Agenda and minutes

To receive apologies for absence.

Apologies were received from Cllrs Sally Dickson and George Wilson.

To confirm the Minutes of the Meeting held on 28 November 2022 and published on the Council’s website.

The minutes of the meeting held on 28 November 2022 was agreed as a correct record.

Issues raised:

·         It was noted that an informal session on the Corporate Risk Register had not happened yet and it was requested this is organised ASAP for the members.

Members were advised that Robin Taylor, Executive Head of Organisation development was currently bringing together a joint risk paper and would be asked to brief the committee at the next meeting.

·         Concern was raised regarding the External Auditors being unable once again to deliver audited accounts within the timescale expected and the implications to WBC.

Officers advised that the papers were scheduled to be available by the end of March and would be circulated as soon as available.  The delay had been due to a lack of resources available within the external auditors. There was a national consultation current being carried out on changing the auditors. It was agreed to convene an extra Audit Committee meeting once the accounts were available to discuss.

·         On 16^th January an informal discussion was held with Members along with the IT Manager and Strategic Director of Community Wellbeing around the issues with the implementation of Horizon and the processes for backups and disaster recovery.  It was suggested that in future members would like informal briefings and discussions to be clerked and notes circulated outlining the discussion and actions agreed.

To receive from Members, declarations of interests in relation to any items included on the Agenda for this meeting, in accordance with the Waverley Code of Local Government Conduct.

There were no disclosure of interests submitted for this meeting.

The Chairman to respond to any questions received from members of the public of which notice has been duly given in accordance with Procedure Rule 10.

The deadline for receipt of questions is 5pm on Monday 6th March 2023.

There were none.

The Chairman to respond to any questions received from Members in accordance with Procedure Rule 11.

The deadline for receipt of questions is 5pm on Monday 6th March 2023.

There were none.

The report provides an update on Waverley Accounting Policies in line with changes to the CIPFA Code of Practice relating to the preparation of the Financial Statements. The audit committee is charged with responsibility for the oversight of financial reporting integrity and plays a pivotal role in helping to ensure that the critical accounting policies, judgments and estimates applied by management present a fair and accurate picture of the Council’s financial position.

Recommendation

It is recommended that the Audit Committee reviews and considers the adequacy of the Accounting Policies that underpin the preparation of the Financial Statements and notes the proposed changes in accounting policy and changes in accounting standards to apply in the 2022/23 and 2023/24 Financial Statements.

Rosie Plaistowe-Melham, Financial Services Manager, advised that the Accounting Policies were reviewed annually in line with the CIPFA Code of Practice.  She  explained there had been very little changes to standards over the last 3 years and there were no major accounting changes for 2023/24. The only small change proposed was to the asset measurement policies to split them out. This change was proposed to ensure the assets in each of the previously collated category were given their own consideration. This would not have a material impact on the asset values and would not impact on the overall accounts.

The Committee considered the adequacy of the accounting policies and AGREED they were adequate for preparing the financial statements.

Members to receive any updates on risk management and to raise any areas they wish information on.

There were no updates on risk management to report to this meeting.

To enable the Committee to raise any potential emerging governance issues that may need to be addressed.

Recommendation

The Committee is invited to raise any potential emerging governance issues for consideration.

The following Governance issues were raised for noting:

1.         Cllr Jerry Hyman had registered to speak on this item.

Cllr Hyman asked for an answer to the following question: “How do Senior Officers ensure the integrity of information given at Planning Appeals?”

Cllr Paul Follows responded advising that Senior Management were happy with the information supplied at appeals and that at no time had any inspector identified any misinformation provided.

2.         Members asked that the delays in the approval of the accounts is a governance issue and that it was important work with the government and auditing authorities to come up with a better way of working as this was a reputational risk.

3.         Our Freedom of Information process has not been updated as yet due to a lack of resource.

The Committee’s Terms of Reference include provision for the Committee to approve, monitor and comment on the progress made in the achievement of the Internal Audit Plan.  An update on the current position of the internal audit reviews is attached.

