Agenda and minutes

To approve and sign as a correct record the Minutes of the meeting held on 11 November 2024 and to deal with any matters arising, attached.

RESOLVED: that the minutes for the Committee meeting on 11 November 2024 be approved and signed as a correct record.

To note the 2023/24 Audit Results Report as attached.

The Committee received and noted the report of the External Auditor detailing the 2023/24 Audit Results Report.  The Committee particularly noted the narrative contained within the summary of the report that had led to the anticipation of a disclaimed audit opinion for 2023/24.  The Committee also noted that the report reflected a snapshot of time which did not take account of other reasonable mitigation reasons for the purposes of providing the opinion. 

To note the further actions to be taken to improve the external auditors (EY) Value for Money opinion.

The Committee considered the report of the Executive Director of Enabling Services and S151 Officer detailing the Response and Action Plan to Improving the External Auditors Value for Money (VFM) Opinion.  The Committee particularly noted the response within the report to the Progress Update on the External Audit of the 2023/24 accounts, and likely disclaimed opinion detailed in minute 14 above.

The Committee also noted that there had been a decision not to audit the completed 2022/23 accounts as part of the national audit reset and recovery process and difficulty in obtaining evidence.  The Committee reflected on the significant progress that has been made in improving processes and again the report reflected a snapshot of time which was not reflective of the position now and how hard staff had worked to get the authority to a better position.

The Committee were advised that Budget Papers would be published on 17^th February for 2025/26 which waws a balanced budget without any exceptional financial support and a balanced Medium Term Financial Strategy.

(i)  That the further actions to be taken to improve the external auditors (EY) Value for Money opinion be noted;

(ii)  That a quarterly update on progress to Audit Committee alongside the quarterly Medium Term Financial Strategy (MTFS) update be provided; and

(iii)  That the Council’s response to the likely disclaiming of the 2023/24 statement of accounts by EY be noted.

To note the Internal Audit Progress report for the period 26th October 2024 to 17th January 2025.

The Committee received and noted the report of the Chief Internal Auditor detailing the Internal Audit Progress Report for the period 26^th October to 17^th January 2025.  The report was submitted in accordance with the Public Sector Internal Audit Standards which requires the Chief Internal Auditor to provide an update on progress against the annual audit plan to the Audit Committee for information.

To consider and approve as per the recommendations of the report attached.

The Committee considered the report of the Executive Director Enabling Services and S151 Officer detailing the Statement of Accounts for 2023/24 in accordance with the legal requirement that the statement of accounts 2023/24 are considered and approved by this Committee and signed by the person presiding at this meeting prior to publication. The legislation sets a deadline date for publication of 28 February 2025. 

The Committee particularly noted that this year the accounts would be published with an explanation of the Accounting and Audit Regulations following a request from a member of the public.  The Committee also commended the training they had received alongside the process of signing off the accounts.

RESOLVED:

(i)  That the changes to the Statement of Accounts 2023/24 as a result of the annual audit as detailed in paragraphs 5 to 7 and appendix 1, none of which change the overall bottom line position for the Council for 2023/24 be noted;

(ii)  That the changes made to the Annual Governance Statement (included within the updated Statement of Accounts document) since the draft version presented to the Audit Committee in July 2024 be noted;

(iii)  That the rationale for not correcting the audit difference relating to accumulated absences as set out in paragraphs 9 and 10 of the report be approved;

(iv)  That the updated Statement of Accounts 2023/24 and Annual Governance Statement included within it be approved; and

(v)  To delegate authority to the Executive Director Enabling Services & S151 Officer, after consultation with the Chair of the Committee, to make any further changes to the Statement of Accounts 2023/24 and Annual Governance Statement that may arise during completion of the audit.

To note the Council’s Treasury Management (TM) Strategy and Indicators for 2025/26 to 2028/29, and to endorse the proposal to continue to explore an alternative Treasury Strategy as per the recommendations within the report.

The Committee considered the report of the Director of Finance detailing the Treasury Management Strategy and Prudential Limits 2025/26 to 2028/29. 

The Committee particularly noted the context within which the Council’s treasury management activity operated and set out a proposed strategy for the coming year in relation to the Council’s cash flow, investment and borrowing, and the management of the associated risks. This included the loss of invested funds and the revenue effect of changing interest rates.  It was noted that Investment limits within the report had been adjusted accordingly in line with the strategy.

RESOLVED:

(i)  That the Council’s Treasury Management (TM) Strategy and Indicators for 2025/26 to 2028/29, as detailed in Appendix 1 to be taken to Full Council on the 26 February 2025 for approval be noted;

(ii)  That at the time of writing this report it had been assumed that the budget proposals within the Medium-Term Financial Strategy, Budget and Capital Programme 2025/26 to 2028/29 report, to be reported to Council on the 26 February 2025, would be approved. Should the recommendations change and have any impact on the Prudential Indicators this would be reported to Council on 26 February 2025;

(iii)  The Director of Finance would report any amendments to the TM Strategy as part of quarterly financial and performance monitoring be noted;

(iv)  That the proposal to continue to explore an alternative Treasury Strategy to generate additional income that can support local services, whilst maintaining a prudent approach be endorsed.

To note the Annual Risk Management Report 2024 (Appendix 1) and ‘Summary - Strategic Risks End Q3 2024-25’ (Appendix 2).

The Committee received and noted the report of the Executive Director Enabling Services detailing the Annual Risk Management Report 2024 as the member body responsible for providing independent assurance on the adequacy of the risk management framework and the internal control and reporting environment.

The Committee noted that the report was split into two sections. Section A, outlined the framework and overall arrangements in place across the council that were intended to ensure proper consideration was taken of risk, and Section B provided a summary of the risk management activities that had been undertaken within the last 12-month period. The report also detailed a summary of the council’s Strategic Risks as detailed in Appendix 2 of the report which were reviewed and updated on a quarterly basis.