Meeting Details

Meeting Summary
Audit and Governance Committee
8 Jul 2024 - 18:30
  • Documents
  • Attendance
  • Visitors
  • Declarations of Interests

Documents

Agenda

Meeting Details
MeetingDetails

Members are invited to a Meeting of the Audit and Governance Committee

to be held in the Conference Room, Riverside, Lowestoft

on Monday, 8 July 2024 at 6:30pm

 

This meeting will be broadcast to the public via the East Suffolk YouTube Channel at https://youtube.com/live/4DpiRkNGa-8?feature=share

Open To The Public
1 Apologies for Absence and Substitutions
To receive any apologies for absence and substitutions. 
1
Apologies for absence were received from Councillor Lynch. 
2 Declarations of Interest

Members and Officers are invited to make any declarations of interests, and the nature of that interest, that they may have in relation to items on the Agenda and are also reminded to make any declarations at any stage during the Meeting if it becomes apparent that this may be required when a particular item or issue is considered.

2
There were no Declarations of Interest made.
3 pdf Minutes (149Kb)
To agree as a correct record the minutes of the meeting held on 11 March 2024.
3

On the proposal of Councillor Reeves, seconded by Councillor Back it was

 

RESOLVED

 

That the minutes of the meetings held on the 11 March 2024 be agreed as a correct record and signed by the Chair.

Report of the Cabinet Member with responsibility for Resources and Value for Money.
4

The Committee received report ES/2014 of the Cabinet Member with responsibility for Resources and Value for Money which provided interim commentary on the Value for Money work for the financial years 2021/22 and 2022/23, ensuring that East Suffolk Council has made proper arrangements for securing economy, efficiency and effectiveness in its use of resources. 

 

The main risk identified was in relation to the non-compliance with the rent standard up until November 2021. This issue has been reported to this committee previously and was included in the 2020-21 Audit Report. No further risks had been identified. 

 

 Debbie Hanson (Ernst and Young) confirmed that this was an interim report and an annual report would be issued in due course, this would be issued in the autumn as the previous backstop date had been moved due to the general election. 

 

 On the proposal of Councillor Back, seconded by Councillor Reeves it was

 

RESOLVED

That the Audit & Governance Committee: 
1. Reviewed the Interim Value for Money Report provided by the Council’s Auditors Ernst & Young for the financial years 2021/22 and 2022/23. 

Report of the Cabinet Member with responsibility for Resources and Value for Money.
5

The Committee received report ES/2015 of the Cabinet Member with responsibility for Resources and Value for Money which presented the 2023/24 Draft Statement of Accounts as published the Council’s website on 31 May 2024. The accounts would be publicly available for inspection until 14 July 2024. 

 

On the proposal of Councillor Thompson, seconded by Councillor Back it was

 

RESOLVED

 

That the Audit & Governance Committee: 
1. Reviewed the Draft Statement of Accounts for 2023/24.

Report of the Cabinet Member with responsibility for Resources and Value for Money.
6

The Committee received report ES/2016 of the Cabinet Member with responsibility for Resources and Value for Money which provided the Committee with the opportunity to review and approve the draft Annual Governance Statement for 2023/24, alongside the draft Statement of Accounts for 2023/24.  It was noted that significant progress had been made against actions concerning non-compliance with the rent standard, and it was anticipated that this would be completed by autumn 2024.

 

On the proposal of Councillor Thompson, seconded by Councillor King it was

 

RESOLVED

 

 That the Audit and Governance Committee: 
1. Reviews and approves the draft Annual Governance Statement for 2023/24, alongside the draft Statement of Accounts for 2023/24. 

Report of the Cabinet Member with responsibility for Resources and Value for Money.
7

The Committee received report ES/2017 of the Cabinet Member with responsibility for Resources and Value for Money which provided a review of performance of the treasury management function for 2023/24 and quarter 1 of 2024/25. 

 

Investments for 2023/24 totalled £107.76million as at 31 March 2024, this was made up of £61m of short-term investments, £19.56m of long-term investments and £27.2m of liquidity investments. Interest received during the year totalled £5.4m. The loan portfolio totalled £65.49m as at 31st March 2024 of which £60.4m relates to the Housing Revenue Account and £5.09m relates to the General Fund. 

