Agenda and draft minutes

An apology of absence was received from Councillor F L Burgess.

To confirm as a correct record the Minutes of the Audit and Governance Committee meeting held on the 25 November 2024.

RESOLVED that the Minutes from the Audit and Governance Committee meeting held on 25 November 2024 be signed and agreed as a correct record.

The Chairman made the following announcements: -

Housing Subsidy Audit 2022/23

Members will be aware that according to the Committee schedule we are due the latest report from the External Auditors on the Housing Subsidy claim, and there is still a backlog on these audits such that the report will be for the 2022/23 audit. Unfortunately, due to the meeting being brought forward, it has not been possible to bring that report to the Committee at this time and it will be delayed to the next meeting, along with a progress update on the 2023/24 audit.

Procurement Act 2023

Members will remember that in September we approved a change to the Councils “Procurement and Contract Procedure Rules” ready for the onset of the new Procurement Act, which was due to go live in October. The Government then issued a delay to the go-live date given the number of changes being implemented. The revised go-live date was 24^th February 2025 and this has now happened. So, all procurements from now on need to comply with the requirements of the new Act and the new set of Procurement and Contract Procedure Rules” for this Council.

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

Councillor P Whittle declared a non-pecuniary interest for item 6 – External Final audit Results Report 2023/24, as he previously had a professional relationship with the Council’s external auditors Ernst & Young LLP.

To receive any deputations of which notice has been lodged.

No deputations were made at this meeting.

To consider a report by the Assistant Director (Finance and ICT) presenting the External Auditors (Ernst and Young) Final Audit Results Report for 2023/24.

The Committee received a report from the Council’s external auditors Ernst and Young (EY) on their Final Audit Results Report for 2023/24. Tom Wilkins and Simon Mathers from EY were in attendance to presented the report.

Councillor P Whittle declared a non-pecuniary interest for at this item, as he previously had a professional relationship with the Council’s external auditors Ernst & Young LLP.

Members were asked to consider the tabled item that had been circulated prior to the meeting.

Members were asked to note that the Chief Executives signature on page 34 of Appendix C - Statement of Accounts, is an error and should not have been added to the document until after this meeting had taken place.

Both Tom and Simon from EY thanked Council staff for their support in getting to this stage reassuring Members of the Committee that, although a disclaimer opinion had been given in line with most Councils across the country, a significant proportion of work had been carried out and there are substantial assurances in most areas. The disclaimer opinion had been given due to areas of external audit that had not been fully completed, in accordance with the national Local Audit Reform proposals and the backstop date set for the 2023/24 accounts.

RESOLVED that: -

a)    the Audit and Governance Committee notes the contents of the External Auditor’s Audit Results Report 2023/24 (at Appendix A to the report);

b)    the Chief Executive Officer and the Chairman of the Audit and Governance Committee sign the Management Representation letter (at Appendix B to the report); and

c)    the Audit and Governance Committee approves the audited Statement of Accounts 2023/24 (at Appendix C to the report)

To consider a report by the Assistant Director (Finance & ICT) on the Council’s Treasury Policy and Indicators for 2025/26.

The Committee received a report from the Assistant Director (Finance & ICT) on the Treasury Management Policy and Indicators for 2025/26.

RESOLVED that the Audit and Governance Committee note the Treasury Management Policy and Indicators for 2025/26, attached as Appendix A to the report.

To consider a report by the Assistant Director (Finance & Audit) on the latest Risk Management monitoring.

The Committee received the latest Risk Management Monitoring Report from the Assistant Director (Finance & ICT) which provided an overview of the latest six-monthly risk monitoring.

RESOLVED that the Audit and Governance Committee –

a)    reviewed the report as a source of evidence that the current Risk Management Policy is operating in practice; and

b)    approved their concurrence with the static risks detailed in Appendix C.

To consider a report from the Assistant Director (Finance & ICT) providing an Annual Review of the work of the Committee.

The Committee received a report from the Assistant Director (Finance & ICT) giving the Annual Review of the Audit and Governance Committee.

RESOLVED that the Audit and Governance Committee: -

a)    consider the contents of the annual review; and

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

To consider the Chief Internal Auditor’s Quarterly report which includes the latest Internal Audit Strategy and Annual Audit Plan 2025/26.

The Committee received the Chief Internal Auditors Quarterly Report providing Members with the assurances arising from the latest Internal Audit Work.

Members expressed concern over the progress of the follow-up of Fleet Compliance audit, as this remains in the early stages. The Chief Internal Audit explained that a change in Transport Manager has delayed the progress of the follow-up, but reassured Members that meetings have already taken place with the new Manager and this was a key focus for this service area. Officers agreed to investigate ways of providing a detailed progress update which gives assurance to Members at the next meeting.

RESOLVED that the Audit and Governance Committee:-

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

b)    approved the proposed full plan for the 2025/26 audit year as set out in Appendix Three; and

c)     approved the proposed Internal Audit Strategy as set out in Appendix Four

To consider a report by the Assistant Director (Finance & ICT) and 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 the Committee Report from the Assistant Director (Finance & ICT) and the Monitoring Officer. Included in the report was: The Annual Constitution Review, a Review of the Member Training Programme for 2024/25 and the Committees Work Programme for 2025/26.

Members attention was drawn to the additional meeting of the Committee that is required in June to allow Members to note and comment on the Complaints Performance and Service Improvements report which relates to Fareham Housing and provide a response to the report published on the Council’s website by the end of June.

Members requested that consideration be given to moving some items forward to the June meeting from July to spread the workload for the Committee and report authors.

RESOLVED that the Audit and Governance Committee: -

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

b)    considered the Committee Work Programme for 2025/26 for endorsement by Council.