Agenda item

That the feedback from the Chair of the Audit and Governance Committee be NOTED. 

7.1             The Vice-Chair of the Audit and Governance Committee was invited to feedback on the last meeting of the Committee held on 27 March 2024.

7.2             The Vice-Chair of the Audit and Governance Committee advised that he had chaired the meeting on 27 March where five key elements had been discussed.  Firstly, Members had considered the external audit annual report which was the final report from the outgoing auditors, Grant Thornton, and looked at the Council’s value for money arrangements.  Overall, it was a positive report with only a small number of recommendations including the involvement of Overview and Scrutiny in the financial management process; improving public consultation on budget proposals; and development of a data strategy.  All recommendations were accepted by management and scheduled for implementation.  At the same meeting, the new external auditors, Bishop Fleming, had introduced its annual work plan and the Committee looked forward to a constructive working relationship with them.  Members would recall an internal audit report in relation to Section 106 was presented to the Audit and Governance Committee in January.  The findings of the audit regarding elements of the Section 106 process had not been positive and the Committee had requested that an action plan in response to those findings be brought back for its consideration.  A prompt management response had resulted in an action plan being presented at the meeting; however, Members had expressed disappointment in what had been put forward with his view being that the plan was fairly light, and largely a regurgitation of the audit recommendations, which failed to inspire confidence it would be delivered against.  Whilst the action plan tried to cover the audit recommendations, through discussion it was evident the whole Section 106 process needed to be reviewed and, therefore, a more comprehensive action plan was required.  In terms of the internal audit recommendations, he was aware the team was in the process of following-up those recommendations and the outcome would be reported to the Committee in September.  At each Committee meeting, the Internal Audit team presented the work undertaken since the previous meeting and it was very positive to receive reports of a substantial audit opinion in relation to the administration of the Council Tax Reduction Scheme and recycling credits.   The Committee had also approved the Internal Audit team’s six-monthly plan - the breadth of the work to be undertaken ranged from the UK Shared Prosperity Fund, to flood recovery grants and licensing.  He encouraged all Lead Members to keep abreast of the planned audit work in their portfolio areas.  The Committee had also considered the Corporate Risk Register, a high-level document that captured the Council’s key risks and how they were being managed.  These ranged from cyber security and financial sustainability to delivery of climate emergency work.  External audit had recommended there should be wider oversight of the risk register and bringing this document to Executive Committee, as well as the Audit and Governance Committee, in future would seem an appropriate way forward.  

7.3             A Member valued the work being undertaken by Internal Audit, particularly in relation to Section 106 which Members had raised as an issue for some time and he was keen to see improved, and he asked how much of this would be reliant on resource.  In response, the Director: Corporate Resources confirmed the Internal Audit team was fully resourced with two full-time equivalents and the introduction of the new Head of Service last year.  The team had been operational for almost two years following the pandemic and there were no issues in terms of resource.  With regard to Section 106 resource, the Executive Director: Resources advised that consideration would need to be given to any ongoing resource needed to manage the Section 106 process effectively.  The Chair felt it would be interesting to read the report which went back to the Audit and Governance Committee in September as Section 106 was a priority focus for the Council to ensure that development within the borough was sustainable.

7.4             It was