Agenda item

To receive an update on the outcome of the Independent Peer Review undertaken by the LGA - “TO FOLLOW”.

Councillor M A Hassall, Executive Councillor for Corporate & Shared Services, was in attendance for this item.

A report by the Director of Finance and Corporate Resources was submitted (a copy of which is appended in the Minute Book) presenting the findings of the outcome of the Local Government Association’s Peer Review of Internal Audit which took place in March 2023.

In setting the context for the Peer Review, the Executive Councillor for Corporate & Shared Services advised the review was timely owing to the establishment of the Joint Administration and various Senior Management changes. The Managing Director (Interim) then provided background to the review which provided an external perspective on the Council’s Internal Audit function enabling the Council to maximise the benefits of the service upon the organisation. 17 recommendations had been proposed which have initially been agreed by the external auditors, Chair, Vice-Chair, Director of Finance and Corporate Resources and Internal Audit Manager.  Next steps would then be to develop an action plan for consideration by the Committee at either its July or September 2023 meeting. In his concluding remarks, the Managing Director (Interim) responded that the review had been a positive, useful and informative process.

Councillor A R Jennings raised questions relating to when the new strategic Risk Register would be brought to the Committee for consideration, the level of resources available within the Internal Audit Team and clarification on the new Assurance Board which had been referred to within the report. Having regard to the former, the Managing Director (Interim) responded that a fundamental review had taken place last year and reported to Committee at that time. The view was to split the register into two themes, namely strategic and corporate risks and service risks. Going forward both themes would be incorporated into a single register and presented to the Committee in due course. In respect of resources within the Internal Audit Team, it was reported around 2.2 FTE operated within the service but that this would be confirmed outside of the meeting. Assurances were delivered that the level of resource within the team was comparable to that of other authorities and that there had been a period of turnover within the team which was unusual for the service. Finally, the Committee were advised that the Assurance Board had been set up in addition to weekly Senior Leadership Team meetings to provide dedicated focus on accountability of issues with relevant colleagues sharing chairing roles. Matters that were considered at such meetings included risk, escalation, compliance and controls.

Referring back to the issue of resources within the Internal Audit Team, Councillor P J Hodgson-Jones questioned what options the Council had considered to resolve this given this was regarded as a key governance issue. The Managing Director (Interim) responded that in the past the option of exploring Shared Services with South Cambridgeshire and Cambridge City had been explored together with a further shared service option with seven other local authorities in Hertfordshire. The matter remains live and it might be that the Council repursues discussions in this respect or builds a resilience model around it to address the resource issues within the team. Councillor P J Hodgson-Jones commented that if the latter was pursued by the Council, to be mindful of the resulting governance and management issues which might arise.

Finally, a question was raised by Councillor J A Gray querying when the Committee would have sight of the Peer Review action plan. It was confirmed that owing to timescales, this might not be ready for the Committee’s July 2023 meeting but possibly the one thereafter in September 2023. Additionally, it was noted that the Committee would also have sight of the updated Risk Management Strategy too.

Whereupon, the Committee

RESOLVED

  to accept the recommendations arising from the Peer Review as outlined in the report now submitted.