Agenda and minutes

To confirm and sign the minutes of the previous meeting held on 13 November 2023 (attached herewith).

The minutes of the meeting held on the 13 November 2023 were submitted and approved and the Chair was authorised to sign them as a correct record.

There were none.

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).

A written question was received from the Chair in respect of the timeline for sign off of the Statement of Accounts 2019/20. This was addressed by Officers as set out in Minute 40.

Verbal update by District Council Officers and the Council’s External Auditor, Deloitte

The Council’s Deputy Chief Finance Officer (DCFO) and the Council’s External Auditors (Deloitte) provided Members with an update in respect of Deloitte’s progress on the Council’s outstanding Statement of Accounts 2019/20, 2020/21 and 2021/22.

The DCFO, on behalf of the Chair and the Committee, welcomed Ben Sheriff (Deloitte) to the meeting. 

In response to the written question received from the Chair, the DCFO explained that the there was a particular emphasis on the completion of the oldest external audit, with Deloitte and Council Finance staff supporting the completion of the Statement of Accounts 2019/20. The Audit was very near completion, with the final substantive item relating to reinforced Autoclaved Aerated Concrete (RAAC) having been completed over recent weeks.

Following completion of the RAAC inspection programme and final substantive queries, the Council had received the draft ISA 260 from Deloitte. The ISA 260 was still in draft form as a result of there being a small number of outstanding items related to an update of the fixed asset register and the disclosure on material uncertainty.

The DCFO highlighted that as a result of the ISA 260 still being in draft format, the Statement of Accounts 2019/20 were not ready to be presented to the Committee at this meeting, but they would be presented to Members in the coming weeks.

He further highlighted that he would be liaising with the Chair and Committee Officer to arrange a special meeting before the next scheduled meeting of the Committee on 1 July 2024, in order for Members to review the Statement of Accounts 2019/20 and raise any questions before the Accounts were approved.

In addition, the DCFO provided an update on the national picture, explaining that the work to progress the subsequent audits was now subject to a consultation process launched by the Minister for Local Government on 8 February 2024, with the intention to clear the national backlog of historic local government audits. The consultation also sought views on proposed legislative changes to the Accounts and Audits Regulations 2015.

The DCFO set out a phased approach to clear the backlog of the Council’s audits, highlighting key dates of completion through 2027/28.

Mr Sheriff summarised points raised by the DCFO, reiterating the responsibilities of the local auditors and reviewing key dates of completion through 2027/28.

Further discussions included questions surrounding the consultation, the abolition of the Audit Commission and publication of the draft accounts for inspection.

Resolved: That the verbal update be noted.

Report of Director of Finance and Perfomance

The Committee received the report which provided details regarding the Treasury Management Activity for the period April to December 2023.

Resolved: That it be noted that the Treasury Management activity for the period of April to December 2023 had been in accordance with the approved Treasury Strategies.

Report of Chief Internal Auditor

The Committee received the report which set out the new Data Analytics Strategy for Internal Audit.

Resolved: That the Data Analytics Strategy, as set out in Appendix A, be noted.

Report of Chief Internal Auditor

The Committee considered the report which proposed the Council’s Internal Audit Plan for 2024/25.

The Chief Internal Auditor (CIA) summarised the report, highlighting that the Audit Plan was indicative and that any subsequent changes to the Plan would be brought back to the Committee for review.

Resolved: That the Internal Audit Plan for 2024/25 as set out in Appendix B, be agreed.

Report of Chief Internal Auditor

The Committee received the report which provided a summary of the activities of Internal Audit and Counter for the three quarters of the financial year 2023/24 - 1 April 2023 to 31 December 2023.

The Council’s Chief Internal Auditor (CIA) summarised the report, noting that the amount of work coming through the department was increasing, but that she was pleased to report that the Audit team was now fully staffed.

Resolved: That the report be noted.

Report of Chief Internal Auditor

The Committee received the report which summarised the outcomes of the quarterly review of the Strategic Risk Register (SRR) by the Corporate Management Team (CMT).  

The Chief Internal Auditor (CIA) summarised the report, highlighting that an entry had been added to the Internal Controls column of risk SR_022 “Changes to the economic environment makes the Council less stable” as set out in Appendix A. The CIA clarified, however, that the risk was labelled as SR_002 in paragraph 3.3 of the report but should have been labelled SR_022 to correctly reflect what was shown in Appendix A.

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, 1 July 2024 in Room 209/210, Marine Workshops, Newhaven, BN9 0ER, commencing at 5:00pm (TBC).

It was noted that the next meeting of the Audit and Governance Committee was scheduled to be held on Monday, 1 July 2024, in Room 209/210 on the Second Floor, Marine Workshops, Railway Quay, Newhaven, East Sussex, BN9 0ER, commencing at 5:00pm.