Agenda and draft minutes

To appoint a Vice-Chair for the 2024/25 municipal year (the Vice-Chair must not be a member of Cabinet or Overview and Scrutiny).

The Chair requested nominations for the position of Vice-Chair of the Audit Committee for the municipal year 2024/25.

It was proposed by Councillor Ruth Colbridge and seconded by Councillor Peter Jackson:

That Councillor David Whitaker be appointed Vice-Chair of the Audit Committee for the municipal year 2024/25”.

There being no further nominations, the Chair declared the proposal to be carried.

Resolved:

That Councillor David Whitaker be appointed Vice-Chair of the Audit Committee for the municipal year 2024/25.

To receive as a correct record the Minutes of the meeting held on 20^th March 2024 (previously circulated). 

The minutes of the meeting held on 20th March 2024 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.

Whilst this report is public, Appendix B is exempt, and notice is hereby given that the meeting is likely to move into private session if it is necessary to refer to the exempt appendix.

Report of the Chief Executive. 

The Projects and Performance Manager provided an update on the authorities’ progress in updating the Strategic Risk Register.

The Council’s Strategic Risk Register was appended to the report for the Committees consideration and showed the changes made during the last quarter up until 9^th May 2024.

A summary of the main changes was provided, and members asked questions on specific items of risk.

Members then advised that they wished to consider the content within Appendix B that was recommended to be considered in the exempt part of the meeting.

It was proposed by Councillor Paul Stubbins and seconded by Councillor Peter Jackson;

That in accordance with Section 100A(4) of the Local Government Act, 1972, the press and public be excluded from the meeting to enable the Committee to consider Appendix B to the report, on the grounds that it could involve the possible disclosure of exempt information as defined in paragraph 3 of Schedule 12A of that Act.

Unanimously Resolved:

That in accordance with Section 100A(4) of the Local Government Act, 1972, the press and public be excluded from the meeting to enable the Committee to consider Appendix B to the report, on the grounds that it could involve the possible disclosure of exempt information as defined in paragraph 3 of Schedule 12A of that Act.

Members of the Committee then considered the appendix. The Committee discussed and asked a number of questions in relation to the exempt appendix.

After considering the exempt appendix the meeting continued in public.

Resolved:

That the report be noted.

With the agreement of the Committee the Chair brough forward Item 8 – Internal Audit Progress Report.

Report of the Head of Internal Audit. 

The Engagement Manager presented a report which advised Members of the latest monitoring position regarding the Internal Audit plans for 2022/23 and 2023/24 and provided a summary of Internal Audit activity which complied with the requirements of the Public Sector Internal Audit Standards.

The Internal Audit Progress Report was appended to the report for the Committees consideration.

The Committee was advised that an update on the Mobile Device Management Solutions review was recommended to be considered in an exempt part of the meeting.

It was moved by Councillor Paul Stubbins, seconded by Councillor Ruth Colbridge and resolved:

That in accordance with Section 100A(4) of the Local Government Act, 1972, the press and public be excluded from the meeting to enable to Committee to consider Mobile Device Management Solutions review, on the grounds that it could involve the possible disclosure of exempt information as defined in paragraph 3 of Schedule 12A of that Act.

Resolved:

That in accordance with Section 100A(4) of the Local Government Act, 1972, the press and public be excluded from the meeting to enable to Committee to consider Mobile Device Management review, on the grounds that it could involve the possible disclosure of exempt information as defined in paragraph 3 of Schedule 12A of that Act.

The Senior Technology Risk Assurance Manager provided an overview of the Mobile Device Management Solutions review which had been finalised within the last reporting period.

Members asked a number of questions after which the meeting continued in public.

The Engagement Manager provided updates on two further reviews which had been finalised, Risk Management (Substantial Assurance) and Payroll including Additional Payment (Limited Assurance). There had also been an Audit Committee Effectiveness Briefing Note.

A follow up on previous internal audit recommendations was include in the report at Appendix D and showed that 13 actions had been completed.

