The Governance and Audit Committee of Swansea Council met on Wednesday, 10 April 2024, to review several key internal audit and governance documents. The committee approved the Internal Audit Charter for 2024/25, subject to specific updates, and noted the contents of the report on the internal control environment for the Director of Corporate Services.

Internal Audit Strategy and Draft Annual Plan 2024/25

The committee reviewed the Internal Audit Strategy and Draft Annual Plan for 2024/25, presented by Chief Auditor Simon Cockings. The plan, which guides the internal audit section's priorities, was noted by the committee. It was highlighted that audits for Oracle Fusion and financial stability were omitted as Audit Wales would be conducting their own reviews. Discussions touched upon the ongoing issue of staff sickness absence, which has been accounted for in the plan, and the ad hoc nature of consultancy services provided by the internal audit team. Concerns were raised about the potential brevity of future reports on moderate and limited audit findings, but assurances were given that sufficient detail would be provided to understand key issues. The committee was informed that changes requested by the Corporate Management Team would be incorporated, with a revised plan to be presented in June 2024.

Internal Audit Charter 2024/25

The committee considered the Internal Audit Charter for 2024/25, presented by Chief Auditor Simon Cockings. This charter defines the purpose, authority, and responsibility of the internal audit activity, aligning with the Public Sector Internal Audit Standards (PSIAS). It was noted that substantive updates to the charter are anticipated towards the end of 2024 or early 2025 due to changes in global standards. The committee discussed the need for clarity on minimal competencies and qualification profiles for internal audit staff, with the Chief Auditor agreeing to incorporate these updates into Sections 4 and 8 of the charter. The committee resolved to approve the Internal Audit Charter 2024/25, subject to these updates.

Update on Internal Control Environment - Director of Corporate Services

Ness Young, Director of Corporate Services, presented a report detailing the control environment within her directorate. The report covered risk management, business continuity, performance management, budget and resource management, fraud prevention, compliance, and programme and project assurance. The committee discussed the implementation and ongoing challenges of the Oracle Fusion system, including interface issues and the need for manual workarounds. Ms. Young confirmed that while the system is fundamentally sound, opportunities for improvement and further development exist. The report was noted by the committee.

Audit Wales - City & County of Swansea Annual Audit Summary 2023

Matthew Brushett from Audit Wales presented the Annual Audit Summary for 2022-23. The report highlighted that while the draft financial statements were submitted after the Welsh Government's deadline for the second consecutive year, an unqualified opinion was issued on 25 March 2024. The summary also detailed findings from assurance and risk assessment reviews, including the use of performance information, the Council's Transformation Programme, its Digital Strategy, and its workforce strategy. The committee discussed the limitations in performance information related to service user perspectives and the need to identify resources for the workforce strategy. It was confirmed that all suggestions from Audit Wales regarding the Transformation Programme had been implemented.

Absence Management & Employment of Agency Workers Audits - Update Report

Rachael Davies, Head of Human Resources and Service Centre, provided an update on absence management and the employment of agency workers. The report detailed sickness absence data, time lost due to industrial injury, and the cost and usage of agency workers. A review of sickness absence management and occupational health services was underway, with proposals for improvement focusing on wellness and earlier intervention. The committee discussed the high sickness levels in certain directorates, the use of agency workers, particularly in Adult Services and Child and Family Services, and the positive proposal for co-production with trade unions on a new absence management policy. The committee was assured that steps were being taken to address these issues.

Risk Management Policy and Framework

Richard Rowlands, Strategic Delivery and Performance Manager, presented the draft revised Risk Management Policy and Framework. The revised documents aim to streamline risk management by reducing risk tiers to strategic and operational levels, clarifying roles and responsibilities, and introducing a risk appetite statement. The committee welcomed the strengthening of the Council's arrangements for identifying and managing risk. The revised policy and framework are planned for implementation in the second quarter of 2024/25.

Governance & Audit Committee Action Tracker Report

Jeremy Parkhouse presented the Governance & Audit Committee Action Tracker Report. The committee noted the status of various actions, with some being closed and others ongoing. Discussions focused on outstanding feedback regarding previous audit reports and the implementation of recommendations.

Governance & Audit Committee Work Plan

Jeremy Parkhouse presented the Governance & Audit Committee Work Plan for 2024/25. The committee was reminded of upcoming training sessions on performance management and risk management. The work plan was noted by the committee.