Agenda and minutes

When the continuous alarm sounds you must evacuate the building by the nearest available fire exit. Members and visitors should proceed to the visitors’ car park at the front of the building and await further instructions (during office hours staff should proceed to their usual assembly point; outside of office hours proceed to the visitors’ car park). Please do not re-enter the building unless instructed to do so.

In the event of a fire any person with a disability should be assisted in leaving the building.  

38.1          The evacuation procedure, as noted on the Agenda, was taken as read.

To receive apologies for absence and advise of any substitutions. 

39.1          Apologies for absence were received from Councillors H C McLain, H S Munro and P E Smith.  There were no substitutes for the meeting.

Pursuant to the adoption by the Council on 24 January 2023 of the Tewkesbury Borough Council Code of Conduct, effective from 1 February 2023, as set out in Minute No. CL.72, Members are invited to declare any interest they may have in the business set out on the Agenda to which the approved Code applies.

40.1          The Committee’s attention was drawn to the Tewkesbury Borough Code of Conduct which was adopted by the Council on 24 January 2023 and took effect on 1 February 2023. 

40.2          There were no declarations made on this occasion.

To approve the Minutes of the meeting held on 23 November 2022 and the Special meeting held on 12 December 2022.

41.1          The Minutes of the meeting held on 22 November 2022 and the Special meeting held on 12 December 2022, copies of which had been circulated, were approved as correct records and signed by the Chair.

To consider the Audit and Governance Committee Work Programme.  

42.1          Attention was drawn to the Audit and Governance Committee Work Programme, circulated at Pages No. 17-23, which Members were asked to consider.

42.2          The Head of Corporate Services advised that the annual update on the Council’s arrangements for the General Data Protection Regulation (GDPR) was due to be considered at the meeting on 22 November 2023; however, this would be brought forward to the July meeting in order to follow the end of the financial year. 

42.3          It was

RESOLVED          1.That the Audit and Governance Committee Work Programme be NOTED.

2. That the Annual Update on the Council’s Arrangements for the General Data Protection Regulation (GDPR) be moved from 22 November 2023 to 19 July 2023.

To consider the external auditor’s report on progress against planned outputs.  

43.1          Attention was drawn Grant Thornton’s audit progress report and sector update, circulated at Pages No. 24-35, which reported progress in delivering its responsibilities as the Council’s external auditors.  Members were asked to consider the report.

43.2          The Grant Thornton Audit Manager advised that the initial planning and interim work for the 2022/23 audit had taken place in February and March 2023 and was now largely complete.  It was intended to commence work on the draft financial statements in July and to report to the Audit and Governance Committee on 27 September 2023 ahead of the 30 September deadline.  Reference was made to the requirement to report infrastructure in the balance sheet and he confirmed this change did not impact Tewkesbury Borough Council.  With regard to value for money, the 2021/22 work would be ongoing over the next few months and he planned to report to the Audit and Governance Committee in July, subject to capacity as there continued to be pressures within the sector.  The 2021/22 housing benefit calculation was also ongoing with the intention of this being completed by the end of April; this was later than the deadline but two months earlier than last year.  It was noted that Grant Thornton had met with the Finance team in March as part of their regular liaison meetings and a meeting would shortly be arranged with the Head of Finance and Asset Management, the Head of Corporate Services and the Chief Executive around the value for money work.  With regard to the deliverables, outlined at Page No. 29 of the report, Members were advised that the external auditor’s annual report was timetabled for December 2023 but it was hoped this could be done earlier.  The target date for the 2022/23 housing benefit subsidy certification had not yet been set and was largely dictated by Department for Work and Pensions expectations.  Sector updates provided Members with a summary of emerging national issues and development with the latest topics outlined at Pages No. 30-34 of the report.  The Grant Thornton Audit Manager advised that next year would be the final year of Grant Thornton being the external audit for Tewkesbury Borough Council.

43.3          A Member drew attention to Page No. 33 of the report in relation to the risk of Council’s running out of money next year, particularly the suggestion that district councils would have the largest budget gap compared to net spending at 10.2%.  He recognised that some authorities would be at higher risk than others and he asked for a view from Grant Thornton as to how Tewkesbury Borough Council’s balance sheet compared.  In response, the Grant Thornton Audit Manager advised that Tewkesbury Borough Council was less risky than others which was largely attributable to the way the authority was run in terms of financial control and statements; nevertheless, it needed to be highlighted as a risk in terms of financial planning as there were challenges and pressures generally for district councils with a lot of statutory services which  ...  view the full minutes text for item 43.

