Agenda item

To provide an update on actions taken to address the recommendations of the Internal Audit review on the Lightpool project dated 11 February 2016.

The Committee noted that at its last meeting, Members had considered the Risk Services Quarter Four report, which made reference to the inadequate assurance statement issued in regards to the audit of the Lightpool Project. The Committee had requested that an explanation be provided for controls being inadequate and a progress report, detailing how the concerns of Internal Audit had been mitigated.

Mr Cavill, Director of Place, advised the Committee that there had been two Priority One recommendations arising from the internal audit report. One of the recommendations had been that ‘the income strategy should be reviewed and financial forecasts revised to take account of this’. He explained to the Committee that the purpose of the Lightpool project had been to establish a greater income stream from the illuminations. As part of the project, it had been expected that the first year would be an experimental year in terms of investigating where income could be achieved.

The Committee was provided with an update on the actions relating to the income strategy taken since the internal audit report had been produced. Mr Cavill informed Members that there were a number of sponsorship rights currently being negotiated and provided details of the commercial deals being made and the plans for the Lightpool village, which would assist in developing income streams. He also noted that there were plans in 2016/ 2017 to overhaul the system for collections on the promenade during the illuminations period and that an illuminations brochure had been produced.

Members considered that the plans for the income strategy were positive but that the management of the strategy required improvement, as highlighted in the audit report. The Committee also challenged the reasons for the income strategy not being developed and in place for the first twelve month of the project. In response, Mr Cavill advised that the Coastal Communities Funding had been secured in April 2015 and the funding model would allow for the Lightpool project to be delayed until summer 2016, so the first year had been intended to be used as a trial period.

Members raised further questions relating to the sustainability of the Lightpool Project and Mr Cavill advised that work was being undertaken to ensure its sustainability. He advised that a monitoring report had been produced at the end of the financial year that had been positively received by Coastal Communities Fund and demonstrated that all of the aims for the first year had been met, including a high number of people visiting the resort for Lightpool.

Mr Cavill reported that the other Priority One recommendation included within the internal audit report had been that ‘an appropriate project management methodology should be followed and key documents, such as a project plan, should be monitored by the Project Board to ensure that they are delivered.’ He explained that a Project Manager was now in post and that actions were effectively monitored to ensure they were delivered. The Committee was provided with details of the Project Management Action Plan and Mr Cavill advised that the Project Board met regularly to oversee its implementation.

Responding to further questioning from the Committee, Mr Cavill advised that the internal audit had been a helpful process and had highlighted areas where improvements had been required. Ms Greenhalgh, Chief Internal Auditor, considered that the improvements were now being implemented and that internal audit would undertake a follow up review on the recommendations in due course later in the year.

Background papers: None.