Agenda and minutes

This meeting is to be webcast and the Chairman will read the following announcement:

“I would like to remind everyone that this meeting will be filmed live or recorded, and uploaded to the internet and will be capable of repeated viewing.

Therefore, by participating in this meeting, you are consenting to being filmed and to the possible use of those images and sound recordings.

If any public speakers on MS Teams do not wish to have their image captured, they should ensure that their video setting throughout the meeting is turned off and set to audio only.

Members and public speakersare reminded to turn on their microphones before speaking and turn them off when they have finished.”

The Chairman made a short address to remind everyone present that the meeting would be broadcast live to the internet, and would be capable of repeated viewing, which could infringe their human and data protection rights.

To declare interests in any item on the agenda for the meeting of the Committee.

There were no declarations of interest made pursuant to the Council’s Members’ Code of Conduct.

To confirm the minutes of the meeting of the Committee held on 9 December 2024.

          RESOLVED:

That the minutes of the meeting held on 9 December 2024 be taken as read and signed by the Chairman as a correct record.

To consider any matters arising from the minutes of the previous meeting of the Committee.

There were no matters arising form the minutes of the previous meetings which warranted further discussion.

To consider the attached work programme for the Committee for 2024/25.

The Committee noted its Work Programme for 2024/25.

To consider the Ernst & Young audited Statement of Accounts 2023/24.

Andrew Small (Acting Chief Executive), introduced the report to the Committee.   Debbie Hanson, External Auditor Ernst and Young, presented the completion report for the 2023/24 audit,  highlighted the national context for audit and advised the Committee that whilst the council was one only a few Council’s that had received an audit opinion for the years 2021//22 and 2022/23, on the 2 December 2024 and 12 December 2024 respectively, this had left insufficient time to complete the 2023/24 audit before the backstop position of 28 February 2025 and a disclaimed audit report would be issued.  Details of the completion reported, including materiality levels, risk and Value for Money were as set out in the report. Pending the approval of the accounts and the letter or representation at the meeting, Ernst and Young advised that it would issue the disclaimed opinion to allow the Council to meet the publication deadline.

The Committee were advised that next years’ report would have a disclaimed opinion as there would not be assurance over the opening balance, and that it would take a number of years to remove the impact on the financial statements.

Andrew Small provided the Committee with further detail and explanation on the national backlog of audit, many local authorities has unsigned accounts dating back several years and this had resulted in Government intervention, guidance and a backstop date. 

Debbie Hanson advised the Committee that next year’s account would have be a fully disclaimed opinion as there would not be assurance on the opening balance, however, work would be carried out to gain assurance on specific areas. Andrew Small confirmed that the Committee would be appraised at future meetings.

The Committee were advised that Qualis made interest and principal payments on their loans. The Qualis Business Plan showed viability and monitoring reports showed progress made against that Plan.

The Committee received confirmation that the detailed points on valuation raised last year, had been included in the detailed instruction passed to the valuers and  a five-year programme was in place, high value assets were added into the programme, investment properties, Council dwellings and HRA assets were valued annually.  Debbie Hanson advised the Committee that there would be an inherent risk associated with the valuation process, and at this stage Ernst Young did not have assurance about the valuation approach, but it was anticipated that this would drop to an inherent risk.

Resolved:

That the Committee:

1.     Considered the Ernst & Young (EY) Completion Report, findings from their audit of the Statement of Accounts 2023/24 and Audit Opinion; and

2.     Approved the audited Statement of Accounts 2023/24 in the context of the EY audit report for the year ended 31st March 2024

To consider Treasury Management Quarter 3 Update 2024/25.

The Council’s Treasury Management report quarter 3 update 2024/25 was presented by C Hartgrove (Interim Chief Financial Officer). The Borrowing and Investment position at 31 December 2024 showed external borrowing had increased to £255.7m and investments had reduced to £24.2m.  The total value of Service Investments was £72.6m and outstanding loans to Qualis had grown by £9.2m. The report also considered commercial property investment, which had an increased forecast position from the previous year.  The commercial loan to Qualis, was a 10 year maturity loan of £30m which would be repayable in September 2030.  Confirmation was provided that treasury management activities complied with the CIPFA Code of Practice.

Resolved:

The Committee commented on the Treasury Management Quarter 3, 2024/25 report.

(Strategic Director Corporate and Section 151 Officer) To consider and provide comment for Cabinet on the risk management report.

The Acting Chief Executive, A. Small, highlighted that that the risk associated with waste service delivery, CONT001, had been closed, as the service had successfully transferred to TVS. The remaining risks had remained static, risks had been reviewed to ensure controls remained effective and mitigating actions were appropriate.

The Committee were advised after questioning that:

·        The mitigation actions for Council house building had reduced the residual risk, but there was some risk with any capital delivery programme,

·        Business continuity would remain as a risk even with effective mitigation as the Council had an integral and important role in major incidents.

·        There was an expectation that risks associated with Local Government Reorganisation would materialise in the future, when when there was clarify on how this would progress.

Resolved:

The Committee reviewed and endorsed the risk register.

(Head of Internal Audit) To consider and comment on the Internal Audit Progress Report.

The Senior Auditor, S Linsley, presented the Internal Audit Monitoring Report and updated the Committee on the work completed by internal audit since the previous meeting, and advised the Committee two final reports had been issued, cyber security had received reasonable assurance, and budgetary control had received substantial assurance. The Committee were requested to approve the deferral of three audits: people strategy, Qualis Commercial; and the climate emergency action plan, as resources had been diverted to carry out a fundamental review of the sundry debtor and reconciliation process.  Details of the audit tracker, Annual Governance Statement progress and the corporate fraud team update were as detailed in the report. Martin Crowe, Corporate Fraud Team Manager, advised on the review and minor amendments to the Whistleblowing Policy.

The Committee:

·        noted the importance of the sundry debtor review, and

·        were advised that the whistleblowing report had been withdrawn, but the investigation continued, recommendation have been accepted by the management team and would be monitored through the recommendation tracker.

Resolved:

That the Committee

1.     noted the summary of the work of Internal Audit and the Corporate Fraud Team for the period November 2024 to February 2025

2.     noted the revised Whistleblowing Policy, and

3.     approved the deferral of three audits from the 2024/25 Audit Plan

Section 100B(4)(b) of the Local Government Act 1972 requires that the permission of the Chairman be obtained, after prior notice to the Chief Executive, before urgent business not specified in the agenda (including a supplementary agenda of which the statutory period of notice has been given) may be transacted.

No other business was raised for consideration by the Committee.