Agenda item

This report informs Members of the Internal Audit work completed during 2025-26 and presents the opinion of the Head of Internal Audit & Counter Fraud Shared Service, as Chief Audit Executive, on the Council’s internal control environment.

Discussion:

The Head of Internal Audit and Counter Fraud introduced the report which set out performance of the Internal Audit team for 2025-26. He highlighted his independent opinion as Chief Audit Executive on the adequacy and effectiveness of the Council’s framework of governance, risk management, and internal control. The Head of Internal Audit and Counter Fraud confirmed that he was satisfied that reasonable assurance could be placed upon the Council's corporate governance arrangements, although further work was required to improve consistency and strengthen compliance monitoring arrangements.

87% of reviews had been completed during the year against a target of 95%. Weaknesses found in reviews had been accepted by the relevant service and 57 of 83 recommended actions had been completed. He added that a new section which used AI to analyse themes and root causes of weaknesses had been added this year.

The following issues were discussed:

Private Housing Enforcement  - it was asked if the root cause of weaknesses identified in the private housing enforcement review was resourcing. The Head of Internal Audit and Counter Fraud stated that the service had indicated resourcing and capacity were an issue during the audit. Actions identified in the audit had been accepted and were being addressed by the service.

Manual processes – it was asked whether there was an over reliance on manual processes in the team which could be undertaken by AI. The Head of Internal Audit stated that AI could provide some additional speed in undertaking certain reviews and automation would provide some efficiencies. This would be considered by the team as opportunities arose.

Rough Sleeping -  further information was requested regarding the rough sleeping review, and the significant challenges identified. The Head of Internal Audit and Counter Fraud stated that although there had been some high-priority actions identified in the review, overall, the review was not subject to a red opinion. The Internal Audit plan was focused on the highest areas of risk to the Council which included areas which required significant financial resources such Temporary Accommodation.

Policy work – in response to a question how much of the policy development work was undertaken by the policy team the Chief Operating Officer stated that the policy unit was focused on horizon scanning for policy from central government and ensuring the Council’s strategic plans were consistent with delivering the Council Plan objectives. Some of the impetus of the policy team was Local Government Reorganisation, although that work was currently paused, the day-to-day policy development remained within the relevant service.

Partnerships with Schools – further information was requested in terms of how follow up work, in particular with local schools, was managed. The Head of Internal Audit and Counter Fraud stated that a great deal of work had been undertaken with schools to improve relationships. Internal Audit provided feedback and advice on good practice to support local schools and relationships were more positive now than when the Shared Service was initially implemented.

Decision:

a)     The Committee noted the work undertaken by the Internal Audit team for Medway during 2025-26.

b)     The Committee supported the opinion on the Council’s internal control environment provided by the Head of Internal Audit & Counter Fraud Shared Service, as set out in Section 4 of Appendix 1, that reasonable assurance can be provided that the Council maintained a generally adequate and effective framework of governance, risk management and internal control during the year ended 31 March 2026, which contributed to the proper, economic, efficient, and effective use of resources in achieving the Council’s objectives.