amenities Manager |
EE&AM |
Information Governance & Complaints Manager |
IG&CM |
|
Grounds & Streetscene Manager |
G&SM |
|
|
5. Executive Summaries of reports published concluding a ‘Limited’ or ‘No’ assurance opinion
No new audits have concluded with a Limited or No assurance opinion since the previous progress report.
6. Planning & Resourcing
The Internal Audit Plan for 2024-25 was agreed by EMT and approved by the Audit Committee in March 2024. The audit plan remains fluid to provide a responsive service that reacts to the changing needs of the Council. Progress against the plan is detailed within section 7.
7. Rolling Work Programme
|
Audit Review |
Sponsor |
Scoping |
Terms of reference |
Fieldwork |
Draft Report |
Final Report |
Assurance Opinion |
Comment |
|
2023-24 Audits (included within the annual report and opinion) |
||||||||
|
Procurement |
SPM |
ü |
ü |
ü |
May 24 |
Jun 24 |
Reasonable |
|
|
Accounts Payable |
FIN |
ü |
ü |
ü |
May 24 |
Jun 24 |
Reasonable |
|
|
Homelessness – Prevention and Relief |
SM (HO) |
ü |
ü |
ü |
Mar 24 |
May 24 |
Reasonable |
|
|
Animal Welfare Licencing |
SM (E&R) |
ü |
ü |
ü |
May 24 |
Jun 24 |
Reasonable |
|
|
2024-25 Audits |
|
|
|
|
|
|
|
|
|
Corporate / Governance Framework |
|
|
|
|
|
|
|
|
|
Corporate Plan / Performance Management |
ADT |
ü |
|
|
|
|
|
Scoped |
|
Corporate Governance Framework – Fraud Framework |
SM (CSR&B) |
ü |
ü |
ü |
May 24 |
May 24 |
Reasonable |
|
|
Corporate Governance Framework |
ADG&MO |
ü |
ü |
ü |
Feb 25 |
|
|
|
|
Budget Planning/Setting |
ADFIN |
ü |
ü |
ü |
Nov 24 |
Dec 24 |
Substantial |
|
|
Partnership Working – Town and Parish Councils |
ADPO |
ü |
ü |
ü |
|
|
|
Completed fieldwork under management review |
|
Information Governance – Data Retention/Records Management |
IG&CM |
ü |
ü |
ü |
Jan 25 |
|
|
|
|
Contract Management – Leisure Contract |
SDCR&T |
ü |
ü |
ü |
Oct 24 |
Nov 24 |
Substantial |
|
|
Health and Safety |
SM (HR) |
ü |
ü |
ü |
Aug 24 |
Nov 24 |
Reasonable |
|
|
Risk Management |
ADFIN |
ü |
ü |
ü |
Jun 24 |
Dec 24 |
Limited |
|
|
Human Resources |
|
|
|
|
|
|
|
|
|
HR – Recruitment/Statutory Responsibilities |
SM (HR) |
ü |
ü |
ü |
Dec 24 |
Dec 24 |
Substantial |
|
|
Core Financial Systems |
|
|
|
|
|
|
|
|
|
Housing Benefits |
SM (CSR&B) |
ü |
ü |
ü |
|
|
|
Fieldwork nearing completion |
|
Payroll and Expenses |
SM (HR) |
ü |
ü |
ü |
Feb 25 |
Feb 25 |
Substantial |
|
|
Treasury Management |
ADFIN |
ü |
ü |
ü |
|
|
|
Fieldwork February/March at NFDC’s request |
|
Information Technology |
|
|
|
|
|
|
|
|
|
IT – Contract Management |
ICTOM |
ü |
ü |
ü |
Jul 24 |
Jul 24 |
Substantial |
|
|
IT – Project Delivery |
ICTOM |
ü |
ü |
ü |
|
|
|
Fieldwork complete. Close meeting held. |
|
IT – Firewall Management and Monitoring |
ICTOM |
ü |
ü |
ü |
|
|
|
|
|
Portfolio Themes |
|
|
|
|
|
|
|
|
|
Housing Management – Right to Buy |
SM (HO) |
ü |
ü |
ü |
|
|
|
Completed fieldwork under management review |
|
Housing Allocations |
SM (HO) |
ü |
ü |
ü |
Jun 24 |
Jul 24 |
Reasonable |
|
|
Housing Rent Reconciliations |
SM (HO) |
ü |
ü |
ü |
Jun 24 |
Jul 24 |
Reasonable |
|
|
Housing Asset Management – Lift Inspections |
SM (HM) |
ü |
ü |
ü |
Feb 25 |
|
|
|
|
Housing Asset Management – Gas Safety |
SM (HM) |
ü |
ü |
ü |
|
|
|
|
|
Housing Asset Management – Asbestos |
SM (HM) |
ü |
ü |
ü |
|
|
|
Completed fieldwork under management review |
|
Housing Enforcement |
SM (HO) |
ü |
ü |
ü |
Feb 25 |
|
|
|
|
Community Infrastructure Levy Expenditure Framework |
SM (DM) |
ü |
ü |
ü |
May 24 |
Jun 24 |
Substantial |
|
|
Environmental Health - Local Air Pollution Prevention and Control (LAPPC) |
SM (E&R) |
ü |
ü |
ü |
|
|
|
|
|
Licencing |
SM (E&R) |
ü |
|
|
|
|
|
Scoped |
|
Parking and Enforcement |
EE&AM |
ü |
ü |
ü |
Jul 24 |
Aug 24 |
Reasonable |
|
|
Environmental Enforcement - Clean Streets |
EE&AM |
ü |
ü |
ü |
Dec 24 |
|
|
|
|
Cemeteries |
G&SM |
ü |
ü |
ü |
Feb 25 |
|
|
