Agenda and minutes

To receive apologies for absence from Members.

Apologies were received from Councillor S Adams and Councillor L Braithwaite. Councillor M Sewart was present as substitute.

It was noted that Councillor P Redstone would arrive late.

To provide an opportunity for Members and Officers to declare any disclosable pecuniary interests, other registerable interests, and non-registerable interests in any item on the agenda.

There were no decelerations of interest.

To approve as a correct record the minutes of the meeting held on 31 March 2025.

RESOLVED:

That the minutes of the meeting held on 31 March 2025 be agreed as a correct record and signed by the Chair.

In accordance with paragraphs 2.24 of the Council’s Committee Procedure Rules and Appendix on Public Speaking a total period of 15 minutes is allocated for members of the public to put questions to the committee on any matter relating to this agenda. Each member of the public will be allowed up to two minutes each to speak, and the Chair will have discretion to vary this where they consider it appropriate.

Members of the public wishing to speak are required to provide notice of this at least three clear working days’ in advance of the meeting and should include the question with that notice.

There were no members of the public registered to speak.

To receive an update on the committee action log.

The committee received an update on the action log. The following was noted:

-       Updated Global Internal Audit Standards: It was confirmed that a briefing to update the committee on the new standards would be arranged once the final version of the external assurance report on internal audit had been completed. Officers committed to following this up and clarifying timescales.

-       Compliance with the Procurement Act 2023: It was agreed that the comments from the committee in relation to the council’s compliance with the Procurement Act 2023 would be taken into consideration during the next review of the 2025-26 Internal Audit Plan.

RESOLVED:

That the action log and updates provided be noted.

To consider the provisional audit planning report by Ernst & Young LLP (EY).

The committee considered the report which provided the basis for the committee to review the proposed audit approach and scope for the 2024-25 external audit.

Mr H Rohimun - External Auditor, Ernst & Young LLP (E&Y), presented the report to the committee and summarised E&Y’s evaluation of the key issues driving the development of an effective audit.

An update was provided on the measures introduced to address the backlog of publishing audited financial statements and to reform the local audit system. A disclaimed audit opinion on the 2023-24 financial statements was anticipated as a result of insufficient assurance over the closing balances in 2023-24. As a result, E&Y would not have sufficient assurance over the opening balances for 2024/25 and it was anticipated that a disclaimed audit opinion would also be given for 2024-25. Guidance was awaited from the National Audit Office and Financial Reporting Council which would ensure a consistent approach was undertaken to restoring assurance for disclaimed periods. The committee queried the ongoing issues relating to closing and opening balances. It was confirmed that work would be undertaken to rebuild assurance in this area.

It was highlighted that previously, there had been issues with the readability of transaction files and the committee sought assurance that should an issue arise during sampling scheduled for later in the year, that this would be resolved quickly as this was a major requirement of an effective audit. It was confirmed that no issues had been identified to date, but any concerns would be raised with management to look at and address. Any significant matters would be reported back to the Audit and Governance Committee.

It was requested that the External Auditors ‘Value for Money Statement’ be added to the Committee Work Programme at the earliest opportunity.

It was reported that group materiality for 2024-25 had been set at £9.1m. This represented the group’s 2023-24 gross expenditure on provision of services. The committee were asked to confirm its understanding, and agreement to, the materiality and reporting levels. This was formally proposed, seconded and subsequently carried unanimously.

RESOLVED (unanimously):

That the Audit and Governance Committee

1.  Note the Provisional Audit Planning report by Ernst & Young (LLP) for 2024/25 and that following completion of their planning procedures, Ernst & Young will update the Committee on any changes in identified audit risks.

2. Agree its understanding of, and approval of, the materiality and reporting levels, as set out within the external auditors report

To receive an update on the Internal Audit Plan 2024-25.

The committee considered the report which provided an update of the work undertaken by Internal Audit between April 2024 and March 2025.

