The Governance and Audit Committee of Swansea Council met on Wednesday, 27 November 2024, approving several key reports including the Internal Audit Monitoring Report for Quarter 2 2024/25 and the Corporate Risk Overview for the same period. The committee also received updates on fundamental audits, the education directorate's internal control environment, and the corporate fraud function's mid-year performance.

Internal Audit Monitoring Report Quarter 2 - 2024/25

The committee approved the Internal Audit Monitoring Report for Quarter 2 2024/25, which detailed the work completed between July and September 2024. Chief Auditor Simon Cockings reported that 15 audits were finalised, with five receiving a high level of assurance and ten a substantial level. Management accepted all 123 recommendations made during the quarter. The report highlighted a successful recruitment campaign for three full-time auditor posts, which will help address staff restructuring and vacancies. The audit plan was on track, with approximately 56% of activities completed or in progress. Follow-up audits for Clydach Primary School confirmed that all outstanding recommendations had been implemented.

Fundamental Audits 2023/24 Recommendation Tracker

The committee approved the Fundamental Audits 2023/24 Recommendation Tracker. Simon Cockings presented an update on the implementation status of recommendations from fundamental audits completed in the 2023/24 financial year. As of 30 September 2024, 76% of the 69 recommendations had been fully implemented, with 20% partly implemented and 4% not implemented. The report noted one high-risk recommendation relating to accounts receivable that remained unimplemented, with updates provided on debt recovery processes. Several medium-risk recommendations in business rates and council tax were also partly implemented. The audits for these areas are due for full review in the current financial year.

Education Directorate: Internal Control Environment 2023-2024

The committee received an update on the Education Directorate's internal control environment for 2023-2024. Kelly Small, presenting the report, highlighted the significant delegated budgets to schools and the volatility of non-delegated budgets, particularly those related to vulnerable learners and time-limited external funding. The directorate works in partnership with schools, offering support and challenge, with a current focus on school reserves. Thematic reviews for primary and special schools are being conducted, with issues identified shared across all schools. Risk management is monitored through various forums, including the Directorate Management Team and School Risks and Issues meetings. Common risks identified include late renewal of DBS checks and a lack of strategic financial planning in some schools. Business continuity plans are updated annually, and schools are advised to produce their own. Performance management is linked to corporate and service plans, with regular reporting to senior management and Cabinet. The report noted robust internal controls, training for managers, and financial training for schools, with a particular emphasis on procurement. Programme and project assurance is in place for initiatives like the Sustainable Communities for Learning programme. Data security is taken seriously, with arrangements to monitor staff training and a limited number of breaches.

Corporate Risk Overview - Quarter 2 2024/25

Ness Young presented the Corporate Risk Overview for Quarter 2 2024/25, introducing the council's new risk management framework and policy. The committee was informed that strategic risks and issues are now reported, moving away from previous corporate, directorate, and service-level categorisations. Under the new framework, risks are discussed monthly at directorate management team meetings, allowing for a more dynamic dialogue. The report detailed 19 strategic risks and seven strategic issues as of 30 September 2024. Challenges were noted regarding the implementation of a new risk management software application due to the takeover of its provider, Inphase. However, the council continues to use the existing system to manage, monitor, and report risks.

Internal Audit Section - Corporate Fraud Function Mid-Year Update Report for 2024/2025

Jonathan Rogers provided a mid-year update on the Corporate Fraud Function's activities. He reported good progress against the seven planned activities for the year, with the team on target to achieve all objectives. Overpayments realised in the first half of the year amounted to over £114,000, an increase compared to the previous year. The team had also assisted in recovering five properties back into housing stock, on track to exceed the previous year's figures. The National Fraud Initiative (NFI) exercise for 2022 had been completed, with Swansea Council noted for its proactive approach to housing waiting lists, resulting in a significant notional saving. The report detailed the NFI's estimated outcome methodologies and highlighted the council's proactive engagement in the NFI process.

Public Services Ombudsman (PSOW) Report - Living in Disrepair

The committee received an update on the Public Services Ombudsman's thematic report concerning disrepair, damp, and mould housing complaints. Peter Williams from the Place Directorate explained that the report, which includes two case studies from Swansea Council, will be presented to the Senedd. Swansea Council has a damp and mould policy approved in January 2024, with robust procedures in place for inspections and remedial works, typically completed within 20 working days. The case studies presented involved independent surveyor reports, with one complaint not pursued by the Ombudsman and the other deferred pending further findings. The Ombudsman's recommendations for social landlords, such as regular stock condition surveys and pre-letting inspections, are being addressed by the council.

Annual Review of Well-being Objectives

The committee was informed that the Annual Review of Well-being Objectives, approved by Council on 21 March 2024, was for information. Lee Wenham explained that the review, a requirement of the Well-being of Future Generations (Wales) Act 2015, considers the sustainable development principle and the five ways of working. The report and evidence analysis were available for the committee's information.

Audit Wales Recommendations Tracker

The committee received an update on the Audit Wales Recommendations Tracker. Lee Wenham explained that the tracker monitors progress against recommendations from Audit Wales reports. The report detailed progress on open recommendations, including those related to social enterprises, community resilience, poverty, building safety, workforce management, sustainable development, and financial sustainability. Some recommendations were marked as closed, with ongoing actions to address others. A query was raised by Councillor Julie Davies regarding actions marked as closed with future completion dates, which was clarified by Ness Young as relating to annual reviews of strategies.

Governance & Audit Committee Action Tracker Report

The committee noted the Governance & Audit Committee Action Tracker Report, which details actions agreed upon by the committee and their outcomes. Jeremy Parkhouse confirmed that completed actions are marked as 'Closed'. The tracker is regularly updated and reported to each meeting for transparency.

Governance & Audit Committee Work Plan

The committee reviewed the Governance & Audit Committee Work Plan to May 2025. It was suggested, with the agreement of Jeremy Parkhouse, to move the complaints process training and the committee's own effectiveness assessment to April or June due to a number of recent training sessions. Some reports were also proposed to be moved to the beginning of the next year to balance the agenda for March and ease the burden on officers. Councillor Lesley Walton supported circulating the recorded complaints training from Sarah Lackenby as a refresher.

The meeting concluded with the Chair, Paula O'Connor, thanking attendees and wishing everyone a happy Christmas.