Agenda item

Prior to introducing the annual report prepared of the work carried out by the Council’s Audit and Governance Committee during the 2022/23 financial year, Councillor R Newcombe, Chairman of the Audit and Governance Committee informed Members that the Council’s risk team (headed by Caroline Jenkins, Risk and Business Continuity Manager) had recently won Team of the Year 2023 at the ALARM (Association of Local Authority Risk Managers) annual awards.

Members were informed that the content and presentation of the annual report met the requirements of the CIPFA Audit Committees Guidance 2018 to report to full Council on a regular basis on the Committee’s performance in relation to the terms of reference and the effectiveness of the Committee in meeting its purpose.

Members were informed that the Audit and Governance Committee had met six times during the year.  Each meeting had reviewed a Forward Plan to ensure that the work being undertaken mirrored the level of risks and priorities of the Action.  Any actions raised during previous Committee meetings were reviewed for completeness.

The Committee had continued to receive valued professional reports, support and advice from Corporate Finance, Treasury Management, Risk Management, Procurement, Internal Audit and from our External Auditors.

The Committee’s work had included approving and monitoring the Council’s Whistleblowing Policy, Anti-Fraud and Corruption Policy and Money Laundering Policy.  The Committee was also responsible for overseeing the Council’s financial reporting process and for approving the Council’s Financial Statements and Annual Governance Statement.  It was explained that due to a combination of factors the audit of the draft statement of accounts for the year ended 31 March 2021 had not yet been completed by the external auditors but was expected to be concluded during December 2023.  This was part of wider endemic problem across the country whereby 73% of local authority audits for 2021-22 were still outstanding and 300 audits for 2020-21 were also outstanding.

Information provided in the annual report to Council included:

-               On audits undertaken during the year, including the Pension Fund audit.

-               That the Annual Governance Statement for 2021/22 had been agreed in November 2022, with the AGS for 2022/23 due to be considered at the July 2023 meeting.

-               That the terms of reference for Internal Audit (Internal Audit Charter), the Business Assurance Strategy including the Annual Internal Audit Plan, and the Counter Fraud Plan had been approved.

-               That updates had been received on the work of the Counter Fraud/Investigations team, including details of successful outcomes, prosecutions and recoveries.

-               That the Risk Management Group, is a sub-group of the Audit and Governance Committee, had met seven times during the financial year. The group review the strategic and key directorate risks facing the authority and the internal controls and governance in place to manage those risks to demonstrate how risk management is embedded within Services.

-               That the Committee was responsible for approving the Risk Management Strategy, and the Risk Management Group monitors the effective implementation of the strategy, as well as undertaking the scrutiny role for the development of future Treasury Management strategy prior to its presentation to Council for approval. Mid-term and annual reports on the extent of compliance with the approved Treasury Management strategy and an analysis of the performance against the targets set were also received.

-               That a review of the impact and effectiveness of the Audit and Governance Committee had been carried out in June 2023 using the CIPFA Self-Assessment of Best Practice. The review had concluded that the Committee conformed with the majority of the principles of good practice, with some areas for improvement. An improvement plan had been developed to address areas or partial or non-conformance.

The Chairman of the Audit and Governance Committee placed on record his thanks to Members and Officers who have supported the work of the Committee by presenting, discussing, challenging, and debating solutions to the governance, risk, financial, and control environment of the Council.

In response to a question, Members were informed that it was anticipated that the 2020-21 audit of the accounts would be completed by December 2023.  The proposed timetable for all subsequent audits had been discussed at the Audit and Governance Committee meeting on 5 July 2023.

RESOLVED –

That the Audit and Governance Committee Annual Report 2022/23 be NOTED.