URL: https://rother.moderngov.co.uk/ieDecisionDetails.aspx?ID=2009

Decision Maker: Audit Committee

Outcome:

Is Key Decision?: No

Is Callable In?: No

Purpose: To report on Internal Audit activity in the third quarter of 2025/26 and to provide a progress update on the implementation of audit recommendations made in earlier periods.

Content: The Audit Manager (AM) led Members through the internal audit report to 31 December 2025 that gave details of audit matters and any emerging issues, not only in relation to audit but risk management and corporate governance.  Despite several audit delays beyond the Council’s control, the Internal Audit Team remained on track to complete the majority of the 2025/26 Audit Plan.   Three audit reviews were completed in the third quarter of 2025/26.  Two provided substantial assurance, while the Asset Management audit review received limited assurance due to inaccuracies in the new property management system, including some properties not being recorded.  These issues had since been resolved.  A summary of the audit findings, along with a management update on the Asset Management review was provided in Appendix A to the report.   Appendix B to the report provided an update on progress with implementing audit recommendations from previous meetings.  The number of outstanding ‘Old Years’ recommendations had reduced from 19 to 11, with three further cases nearing completion. Two recommendations had been removed as unresolved.   The 2024/25 Debtors audit identified a deteriorating trend in the recovery of sundry debtor invoices.  In response, the Head of Corporate, Strategic and Neighbourhood Services established a project team to improve monitoring of outstanding debt.  The project team met regularly over the past year, and a comprehensive report detailing outstanding debts by service area was now available.  Improved communications between relevant teams had helped maintain focus on debt recovery, which had led to the successful collection of several older debts.  As a result, long term outstanding debt had reduced by £250,000, with total debt outstanding at approximately £400,000.   The audits scheduled to take place in the first quarter of 2026/27 were yet to be determined. They would be selected from the new Audit Plan once it had been approved elsewhere on this agenda.   The Employment Rights Act 2025 introduced additional protections, effective from 6 April 2026, for workers who reported sexual harassment, bringing such disclosures within the scope of whistleblowing law.  As a result, the Council’s Whistleblowing Policy required updating and formal approval, and the revised wording was set out in Appendix C to the report. Members were happy to recommend the amended policy to full Council for approval and adoption.   Members congratulated officers on the successful collection of several older sundry debts and on the progress with older recommendations.                         RECOMMENDED: That the revised Whistleblowing Policy be approved and adopted.                         AND   RESOLVED: That the Internal Audit report to 31 December 2025 be noted.   (Councillor Barnes declared an Other Registrable Interest in this matter in so far as he was the Vice-Chair of Etchingham Parish Council and in accordance with the Members’ Code of Conduct remained in the meeting during the consideration thereof.)   (Councillor Byrne declared an Other Registrable Interest in this matter in so far as he was a Member of Bexhill-on-Sea Town Council and in accordance with the Members’ Code of Conduct remained in the meeting during the consideration thereof.)

Date of Decision: March 23, 2026