Agenda and minutes

Minutes of meeting held on 25^th May 2022 (previously circulated). 

The Chair advised the Committee that at minute 11 – Work Programme the Chair had requested that the planned schedule of review of the Strategic Risk Register and Risk Management Process be swapped, such that the Strategic Risk Register be reviewed at the July 2022 meeting and the Risk Management Process be reviewed at the subsequent meeting.

Subject to this amendment the minutes of the previous meeting held on 25^th May 2022 were signed by the Chair as a correct record.

There were no items of urgent business.

To receive declarations by Councillors of interests in respect of items on this Agenda. 

Councillors are reminded that, in accordance with the Localism Act 2011, they are required to declare any disclosable pecuniary interests which have not already been declared in the Council’s Register of Interests. (It is a criminal offence not to declare a disclosable pecuniary interest either in the Register or at the meeting). 

Whilst not a legal requirement, in accordance with Council Procedure Rule 9 and in the interests of clarity and transparency, Councillors should declare any disclosable pecuniary interests which they have already declared in the Register, at this point in the meeting. 

In accordance with Part B Section 2 of the Code Of Conduct, Councillors are required to declare the existence and nature of any other interests as defined in paragraphs 8(1) or 9(2) of the Code of Conduct. 

There were no declarations of interest.

With the agreement of the Committee the Chair moved item 5, Annual Governance Statement 2021/22, to the end of the agenda.

Report of the Chief Finance Officer

This report was marked “to follow” and was published on 14^th July 2022.

The Chief Finance Officer presented a report which advised the Committee that the Chartered Institute of Public Finance and Accountancy (CIPFA) had issued a Financial Management (FM) Code which aimed to ensure a high standard of financial management in local authorities. The report provided an assessment of the Council’s current compliance with the code together with areas for improvement.

The results of the assessment were appended to the report for the Committee’s consideration.

It was reported that the assessment was up to 31^st March 2022. Since then, there had been a new Chief Executive and changes to the Exec Team. It was also the case that some of the required actions had potentially already been acted upon.

Members asked a number of questions regarding how items were assessed as Green/Amber/Red, recruitment and the changes to the Exec Team.

Resolved:

(1)            That on page 25 of the Report the action "Increased use of benchmarking data and peer review for inclusion in business case and as part of Outcomes Based Resourcing (OBR) to focus on VfM aspects." be updated to include reference to Risk Management, as "Increased use of benchmarking data and peer review and rigorous risk management analysis, for inclusion in business case and as part of Outcomes Based Resourcing (OBR) to focus on VfM aspects".

(2)            That item N on the assessment (Appendix page 42), "The Leadership team takes action... " a paragraph be included to state; "It is recognised that routine performance review must include a consistent approach to risk identification and assessment alongside project performance, resourcing and financial data".

Report of the Chief Executive

This report was marked “to follow” and was published on 14^th July 2022.

The Chief Finance Officer presented a report of the Chief Executive which set out the authority’s current and planned approach to Strategic Risk Management.

The Strategic Risk Register (as of July 2022) was appended to the report for the Committee’s consideration.

Members asked a number of questions about the new risk management software, GRACE, staffing capacity to keep risk management up to date and whether there should be on item for EDEN on the register.

It was noted that there would be a further update on risk management at the Committee’s next meeting in November 2022.

Resolved:

That the update on the authority’s approach to Strategic Risk Management, and the latest update to the authority’s Strategic Risk Register be noted.

Report of the Internal Audit and Assurance Manager

This report was marked “to follow” and was published on 15^th July 2022

The Engagement Manager presented a report of the which advised the Committee that the purpose of the Head of Internal Audit Opinion (HoIAO) Report was to contribute to the assurances available to the Accountable Officer and the Council which underpinned the Council’s ownassessment of the effectiveness of the organisation’s system of internal control. This Opinion assisted the Council in the completion of its Annual Governance Statement (AGS), along with considerations of organisational performance, regulatory compliance and the wider operating environment.

The Committee was advised that in October 2021, MIAA had been requested to support the City Council, both in terms of providing a Head of Internal Audit service and delivery of the 2021/22 internal Audit Plan. The previous in-house internal audit provision had ceased and there had been little or no internal audit activity for the period April – October 2021. As such, the Internal Audit Plan developed by MIAA, focused upon mandated and core assurances and priority areas highlighted within City Council’s 2020/21 Annual Governance Statement.

The Committee was advised that furthermore, this opinion was provided in the context that the Council like other organisations across the public sector had continued to face unprecedented challenges due to COVID-19.

Based on this it was reported that the overall opinion for the period 1^st April 2021 to 31^st March 2022 was a limited assurance.

The Internal Audit Annual Report and Head of Internal Audit Opinion 2021/22 was appended to the report for the Committee’s consideration.

Resolved:

That the Internal Audit Annual Report and Head of Internal Audit Opinion 2021/22 be noted.

Report of the Monitoring Officer

This report was marked “to follow” and was published on the 15^th July 2022

The Deputy Monitoring Officer presented a report which required the Committee to approve the draft Annual Governance Statement (AGS) for 2021/22 for inclusion

in the Annual Statement of Accounts following a review of the Council’s governance

arrangements.

The Committee was advised that in accordance with the Accounts and Audit Regulations 2015 the Council was required to prepare an AGS for publication alongside the Statement of Accounts. The Chartered Institute of Public Finance and Accountancy (CIPFA) and Society of Local Authority Chief Executives (SOLACE) jointly issued a Framework and guidance in relation to the preparation of the AGS.

The Draft Annual Governance Statement 2021/22 was appended to the report for the for the Committee’s consideration.

The Committee asked a number of questions in relation to the Statement of Accounts to which the Chief Finance Officer provided an oral update and advised that there had been no significant changes since the last update to Committee at its meeting in May 2022.

Resolved:

That the Annual Governance Statement (AGS) for 2021/22, subject to the following amendments;

(1)            That the paragraph titled “Strategic Risk Management” (page 21) be amended to “Risk Management” and make reference to “operational risks”. After the sentence, "As a result, Internal Audit have not been able to utilise this risk register to inform and prioritise their audit work" insert "Consistent risk management practice is also needed across all departments of the council to allow effective oversight and escalation of risk ownership and reporting." and;

(2)                The sentence "The executive team have prioritised a comprehensive review of the end-to-end policies, plans, controls, and capacity in place for Risk, Improvement, Audit and Assurance, and will provide regular updates on this work to Audit Committee." to be amended to "The executive team have prioritised a comprehensive review of the end-to-end policies, plans, controls, and capacity in place for Risk Management, included in which will be the recognition of areas of good practice.   Regular updates on this work will be provided to Audit Committee";

be recommended for adoption and for signing by the Chief Executive and the Leader of the Council, subject to any minor non-material changes.