The Governance and Audit Committee of Swansea Council met on Wednesday, 28 February 2024, to review the Internal Audit Monitoring Report for Quarter 3 2023/24, the Place Directorate's Internal Control Environment, and the Audit Wales Work Programme. The committee noted the progress of internal audits, discussed the control environment within the Place Directorate, and received updates on Audit Wales' work and recommendations.

Internal Audit Monitoring Report - Quarter 3 - 2023/24

Nick Davies, Principal Auditor, presented the Internal Audit Monitoring Report for Quarter 3 2023/24. The report detailed that 13 audits had been finalised during the period, with assurance levels ranging from high to moderate. Management had agreed to implement all 154 audit recommendations made. The report also highlighted ongoing challenges with staff sickness and vacancies within the Internal Audit Team, which had impacted the delivery of the audit plan. Two audit reports, concerning Crwys Primary School and Trading Standards Division, were issued with a moderate assurance level and would be subject to follow-up audits. The committee discussed proposed changes to the reporting of moderate audit reports, aiming to make the committee's agenda more manageable. Concerns were raised about the use of delegated budgets at Olchfa Comprehensive School for a headteacher's leaving party, and the Chair suggested this be escalated to the Director of Education. The committee also discussed the progress of the audit plan, the process for following up on high and substantial assurance audits, and the need for further information on the Integrated Community Equipment Service and Heol y Gors Plant Hire and Transport audits.

Place: Internal Control Environment 2023/24

Mark Wade, Director of Place, presented the report on the internal control environment within the Place Directorate. The report outlined the directorate's approach to risk management, business continuity, performance management, planning, decision-making, budget management, fraud prevention, compliance, and programme and project assurance. Key areas of focus included significant pressures around housing demand and homelessness, and the directorate's approach to net zero commitments. The report detailed the performance management framework, including new Key Performance Indicators (KPIs) for climate change. Discussions covered the frequency of KPI reviews, responses to performance slippage, the management of sickness absence, and the use of agency staff. The committee also raised questions about the reporting of data breaches and the implications of any penalties incurred.

Audit Wales Work Programme and Timetable - City and County of Swansea Council

Matthew Brushett from Audit Wales provided an update on the Audit Wales Work Programme and Timetable. The report detailed ongoing financial audit work, including the audit of the Council's 2022-23 financial statements, and performance audit work completed and in progress for 2021-22 and 2022-23. Audit Wales' planned and in-progress national studies were also outlined, including upcoming work on commissioning, financial sustainability, and homelessness. The committee expressed interest in attending an upcoming Audit Wales event on What does good look like? for Audit Committees.

Risk Management Review

Richard Rowlands, Strategic Delivery & Performance Manager, provided a verbal update on the Risk Management Review. He explained that the review had identified improvements and changes to the Council's risk management framework and practice. These included distinguishing between risks and issues by introducing separate registers, clarifying risk appetite and tolerance, rationalising the tiers of risk to two (strategic and operational), and improving the quality of discussions around risk management. The intention is to bring a draft of the new risk management framework and policy to the committee on 10 April 2024.

Internal Audit Annual Plan Methodology Report 2024/25

Nick Davies, Principal Auditor, presented a report outlining the methodology used to prepare the Internal Audit Annual Plan. The report detailed the risk-based approach, including inputs from various sources, risk assessment factors, and the frequency of audit visits based on risk index. The methodology for fundamental audits was also explained, with adjustments made for high, substantial, and moderate assurance ratings. The committee discussed the inclusion of performance and complaints data in the risk-based plan, and the timing and scope of health and safety audits. The Principal Auditor agreed to discuss these points further with the Chief Auditor.

Annual Complaints & Compliments Reports 2022-23

Ness Young, Director of Corporate Services, presented the Annual Complaints and Compliments Reports for 2022-23. The reports detailed performance on the Corporate Complaints Policy and Social Services Complaints Policy, highlighting an increase in Stage 1 corporate complaints and a rise in justified complaints. The committee discussed the recording of Stage 1 complaints, the impact of the new complaints system, performance comparisons with other Welsh councils, and learning from complaints. Questions were also raised about complaints from councillors and whether financial penalties were incurred as a result of upheld complaints.

Corporate Risk Overview - Quarter 3 2023/24

Richard Rowlands, Strategic Delivery and Performance Manager, presented the Corporate Risk Overview for Quarter 3 2023/24. The report detailed the status of corporate risks, noting seven red status risks, including safeguarding, financial control, digital security, and the cost of living crisis. Two new corporate risks were added: Waste Strategy and Future Libraries model. The report also summarised changes to the Corporate Risk Register during the quarter and provided details on the information included in the risk register. The committee commented on the improved narrative in control measures but noted areas where further development was needed.

Audit Wales Recommendation Tracker

Richard Rowlands presented the Audit Wales Recommendation Tracker, which monitors progress in meeting Audit Wales recommendations. The tracker includes both national and local Audit Wales reports, detailing recommendations, actions taken by Swansea Council, progress, and target completion dates. The committee welcomed the introduction of this tracker as an additional level of assurance. Matthew Brushett from Audit Wales also welcomed the tracker, noting its usefulness for their follow-up work.

Governance & Audit Committee Action Tracker Report

Jeremy Parkhouse presented the Governance & Audit Committee Action Tracker, which details actions agreed by the committee and their outcomes. The committee noted a typo in the report regarding dates and requested that updates on agency workers and sickness absence be combined into a single report.

Governance & Audit Committee Work Plan

Jeremy Parkhouse presented the Governance & Audit Committee Work Plan. The committee reviewed the plan and its appendices, which outline the committee's activities and responsibilities for the upcoming year. The Chair thanked the officers and members for their participation.