The committee noted that significant improvement had been made in the implementation of agreed audit actions with 94% of actions being implemented during 2024-25 compared to 49% during the previous financial year. It was highlighted that a full review had been undertaken to assess how internal audit actions were raised to ensure actions were more succinct and smarter. Actions had also been broken-down, so that where one element of an action had been completed, this could be subsequently ‘closed down’. The follow-up process on agreed internal audit actions had also changed and was now done on a monthly basis. This had been helpful in identify issues early-on. Support and increased engagement from action-owners and the Corporate Leadership Team had had a positive impact on progress. The committee thanked the Internal Audit team for their work.

Councillor P Redstone arrived at 11.20am

The committee noted the ongoing internal audit assignments as at 31 March 2025 and queried the anticipated ‘Limited’ assurance rating in relation to the ‘Leavers – equipment/system access’ audit. It was clarified that the scope of this audit had been much wider than just system access and included matters such as the return of car parking passes, laptops, mobile phones etc. Any significant issues would be raised immediately with management to be addressed, rather than waiting for the final audit report.

It was queried why the audit work in the Adults, Health and Integration service had not increased, given the budget pressures facing this area. It was clarified that two audits were planned for 2025-26 in relation to the implementation of the Adult Social Care Charging Policy and Adults Direct Payments. These had not been prioritised for 2024-25 as these were new systems/processes that had not yet been fully implemented. Delaying these audits to allow internal audit to provide assurance as to whether the intended improvements had been achieved. 

The committee queried the audit in relation to officer decision records. It was confirmed that the completion of this audit had been delayed due to additional testing being carried out. The report would be reviewed by the Head of Audit, Risk and Assurance and the Monitoring Officer who would look at the report in context with a number of other key workstreams underway in relation to governance and decision-making (including training and report writing). It was confirmed that a complete review of the ODR process and delegated authority (both to officers as set out within the Constitution and delegated authority from Committees) would be needed to ensure that officers and members fully understood the process however the first step would be to receive the audit report and its recommendations. 

In relation to the Accounts Payable audit report which reviewed the processes and controls in place for the area of Unit4, it was agreed that the one-page summary would be shared with committee members following finalisation of the report.  ...  view the full minutes text for item 7.

To consider the report on the terms of officer for the co-opted independent members of the committee.

The committee considered a report in relation to the term of office for its co-opted independent members. It was noted that the term of office for one co-opted independent member was due to conclude in April 2026.

The committee considered the proposal to extend the co-opted independent member’s term of office to October 2027, to be co terminus with the second co-opted independent members term of office – which would end in October 2027.

It was proposed, seconded and subsequently carried unanimously that the committee support the above recommendation. The committee thanked the co-opted independent members for their work which was extremely valued.

Mr R Jones, co-opted independent member, took the opportunity to thank the committee for their confidence.

RESOLVED:

That the Audit and Governance Committee

1. Recommends to Full Council that the current co-opted post holder’s term of office be extended to October 2027.

To consider the Work Programme.

Councillor C O’Leary addressed the committee as a visiting member and reiterated earlier points made in relation to officer decisions and the importance of the council undertaking an audit of officer decisions and the management of delegated authority given to officers by committees. Cllr O’Leary stated the importance of there being consistency between committees and elected members knowing exactly what decisions they were making and what was being delegated. Finally, Cllr O’Leary highlighted the importance of the council complying with legal obligations to publish officer decisions. In response, the Monitoring Officer confirmed that there would be a full review of officer decisions, and that training underway would seek to ensure that all reports and recommendations to committees were much clearer, so that members fully understood the implications of any decisions made / delegations given. Further work was underway to develop the working relationship between officers and members and training and development sessions would be arranged to support members and officers working together on such matters.

The committee considered the Work Programme and noted the following:

-       Member Training Plan/Strategy: it was noted that this would come to the July Committee for consideration. A draft had been circulated to the committee for comments. The Chair urged all committee members to respond as soon as possible.

-       External Audit Value for Money report to be added to the Work Programme for the committee’s December meeting.

-       Whistleblowing Policy – it was noted that this would be considered by the committee in July, and subject to committee approval, be recommended to the October Full Council meeting.

RESOLVED:

That the Work Programme be received and noted.