Recommendation

It is recommended that the Committee notes the contents of the Internal Audit Progress report as attached.

Gail Beaton gave an update on the progress in achieving the Audit Plan for 2022-23. She advised that good progress had been made with most reviews having started. A few had been deferred to 2023-24 as set out in the report.

Members asked for information as to what the Green Waste audit entailed and this was provided.

Members noted that some reviews started in Q2 had still not got to report stage and asked why this was. It was explained that due to the collaboration Executive Heads of Service had taken on new responsibilities as well as covering two authorities and there had been a ‘bedding down’ period whilst they got used to their new roles and responsibilities, which had caused delays in responding to audit requests to progress reviews.

The Committee NOTED the progress of the Internal Audit Progress report.

The Committee’s terms of reference include provision for the Committee to approve the proposed Internal Audit Plan. This report presents the proposed Draft Internal Audit Plan for 2023-24 and the Committee is invited to comment and approve the Audit Plan. The plan has been drawn up by the Internal Audit Manager through completing a risk assessment of the audit universe of the council’s activities including consultation with Senior Management Team.

The draft audit plan also contains those reviews that were deferred from 2022-23 audit plan identifiable by the inclusion of (C/F 2022-23).

Gail Beaton outlined the proposed Internal Audit Plan for 2023-24.

It was noted that the diagram in the report highlighting the reporting paths for Iinternal Audit had changed showing the Internal Audit Manager just reporting to the Executive Head of Finance whereas previous they had also been shown as reporting to the CEO and Audit Committee.  It was agreed this would be added.

The Committee asked that an additional element  be put in under the Procurement, Tendering and Contract review to focus on the process of  evaluation for high value and technical HRA contracts re applied consistently on the basis of Cost,Technical and Quality.

It was highlighted by the members that the plan included links to the  Strategic Risk Register, but members stated that this meant very little to them as they had not seen the contents of the strategic risk register.  .

Members asked that  the standing item of Risk Management on the Agenda includes changes to the risk register.

The Committee’s annual recurrent work programme is attached.  The work programme details regular items, but other items can be submitted to each meeting on an ad hoc basis or at the request of the Committee.

Recommendation

The Audit Committee is invited to note its recurrent annual work programme.

Members NOTED the recurrent Annual Work Programme.

It was highlighted that Internal Audit Charter would be added to the June 2023 agenda. As this would provide an early opportunity for new Audit Committee members to be aware of its contents.

‘if required’ to be removed from Risk Management as it was to be brought to each meeting.

To inform the Audit Committee of Senior Management’s progress in implementation of the agreed actions following a review in their service areas. This report will enable the Committee to consider what action is required in respect of those that are overdue or appear likely to be implemented later than the original agreed target date.

Recommendations

It is recommended that the Committee:

·         considers the information contained and, following discussion at the Audit Committee meeting identifies any action it wishes to be taken.

·         endorses the extensions proposed by the Executive Heads of Service.

Gail Beaton outlined the Progress in the implementation of agreed Internal Audit Actions. She advised that 2 actions had target dates of 31 March and would be completed by then. Some actions had already progressed since the publication of the agenda.

There were three actions set out in annexe 2 of the report which the relevant Heads of Service had requested extensions.

The Committee felt the requests for extensions were reasonable and AGREED the requests.

To consider the following recommendation on the motion of the Chairman:

Recommendation

That pursuant to Procedure Rule 20 and in accordance with Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting during consideration of the following item(s) on the grounds that it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during the item(s), there would be disclosure to them of exempt information (as defined by Section 1001 of the Act) of the description specified in the appropriate paragraph(s) of the revised Part 1 of Schedule 12A to the Local Government Act 1972. Information relating to the financial or business affairs of any particular person (including the authority holding that information).

The Chairman moved the meeting into exempt session pursuant to Procedure Rule 20 and in accordance with Section 100A(4) of the Local Government Act 1972, and the webcast was terminated for the final part of the meeting.

To consider any matters relating to aspects of any reports on this agenda which, it is felt, may need to be considered in exempt session.

There were no further items to discuss in exempt session so the Chair closed the meeting.