Agenda item

Report of the Head of Internal Audit.

The Committee received a report of the Head of Internal Audit concerning an update on the work of Internal Audit during January, February and March 2025, further to the update report provided to the February meeting of this Committee.

The following points were noted:

• A red-rated issue was identified in the Environment Department (cemetery and crematorium) concerning income discrepancies. The root cause was over-reliance on verbal daily reconciliations. A high-priority recommendation to document the process was implemented immediately, and the audit received a “substantial” rating.
• A Member queried whether the outdated accounting system (approx. 30 years old) contributed to the discrepancy. An update on this would be provided after the meeting.
• The procurement audit focused on managing conflicts of interest. While interest declarations are captured, there was a significant gap in how declared interests are managed to prevent conflicts. Recommendations were well received, with several implemented immediately and others on a short timeline. A follow-up is scheduled for June.
• A Member asked whether the new procurement system would capture conflict of interest data. It was confirmed this is being considered, and the auditor has joined a procurement improvement group to provide ongoing assurance.
• The 2025–26 Internal Audit Plan includes audits on contract management and related themes. A suggestion was made to present audits thematically (e.g., by risk category) rather than by department to better align with risk management discussions.
• Internal Audit confirmed they are working on this thematic approach, including visual representations and categorisation by internal control, governance, and risk management focus. The current list format will evolve in future iterations.

RESOLVED – That, the report be noted.