 

 Investments for Quarter 1 2024/25 totalled £108.56million as at 30 June 2024, which was made up of £59.0m of short-term investments, £19.56m of long-term investments and £30.0m of liquidity investments. Interest received to 30 June 2024 totalled £0.7m of a total £3.1m budget.

 

 Councillor Langdon-Morris stated that the Council had operated its Treasury Management function within the prescribed Treasury Management Policy and Prudential Indicators for 2023/24 and for the first quarter of 2024/25.

 

 The Chair asked whether interest received was reinvested, officers confirmed that this was received into the general fund to cover costs. 

 

On the proposal of Councillor Gandy, seconded by Councillor Back it was

 

RESOLVED

 

That the Audit & Governance Committee 
1. Approved the 2023/24 Outturn and Quarter 1 2024/25 Report on the Council’s Treasury Management activity

Report of the Cabinet Member with responsibility for Resources and Value for Money and Assistant Cabinet Member for Resources and Value for Money.
8

The Committee received report ES/2018 of the Cabinet Member with responsibility for Resources and Value for Money and the Assistant Cabinet Member for Resources and Value for Money. 

 

The Head of Internal Audit noted that a reasonable opinion had been given for this year, and an ‘at a glance’ summary had been produced to help understanding of the report. Some reports were still outstanding and these were highlighted. The number of actions agreed under each report was also highlighted, these would be discussed in more detail under other agenda items. 

 

On the proposal of Councillor King, seconded by Councillor Speca it was

 

RESOLVED

 

  That the Audit and Governance Committee: 

1. Reviewed and endorsed the Head of Internal Audit’s annual opinion for 2023/24.
2. Noted the results from the self-assessment of conformance with Public Sector Internal Audit Standards. 
3. Noted the current position of the Internal Audit Quality Assurance and Improvement Programme, including the action closed without resolution during 2023/24.

Report of the Deputy Leader and Cabinet Member with responsibility for Corporate Services (Digital, Customer Services, HR and Assets).
9

The Committee received report ES/2019 of the Deputy Leader and Cabinet Member with responsibility for Corporate Services (Digital, Customer Services, HR and Assets).

 

The Head of Internal Audit stated that there were no exceptions or serious issues to report.

 

The Chair referred to the sixty-two confirmed breaches and fifteen instances of non-compliance and asked if there were any trends. The Head of Internal Audit stated these were in areas where there were a high volume of transactions and so a higher risk of human error, for example multiple letters being sent in one envelope. There were no serious concerns, and this was a comparatively low volume compared to amount of work being done. The Committee asked if comparisons with other Councils could be included in the report going forward. 

 

The Chair congratulated the customer service team on responding to 99% of freedom of information requests within the target date.

 

On the proposal of Councillor Speca, seconded by Councillor Back it was

 

RESOLVED

 

That the Audit and Governance Committee: 
1. Reviewed and commented on the annual Senior Information Risk Owner Report 2023/24.

Report of the Deputy Leader and Cabinet Member with responsibility for Corporate Services (Digital, Customer Services, HR and Assets), Cabinet Member with responsibility for Resources and Value for Money and Assistant Cabinet Member for Resources and Value for Money.
10

The Committee received report ES/2020 of the Deputy Leader and Cabinet Member with responsibility for Corporate Services (Digital, Customer Services, HR and Assets), Cabinet Member with
responsibility for Resources and Value for Money and Assistant Cabinet Member for Resources and Value for Money.

 

The Head of Internal Audit stated that the most common breaches were emails or letters being sent to incorrect addresses, followed by improper publication of information. Most of these were reported by Council officers themselves and it was good to see that issues were being picked up by officers rather than the public. Officers also engaged the data protection team on whether an issue was a breach or not, and officers understood they could report and discuss issues openly without fear of retribution.

 

The Head of Internal Audit confirmed that all officers were required to undertake mandatory training on data protection, and it was included in the Councillors training programme and was reflected in the councils charter certification. Training was amended based on any issues that arose. 

