Agenda and minutes

No apologies of absence were received at the meeting.

To confirm as a correct record the Minutes of the Audit and Governance Committee meeting held on the 21 November 2022.

RESOLVED that the Minutes of the Audit and Governance Committee meeting held on the 21 November 2022 be agreed and signed as a correct record.

The Chairman made the following announcement –

I would like to take this opportunity to welcome Councillor H Davis to his first Audit and Governance Committee meeting, following his recent appointment.  

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

There were no declarations of interest made at this meeting.

To receive any deputations of which notice has been lodged.

No deputations were received at the meeting.

To consider a report from the Deputy Chief Executive Officer presenting the External Auditors (Ernst and Young) Audit Results Report and latest version of the Statement of Accounts.

The Committee received a report by the Deputy Chief Executive Officer and presented by the External Auditors (Ernst and Young), on the results of the Annual External Audit of the accounts.

The Chairman addressed the Committee to advise that although the agenda states that the Statement of Accounts is included at this item, the document itself is not included. Commentary within the report explained the arrangements for the agreement and publication of the 2021/22 accounts outside of the meeting.

RESOLVED that: -

a)    the Audit and Governance Committee notes the contents of the Audit Results Report (Appendix A); and

b)    the Deputy Chief Executive Officer and the Chairman of the Audit and Governance Committee will sign the Letter of Representation, subject to the external auditors completing their outstanding procedures and any further amendments to the accounts, or a revised Letter of Representation, being agreed by the Deputy Chief Executive Officer in consultation with the Chairman of the Audit and Governance Committee.

To consider a report by the Deputy Chief Executive Officer on the Treasury Management Strategy for 2023/24.

The Committee received a report by the Deputy Chief Executive Officer on the Treasury Management Strategy for 2023/24.

RESOLVED that the Committee note the Treasury Management Strategy and Prudential Indicators for 2023/24, attached as Appendix A to the report.

To receive a report by the Head of Finance and Audit on the Risk Management Monitoring providing evidence that the risk management policy is effective.

The Committee received a report from the Head of Finance and Audit on the latest Risk Management Monitoring which provided evidence that the risk management policy is effective.

The Chairman expressed concern over the risks relating to staffing, which appears to be a common theme across several of the service areas. This needs to be looked at as an overarching, corporate risk rather than departmentally. Officers clarified that this is a focus for senior management and the HR department, to ensure a holistic approach to manage all staff associated risks across the Council. This approach includes, succession planning, exploring a better work life balance and improved recruitment packages.

Comments were received from members pertaining to the social media risk included in the report and subsequently agreed that the appropriate risk management activity had been implemented.

Members asked for assurance that the resources available to the Legal Partnership would be a continued area of focus as the Executive recently agreed to continue the contract with the Southampton Legal Team for a further 10 Years.

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

To consider a report by the Head of Finance on Audit on the internal audit work since the last meeting.

The Committee received a report from the Head of Finance on Audit on the work of the internal audit team since the last meeting.

Members enquired about the five high risk audits in the 2023/24 Internal Audit Plan and asked if these would be prioritised for delivery due to their risk level. The Head of Finance and Audit addressed the Committee to confirm that these audits are categorised as high risk for various reasons and do get prioritised for completion but may need to be carried out later in the year due to auditee and other considerations. The expectation is that these audits, along with all those in the plan, including the fundamental system audits, will be completed sufficiently within 2023/24 to provide an audit opinion, but this cannot be guaranteed due to the impact on services and resources

RESOLVED that the Audit and Governance Committee: -

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

b)    approved the proposed full plan for the 2023/24 audit year as set out in Appendix Three.

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

Members enquired about the training provided to officers with regards to the changes to the authorisation limits and asked that this be robust, to not only protect the Council’s finances but also protect the officers from accidental errors.

RESOLVED that the Audit and Governance Committee: -

a)    note the contents of Part One of the report; and

b)    asks Members to pass comment on the matters for Council endorsement in Part Two of the report.