Agenda and minutes

Apologies for absence were submitted from Councillor Susan Hayes.

There were no Declarations of Interest or Dispensations notified.

The Minutes of the meeting of the Audit Committee held on the 28th November

2022 were submitted for approval as a correct record.

Recommended – That the Minutes be received and approved as a correct

record.

The minutes were not considered as previously approved.

To inform Audit Committee of the outcome of the Strategic, Generic and Operational Risk Registers review.

Recommended – That the report be noted for informational purposes.

Stuart Sambrook, Policy Manager presented the report to Members to inform them of the outcome of the Strategic, Generic and Operational Risk Registers.

The Policy Manager discussed the background and the processes of Risk Management to the Committee.

The Council currently has 19 Strategic risks, 66 Operational risks and 17 Generic risks.

Audit Committee was requested to review the amendments of the risk registers since the submission of the last risk management report.

There had been 6 major changes made to the Strategic register detailed below;

There had been 2 major changes made to the Operational risk register detailed below;

A summary list of all the risks was reported in Appendix 4.

The committee discussed some of the risks with Mr Sambrook and clarified some points from the register.

External Audit confirmed they were happy that no financial issues were arising from Risk Management and happy with the Council Governance arrangements.

Resolved – That the report was noted for informational purposes.

Mr Sambrook to come back to the Committee on the following points raised:

·         To update the Committee on the Huncoat Garden Village risk.

·         To update the Committee on the Leisure Transformation risk.

·         To request further information on weekend burials and to check if this would go on the Risk Register.

To inform and update Audit Committee on the Annual Internal Audit Report and Audit Opinion for 2022/23 and to give details on the performance of the Internal Audit Team and final outturn position for 2022/23.

Recommended – That the report be noted for informational purposes.

Mark Beard, Head of Audit & Investigations informed and updated Members on the report, gave details on the performance of the internal audit team and the final outturn position for 2022/23.

The Head of Audit & Investigations talked through Appendix 1.

The key issues were:

·         The Head of Audit & Investigations is able to issue a positive opinion on the systems of Internal Control based on the work carried out in 2022/23 as detailed below. The opinion score very slightly improved from 1.40 in 2021/22 to 1.39 in 2022/23. The number of recommendations increased from 13 in 2021/22 to 14 in 2022/23.

·         Internal Audit did not identify any issues in 2022/23 during the course of their audit work that would have a material effect on the Council’s Financial Statements.

·         Internal Audit achieved audit plan coverage of 90.01% in 2021/22. This was 7.99% below the annual target of 98%.

·         Production and publication of this report is a requirement of the Public Sector Internal Audit Standards. This report satisfies the requirements for those charged with governance and forms a supplementary piece of evidence to the Annual Governance Statement.

The satisfactory and quality questionnaires sent out to the auditee’s following an audit taking place came back with very good results, which is a great reflection of the team and the work they conduct.

Resolved – That the report was noted for informational purposes.

To inform members of the Audit Reports issued during the period February 2023 – May 2023 and bring to the attention of the Committee what the key issues were.

Recommended – That the report be noted for informational purposes.

Mark Beard, Head of Audit & Investigations informed Members of the Audit reports issued during the period February 2023 – May 2023 and discussed the key issues.

The position of audit plans completed by the end of March 2023 was 90.01% for 2022/23 with a target of 98%. Key factors contributing to the shortfall were additional bank holidays, sickness and bereavement leave.

The Head of Audit & Investigations talked through Appendix 1.

Below is a summary of audits carried out between February – May 2023:

·         Internet/Email – Substantial assurance

·         Officers Imprests – Comprehensive assurance 

·         Construction (Design & Management) – Substantial assurance

·         Lyndon Park Development – Comprehensive assurance

·         Commercial Rents & Leases – Comprehensive assurance

·         Bank Reconciliation – Substantial assurance

·         Energy Bills Rebate Scheme – Comprehensive assurance

·         Asset Management – Substantial assurance

Mr Beard clarified some points around cheques that are still processed, there are very few residents who receive cheques and businesses that are paid via cheque is usually under exceptional circumstances. Over the past 12 months, cheques have decreased dramatically. Hyndburn Borough Council offer many ways of electronic payment however if a cheque is the chosen preferred method of a customer we will issue one to process the payment.

