Agenda item

Committee considered a detailed report in relation to the Internal Audit Consortium Annual Report and the Head of Internal Audit’s opinion on the adequacy of the Council’s arrangements for governance, risk management and control.

The Public Sector Internal Audit Standards (PSIAS) (applicable for the 2024/25 financial year) required that the Head of Internal Audit Consortium delivered an annual internal audit opinion and report that could be used by the organisation to inform its Annual Governance Statement.

The annual internal audit opinion must conclude on the overall adequacy and effectiveness of the organisation’s framework of governance, risk management and internal control.  The work of internal audit over the year allowed the Head of Internal Audit to form the annual internal audit opinion as required by the PSIAS.  The opinion was also derived from other assurances such as the work of the Risk Management Group and Public Sector Network compliance.

The Head of Internal Audit’s opinion for 2024/25 was set out in the annual report and was:

In my opinion reasonable assurance can be provided on the overall adequacy and effectiveness of the Council’s framework for governance, risk management and control for the year ended 2024/25.  In terms of Dragonfly Management (Bolsover) Ltd reasonable assurance can also be provided.  In respect of Dragonfly Development Ltd the Council is placing reliance on the assurance received from the company’s external auditors.  The governance arrangements between the Council and the companies have not been assessed by internal audit during the year as the Council have commissioned a review by the Local Partnerships commencing in April 2025.

In this context “reasonable assurance” means that arrangements are in place to manage key risks and to meet good governance principles but there are some areas where improvements are required.  Assurance can never be absolute.

The annual report also provided a summary of the work undertaken by Internal Audit in 2024/25, information on the performance of the Internal Audit service, an assessment of conformance against the PSIAS and the results of the Quality Assurance and Improvement Programme (QAIP).  A progress update in respect of the action plan to achieve full compliance with the Global Internal Audit Standards was also included.

In response to a Member’s query, the Head of Internal Audit Consortium advised that when the Audit Plan was formulated, all areas of the Council were covered and also the risk and value of transactions.  High risk areas were looked at every one to two years and low risk impact was looked at around every five years.

In response to a Member’s queries regarding the non-decent homes audit, the Head of Internal Audit Consortium advised that this was a special project Internal Audit were asked to complete to see if non decent homes data was being submitted accurately.  The Section 151 Officer added that if the stock condition survey data showed that certain work needed carrying out which was different to what was being carried out under the capital programme for the HRA, then the capital programme work would be changed to address the stock condition survey requirements, however, this could be carried out over a number of years and would be approved within the Medium Term Financial Plan.

Moved by Councillor Steve Fritchley and seconded Councillor Cathy Jeffery

RESOLVED that the 2024/25 Internal Audit Consortium Annual Report and the overall assurance opinion on the Council’s governance, risk management and control arrangements, be accepted.