Agenda item

To present to the Committee the progress on outstanding actions identified by the Committee along with general updates on other issues that fall within the responsibilities of the Committee.

The Committee had before it a report (A.3) that reported progress on the outstanding actions identified by the Committee along with general updates on other issues that fell within the responsibilities of the Committee.

Table of Outstanding Issues

It was reported that the Table of Outstanding Issues had been reviewed and updated since it had been last considered by the Committee in July 2024.

There were two main elements to this report as follows:-

1)    Updates against general items raised by the Committee – Appendix A; and

2)    Updates against the 2023/24 Annual Governance Statement Action Plan – Appendix B

In terms of item 1) above, there were no significant issues to raise, with actions remaining in progress or further details provided within the report.

The Committee was informed that, in respect of the 2023/24 Annual Governance Statement Action Plan, although this remained subject to the Committee’s final approval later in the year once the work of the External Auditor was completed, for timely and practical reasons the version currently published at the end of May 2024 alongside the Unaudited Statement of Accounts presented the most up to date position for the Committee’s consideration.  This approach enabled the actions and associated updates to be considered as early as possible within the Committee’s annual work programme. Appendix B therefore included outstanding items from last year’s Annual Governance Statement alongside new items for the current year. There were no significant issues to highlight at the present time with actions and activities remaining on-going.

The Corporate Director (Operations and Delivery) gave a short oral update on the Governance Principle/Issue “Determining the interventions necessary to optimise the achievement of the intended outcomes (Housing Review)” and responded to a Member’s question thereon.

Appointment of Independent Person(s) to the Audit Committee

The Committee recalled that, at its last meeting, it had endorsed the appointment of at least two Independent Persons to the Audit Committee and it had requested that Officers reviewed the associated arrangements and presented a plan to the next meeting of the Committee.  

The necessary review had been undertaken with a proposed action plan and timetable presented within the ‘Background’ section of the report (A.3).

Continuing External Audit delays and an update on the External Auditor’s work on the Council’s Statement of Accounts 2020/21 – 2022/23

Members were advised that the outcomes from the Government’s consultation exercise were being reviewed as they had only recently been published.  However, the Government had stated that they intended to continue with the proposed statutory backstop approach, albeit with slightly amended dates as follows:-

For accounts up to and including 2022/23 – 13 December 2024

For the 2023/24 accounts – 28 February 2025

For the 2024/25 accounts – 27 February 2026

For the 2025/26 accounts – 31 January 2027

For the 2026/27 accounts – 30 November 2027

For the 2027/28 accounts – 30 November 2028

The Government had confirmed that they had laid in Parliament the necessary Regulations as well as a new Code of Audit Practice, which would give effect to their proposals.  Any further updates would be provided to the Committee, either at their next meeting or separately within the interim period as necessary.

Members noted that Cabinet, at its meeting held on 20 September 2024, had decided that an external funding policy should be developed for approval by the Leader of the Council that would, in turn, be presented to a future meeting of the Audit Committee to seek its support and assurance on the associated governance processes. It was proposed that this item be included within the Committee’s future work programme.

Emma Larcombe, representing KPMG the Council’s External Auditors, attended the meeting. Councillor Platt referred to the revised statutory backdrop dates and pondered on how much confidence Councils could have in them. He also asked if KPMG were willing to pick up BDO’s uncompleted audit work. Emma Larcombe responded along the following lines:-

·      the Government’s proposals bring forward slightly the date for the 2023/24 accounts from May to the end of February 2025 and those would need to be signed off by KPMG;

·      prior years’ outstanding audits had until mid-December 2024 to be signed off or –‘disclaimed’;

·      communications had been held with BDO regarding a hand-over and her understanding was that BDO was expecting to make a disclaimer on the previous years’ outstanding accounts;

·      for the 2023/24 accounts, KPMG were a good way through their audit. Vast majority of the planning work had been completed and most of the year end work would be completed in the coming weeks;

·      on the 2023/24 ‘closing position’ her perspective was that KPMG would be a good way through that by the end of the year;

·      still need some clarification on the ‘opening balance’ position and are awaiting some guidance from the National Audit Office as to what the work on that aspect will consist of;

·      TDC should expect a modification to the audit opinion for 2023/24 in relation to the opening balance position and over time (next three years) that will be built up. This would be a consistent position across the audit sector nationally for all Opinions where there have been ‘disclaimed’ accounts;

·      will work towards reducing the number of years with disclaimed ‘opening balances’ as much as possible so as much work that BDO can get done the better;

·      on the Value for Money (VFM) requirement, BDO will give an Opinion on all the Accounts for which they have been appointed for. KPMG will do likewise and a great deal of work had already been done on this for the 2023/24 accounts;

·      should therefore be in a position to bring the initial risk assessment on the VFM to the next meeting of the Committee.

Corporate Risk Update

The Committee was aware that its Chairman had deferred this matter to the next meeting of the Committee.  The delay was due to Officers’ capacity and work commitments across other parts of the organisation.  Although there were no major issues at the current time, it was highlighted that there had been an increase in the number of complaints being received regarding alleged breaches of the Members’ Code of Conduct at Town and Parish Council level.  The District Council’s Monitoring Officer with support of the Executive Projects Manager – Governance, were under an obligation to deal with complaints in accordance with the Standards Framework, which was having an impact on capacity and resources internally.  A number of Town and Parish Council Members’ Code of Conduct training sessions had been delivered and were organised for the near future, which although delivered free of charge, the aim was to improve awareness of expected behaviours and ultimately to prevent unnecessary complaints being received.  This issue would also be reported to the Standards Committee at its meeting during October 2024, as part of its Terms of Reference and oversight remit.

Members’ attention was also drawn to the following matters:-

·      The recent replacement of the wireless access points across the Council’s estate along with an increase in the frequency of immutable backups, both of which increased the Council’s digital and data resilience.

·      The Government had recently announced a number of additional flexibilities relating to Right to Buy receipts.  This was currently being reviewed but it was expected to support the increase in Council homes.

·      At its meeting on 30 July 2024, the Human Resources and Council Tax Committee had agreed a revised Market Forces Policy and People Strategy, both of which supported a number of positive actions relating to the recruitment and retention of staff.

·      Work remained ongoing to develop the long term forecast with the next update planned to be presented to Cabinet in October 2024 and which was planned to include the first iteration of the Council’s Saving Plan.

·      Following the recent Government announcement relating to their intention to increase the supply of housing nationally, the impact on the Council’s Local Plan remained under review.

After discussion it was moved by Councillor Sudra, seconded by Councillor Platt and unanimously:-

RESOLVED that -

a)     the progress against the actions set out in Appendices A and B to the report (A.3) be noted;

b)     in respect of the appointment of an Independent Person(s) to the Audit Committee, the Committee:-

i)       notes and agrees the actions set out in this report;

ii)      requests Officers to finalise a draft role / person specification and to make the necessary arrangements to consult with members of the Audit Committee as highlighted in the plan; and

iii)     that the outcome of the above be presented to the meeting of the Committee due to be held in January 2025.  

c)      The Governance Principle/Issue “Determining the interventions necessary to optimise the achievement of the intended outcomes (Housing Review)” be added to the Committee’s Work Programme.