Agenda and minutes

To confirm the minutes of the last meeting of the Committee.

The minutes of the last meeting, held 11 March 2024, were confirmed as an accurate record.

Apologies were received from Councillor Maxted and Councillor Parker. Apologies were also received from Stephen Gilbert, Audit Independent Person, and from Homira Javadi, Director of Finance and Performance.

Councillor Collins attended as substitute for Councillor Parker.

There were no declarations of interest.

On matters not already included on the agenda and for which prior written notice has been given (total time allowed 15 minutes).

The Chair confirmed that no questions had been received from members of the public.

The Chairman to notify the Committee of any items of urgent business to be added to the agenda.

There were none.

The Chairman to report any requests received to address the Committee from a member of the public or from a Councillor in respect of an item listed below and to invite the Committee to consider taking such items at the commencement of the meeting.

There were no requests.

Report of the Director of Finance and Performance.

Steven Houchin, Deputy Chief Finance Officer (DCFO), gave an update on progress to complete the external audit of the 2020/21 draft financial statements. The update included a status summary of Local Government external audits nationally and the proposals for the External Audit Backstop arrangements to complete all outstanding audits, and the effect of the delays on preparing the 2023/24 draft financial statements.

Ben Sheriff, from External Auditors Deloitte, attended remotely via Teams for the duration of the item.

Following questions from the Committee, Officers and Deloitte confirmed that completion of the final draft report was expected in the next 4-6 weeks, and that the Statement of Accounts for 2020/21 would be brought to the Committee for approval at its next meeting, in September.

Resolved (unanimously)

To note the report.

Report of the Director of Finance and Performance.

Ross Sutton, Head of Financial Reporting, summarised the activities and performance of the Treasury Management Service during 2023/24 with an update of the Quarter 4 position, and the Committee considered the report.

Before inviting comments from Members, the Chair noted her recent visit to the Business Enterprise Centre, (part of Investment Company Eastbourne Ltd) and reported a positive picture regarding income generation and general progress of the project overall.

Following comments and questions from Members, Officers explained how the exceptional financial support measures and current borrowing rates were informing the Council’s strategy for its comparative use of long- and short-term loans, and that this would be reviewed following any changes to the base rates.

Officers accounted for the variations in actual and forecast figures quoted in the report (page 21 of the report), noted how internal and external factors affected revisions of the capital programme spend as part of the annual budget setting process, and clarified the flexibility and limitations on what the Council could borrow, as per the prudential indicators quoted in the report.

Resolved (unanimously)

To recommend to Full Council (via Cabinet):

1. To approve the Annual Treasury Management report 2023/24 for publication.

Report of the Chief Internal Auditor.

Jackie Humphrey, Chief Internal Auditor (CIA), presented her report, which included the Internal Audit response to the information requested by the Committee at its previous meeting regarding temporary accommodation.

The Committee considered the report.

In the following discussions, concerns were raised regarding the number of cancelled meetings of external companies and subsequent lack of regular assurance statements for those companies’ financial and governance arrangements (section 4.4 of the report). The CIA confirmed that the issue was being chased and agreed to the Committee’s request that a detailed update be included in the next quarterly report.

Officers provided some additional explanation of the red and amber status designations regarding debtors follow ups (Appendix C, page 65), and of specific recommendations, for example the one outstanding business continuity follow up.

Members praised the CIA and the Internal Audit Team for the comprehensive and clear nature of the quarterly reporting.

Resolved (unanimously)

To note the information, having identified additional information requirements as requested.

Report of the Chief Internal Auditor.

Jackie Humphrey, Chief Internal Auditor (CIA) introduced the report which outlined the draft 2023/24 Annual Governance Statement.

The Chair thanked the CIA for the presentation and the Committee considered the report.

Following questions from Members, the CIA: 

·       Clarified the Corporate Management Team’s (CMT) decision-making process behind evaluating governance issues.

·       Responded to Members’ concerns regarding the capacity and resourcing issues outlined in the report and confirmed that the CMT had considered the issue but had not graded it as ‘significant’. The CIA noted that the points were still included in the Annual Governance Statement, for transparency, and explained that the Committee could request that CMT re-consider the issue’s governance level again.

·       Explained that the issue of document disposal and retention arrangements raised within the Managers’ assurance statements was reported to CMT.

Resolved (unanimously)

To approve the draft Annual Governance Statement for 2023-24, as set out in Appendix 5 of the report.

Report of the Director of Finance and Performance.

(This report contains an exempt appendix. Any discussion of these must take place following exclusion of the public.)

The Chair began by welcoming newly appointed External Auditor, Grant Thornton, and its representative in attendance at the meeting, Trevor Greenlee.

Steven Houchin, Deputy Chief Finance Officer (DCFO) informed the Committee that, following discussions with Grant Thornton, he could confirm that Appendix C did not need to be considered in private session. The Committee then agreed to consider the report and all three appendices together in open session under Item 11.

Trevor Greenlee provided an overview of the approach that Grant Thornton would be taking to prepare and present future external audits and a gave summary explanation of the content of the report and appendices.

Trevor Greenlee advised that Grant Thornton had had to start work without the assurance of completed audited accounts for the previous two years, and the consequent increase in demand on officers’ and auditors’ time this would make. 

Trevor Greenlee paused to take questions from the Committee. 

In the discussions, Trevor Greenlee confirmed that a representative would attend each committee meeting, ideally in person, to report on progress and answer any questions arising.

Members commended Grant Thornton on the quality and ‘user-friendliness’ of the reports presented to date.  When asked, Officers confirmed that the initial working sessions with the new external auditor had proven very positive and did bode well for the future. The Committee encouraged Grant Thornton to also liaise directly with the CIA.

Trevor Greenlee continued by presenting the progress report.  Following queries and comments, Trevor Greenlee assured the Committee that resources had been assigned and that typically Grant Thornton would expect to complete an external audit, without issues, in 8-10 weeks. Trevor Greenlee clarified the expected timelines for tackling the first set of external audits and noted Grant Thornton expected to only be able to provide qualified statements in the initial years due to the backlog of external audits, and use of the backstop arrangement to assess all remaining statement of accounts.

Resolved (unanimously)

1. To note and approve the Audit Plan for 2023-24.

2. To confirm that management responses (‘Informing the audit risk assessment’) were consistent with the Committee’s understanding

The Chief Executive considers that discussion of the following items is likely to disclose exempt information as defined in Schedule 12A of the Local Government Act 1972 and may therefore need to take place in private session. The exempt information reasons are shown beneath the items listed below. Furthermore, in relation to paragraph 10 of Schedule 12A, it is considered that the public interest in maintaining the exemption outweighs the public interest in disclosing the information. (The requisite notices having been given under regulation 5 of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012.)

Not required.

Report of the Director of Finance and Performance and External Auditor, Grant Thornton.

Exempt information reason 3 – Information relating to the financial and business affairs of any particular person (including the authority holding that information).

Taken under item 11 as agreed by the Committee at the meeting.

To note that the next meeting of the Audit and Governance Committee is scheduled to be held on 25^th September 2024 in the Court Room, Eastbourne Town Hall, Grove Road, Eastbourne, commencing at 6:00pm

The date of the next meeting was confirmed as Wednesday 25^th September at 6pm in the Court Room, Eastbourne Town Hall.