Items
No. |
Item |
41. |
Declaration of Interests
(Where a Councillor has a Disclosable
Pecuniary Interest the Councillor must declare the interest to the
meeting and leave the room without participating in any discussion
or making a statement on the item, except where a Councillor is
permitted to remain as a result of a grant of dispensation).
Minutes:
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42. |
Minutes PDF 207 KB
To sign as a correct record the
minutes of the Governance and Audit Committee meeting held on 18
January 2024 (enclosed).
Minutes:
AGREED:
That the minutes of the Governance and Audit Committee meeting held
on 18 January 2024 be signed by the Chairman as a correct
record.
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43. |
Procurement Card Audit Management Response PDF 103 KB
To
provide the Committee with a management response from the Council
and PSPS in respect of the Procurement Card Audit.
Minutes:
AGREED:
That the discussion relating to
agenda items 5 and 6, the ‘Procurement Card Audit Management
Response’ and the ‘Internal Audit Progress
Report’ respectively, be combined and noted at minute item
45.
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44. |
Internal Audit Progress Report - March 2024 PDF 451 KB
To provide the Committee with
an update of internal audit activity (report of the Head of
Internal Audit – Assurance Lincolnshire enclosed).
Additional documents:
Minutes:
Consideration was given to the
Internal Audit Progress Report – March 2024, which updated
the Governance and Audit Committee on the work of Internal Audit
since the last report.
As noted at minute item 44, the
Procurement Card Audit Management
Response (agenda item 5) was considered alongside this
item.
The Head of Internal Audit
introduced the report and following main points were
highlighted:
- The Performance
Dashboard on page 5 of the report detailed the progress of the
audit plan to date; all planned audits were underway and would be
completed, or be in a draft form, by the end of March
2024;
- An update on internal
audit activity on page 6 of the report presented a summary of the
progress report, with one ‘limited’ assurance review
and one ‘no’ assurance review;
- Responses had been
received for two overdue high priority management
actions;
- Two financial audits
had been postponed, which due to cyclical workloads, would be
rescheduled appropriately to align with greater capacity within the
Finance team;
- An outline of work
undertaken and assurance opinions given were shown in a table at
page 7 of the report; the majority of findings were positive with
two ‘substantial’ and two ‘adequate’
opinions; and
- The summaries of work
undertaken for each audit were outlined from page 9 of the
report.
Members considered the report
and made the following comments:
- Members queried the
nature and consequences of the account coding issues raised during
the Payroll Control Account Reconciliation audit review and asked
for examples of when this had occurred and how often.
- The Chief Finance
Officer (PSPS) responded that incorrect code mapping had occurred
within components of the monthly payroll file when these were
interfaced with the ledger. This generally only applied to new
items. Appropriate coding was subsequently identified to rectify
the issue; and
- The Senior Finance
Business Partner (PSPS) added that although the issue occurred
fairly frequently, the Payroll and Finance teams reviewed any
issues on a regular basis.
- The Chief Finance
Officer (PSPS) stated that a briefing note would be provided to the
Committee which outlined examples of the issue.
- Members asked whether
payroll reconciliations were completed on a monthly basis.
- The Chief Finance
Officer (PSPS) responded that payroll reconciliations for PSPS and
the three authorities of the partnership were completed on a
monthly basis. At the time of the meeting, the payroll
reconciliations for January 2024 had been signed off and those for
February 2024 were in progress.
- Members referred to
the ICT Disaster Recovery audit and noted the comment that,
‘a schedule to carry out scenario-based disaster
recovery exercises on an agreed periodic basis had not been
developed’. Could further information regarding this
matter be provided.
- The Chief Executive
(PSPS) responded that the requested details would be ascertained
and reported back to the Committee.
- Members referred to
the Procurement Cards audit and queried the following:
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45. |
Internal Audit Plan 2024/2025 PDF 294 KB
To set out the annual plan for
internal audit activity for 2024/2025 (report of the Head of
Internal Audit enclosed).
Minutes:
Consideration was given to the
report of the Head of Internal Audit which set out the annual plan
for internal audit activity for 2024/2025.
The Head of Internal Audit
introduced the report which outlined the following
areas:
- The purpose of the
Internal Audit Plan and conformance with Public Sector Internal
Auditing Standards (PSIAS);
- Conflicts of
Interests;
- Sub Regional Strategy
priorities;
- Development of the
Internal Audit Plan 2024/2025; and
- The Internal Audit
Plan 2024/2025 activity and schedule; the plan covered a wide range
of key issues across the council which aligned with strategic risks
and corporate priorities, and which would inform the Internal Audit
annual opinion at the end of the 2024/2025 year.
Members considered the report
and made the following comments:
- Members requested
that agenda items be considered and that highly technical items be
spaced out across different meetings where possible.
- Members noted that
the plan had been shared with Assistant Directors and Portfolio
Holders and asked whether any comments had been forthcoming
regarding the scheduled audits.
- The Head of Internal
Audit responded that the Internal Audit Plan 2024/2025 had been
welcomed. Positive relationships/engagement with management was key
in enabling audits to be completed in a timely manner, which
therefore remained effective and relevant.