To consider the audit fee scale for 2022/23 and the appointment of external auditors from 2023/24.

44.1          The report of the Head of Finance and Asset Management, circulated at Pages No. 36-43, asked Members to consider the fee scale of £41,465 for the 2022/23 audit and the appointment of Bishop Fleming as the auditor of Tewkesbury Borough Council for five years from 2023/24.

44.2          The Head of Finance and Asset Management advised that the fee scale set for 2022/23 was an increase of £3,876 against the fee for 2021/22.  Members were reminded that this may not be the actual fee as there could be variations to reflect additional work that may be undertaken.  It was noted this was the last fee scale in the current appointing period and, as part of the new treasury arrangements, Public Sector Audit Appointments (PSAA) had advised of the likelihood of a major reset of total fees for 2023/24 involving an increase in the order of 150% on the total fees for 2022/23.  The second part of the report related to the appointment of Bishop Fleming as the external auditor for Tewkesbury Borough Council for 2023/24-2027/28 and background to the company was provided at Page No. 38, Paragraph 3.3 of the report. 

44.3          The Chair queried whether Bishop Fleming had won any other local authority contracts and was informed it had been appointed to the other district councils in Gloucestershire and many of the public sector organisations in the south-west.  Another Member raised concern regarding the potential 150% increase in total fees for 2022/23 and asked whether the government was providing any support.  In response, the Head of Finance and Asset Management reminded Members that, when the Audit Commission was the Council’s external auditor, the audit fee had previously been in the region of £120,000; this demonstrated how much it had reduced over the period to a level that was now unsustainable for the sector.  It would be a large increase for the Council but money had been set aside in the 2023/24 budget to meet the cost going forward.

44.4          It was

RESOLVED          1. That the fee scale of £41,465 for the 2022/23 audit be NOTED.

2. That the appointment of Bishop Fleming as the auditor of Tewkesbury Borough Council for five years from 2023/24 be NOTED.

To consider the risks contained within the Corporate Risk Register and assurance that the risks are being effectively managed. 

45.1          The report of the Head of Corporate Services, circulated at Pages No. 40-60, asked Members to consider the risks contained within the corporate risk register and assurance that the risks were being effectively managed.

45.2          The Head of Corporate Services advised that three risks had been removed when the corporate risk register had last been considered by the Committee in November – Ref. 6 Safeguarding, Ref. 9 Growth Hub and Ref. 12 COVID-19 Recovery - and Members had discussed adding a risk around the Development Management improvement programme.  Officers had discussed this following the meeting and it had now been added as Ref. 16.  It was noted that Ref. 12 Wingmoor Farm could now be removed as Gloucestershire County Council had granted planning permission until December 2027.  With regard to Ref. 11 National driver shortage, Members were informed that an internal audit review of how that risk was being managed had been undertaken which was detailed at Pages No. 93-95 of the Internal Audit Plan Monitoring Report being considered later on the Agenda.  The audit had concluded that the risk had not really materialised, being somewhat mitigated by the market supplement, so whilst there was merit in keeping it under review, that could be done outside of the register and it was suggested it be removed.  The Garden Town team was in attendance to take any questions in relation to Ref. 9 Ashchurch Bridge project and the commentary in respect of Ref.10 Carbon neutrality acknowledged the investment required to meet the ambitions of being carbon neutral and made reference to the successful bid for funding towards a replacement heating system with a report due to be taken to Council following the Borough Council elections.  The Head of Corporate Services indicated that the register included a risk around the IT network and he was pleased to report that Public Sector Network compliance had recently been achieved and penetration testing had been positive with testers unable to exploit full network administration.  He felt it was important to acknowledge the fantastic work the team continued to do ensure the network remained secure.

45.3           A Member understood there was no statutory requirement to have a corporate risk register but she felt it was positive Tewkesbury Borough Council did have one and she found the format to be very useful in terms of the colour coding.  She was looking forward to hearing more about the heating replacement system and how much additional money would be needed to supplement the grant funding.  The Head of Finance and Asset Management advised this was on the Agenda for the Climate Change and Flood Risk Management Group meeting next week and it was planned to go to out to tender over the next couple of months with a report to Council to approve the balance of the funding.  It should be noted that the cost was £1.1-1.2m when it had gone out to tender last year and inflation had risen considerably since that time so, whilst it was  ...  view the full minutes text for item 45.