 

On the proposal of Councillor King, seconded by Councillor Reeves it was

 

RESOLVED

 

That the Audit and Governance Committee: 
1. Reviewed and commented on the annual Data Protection Report 2023/24.

Report of the Cabinet Member with responsibility for Resources and Value for Money and Assistant Cabinet Member with responsibility for Resources and Value for Money.
11

The Committee received report ES/2021 of the Cabinet Member with responsibility for Resources and Value for Money and the Assistant Cabinet Member for Resources and Value for Money. 

 

Councillor Speca asked if in future reports could include information from past years so the committee could understand trends in this area. The Head of Internal Audit confirmed this would be done. Councillor Speca commented that he found information on how much staff time had been spent on each area was very useful as this also demonstrated whether there was adequate resourcing. The Head of Internal Audit commented that resourcing had been an issue for a number of years and an additional officer had now been recruited. The nature of fraud meant that issues did take a good length of time to work through, and required input from a number of agencies. It was therefore difficult to put a timeline on work, the most important thing was to ensure that an appropriate outcome was achieved. Preventative work was fundamental in this area.

 

On the proposal of Councillor Speca, seconded by Councillor Gandy it was

 

 RESOLVED

 

That the Audit and Governance Committee commented upon and noted the Corporate Fraud Annual Report 2023/24.

Report of the Cabinet Member with responsibility for Resources and Value for Money and Assistant Cabinet Member for Resources and Value for Money.
12

The Committee received report ES/2022 of the Cabinet Member with responsibility for Resources and Value for Money and the Assistant Cabinet Member for Resources and Value for Money. 

 

Councillor Langdon-Morris stated that three new risks had been added to the register, political risk, business continuity and backlog of audits. The Chair of the Audit and Governance Committee and the relevant Cabinet Members were now invited to horizon scanning sessions when risks were discussed and identified. There were twenty seven risks on the register, four red, eighteen amber and five green. 

 

Councillor Speca asked what was the risk of leaving risks as they were, and of not having identified future risks, and whether we understood whether these mitigating actions were sufficient to change the status of the risk and make them less likely to occur, or were they actions that were being taken as a result of the risk existing and there would be little chance of changing their score. The Head of Digital, Programme Management and Customer Services stated this had been taken into account, and some target risk scores matched the current risk score as there would be little chance of any action changing these. The target actions column summarised additional actions that could be taken to further reduce the risk in the future. 

 

Councillor Speca stated he was unclear on whether the mitigating or targeting actions were sufficient, and asked for more information on how these actions had been decided upon and whether they were actually effective. The Chief Executive stated that capturing active risk management was a difficult thing to do, and the risk register was being discussed constantly by the leadership team. In the public sector quite a lot of risk had to be tolerated and some issues could not be eliminated. This was an ongoing discussion, but that the six monthly reports were not going to capture discussions and changes that were happening weekly.

 

Councillor Speca commented that some actions (for example failure to deliver against carbon neutral targets), seemed over ambitious considering the actions that were noted. There needed to be a connection between how an action would resulted in that outcome. The Chief Executive stated that discussions did consider whether the Council could mitigate impact or likelihood, and sometimes only one of these could be dealt with. 

 

Councillor Speca stated that there was a lot of information in the report, but it was still unclear why certain risks had been given a certain score and why certain actions were being taken. The Chair stated that he understood that there might be some missing information, but was unsure how this additional information could be presented without additional workload. The Performance and Risk Officer stated that the Risk Management Strategy report which the Committee received annually did provide some of this information on how risks were identified. 

 

The Chair asked a report be received at the next meeting so the Committee could understand the risk indicators that were used and how actions and risk scores were arrived at.

 

The Chair stated that the Corporate Risk Management Update did need to include some more information on the thought processes behind the scores to help Councillors who did not deal with this on a day to day basis understand the report. 

 

On the proposal of Councillor Reeves, seconded by Councillor Back it was

 

RESOLVED

 

That Audit and Governance Committee: 
1. Members noted and commented upon the corporate strategic risks from the Council’s current Corporate Risk Register (CRR) which was governed and monitored by the Corporate Leadership Team (CLT).