AGREED:
That the Internal Audit Plan
2024/2025 be noted.
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46. |
Q3 Treasury Management Update 2023/24 PDF 237 KB
To provide members with an
update on Treasury Management performance and activity to ensure
best practice is maintained (report of the Deputy Chief Executive
– Corporate Development (S151) enclosed).
Additional documents:
Minutes:
Consideration was given to the
report of the Deputy Chief Executive – Corporate Development
(S151) which provided members with an update on Treasury Management
performance and activity to ensure best practice was
maintained.
The Interim Treasury and
Investment Manager (PSPS) introduced the report which had been
prepared in compliance with the Chartered Institute of Public
Finance and Accountancy (CIPFA) code of practice for Treasury
Management, and which recommended that members be updated on
treasury management activities at least quarterly.
The Quarter 3 2023/2024
Treasury Management update was detailed at Appendix A and included
the following main areas:
- Economic update with
commentary provided by Link Group;
- Interest rate
forecasts;
- Annual Investment
Strategy;
- Borrowing position of
the council;
- Debt rescheduling;
and
- Compliance with
Treasury and Prudential indicators;
Appendix A2 detailed the
following:
- General Fund Capital
Expenditure 2023/2024;
- Financing of General
Fund Capital Expenditure 2023/2024;
- Housing Revenue
Account Capital Expenditure 2023/2024; and
- Financing of Housing
Revenue Account Capital Expenditure 2023/2024.
Members considered the report
and made the following comments:
- Members expressed
hope that the £67.456million debt to central government would
be cancelled at some point in the future.
- Members were
encouraged that Link Group’s economic update commentary
referred to the ‘mildest of mild
recessions’.
- Members were
reassured by the financial situation of the council and praised
officers for both the level of detail provided within the report
and the controls which were in place.
AGREED:
That after receipt and review
of the report at Appendix A by members of the Governance and Audit
Committee, the contents be noted.
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47. |
Financial Statements 2023/24 - Accounting Policies PDF 181 KB
To review and agree the
Accounting Policies for inclusion in the Financial Statements
2023/24 (report of the Deputy Chief Executive – Corporate
Development (S151) enclosed).
Additional documents:
Minutes:
Consideration was given to the
report of the Deputy Chief Executive – Corporate Development
(S151) which asked the Governance and Audit Committee to review and
agree the Accounting Policies for inclusion in the Financial
Statements 2023/2024.
The Senior Finance Business
Partner (PSPS) introduced the report which was presented to the
Governance and Audit Committee on an annual basis. The following
main points were raised:
- The Accounting
Policies detailed specific principles applied by councils in the
preparation and presentation of Financial Statements in accordance
with CIPFA’s Code of Practice on Local Authority
Accounting;
- The Accounting
Policies for 2023/2024 were detailed at Appendix A, and the
following points were highlighted:
o
Financial statements were prepared on an accruals
basis, which recognised transactions when they occurred rather than
when payment was received or made;
o
The Local Government Pension Scheme was accounted
for as a defined benefits scheme; and
o
As a result of previous discussions held with
auditors, the ‘Infrastructure Assets’ outlined on page
163 of the agenda pack, was included for completeness detailing the
accounting treatment.
Members considered the report
and made the following comments:
- Members were pleased
that an accruals method was in use, as any non-compliance could be
identified sooner.
- Pensions training was
to be arranged for Committee members in due course.
AGREED:
That the Accounting Policies
for 2023/24 at Appendix A be approved.
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48. |
Recruitment of Co-opted Independent Members to the Governance and Audit Committee PDF 261 KB
To consider the recruitment of
Co-opted Independent Members to the Governance and Audit Committee
(report of the Assistant Director – Governance (Monitoring
Officer) enclosed).
Additional documents:
Minutes:
Consideration was given to the
report of the Assistant Director – Governance (Monitoring
Officer) which asked members to consider the recruitment of
Co-opted Independent Members to the Governance and Audit
Committee.
The report was introduced by
the Assistant Director – Governance which outlined the
following main points:
- Background to the
report which included CIPFA’s identification that the
appointment of Independent Members to audit committees was
beneficial;
- That the Governance
and Audit Committee had recommended, to Full Council, an amendment
to its committee membership to include 2 Non-Voting Co-Opted
Independent Members; this recommendation was approved at the Full
Council meeting held on 29 February 2024; and
- Following approval at
Full Council, the current report outlined the next steps which
sought members views on the recruitment pack and requested
volunteers from the Committee to join the interview
panel.
Members considered the report
and made the following comments:
·
Members stated that the addition of Independent
Members would benefit the committee however external expertise
needed to be taken on balance with continuous internal
training.
·
Members asked how the positions would be
advertised.
- The Assistant
Director – Governance responded that the positions would be
promoted through the council’s usual recruitment channels of
website and social media, and through professional
bodies/organisations.
- Members stated that
the local press was widely read and should also be
utilised.
- The Assistant
Director – Governance requested volunteers to join the
Chairman (Councillor Beal) on the interview panel.