To approve the accounting policies to be used during the preparation of the 2022/23 financial statements. 

46.1          The report of the Financial Services Manager, circulated at Pages No. 61-79, set out the main changes in accounting policies under the Code of Practice on Local Authority Accounting in the United Kingdom in 2022/23.  Members were asked to approve the accounting policies to be used in the preparation of the 2022/23 financial statements.

46.2          The Finance Manager advised that this was the annual report which sought approval of the accounting policies to be used for the 2022/23 accounts and outlined the principles and conventions that would be applied.  There were no real changes to the Code of Practice for the financial year beginning 1 April 2022 and the new standard, IFRS16, had been deferred until 1 April 2024.  The policies had been tidied up this year with interests in companies and other entities and heritage assets being deleted due to their immaterial impact on the transactions.  A change had been made in relation to the useful economic life of vehicles, plant, furniture and equipment after reviewing the life of IT equipment and bins and reducing this from 5-7 years to 3-10 years on the basis that bins had a 10 year warranty and advice from the ICT Manager that three years was a more realistic lifespan for technology. 

46.3           In response to a query regarding the carrying value of heritage assets, the Finance Manager advised that around £100,000 related to civic regalia.  Another Member noted that it stated that heritage assets were not normally disposed of and, on that basis, she asked what had been.  The Finance Manager indicated that nothing had been disposed of as far as she was aware - these tended to be things that were held in perpetuity which was what the report was trying to convey.  A Member asked if these items were insured and confirmation was provided that all regalia was insured.

46.4           It was

RESOLVED          That the accounting policies to be used in the preparation of the 2022/23 financial statements be NOTED.

To consider progress made against the CIPFA Financial Management Code action plan. 

47.1           The report of the Financial Services Manager, circulated at Pages No. 79-83, asked Members to consider the progress that had been made against the Chartered Institute of Public Finance and Accountancy (CIPFA) Financial Management Code action plan.

47.2           The Finance Manager advised that the Chartered Institute of Public Finance and Accountancy (CIPFA) had published the new Financial Management Code in October 2019 which was designed to support good practice in financial management and to assist local authorities in demonstrating their financial sustainability.  An assessment against the Financial Management Code had been approved by the Audit and Governance Committee in March 2022 and Appendix A to the report attached the first annual monitoring report against the actions identified.  Members were informed that some actions had been completed, for example, additional information such as outstanding debts, treasury indicators and vacancies had been included in the quarter three report to the Executive Committee and would continue to be reported going forward.  Other actions were reliant on government clarity regarding long terms funding, for instance, understanding prospects for financial sustainability and budget consultation.  In addition, actions such as compliance with the CIPFA Statement on the Role of the Chief Finance Officer in Local Government and carrying out credible and transparent financial resilience assessment were ongoing.

47.3           Accordingly, it was

RESOLVED          That the progress made against the CIPFA Financial Management Code action plan be NOTED.

To consider the Internal Audit work undertaken and the assurance given on the adequacy of internal controls operating in the systems audited.  

48.1          The report of the Chief Audit Executive (Head of Corporate Services), circulated at Pages No. 84-103, provided an overview of the internal audit work completed during the period.  Members were asked to consider the work undertaken and the assurance given on the adequacy of the internal controls operating in the systems audited.