There is a rigorous control method in place for processing cheques and taken very seriously when issuing.

Resolved – That the report was noted for informational purposes.

To inform members of the outcome of routine follow-ups following the previously agreed action plans for completed audit reports. The follow-ups detailed within this report are those carried out during the period February 2023 to May 2023.

Recommended – That the report be noted for informational purposes.

The Committee considered a report from the Head of Audit & Investigations, which informed Members of the outcome of routine follow-ups, following the previously agreed action plans for completed Audit Reports.

This report covers the period February 2023 – May 2023. The audit areas followed up and any key issues were detailed within an Appendix to the main report and included the following areas:

·         Markets

·        Mobile Telephony

·        GDPR

·        Transferred Assets 

All actions have been implemented and there are no issues.

Resolved – That the report was noted for informational purposes.

To continue the discussion on the training needs of the Audit Committee for 2023/24 onwards following the Audit Committee Self-Assessment carried out by the Committee in 2022.

Recommended – That the Audit Committee agrees what training would be   beneficial to Committee members.

-       That the Audit Committee agrees when this training will take place so that dates can be scheduled.

-       That the Audit Committee agrees how far this is extended beyond current Audit Committee members, i.e. to all elected members or, for example, to elected members who may be asked to substitute at a meeting of the Audit Committee.

Mark Beard, Head of Audit & Investigations brought the report to the Committee to continue discussions on the Members training needs for 2023/24.

At the previous meeting on 6^th March 2023, it was agreed that the training for the Chair and Vice-Chair would be mandatory.

Cllr Peter Edwards has booked on the CIPFA Training this year - Introduction to the Knowledge and Skills of the Audit Committee.

The Committee had a discussion around previous training that had been carried out and the examples of that training. They also discussed when would be the best time to conduct the training, before Audit Committee or before Council meeting so the majority of Councillors attend.

Resolved – That the Audit Committee agreed for officers to take forward planning the training schedule, dates and invite all Members.

-     That any bulletins from the LGA or External Audit deemed useful to Audit Committee to be circulated as and when.

Verbal update.

Daniel Watson, Director at Mazars attended the Committee to give a verbal update on behalf of External Audit.

The 2020/21 Accounts are set to be ready for sign off before the September 2023 Committee, apologies were given on the delay.

Regarding the 2021/22 Accounts, the financial statements have been published in draft, there has been some national issues and the Council’s pension liability figures are now out of date and the more relevant information will need to be added into the accounts by the finance team.

Councillor Aziz raised his concerns on the delay of the accounts and felt concerned that the 2022/23 draft accounts will be due soon also.

Daniel Watson gave some background on the delays and reassured Members there was nothing significant other than government legislation changes, and adopting new external audit policies after appointing Mazars as the Councils external auditors. This has then affected the 2021/22 accounts.

Martin Dyson, Executive Director – Resources also added there has been staff changes within the Council, worked well with Mazar’s and welcomed the fresh set of eyes on their work. The Finance team have reassessed working procedures, made use of toolkits available and have followed CIPFA guidance.

The 2020/21 accounts just have the value for money comments outstanding, once completed they will be sent to Members via email to sign off, no additional Audit Committee is required as they were presented at the November 2022 Committee.

The External Audit fieldwork will start in September for the 2021/22 accounts.

Resolved – That the Audit Committee has a regular item on the agenda to cover internal reports and action plans.

-        That the Audit Committee receive a report from Mazar’s External auditors with recommendations to take forward.

The next meeting is scheduled to take place on Monday 25^th September 2023. Due to unforeseen circumstances the Audit Committee officers have requested this committee is rescheduled to Monday 18^th September 2023.

Recommended – That the Meeting date change is agreed and approved.

It was proposed to move the next meeting date to Monday 18^th September 2023.

Resolved – The Committee agreed and approved the date change.