- Councillor Brewis and
Councillor Geaney volunteered.
AGREED:
a)
That after consideration of the draft Co-opted
Independent Member Recruitment Pack at Appendix A, the comments of
the Committee be noted; and
b)
That the composition of the interview panel to
undertake the recruitment exercise be Councillor Brewis, Councillor
Geaney and Councillor Beal.
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49. |
Q3 Risk Report 2023/24 PDF 261 KB
To provide an update on the
Council’s current strategic risks (report of the Assistant
Director – Governance enclosed).
Additional documents:
Minutes:
Consideration was given to the
report of the Assistant Director – Governance which provided
an update on the Council’s current strategic
risks.
The report was introduced by
the Assistant Director – Governance, on behalf of the
Business Intelligence and Change
Manager, which ensured that council risks and
the management of risks were communicated and detailed.
Attention was drawn to point 2
of the report which gave an overview of the identification of four
new risk scores. These risks were detailed within the full Risk
Register at Appendix A.
Members considered the report
and made the following comments:
- Members welcomed the
level of detail presented within the Risk Register which provided
members with valuable information.
- Members requested
that the report be reformatted so that the content was more easily
readable when printed.
AGREED:
That after consideration of the
report and Appendix A by the Governance and Audit Committee, the
contents be noted.
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50. |
Governance and Audit Work Programme PDF 176 KB
To set out the Work Programme
of the Governance and Audit Committee (report of the Democratic
Services Manager enclosed).
Additional documents:
Minutes:
Consideration was given to the
report of the Democratic Services Manager which set out the Work
Programme of the Governance and Audit Committee.
The Democratic Services Officer introduced the report and updated
the Committee on the following points:
- In respect of
Appendix A, a number of items which had been due to come forward at
the current meeting had been postponed and these were noted on
‘Pending Items’ at page 202 of the agenda pack. On
confirmation of the schedule of meetings for 2024/2025, pending
items would be rescheduled in liaison with PSPS Finance colleagues;
and
- The Training record
at Appendix B would be updated when further training had been
identified and arranged/completed. A further pension training
session would be arranged in due course to include counterpart
committee members from across the partnership.
In respect of the postponed
reports:
- The Chief Finance
Officer (PSPS) responded that:
- The Financial
Statements had been drafted for 2022/2023 which were currently
undergoing the due diligence process with the intention that they
would be published by the end of March 2024.
Members considered the update
and made the following comments:
- Members requested
that they be invited to attend any training sessions that were to
be arranged following appointment of the Independent
Member(s).
- The Chairman referred
to a separate update he had received from the External Audit
Director (KPMG) and asked for a further explanation regarding the
delay of the external audit report.
- The External Audit
Director (KPMG), who was in attendance virtually, responded
that:
- The initial timeline
of 31 March 2024 for the external audit plan and risk assessment
work was revised due to competing pressures and priorities at PSPS
which had included matters relating to historic audits, preparation
of Financial Statements for 2022/2023, the annual budget setting
processes and internal audit requests;
- The deadline for the
plan had been rescheduled to the end of April 2024 and progress had
been made regarding the plan and risk assessment regarding the
Financial Statements;
- The risk assessment
relating to the ‘value for money’ aspect of
KPMG’s engagement remained the main outstanding piece of
work. In this respect, KPMG awaited the return of the ‘Value
For Money Self Assessment’ which the S151 Officer had given
assurance would be prioritised;
- Assuming that the
plan and risk assessment could be finalised by the end of April
2024, the full plan, including value for money risk assessment,
could come forward to the next scheduled Governance and Audit
Committee meeting; and
- Weekly engagement
meetings with PSPS were taking place to keep the situation on
track.
- Members asked for
clarification of the situation regarding the 2022/2023 Financial
Accounts which needed to signed off by the previous auditors, Ernst
Young (EY)
- External Audit
Director (KPMG) responded that:
- New legislation was
currently proceeding through Parliament in respect of a local
government audit reset to implement a backstop date for historic
incomplete external audits – the date of which was likely to
be 30 September 2024. This would enable a disclaimer opinion to be
signed by ...
view the full minutes text for item 50.
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51. |
Any other items which the Chairman decides are urgent.
NOTE:
No other business is permitted unless by reason of special
circumstances, which shall be specified in the minutes, the
Chairman is of the opinion that the item(s) should be considered as
a matter of urgency.
Minutes:
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52. |
Exclusion of Press and Public
Minutes:
Under section 100A (4) of the
Local Government Act 1972, the press and public were excluded from
the meeting for the following items of business on the grounds that
they involved the likely disclosure of exempt information as
defined in Paragraph 7 of Part 1 of Schedule 12A of the
Act
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53. |
Report on a Fraud Case
To provide the Committee with
an update on a case that has been investigated (report of the
Deputy Chief Executive – Corporate Development
(S151)).
Minutes:
Consideration was given to the
report of the Deputy Chief Executive – Corporate Development
(S151) which provided the Committee with an update on a case that
had been investigated.
AGREED:
That the contents of the report
be noted.
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