Agenda item

1.     The item was presented by the Interim Head of Internal Audit, Russell Smith.  Some of the key points were highted as follows:

        a)     Several audits had received positive assurance outcomes. The audits of Health and Safety, Unaccompanied Asylum-Seeking Children, Backups (noting that detailed discussion would take place in the exempt session), Property Disposals, Adult Social Care Information Governance, and the KCC Governance Improvement Plan had all received Substantial Assurance. The audit of Utility Works on the Kent Network had received Adequate Assurance, with one high-priority action identified. Management had advised Internal Audit that a review of the Kent Permit Scheme had been scheduled to address the issue.

        b)     The Committee was informed that 83% of the completed audit work for 2025–26 had received substantial assurance to date. Several audits remained in progress and a broader spread of assurance ratings was expected over the remainder of the year. Updates were also provided on embedded assurance work relating to the Highways Term Maintenance Contract, the Public Health Service Transformation Programme, and the Oracle Cloud Programme, with the latter scheduled for discussion in the exempt part of the meeting.

        c)     Issue implementation performance remained comparable to the previous reporting period at 64%, which had been 62% in July. The Interim Head of Internal Audit highlighted that the volume of followed-up issues had increased significantly, with 96 follow-ups completed in January compared with 37 in the previous period. Where actions remained in progress, Internal Audit had observed positive movement. Lower implementation levels within Adult Social Care were attributed to recommissioning activity, and several Growth, Environment and Transport actions had been superseded due to policy changes. Longstanding issues had been discussed thoroughly at a Corporate Management Team meeting the previous day, and revised actions had been agreed.

        d)     The audit plan was slightly behind schedule, largely due to a later start and work required for the External Quality Assessment. Delivery levels remained broadly consistent with the same point in the previous year. Future annual planning would account more effectively for external assessment activity. Revisions to the plan included the addition of four new audits relating to the Oracle Cloud Programme. External Audit were also conducting work in this area, and coordination was underway to avoid duplication. Audits selected for deferral had been chosen based on risk, assurance coverage from other providers, and commissioning delays; they would be reconsidered for inclusion in the 2026–27 Internal Audit Plan.

2.     In answer to Member questions and comments, the following was said:

        a)     Officers advised that the bus grant had been announced after the report was written and that a three- to four-year settlement had been issued, split between capital and revenue funding. The £47m figure was based on a historic determination of the highways block grant, and Department of Transport had consolidated several grants this year.

        b)     Officers confirmed that the proposed deferral of five audits, particularly Economic Strategy and the Contact Centre Contract would be prioritised for the 2026–27 plan. The Monitoring Officer noted that the Contact Centre audit would be better timed once the new provider had embedded.

        c)     Officers confirmed that the review of the Kent Permit Scheme (RB41), had been scheduled for April–June 2026. Officers confirmed that improvements were being implemented and that increased inspection capacity was being put in place.  In addition, the direction of the complaints data to the correct shared mailbox was in the process of being rectified.

        d)     In relation to RB41, officers confirmed that the issue would be addressed in full during the scheduled April–June 2026 review, after which the action could be signed off.

        e)     Officers confirmed that CMT had met recently and discussed the Economic Strategy and EHCP Outcomes audits as well as longstanding audit actions. A revised action plan with clear timescales had been agreed, with an expectation that completion would occur within six months.

        f)      Officers explained that the increase to the budget for the Highways Term Maintenance Contract procurement reflected the scale and complexity of the procurement and the need for external legal advice. The additional cost had been funded through service budgets and highways income. Lessons learned would inform future procurement processes.

        g)     Officers confirmed that all works on the highway required a permit, including emergency works, and that all permit income was retained by KCC.  It was explained to Members that permit volumes had increased significantly in recent years.

        h)     Mr Rayner formally requested that it be recorded that he did not note the report for the period September 2025 to January 2026.

3      RESOLVED the Committee noted Internal Audit Progress Report for the

        period September 2025 to January 2026.