|
|
Keyhaven – Income & PCard Expenditure |
SM (C) |
ü |
ü |
ü |
|
|
|
Completed fieldwork under management review |
Annex 1 - Adjustments to the plan
|
Audit reviews added to the plan (included in rolling work programme above) |
Comment |
|
Corporate Governance Framework – Fraud Framework * |
Brought forward from 2023/24 as work in progress |
|
Information Governance – Data Retention/Records Management * |
Brought forward from 2023/24 as work in progress & combined with 2024/25 review. |
|
Contract Management – Leisure Contract * |
Brought forward from 2023/24 as work in progress |
|
Health and Safety * |
Brought forward from 2023/24 as work in progress |
|
Risk Management * |
Brought forward from 2023/24 as work in progress |
|
IT – Contract Management * |
Brought forward from 2023/24 as work in progress |
|
Housing Allocations * |
Brought forward from 2023/24 as work in progress |
|
Housing Rent Reconciliations * |
Brought forward from 2023/24 as work in progress |
|
Community Infrastructure Levy Expenditure Framework * |
Brought forward from 2023/24 as work in progress |
|
Parking and Enforcement * |
Brought forward from 2023/24 as work in progress |
|
Clean Streets – Enforcement * |
Brought forward from 2023/24 as work in progress |
|
Keyhaven – Income & PCard Expenditure *** |
Direct request from the Management Team to review specific areas of activity. |
|
Audit reviews removed from the plan (excluded from rolling work programme) |
Comment |
|
Environmental Services – New Waste Strategy ** |
Proposed by the Council as no longer required as the programme board now have the required level of assurance on this project. |
|
Housing Asset Management – Voids *** |
There is currently a project underway to review the end-to-end process with managing voids therefore it is proposed to defer the audit until the project has been completed and any corresponding changes to the process have been implemented and become embedded. |
|
Building Control *** |
The Building Safety Regulator will be undertaking a full audit of the Building Control Service during December 2024 – January 2025 therefore it is proposed to defer the review for 18 months to enable the Service to implement (if applicable) the findings from the Regulator’s audit. |
|
Programme & Project Management *** |
It is proposed to combine this review with the Transformation Programme audit due to prevent duplication. |
|
Asset Management (Corporate Estate) *** |
The Council commissioned Mace to review the current operating model and approach to strategic asset management within the Estates, Valuations & Facilities Management Team and have recommended a roadmap for implementation over the next 12 months therefore it is proposed to defer the audit whilst the Service action the recommendations. |
|
Planning/Development Management **** |
The Team are in discussions with the Planning Advisory Service regarding a peer review in the new Financial Year which will cover the end to end planning process therefore the have proposed to defer the review. |
|
Emergency Planning **** |
The Council are currently in the process of advertising and recruiting into a vacant emergency planning officer post and are due to begin a new SLA with Southampton and Portsmouth City Council at the beginning of April for additional support on the emergency planning function. The Team have proposed to defer the review until the new arrangements have been implemented and become embedded. |
|
IT – Application Lifecycle Management **** |
The Service have introduced an Application Development Toolkit to manage applications lifecycle and have proposed to defer the review to 2025/26 whilst the arrangements become embedded. |
|
Transformation Programme **** |
The Team have proposed to defer the review whilst the programme is reassessed within the context of LGR. |
* Agreed July 2024; ** October 2024; *** January 2025
**** Proposed March 2025