Agenda and minutes

To receive apologies for absence.

Apologies were received from Cllr Heather McClean.

The Committee noted the nominations of Cllr Julian Spence as Chair and Cllr Heather McClean as Vice Chair for the Municipal Year 2023-24. This was unanimously agreed.

To confirm the Minutes of the Meeting held on 13 March 2023.

Outstanding Actions:

·         Robin Taylor, Executive Head of Organisation development to bring together a joint risk paper and to brief the committee at the next meeting.

·         Update on the Freedom of Information process to be brought back to Committee.

The minutes of the meeting held on 13 March were noted by the new committee and agreed as a true record by Cllrs Spence and Davidson who were in attendance at the previous meeting.

Outstanding Actions:

·         Robin Taylor, Executive Head of Orgaination Development to bring together a joint risk paper and to brief the committee at the next meeting. – This would be discussed later in the meeting.

·         Update on Freedom of Information process to be brought back to committee – Susan Sale, Executive Head of Legal and Democratic Services advised an update would be provided to the September meeting.

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.

Cllr Conner Relleen advised that he used to work for Grant Thornton, Waverley’s External Auditors some 6 years ago.

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.

There were none.

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

There were none.

(i)            To consider and comment on the Annual Governance Statements 2022-23.

(ii)           Consideration of potential governance issues

Rosie Plaistowe, Financial Manager explained that the Annual Governance Statement (AGS) was a standing item on the agenda and the AGS was a living document which would report on how Waverley were meeting the Good Governance criteria set out by CIPFA.

The Committee raised some queries which were taken away by officers to resolve.

Officers were asked that the Committee see reports on how the Joint Management Team were performing and were advised that the Joint Governance Committee (JGC) monitor this performance so the minutes of the JGC would be made available.

Officers were requested to send out the draft AGS well in advance of the next meeting for members to have time to consider.

To inform the Audit Committee of Senior Management’s progress in implementing the actions raised by Internal Audit  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 target date.

Recommendation

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.

Gail Beaton, Internal Audit Manager, outlined the report giving an explanation to new members of what the report contained.

Members noted the report and were advised that since the report was published a number of the actions had now been completed. An updated report would be attached to the minutes.

There were three requests for extension of time which were outlined.  Members AGREED to the extensions but requested that if any further extensions to these actions were requested that Executive Heads must come along to the meeting to outline their request.

At 19:23hrs the Committee went into Exempt session, to discuss some confidential actions, 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 paragraph 3 of the revised Part 1 of Schedule 12A to the Local Government Act 1972.

The Committee reconvened at 19:28 and the public were given access.

To enable the Audit Committee to be informed of the work that has been completed to date to provide them with assurance that the control environment is working as intended.

Gail Beaton, Internal Audit Manager, outlined the report and advised that performance is acceptable. Members asked who monitored Southern Internal Audit Partnership (Contractor) and were advised they were externally audited.

Member discussed the two reviews marked as ‘limited’ in the report. Officers assured members that this was not a concern as many of the issues have been completed or are being actioned.

Members suggested they do a ‘deep dive’ on cyber security.

Action: Linda Frame to be invited to next meeting. An updated annual report is attached to the minutes.

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, Internal Audit Manager, outlined the report to members. She advised that the Audit Plan 2023-24 was obviously in its infancy, however, the contractor had started the reviews for Q1. Performance has increased since the report was published.

Members discussed the issues around Risk Management which had been highlighted as Limited assurance and were advised they would be getting an update at a meeting to be set up in July.

Members were advised the rolling programme had moved along since the publication of the report.

Members NOTED the Report.

The report provides an update to the Committee on the work being completed in investigating fraud, primarily focusing on Housing Tenancy Fraud.

Recommendation

It is recommended that the Audit Committee notes the success of the fraud investigation activity.

Members were given a overview of the report and noted there had been 10 properties recovered in 2022/23. It was highlighted that the costs incurred in recovery were minimal in contrast to the benefits.

It was noted there were more referrals over the years but housing officers are more aware of the actions to take prior to processing to the fraud officer.

The Committee noted the report and commended the work carried out by officers.

To note and approve the Internal Audit Charter. This report provides the Audit Committee with an overview of Waverley’s Internal Audit Charter that has been developed in accordance with the requirements of the Public Sector Internal Auditing Standards

Gail Beaton, Internal Audit Manager, outlined the purpose of the report and highlighted areas members needed to note.

The Committee NOTED the report.

To receive updates on any Risk Management issues and for the Members to raise any issues for discussion.

The Chair expressed disappointment that the strategic director and Executive Head for Organisational Development had been unable to attend due to other commitments but advised that a meeting would be held to allow members to receive updates and training on Risk Management.

It was highlighted that the draft Annual Governance Statement mentions the importance of risk on Pages 7 (Principle 6), 9 (Risk Management Framework) and 14 (Managing key risks/Managing the risk of fraud) of the agenda and also the Internal Audit Report (Page 55 of Agenda and 8 of Report) had highlighted that ‘although corporate risks were identified and managed, both the operational and corporate risks were notsufficiently recorded, monitored or reported to those charged with the responsibility for governance, the Audit Committee frequently enough.’

Members requested to have visibility of previous incidents and how they were dealt with. They also felt risk appetite needed to be considered as well as the designation risks.

Action: Committee clerk to schedule a meeting in July to include:

·         Training on the Risk Register;

·         The Joint framework;

·         Incident Management; and

·         The Risk Strategy

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.

The Annual Work Programme was outlined with an explanation of the reports the committee would consider as standing items and annual reports.

Rosie Plaistowe, Financial Services Manager and Deputy Section 151 Officer, advised that the  Audit Findings Report and Value for Money Reports had been scheduled to come to this meeting but due to staffing issues at Grant Thornton they would now be presented to the next meeting.

The Committee noted the programme and amendments were outlined.

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 (to be identified at the meeting).

There were no items to discuss in exempt session therefore the chair closed the meeting.