The Committee was advised of one change to the Internal Audit Plan which was to push Quarter 4 Community Engagement Review onto the 2025 Audit Plan to accommodate a request for a review of Procurement Card Usage.

Resolved:

That the report be noted. 

Report of the Head of Internal Audit. 

The Head of Internal Audit presented a report on the Internal Audit Opinion for 2023/24.

The Committee was advised that the purpose of the Opinion was to contribute to the assurances available to the Accountable Officer and the Council which underpinned the Council’s own assessment of the effectiveness of the organisation’s system of internal control. This Opinion would assist the Council in the completion of its Annual Governance Statement (AGS), along with its consideration of organisational performance, regulatory compliance and the wider operating environment.

It was reported that the overall opinion for the period 1^st April 2023 to 31^st March 2024 was Moderate Assurance.

Members asked questions about the assurance level including whether this showed a general improvement in assurance level and were advised that there had been stabilisation and embedding of the assurance level as moderate but that there was still work to be done to improve that assurance level.

Resolved:

That the report be noted.

Report of the Chief Finance Officer.  Report published 16.05.24. 

The Chief Finance Officer presented a report which summarised how the Audit Committee gained assurance, as ‘those charged with governance’, from management in order to fulfil its responsibilities in relation to the financial reporting process.

The Committee was advised that the Council’s external auditor, KPMG, was required to comply with the requirements of the International Standards on Auditing (UK) (ISA), when conducting the audit of the Council’s financial accounts for the year ended 31 March 2024.

It was reported that under the ISA’s KPMG had specific responsibilities to communicate with the Audit Committee on certain specific matters. As part of the risk assessment procedures, KPMG was required to obtain an understanding of the management processes, and the Audit Committee’s oversight, of a number of the following areas in respect of the year ended 31 March 2024;

·       General Enquiries of Management.

·       Fraud.

·       Laws and Regulations.

·       Related Parties; and

·       Accounting Estimates.

To support this management had reviewed a number of documents and compiled a series of questions and responses covering the 2023/24 financial year. These were appended to the report for the Committee’s consideration.

Resolved:

That the report be noted.

Report of the Chief Officer - Resources/S151 Officer.  Report published 22.05.24. 

The Chief Finance Officer presented a report which provided an update on the position regarding the conclusion of the audits of the 2019/20, 2020/21, 2021/22 and 2022/23 Statement of Accounts, and the preparation of the production of the 2023/24 Financial Statements.

Members were advised that although the 2019/20, 2020/21, 2021/22 and 2022/23 Statement of Accounts remained outstanding significant progress had been made in a number of key areas.

The Committee was given an update on the each of the Statement of Accounts and advised that no audit work had been undertaken on the 2021/22 and 2022/23 Financial Statements.

It was reported that, with regard to the outstanding matters the Committee was reminded that the 2019/20, 2020/21, 2021/22 and 2022/23 Statement of Accounts were subject to a formal objection by a local Council Taxpayer. In order to discharge its duties in regard to the objection and conclude the audits, the External Auditors had requested the Council to seek assurances from a number of third parties. While two assurances had been received months ago there had been significant delays in obtaining the final assurance.

The Committee was advised that following a series of meetings with the remaining party an agreement had now been reached. Details of the agreement had been shared with the External Auditors and it was felt that this should be enough to close finally conclude the matter.

The Committee was updated on the preparation of the 2023/24 Statement of Accounts and it was noted that due to the backstop auditors would not have assurances from closing balances that would normally support opening balances for 2023/24.  KPMG would therefore need to perform sufficient testing on opening balances to rebuild assurance. To prevent recovery work causing delays to future audits, the proposals included further backstop dates for all years up to and including 2027/28.

Resolved:

That the report be noted.

Report of the Chief Finance Officer. 

The Chief Finance Officer presented a report of the proposed Audit Committee training and work programme for 2024/25.

The training and work programme was appended to the report for the Committee’s consideration.

Resolved:

That the report be noted.