Agenda item

The Committee considered a report of the Director of Corporate Resources the purpose of which was to present the Interim Head of Internal Audit’s (Nottingham City Council Internal Audit (NCCIA)) annual report and opinion on work undertaken at East Midlands Share Services (EMSS) for the year 2023-24.  The report also provided a progress update against planned internal audit work for the year 2024-25.  A copy of the report marked ‘Agenda Item 15’ is filed with these minutes.

The Chairman welcomed Mrs Parama Datta and Mr Rajeev Dasgupta from NCCIA to the meeting.

In presenting the report, Mr Dasgupta advised the Committee that:

·        Council financial pressures and staff shortages had affected the ability of NCCIA completing the 2023/24 audit of EMSS on time. 

·        Mrs Parama and Mr Dasgupta had recently joined NCCIA and had sought to re-baseline EMSS functions to ensure the next audit for 2024/25 could be delivered on time and in compliance with appropriate standards.

·        As staff shortages continued to be an issue, it would not be possible for NCCIA to complete the 2024/25 audit without supplementing its resources.  It was therefore tendering for additional support.

·        It was intended that the Audit Plan would be delivered in full by the end of the financial year (31^st March 2025).  All audits would be full audits in line with the Audit Plan.  Two would be conducted in November 2024 and January 2025 and others would then commence in January 2025 in time for reporting to the EMSS Joint Committee in March 2025.  Payroll would be considered as part of the first tranche of work to begin in November.

·        NCCIA had made a commitment at the EMSS Joint Committee meeting held that morning to improve its links with the County Council and to ensure monthly updates were provided to ensure both partners were kept fully informed.

The Chairman commented that the position had been an area of significant concern for the Committee and that the update provided at the previous meeting had not been reassuring.  However, he welcomed the information now provided, and in particular the proposal for officers at NCCIA to work more closely with the County Council and to keep it regularly informed of progress.

Arising from discussion and questions, the following points were made:

(i)               A Member expressed concern that delivery of the 2024/25 EMSS Internal Audit Plan would be reliant on further resources which were yet to be secured.  In response to questions raised, Mr Dasgupta confirmed that such additional resources had been approved by NCC’s Deputy Section 151 Officer and that it was expected that such cost could be accommodated within the Services current budget due to do the number of vacancies carried.

(ii)              A Member questioned whether this had also been approved by the Commissioners appointed to NCC by the Secretary of State.  Mr Dasgupta reported that whilst not so approved at the current time, it had been made clear that this was an expected cost that needed to be met for NCCIA to deliver its services both for NCC and EMSS. 

(iii)            Members noted that a review was underway to ‘right size’ the NCCIA function to ensure it was able to meet both NCC internal audit requirements and those of EMSS.  The tender for additional resources would be to support the service as a whole. 

The Chairman welcomed and appreciated the honest responses now provided but maintained there was still some degree of uncertainty, particularly regarding the additional resources required to support the 2024/25 audit.

The Chairman moved that a joint letter be sent by him and the Lead Member for Resources, copied to NCC’s Audit Committee Chair, Director of Finance and Chief Executive and to the Commissioners, seeking written assurance of the planned approach to deliver the 2024/25 audit on time, to provide monthly updates and to keep in regular contact with County Council officers and in particular regarding the allocation of resources necessary to do this, such resources having been agreed by the Commissioners. 

The motion was seconded and carried unanimously.
 
RESOLVED:

(a)  That the Head of Internal Audit (Nottingham City Council Internal Audit (NCCIA)) annual report and opinion for internal audit work undertaken at East Midlands Shared Service (EMSS) for the year 2023-24 be noted;

(b)  That the update now provided regarding planned internal audit work at EMSS by NCCIA for the year 2024/25 be noted;

(c)   That a joint letter be sent by the Chairman and the Lead Member for Resources, copied to NCC’s Audit Committee Chair, Director of Finance and Chief Executive and to the Commissioners, seeking written assurance of the planned approach to deliver the 2024/25 audit on time, to provide monthly updates and to keep in regular contact with County Council officers and in particular regarding the allocation of resources necessary to do this, such resources having been agreed by the Commissioners.