The Head of the Regional Internal Audit Service presented a report, in order to share with Members of the Committee, a recently issued internal audit report which reviewed a sample of externally funded schemes in order to provide assurance in respect of the procurement and governance aspects of the schemes.

By way of background information, he advised that an internal audit review of External Funding was undertaken as part of the 2020/21 annual Internal Audit Plan. The objective of the review was to provide assurance that the Council’s policies and procedures, as well as the funding terms and conditions, were being adhered to when managing external funding received by the Council.

The Chief Executive presented a report on the Arbed programme to Cabinet on 17^th November 2020. Within that report reference was made to work being undertaken by Internal Audit, which aimed to provide assurance that the procurement and governance aspects of externally funded schemes were compliant with Council policies as well as any specific grant terms and conditions.

That report informed Cabinet that the completed audit report would be presented to the Governance and Audit Committee.

The completed internal audit report was attached at Appendix A to the report.

The Head of the Regional Internal Audit Service confirmed, that report identified the 10 schemes that were reviewed and the findings and recommendations made as a result of the audit. It was found that, from the sample selected and reviewed, the concerns arising from a previous externally funded scheme have not been replicated. Documentation was available to support compliance with the Council’s Contract Procedure Rules and the involvement of Corporate Procurement when engaging contractors. There was also evidence of supplier monitoring, reporting and governance across all the projects.

An audit opinion of reasonable assurance was given, that is that key controls exist but there may be some inconsistency in application. As a result only 4 minor, ‘merits attention’ recommendations were made, he concluded.

A Member asked if there were any plans longer term, to carry out any further work proposed in the form of reviews on externally funded projects.

The Head of the Regional Internal Audit Service advised that there would be further reviews, as part of planned audits in relation to procurement and specific projects/schemes.

The Chairperson asked if any of the reviews undertaken were on time limited or late funding of projects, as this may have been a factor in relation to the funding of the Arbed project.

The Head of the Regional Internal Audit Service advised that one of the ten schemes had been the subject of late funding, which was work in respect of the Active Travel Plan project at Pencoed, whereby the Council had applied for further funding to Welsh Government over and above that which had initially been invested in the project.

The detail of this was expanded upon by the Audit Client Manager for the benefit of Members.

The Interim Chief Officer – Finance, Performance and Change confirmed to Committee, that the local authority was increasingly receiving a number of hypothecated grants late in the financial year from Welsh Government to support certain projects, including those that were contained in the Capital Programme.  

RESOLVED:                            That Members noted the report.