Agenda and draft minutes

No apologies were received at the meeting.

To confirm as a correct record the Minutes of the Audit and Governance Committee meeting held on the 27 November 2023.

RESOLVED that the Minutes of the Audit and Governance Committee meeting held on the 27 November 2024 be signed and confirmed as a correct record.

There were no announcements made by the Chairman.

To receive any declarations of interest from members in accordance with Standing Orders and the Council’s Code of Conduct.

No declarations of interest were made at the meeting.

To receive any deputations of which notice has been lodged.

No deputations were received at the meeting.

To consider a report by the Assistant Director (Finance & ICT) on the findings from the 2021/22 housing benefits subsidy work carried out by the External Auditors (Ernst and Young LLP).

The Committee received a report from the Assistant Director (Finance and ICT) which presented the findings from the Housing Benefit Subsidy Certification work carried out by External Auditors (EY LLP) in respect of 2021/22.

RESOLVED that the Audit and Governance Committee: -

a)    consider the findings of the Annual Certification Report 2021/22 submitted to the Department for Works and Pensions by the Council’s external auditors; and

b)    comment on the findings as appropriate.

To consider a report by the Chief Executive Officer on the  External Auditor's Value for Money Interim Report, summarising the findings from the work completed to date on the 2022/23 accounts. 

The Committee received a report from the Ernst and Young LLP asking them to consider the External Auditor's Value for Money Interim Report, summarising the findings from the work completed to date on the 2022/23 accounts.

RESOLVED that the Audit and Governance Committee notes the contents of the Value for Money Interim Report at Appendix A to the report.

To receive a report from the Chief Executive Officer on the External Auditor's Audit Update Report, summarising the proposals for the delivery of the audits of the 2022/23 and 2023/24 accounts. 

The Committee received the External Auditor's Audit Update Report, summarising the proposals for the delivery of the audits of the 2022/23 and 2023/24 accounts, following the launch of the national consultation from the Department of Levelling Up, Housing and Communities. Ben Lazarus from Ernst & Young presented the update to the Committee.

Members thanked Ben for the update and asked questions for clarification on several elements. Concerns were raised over the negative public perception to the Council receiving a disclaimed opinion. Ben reassured Members although far from ideal, this was not a local issue and if a disclaimed opinion was issued for 2022/23 then a significant number of authorities would be in a similar situation, including a sidnificant number of their clients. Ben advised that although Members are right to raise concerns, a great deal of work is needed by Government to finalise a clear procedure for auditors to follow and Fareham Borough Council remains in a good position which should reassure Members at this stage. Ben also advised some of the steps their firm has been taking to reduce the likelihood of similar delays occuring going forward.

RESOLVED that the Audit and Governance Committee notes the contents of the Audit update report.

To receive a report from the Assistant Director (Democracy) providing a review of the Member Training Programme.

The Committee received a report by the Assistant Director (Democracy) on a review of the Member Training Programme.

Members of the Committee put forward a number of items for inclusion in the programme that Officers will investigate moving forward.

It was also suggested that as well as the mandatory training for Members of the Planning Committee each year, that an additional session be held for all Members to better understand the Planning process, as a great deal of resident queries received by Members relates to Planning matters. Officers agreed that this would be added to the programme.

RESOLVED It is recommended that the Audit and Governance Committee:-

a)    notes the content of this report;

b)    recommends an additional training session be held for all Members to better understand the Planning process to be added to the draft Programme at Appendix A; and

c)    approves the draft Elected Member Training Programme at Appendix A with the addition of the recommendation at point b).

To consider a report by the Chief Executive Officer on the latest Treasury Management Strategy.

The Committee received a report from the Chief Executive Officer on the Treasury Management Strategy that was approved by Council on the 23 February 2023.

Members of the Committee put forward relevant questions in relation to the Council’s investment and borrowing activity which were answered in the meeting.

Councillor S Martin left the meeting during the discussion on this item.

RESOLVED that the Audit and Governance Committee note the Treasury Management Strategy and Prudential Indicators for 2024/25, attached as Appendix A to the report.

To consider the annual report by the Assistant Director (Finance and ICT) on the work of the Audit and Governance Committee during 2023/24.

The Committee received a report from the Assistant Director (Finance & ICT) on the Draft Annual Review of the Audit and Governance Committee which provided Members with an opportunity to review its activities during 2023/25.

Members were asked to consider any amendments to the draft report before being finalised and brought to Council for endorsement. It was suggested, following discussions surrounding the information in Appendix A, that some commentary be included that explains the meanings behind the ‘frequency’ column and the use of ‘as needed’. Some of this is governed by legislation or CIPFA guidelines which would be useful to highlight to Members by way of an explanation. Officers will ensure that this detail be added to the final report before being considered at Council.

RESOLVED that the Audit and Governance Committee: -

a)    considered the contents of the annual review;

b)    suggest that commentary be included within the report that explains the meanings behind the ‘frequency’ column; and

c)    submit a final version of the report to Council.

To consider a report by the Monitoring Officer on items which require reporting but do not justify a full report to be brought to the Committee for consideration.

The Committee received a report from the Monitoring Officer which included the annual review of the Constitution, the Committees Work Programme and a change to Part Seven of the Constitution.

RESOLVED that the Audit and Governance Committee: -

a)    notes the contents of Part One of the report;

b)    considered the Committee Work Programme for 2024/25 for endorsement by Council; and

c)    consider the changes to the Constitution – Part Seven – Senior Management Structure for endorsement by Council.

To receive a report by the Assistant Director (Finance & ICT) on the Risk Management Monitoring, providing evidence that the risk management policy is effective. 

The Committee received the six-monthly Risk Management Monitoring Report from the Assistant Director (Finance & ICT).

RESOLVED that the Audit and Governance Committee review the report as a source of evidence that the current Risk Management Policy is operating in practice.

To consider a report by the Assistant Director (Finance & ICT) on the internal audit work since the last meeting.

The Committee received the Head of Internal Audits Quarterly Report and Annual Plan from the Assistant Director (Finance & ICT).

RESOLVED that the Audit and Governance Committee:-

a)    notes the progress and findings arising from Internal Audit work; and

b)    approves the proposed full plan for the 2024/25 audit year as set out in Appendix Three.