To receive a report from the Internal Audit Manager, Internal Audit Lincolnshire County Council.

Matthew Waller, Internal Audit Manager (Internal Audit, Lincolnshire County Council) presented the Internal Audit Progress Report – March 2025 to Members summarising East Lindsey District Council’s responsibilities to undertake effective internal audit, pages 97 to 114 of the Agenda refer.

The Internal Audit Manager advised Members that all the work for 2024/25 was nearing completion and that three of the four audits that were outstanding were at the draft report stage and close to being finalised for the 31^st March 2025.

Members were invited to put their comments and questions forward.  

• In reference to the Audit Review on depots, a Member queried the reasons that audit findings for a waste depot at Boston Borough Council had been included in the report for East Lindsey District Council, page 111 of the Agenda refers.  In response, the Internal Audit Manager advised Members that the audit had initially examined depots across all three Councils and that the key risks for Boston had been included to provide insight and assurance on how managers were working across the Partnership.

• A Member commented that it would be beneficial for audit reports to clearly specify which aspects are related to ELDC and which were related to the Partnership.

• In reference to the findings of the Audit Review – Budget Monitoring Revenue, a Member highlighted concerns that out of 95 budget holders surveyed, only 37 responses were received and that 55% of those responses did not have a robust understanding of the budget setting process, pages 106 to 108 of the Agenda refer.  In response, the Internal Audit Manager advised Members that the survey had provided a snapshot in time and had enhanced the audit work that was being undertaken for management to action.

The Interim Finance Director and Section 151 Officer supported Members concerns on the findings and assured the Committee that action was underway to address the issues raised.

• A Member queried whether a follow-up audit would be undertaken to enhance engagement with managers and to ensure that their understanding of the budget setting process had increased.  In response, the Internal Audit Manager advised Members that the audit assurance rating for Budget Monitoring Revenue had been adequate and did not require an automatic follow-up audit, however advised that an update could be provided to the Committee on request.

Further to a discussion, it was agreed to note the request for a follow-up update as an action.

• A Member queried whether any one department required more training than the other departments.  In response, the Internal Audit Manager advised Members that the query would be examined with managers to improve understanding across all departments.

• A Member highlighted that the size of the budget may affect individuals’ knowledge and their ability to analyse it.

• In reference to the cyber audit, a Member queried the justification for Council delaying the audit until Q1 of 2025/26, page 103 of the Agenda refers.   In response, the Internal Audit Manager advised Members that the Council was in the process of completing the cyber security audit in relation to staff training.  Members were assured that a cyber audit had been scheduled as soon as possible and that due to internal resources, Q1 2025/26 was the earliest opportunity that a technical IT auditor was available.

Following which it was,

RESOLVED:

That the report be noted.