48.2          Members were advised that overall the conclusion was very positive with only one limited opinion; this was particularly good considering the Council was coming out of the pandemic and the internal control environment had changed significantly.  In terms of the work completed during the period, the audit of complaints had shown this process was generally sound and the Council was in the bottom quartile when benchmarked against other authorities, which was positive.  There was one outstanding recommendation around refresher training for staff responsible for handling complaints and this would be delivered by the Corporate Director before she left the authority in June.  The audit of cemeteries had shown payments were accurately received and reconciled but there was an issue regarding segregation of duties as one person carried out a number of stages so a recommendation had been made to give consideration to introducing a second Officer.  Whilst the overall level of control was reasonable, the audit had highlighted the potential for digitalisation of processes and this was included in the Business Transformation work programme; however, the team was currently prioritising licensing and planning.  As reported earlier on the Agenda, it was proposed that the national driver shortage be removed from the corporate risk register following the audit which had found a reasonable level of control with no recommendations being made.  With regard to the cemeteries audit, a Member noted that income was almost £65,000 but expenditure was only around £13,500 and she asked how it was broken down.  The Head of Finance and Asset Management advised that the figures were costs directly associated with burials; there were other costs in terms of delivering the service, for example, employment of the sexton and Ubico costs which would be included within grounds maintenance.  The Member raised concern that the maps held at the cemetery may be out of date leading to duplication in allocation of plots but there was no start date for digitalisation.  She noted that the Council had a duty to make necessary arrangements where no suitable funeral arrangements had been made for a deceased person who had died in the borough, with only one such funeral taking place between 1 October 2021 and 30 September 2022, and she asked if this was likely to increase as she expected there would be more people without assets in future.  The Head of Finance and Asset Management confirmed that the Council was keen to digitalise all services where possible but there was a lack of capacity within the Business Transformation team and, when considering all of the needs for the coming year, it was felt that licensing and planning were more important in terms of where to place  ...  view the full minutes text for item 48.

To approve the Internal Audit Six Month Plan 2023/24 (Apr-Sept). 

49.1          The report of the Head of Corporate Services, circulated at Pages No. 104-110, set out the proposed Internal Audit Plan for April-September 2023.  Members were asked to approve the six month plan as set out at Appendix 1 to the report. 

49.2          The Head of Corporate Services advised that the report set out the proposed areas for audits moving forward and there was a good range based on the corporate risk register including gifts and hospitality, budget control and the increased requirements for grant certification and disabled facilities grants.  The Head of Finance and Asset Management had requested an audit of the commercial property portfolio – purchase of the properties had been well governed with Member engagement and approval so this would focus on management of the properties to ensure the correct lease charges had been raised and terms and conditions were being adhered to.  An audit of the High Street Heritage Action Zone scheme was also proposed, as this was a £2m project, along with an audit of garden waste which generated income of £1.1m.

49.3           It was

RESOLVED          That the Internal Audit Six Month Plan 2023/24 (April-September) be NOTED.

To consider the monitoring report on the Significant Governance Issues identified in the Annual Governance Statement and to review progress against the actions. 

50.1           The report of the Corporate Director, circulated at Pages No. 111-117, set out the Significant Governance Issues identified in the Council’s Annual Governance Statement and the action taken to address them.  Members were asked to consider the progress made against those actions. 

50.2          The Corporate Director advised that the majority of actions had progressed but there were some which would not be delivered by their target dates.  For instance, Community Infrastructure Levy (CIL) governance had been outstanding for some time and required the three Joint Core Strategy authorities to agree the arrangements – whilst positive steps had been made, and this was further along than it had been in November when the report was last considered, it was unlikely to be achieved by the end of March.  Work on the Local Code of Corporate Governance was yet to commence due to other priorities but all other actions had moved forward.  A Member asked when the CIL governance was likely to be resolved and was advised there was no firm date but it was of great concern and needed to be urgently progressed.  Several Members expressed concern regarding the delay and it was subsequently

RESOLVED          1. That progress against the Significant Governance Issues identified in the Council’s Annual Governance Statement be NOTED.

2. That the Committee’s concern regarding the lack of progress in relation to Community Infrastructure Levy (CIL) governance be passed on to the Head of Development Services and Chief Executive.

To recommend to the Executive Committee that the revised Data Protection Policy be approved. 

51.1           Attention was drawn to the report of the Head of Corporate Services, circulated at Pages No. 118-131, which attached, at Appendix 1, the revised Data Protection Policy.  Members were asked to recommend to the Executive Committee that the revised policy be approved.

51.2          The Head of Corporate Services advised that it was prudent to review policies every three years and the Data Protection Policy had last been reviewed in 2018.  The main updates were set out at Page No. 120, Paragraph 3.1 of the report and were largely of a minor nature. 

51.3          With regard to personal data, a Member drew attention to Page No. 124 of the report and asked why it was necessary to collect some of the personal data listed, such as cultural profile.  In response, the Corporate Director advised that it would not always be relevant and the authority would only collect the data it needed to process.  It was

RESOLVED          That it be RECOMMENDED TO THE EXECUTIVE COMMITTEE that the revised Data Protection Policy be APPROVED.