The Audit Committee of Rotherham Council convened on 25 June 2024 to discuss various matters, including updates on risk registers, procurement activities, and internal audit progress. Key decisions were made regarding the implementation of new legislation and the management of financial and operational risks.

Children and Young People's Services Directorate Risk Register

Nicola Curley, Strategic Director of Children and Young People’s Services, presented a report on the risk management activities within the Directorate. The Risk Register currently lists five risk items, two of which are also included in the Corporate Risk Register:

• CYPS01 (SLT01): Keeping Children, Young People and Families safe from harm.
• CYPS02 (SLT16): Achieving budgetary savings linked to the Medium Term Financial Strategy.

The Directorate's risk management approach includes quarterly reviews at the CYPS Assurance Board and monthly monitoring by Assistant Directors. The Directorate’s Risk Champion and three additional officers have completed accredited Institute of Risk Management training to enhance risk management capacity. Nicola Curley assured that budget savings targets had been carefully considered to avoid risks to children and young people.

Regeneration and Environment Directorate Risk Register

Simon Moss, Assistant Director of Regeneration and Environment, provided an update on the red risks within the Directorate. One risk, R&E41 (Delivery of the new Central Library and Markets), has been downgraded to amber. The remaining red risks are:

• R&E9: Effective Home to School Transport, which remains overspent due to increasing demand and complexity.
• R&E51: Good management of highway structures, specifically the Centenary Way viaduct.
• R&E52: Effective management of Council-owned trees, with improvements noted following an Internal Audit report.

Discussions highlighted ongoing efforts to manage costs and improve service efficiency, including collaboration with South Yorkshire Mayoral Combined Authority (SYMCA) and South Yorkshire Passenger Transport Executive (SYPTE) regarding bus timetable changes.

2024 Procurement Annual Update

Karen Middlebrook, Head of Procurement, presented an update on procurement activities, focusing on the Procurement Act 2023, which received Royal Assent in October 2023. The Act introduces significant changes to procurement procedures, emphasizing strategic planning and contract management. Key changes include:

• Pre-procurement considerations and pipeline publishing requirements.
• Competitive Flexible Procedure.
• Contract management and governance.

The Provider Selection Regime for health care services, effective from January 2024, was also discussed. The Ethical Procurement Policy has been updated and will be reviewed annually. Concerns were raised about resource challenges and the need for detailed training on the new legislation.

2022-23 External Auditors Annual Report on Value for Money

Gareth Mills from Grant Thornton presented the external auditor’s 2022-23 annual report on Value for Money (VFM). The report identified no significant weaknesses in financial sustainability or governance arrangements but recommended improvements in financial reporting and the Council’s approach to achieving Net Zero 2030. Gareth Mills thanked the Finance Team for their cooperation, noting this was his last meeting as Engagement Lead.

Asset Management Building Security Audit Update

Phil Horsfield, Assistant Director of Legal Services, reported on the implementation of recommendations from Internal Audits on building security. Despite challenges such as staff retirements, all recommendations have been implemented. The Service has seen improvements since moving under the temporary responsibility of Finance and Customer Services.

Internal Audit Quality Assurance and Improvement Programme (QAIP)

Louise Ivens, Head of Internal Audit, discussed the QAIP and the Council’s conformance with Public Sector Internal Audit Standards. An external assessment in November 2020 showed general conformance, and a recent self-assessment confirmed this status. The new Global Internal Audit Standards, effective from January 2025, will be reviewed for implications on the UK’s standards.

Internal Audit Annual Plan 2024-25

The Committee approved the Internal Audit Plan for 2024-25, which includes a comprehensive risk assessment process and consultations with senior management. The plan remains flexible to address emerging risks and will be reviewed mid-year.

Internal Audit Progress Report

Louise Ivens presented the Internal Audit Progress Report for December 2023 to January 2024. The report summarized completed audits and ongoing investigations, noting that the plan provides sufficient coverage for the annual opinion on governance, risk management, and control framework.

Forward Work Plan

The Committee reviewed and approved the forward work plan for June 2024 to March 2025, including an update on the implementation of the Procurement Act 2023 in the last quarter of the financial year.

For more details, refer to the Minutes of the 12 March 2024 Audit Committee.