Council’s internal audits show things are getting worse.

Evidence has emerged over time that Folkestone & Hythe District Council’s internal controls have gone from good to bad.

Each year an annual internal report is produced by East Kent Audit Partnership. These internal audits play a critical role in the council’s internal controls and corporate governance. Internal controls enable transparency, accountability, operational efficiencies, and a positive culture of ‘right first time’. They also help to prevent and detect fraud.

During each financial year the internal auditors look at such things as waste management, Dog Warden & Litter Enforcement, Payroll Transactions, Building Control Income as examples. Then they apply one of four ‘assurance opinions’ to each review, they undertake.  They are:

Substantial Assurance – From the testing completed during this review a sound system of control is currently being managed and achieved. All of the necessary, key controls of the system are in place. Any errors found were minor and not indicative of system faults. These may however result in a negligible level of risk to the achievement of the system objectives.

Reasonable Assurance – From the testing completed during this review most of the necessary controls of the system in place are managed and achieved. There is evidence of non-compliance with some of the key controls resulting in a marginal level of risk to the achievement of the system objectives. Scope for improvement has been identified, strengthening existing controls or recommending new controls.

Limited Assurance – From the testing completed during this review some of the necessary controls of the system are in place, managed and achieved. There is evidence of significant errors or non-compliance with many key controls not operating as intended resulting in a risk to the achievement of the system objectives. Scope for improvement has been identified, improving existing controls or recommending new controls.

No Assurance – From the testing completed during this review a substantial number of the necessary key controls of the system have been identified as absent or weak. There is evidence of substantial errors or non-compliance with many key controls leaving the system open to fundamental error or abuse. The requirement for urgent improvement has been identified, to improve existing controls or new controls should be introduced to reduce the critical risk.

In 2017/18 the internal auditors review found that 27% of the audits were substantial and 73% were reasonable. This was the final year Alistair Stewart the former Chief Executive was in office before retiring. 

In 2018/19, Dr Susan Priest became the new Chief Executive and the internal auditors annual review found 57% of the audits were substantial and 43% were reasonable.

In 2019/20, the internal auditors reviews found 26% of the audits were substantial, 53% were reasonable, and 21% were limited. In Jan 2020 Charlotte Spendley becomes the Council’s s151 – the person responsible for the Council’s money.

In 2020/21, the internal auditors reviews found 27% of the audits were substantial, 55% were reasonable, and 18% were limited.

In 2021/22 the internal auditors reviews found 26% of the audits were substantial, 68% were reasonable, and 6% were limited.

In 2022/23 the internal auditors reviews found 15% of the audits were substantial, 31% were reasonable, 46% were limited and 8% were given no assurance. In March 2023, Charlotte Spendley leaves the Council. 

The historical evidence is unequivocal, as it makes clear over time internal controls have got worse. As one can see in 2022/23, 54% of all internal audits undertaken were either limited or received no assurance. 

There is no overriding factor for the worsening of the internal controls and to be clear, Internal Audit did not change their evidence based methodology.

Lets not forget time and again we have raised substantial issues regarding financial and contract irregularities, some of which have led to six people moving on from the Council.

Now while we are speaking about Governance issues, we note the Council’s new Constitution Working Group – which is to change the Council from a Cabinet system to a committe system, met behind closed doors on the 12 July 2023. This comes as a big surprise to us, and no doubt you, as Cllr Tim Prater, who did say the working group would be “one that meets in public“. He has been contacted by our public face, why this meeting was not held in public as promised.

None of the above surprises us, as all too often officers like Councillors promise much, but deliver little, but that’s possibly because what a person can do in a day, takes a committee a year or more.

We’ll leave you with the words of Paul Weller in his time with The Jam, and his song Going Underground; in which the lyrics state:

You choose your leaders and place your trust
As their lies wash you down and their promises rust

Are they apt?

We’ll leave you to consider that.

The Shepway Vox Team

Dissent is NOT a Crime