The Audit and Standards Committee are scheduled to meet to discuss internal audit progress, risk management, lessons learned from a failure to correctly implement car parking charge changes, and an update to code of conduct complaints.

Car Parking Charge Implementation

The committee are scheduled to receive a report regarding lessons learned from a failure to fully comply with legal requirements around notices of variation, ahead of changes to off-street car parking charges in April 2025.

In May 2025, the Chief Executive commissioned the Chief Internal Auditor to conduct a fact-finding exercise and lessons learned review, and the report pack includes the findings of this review. According to the report, the Senior Leadership Team had already started to reflect internally on lessons learned, but an independent review by the Chief Internal Auditor was requested to ensure a robust review of the root causes and actions to be taken.

The Chief Internal Auditor's report identifies the following root causes as contributing to the incident:

• Lack of clarity on roles and responsibilities
• Weaknesses in handover arrangements and records, including logging of risks and sharing of legal advice/plans
• Ineffective communication between some officers
• Assumptions made without follow up actions/checks

The report also commends the prompt remedial action taken by senior management, including communication with elected members and the public, complying with the statutory process by issuing a notice of variation in the newspaper and at all car parks, and making provision for the refund of charges.

The report includes a response from the Council's Senior Leadership Team, which states:

It was necessary and appropriate that the Council's Senior Leadership Team sought an independent evaluation of the situation that led to the car parking charging errors and we are grateful for the comprehensive assessment undertaken by the Chief Internal Auditor.

We accept all the findings and recommendations within the report.

The Senior Management Response also notes that a new, dedicated Property and Assets Programme Board has been established, a documented standard operating procedure for changes to car parking charges has been created, written clarification on roles and responsibilities has been provided to key staff, and training needs have been considered.

Risk Management Update

The committee will receive a report which provides an update on risk management arrangements, and outlines the current significant risks that have been captured on the recent review of the council's strategic risk register by the Senior Leadership Team.

The Risk Management Update report notes that the Strategic Risk Register has been recently reviewed and updated by Senior Management to capture the current significant risks and outline mitigating actions. The risks are allocated by corporate category focus area. There are currently 14 risks being monitored: 7 high (red) risks, 6 medium (amber) risks and 1 low (green) risks.

The report identifies a number of risks that the committee should pay particular attention to:

• PL3 Capacity to respond to and recover to a major incident - The risk has been reduced to reflect the impact based on the comprehensive controls that are in place through the Leicestershire Resilience Partnership.
• PR1 Failure to deliver MMDR (South) and the impacts on Melton Borough Council's Local Plan - The focus is now on MMDR South, which will need to be delivered by developers.
• PR4 Private Rented Sector (new risk) - This is a new strategic risk which has been moved from an operational risk. Likelihood and impact have increased based on the findings of a consultant interim report as relates to the Councils ability to meet the new legislative requirements set out in the Renters Reform Bill¹.
• SG6 Resourcing of the LUF and ADP developments - This risk has been reworded to provide focus on the Levelling Up Fund (LUF) and Asset Development Programme (ADP) developments.
• SG2 Stability of future provision of ICT services - This risk has reduced further and is now at a level where it will be moved from the Strategic Risk Register and will be monitored at an operational level in Corporate Services.

Since the last update to the committee, work has concentrated on moving the previous spreadsheet-based system for managing risk to the Pentana IT system. This has enabled joint reporting with performance data to Cabinet.

Internal Audit Progress

The committee will receive an update from the Chief Internal Auditor on the progress made in delivering the 2025/26 Internal Audit Plan. The Internal Audit Progress Report provides the committee with an update on delivery of the Internal Audit plan.

According to the report, Internal Audit is on target to deliver the Audit Plan within the 235 days budget. Since the last Audit and Standards Committee meeting, 11 agreed actions have been completed. At the date of reporting, there are 18 agreed actions which are overdue for implementation.

Since the last update to the Committee, the following audit report has been finalised:

Business Improvement District (BID) (Operating Agreement)

The Melton Business Improvement District (BID) is funded through a mandatory levy imposed on eligible businesses located within the designated BID area. Melton Borough Council is responsible for the collection and enforcement of the BID Levy on behalf of the Melton Mowbray BID Company Ltd.

The audit was conducted to provide assurance over the effectiveness, accuracy and compliance of the council's BID income collection and enforcement activities, in accordance with the terms of the Operating Agreement.

Overall, the council's reporting process for the BID is timely and complies with the requirements set out in the BID Operating Agreement. However, the Operating Agreement requires that a formal Monitoring Group meets twice a year, but currently, informal meetings are held instead between the Revenues and Benefits Manager and the BID Manager, which means this requirement is not fully met.

Based upon the findings, Internal Audit has given the following assurance opinions over the management of the associated risks:

Code of Conduct Complaints Update

The committee will receive a report from the Monitoring Officer, Assistant Director for Governance & Democracy Clive Tobin, providing an update on complaints made under the council's Code of Conduct for Members.

The Code of Conduct Complaints Update report provides updated figures relating to complaints received and outcomes, following the identification of a typographical / arithmetical error in the previous report.

The accurate figures which should have appeared in that report are: