Issue - meetings

Report of the Director – Finance and Corporate Services

Mr Armstrong from BDO, the Council’s Internal Auditors, presented the Internal Audit Progress Report Quarter 3. He referred Members of the Group to page 15 of the report which provided a summary table showing progress made in the year to date and confirmed that three quarters of the audits had been completed, with the remaining two in progress and expected to be completed by the end of March, and would be presented to Committee as part of the Annual Report in June 2026.

Mr Amstrong said that the two audit reports completed within this quarter related to Asset Management and Investment and Rushcliffe Oaks Crematorium Operational Management.

In relation to Asset Management and Investment, Mr Armstrong explained that the scope of the review comprised two parts, the Council’s governance arrangements for its Asset Management Strategy and also its investment properties and income management, including lease agreements and rental charges. He said that a substantial rating had been given for design and assurance with one low finding related to leases that had expired. He said that whilst the terms of the lease would usually carry over and so were limited risk to the Council, it was considered best practice to ensure that new lease terms were signed.

In relation to Rushcliffe Oaks Crematorium, Mr Armstrong explained that an Internal Audit review of the Crematorium’s financial management had been completed a few years ago and that this review looked at the operational side of the facility. He noted that new legislation had recently been brought into force regarding crematorium management by Local Authorities, with strict criteria. He said that a substantial rating for both design and effectiveness had been given with no findings, and that it had been found that the Crematorium fully complied with statutory requirements.  He added that the Council may seek to obtain accreditation under the Federation of Burial and Cremation Authority and that this Audit had checked to ensure that appropriate controls were in place ahead of any potential application.

Mr Causton asked how many leases had been found to be expired and Mr Armstrong said that the Audit had focussed on those considered higher risk and of those there were seven.

It was RESOLVED that the Governance Scrutiny Group considered the quarter 3 progress report for 2025/26 (Appendix A) prepared by the Council’s Internal Auditor.