Agenda and minutes

Councillor Agar for Councillor Cookson, Councillor Pingree for Councillor Laurenson.

To receive any declarations of interest.

Councillor Barnes declared an interest in item 69 (Annual Report of Internal Audit 2023/24) as a participant in the Homes for Ukraine scheme.

Up to a total of fifteen minutes can be allowed, each speaker being allocated a maximum of five minutes, for members of the public to present a petition, ask a question or comment on any item on the Agenda or within the remit of the Committee.

None.

Of the meeting held on 20^th March 2024 to be approved and signed.

RESOLVED: That the minutes of the meeting held on 20^th March 2024 be approved as a correct record and signed by the Chair.

That the Committee:

1.       notes the external auditor’s progress and plans with the audits of the accounts for 2021/22 and 2022/23; and

2.       notes the appointment of the new auditor to commence with the audit for 2023/24.

The Committee considered a report on the external auditor’s progress and plans with the audits of the accounts for 2021/22 and 2022/23. The Head of Finance presented the report and explained that Ernst Young, the Council’s independent external auditors, have carried out a limited amount of audit work on these accounts, but nationally there is a backlog of councils’ annual accounts waiting to be audited. In February 2024 the Government issued a consultation on proposed legislative changes which would allow auditors to issue a modified audit opinion on the outstanding accounts, but the outcome of this consultation had not yet been published. Meanwhile Ernst Young are continuing to work on the accounts with a view to achieving that particular outcome.

The report also explained that the Public Sector Audit Appointments body appointed by the Government has awarded Azets Audit Services a 5-year contract for the audit of the Council, beginning with the accounts for 2023/24. Their interim report had been issued following the publication of the agenda and a copy had been circulated to Committee Members.

Karen Jones, the Audit Partner for Azets, was in attendance and she explained that final audit is planned to take place in September 2024 and the signed audited accounts will be available by 30 November 2024. This will be after the current statutory deadline of 30 September 2024. The Government consultation referred to above included a proposal to revise this deadline to 31 May 2025, but there is uncertainty as to what the outcome will be due to the recent General Election and change of Government. She summarised the main aspects of the interim report including work completed and planned activity to be able to produce their completion report.

Both Karen Jones and the Head of Finance responded to questions from Committee Members, which focussed on the reasons for the delay.

In the ensuing discussion, Members were advised that the proposed legislative changes would allow auditors to issue a modified audit opinion on the outstanding accounts for 2021/22 and 2022/23. However, the proposed backstop date by which point local bodies would publish audited accounts for all outstanding years up to and including 2022/23 was 30 September 2024 and it was unlikely that legislative changes could be implemented to achieve this deadline.

The Corporate Director – Planning and Governance also commented and advised Members that whilst this delay remains a matter for concern, assurance can be maintained through other measures.

RESOLVED: That the Committee agree to note:

1.  the external auditor’s progress and plans with the audits of the accounts for 20221/22 and 2022/23; and

2.  the appointment of the new auditor to commence with the audit for 2023/24.

That the Committee notes the report.

The Committee considered the Internal Audit Annual Report for 2023/24. The Head of Internal Audit presented the report and summarised the main points. His overall opinion was that Reasonable Assurance can be given that there is an adequate and effective governance, risk and control framework in place, designed to meet the organisation’s objectives.

He added that an external quality assessment has been carried out and this concluded that the Council generally complies with the public sector audit standards. A full report on the findings will be brought to the September meeting of the Committee.

The Head of Internal Audit responded to questions and comments from Committee Members.

In the ensuing discussion, the following main points were made:

·          The Vice-Chair suggested that there may be value in this Committee scrutinising the Ward Councillor Community Recovery Grants scheme and he will discuss this with the Chair. There was consensus from other Committee Members for receiving a report.

·          With reference to the Council Tax, Benefits and NNDR Review, a question was asked about why there were 8 users that had access to the system, but no DBS check was recorded. The Head of Internal Audit stated that he did not have any detailed information available. He will look at the file and a written reply will be provided.

RESOLVED: That the Committee note the report.

That the Internal Audit plan for 2024/25 be approved, with or without amendments.

The Committee considered a report on the draft Internal Audit Plan for 2024/25. The Head of Internal Audit presented the report and highlighted the main points. Any significant variations will be reported to the Committee during the course of the year for review and approval. Progress against the Plan will be regularly reported.

Committee Members proceeded to discuss the Plan, and the Head of Internal Audit responded to questions and comments.

No amendments to the Plan were proposed.

RESOLVED: That the Committee approve the Internal Audit Plan for 2024/25.

That the Committee approves the Annual Governance Statement 2023/24 at Appendix 1 for sign off by the Leader of the Council and the Managing Director for inclusion in the Annual Statement of Accounts.

The Committee considered a report on the Annual Governance Statement 2023/24. The Corporate Director – Planning and Governance presented the report and highlighted the main points.

Committee Members proceeded to discuss the Statement, and the Corporate Director responded to questions and comments.

In the ensuing discussion, the following main points were made:

·           In discussing governance challenges for the forthcoming year, the fact that both the Corporate Director – Finance and Resources and the Head of Finance are due to retire was raised. The Corporate Director acknowledged that there is value in amending the Statement to reflect this. In terms of wider risk to the Council, a number of mechanisms will be put in place to address this position.

·           The Corporate Director advised that the County Council’s Boundary Review will not have any implications in terms of governance challenges for the City Council.

·           The Corporate Director acknowledged that external audit challenges remain and should be carried over as a key issue.

RESOLVED: That the Committee approve the Annual Governance Statement for 2023/24 at Appendix 1 to the report for sign off by the Leader of the Council and the Managing Director for inclusion in the Annual Statement of Accounts.

Which in the opinion of the Chairman is of sufficient urgency as to warrant consideration.

None.