Agenda and minutes

To confirm and sign the minutes of the previous meeting held on 5 August 2024 (attached herewith).

The minutes of the meeting held on the 5 August 2024 were submitted and approved, and the Chair was authorised to sign them as an accurate record.

Apologies for absence were received from Councillors Charlotte Keenan and James Meek. It was confirmed that Councillor Ezra Cohen was acting as Substitute for Councillor Meek for the duration of the meeting.

Disclosure by Councillors of personal interests in matters on the agenda, the nature of any interest and whether the Councillor regards the interest as prejudicial under the terms of the Code of Conduct.

There were none.

Items not on the agenda which the Chair of the meeting is of the opinion should be considered as a matter of urgency by reason of special circumstances as defined in Section 100B(4)(b) of the Local Government Act 1972.

There were none.

To deal with written questions from councillors pursuant to Council Procedure Rule 12.3 (page D9 of the Constitution).

There were none.

Report of Director of Finance and Performance

The Committee received the report, which provided an update on progress in respect of the External Audit of outstanding draft financial statements for years 2020/21, 2021/22, 2022/23 and 2023/24, and expectations for completion of Audits for years 2024/25 to 2027/28.

The Head of Financial Reporting (HFR), on behalf of the Chair and the Committee, welcomed Ben Sheriff (Deloitte) and Mariska Marais (Deloitte) to the meeting.

The HFR summarised the report, clarifying that the date indicated in the last sentence of paragraph 4.1 should read 28 February 2025, and that the reference to Appendix C in paragraph 4.3 was an error.

Mr Sheriff discussed Deloitte’s intended plan for the completion of audits for years 2020/21, 2021/22, and 2022/23, as set out in Appendix B.

Mr Sheriff highlighted the Minister’s intention to lay secondary legislation to provide for an initial backstop date of 13 December 2024 for the completion of all outstanding audits up to the financial year 2022/23. He indicated that the proposed backstop date would result in modifications or disclaimers of the audit opinion for many local authorities.

As a result, the Council would be required to publish its unaudited accounts for financial years 2020/21, 2021/22 and 2022/23, giving time for the required 30-day Public Inspection Period and for External Auditor to give its opinion on those accounts by the 13 December 2024. It was noted that it might be necessary to move the next meeting of the Committee to December or hold an additional meeting, to meet this deadline.

The Chair asked for the Officers’ and Deloitte’s opinions, as to their level of confidence in the indicated timelines.

On behalf of the Council, Officers confirmed that as always and given adequate resources, Officers would continue to endeavour to meet all deadlines.

Mr Sheriff indicated that although Deloitte had originally obtained adequate staff support for August and September 2024, additional challenges had continued to arise as the deadlines approached. Deloitte’s critical concern being that the accounts up to 2022/23 were not yet published. If any objections were received, there were statutory periods of time for these objections to be considered.

Further discussions included publication of the 2023/24 draft financial statements, external audit backstop update, the audit of the 2023/24 financial statements and implications of missing upcoming deadlines. The timeline for future audits and backstop dates for the years 2024/25 to 2027/28 were also discussed, as set out in Paragraph 5 of the report.

Following discussions, the Chair requested that the Director of Finance and Performance be invited to the next meeting of the Committee, so that Memberscould better understand the details of any related resource implications in respect of the completion of all outstanding External Audits. Officers agreed that the Director be requested to attend.

Resolved: That the report be noted.

Report of Director of Finance and Performance

The Committee received the report which provided details regarding the Treasury Management Activity for the period April to June 2024.

Resolved:

That it be noted that the Treasury Management activity for the period April to June 2024 had been in accordance with the approved Treasury Strategies.

Report of Chief Internal Auditor

The Committee received the report which provided a summary of the activities of Internal Audit and Counter for the first quarter of the financial year 2024/25 - 1 April 2024 to 30 June 2024.

Resolved: That the report be noted.

To note that the next meeting of the Audit and Governance Committee is scheduled to be held on Monday, 11 November 2024, in Room 209/210, Marine Workshops, Newhaven, BN9 0ER, commencing at 5:00pm.

It was noted that the next meeting of the Audit and Governance Committee was currently scheduled to be held on Monday, 11 November 2024, in Room 209/210 on the Second Floor, Marine Workshops, Railway Quay, Newhaven, East Sussex, BN9 0ER, commencing at 5:00pm.