Report of the Cabinet Member with Responsibility for Resources and Value for Money and Assistant Cabinet Member for Resources and Value for Money.
13

The Committee received report ES/2023 of the Cabinet Member with responsibility for Resources and Value for Money and the Assistant Cabinet Member for Resources and Value for Money. One report had been issued concerning Write Offs for 2023/24 with an audit opinion of effective. 

 

On the proposal of Councillor Gandy, seconded by Councillor King it was

 

RESOLVED

 

That Audit and Governance Committee considered and commented upon the presented Internal Audit report. 

To consider the committee's forward work programme. 
14
The Committee noted the forward work programme.
15 Exempt/Confidential Items

It is recommended that under Section 100A(4) of the Local Government Act 1972 (as amended) the public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in Paragraphs 1, 2 and 3 of Part 1 of Schedule 12A of the Act.     

15

RESOLVED

 

That under Section 100A(4) of the Local Government Act 1972 (as amended) the public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in Paragraphs 1, 2 and 3 of Part 1 of Schedule 12A of the Act.     

Exempt/Confidential
16 Exempt Minutes
  • Information relating to the financial or business affairs of any particular person (including the authority holding that information).
17 Standards Matters, Declarations of Gifts and Hospitality and Review of Complaints
  • Information that is likely to reveal the identity of an individual.
  1. ES-2024 Standards Matters, Declarations of Gifts and Hospitality and Review of Complaints
    • Information relating to any individual.
    • Information that is likely to reveal the identity of an individual.
    1. ES-2024 Appendix A
      • Information relating to any individual.
      • Information that is likely to reveal the identity of an individual.
    2. ES-2024 Appendix B1
      • Information relating to any individual.
      • Information that is likely to reveal the identity of an individual.
    3. ES-2024 Appendix B2
      • Information relating to any individual.
      • Information that is likely to reveal the identity of an individual.
    4. ES-2024 Appendix B3
      • Information relating to any individual.
      • Information that is likely to reveal the identity of an individual.
18 East Suffolk Property Investments Limited – Revised Business Case and Investment Plan
  • Information relating to the financial or business affairs of any particular person (including the authority holding that information).
  1. ES-2025 East Suffolk Property Investments Limited – Revised Business Case and Investment Plan
    • Information relating to the financial or business affairs of any particular person (including the authority holding that information).
    1. ES-2025 Appendix A
      • Information relating to the financial or business affairs of any particular person (including the authority holding that information).
19 Internal Audit: Status of Actions
  • Information relating to the financial or business affairs of any particular person (including the authority holding that information).
  1. ES-2026 Internal Audit Status of Actions
    • Information relating to the financial or business affairs of any particular person (including the authority holding that information).
    1. ES-2026 Appendix B
      • Information relating to the financial or business affairs of any particular person (including the authority holding that information).
20 Recently Issued Internal Audit Reports
  • Information relating to the financial or business affairs of any particular person (including the authority holding that information).
  1. ES-2027 Recently Issued Internal Audit Reports
    • Information relating to the financial or business affairs of any particular person (including the authority holding that information).
    1. ES-2027 Appendix A
      • Information relating to the financial or business affairs of any particular person (including the authority holding that information).
    2. ES-2027 Appendix B
      • Information relating to the financial or business affairs of any particular person (including the authority holding that information).
    3. ES-2027 Appendix C
      • Information relating to the financial or business affairs of any particular person (including the authority holding that information).
    4. ES-2027 Appendix D
      • Information relating to the financial or business affairs of any particular person (including the authority holding that information).
    5. ES-2027 Appendix E
      • Information relating to the financial or business affairs of any particular person (including the authority holding that information).
    6. ES-2027 Appendix F
      • Information relating to the financial or business affairs of any particular person (including the authority holding that information).
    7. ES-2027 Appendix G
      • Information relating to the financial or business affairs of any particular person (including the authority holding that information).
    8. ES-2027 Appendix H
      • Information relating to the financial or business affairs of any particular person (including the authority holding that information).

Meeting Documents

  1. pdf Open Minutes 8 July 2024 (168Kb)
  2. Exempt Minutes 8 July 2024
    • Information relating to any individual.
    • Information that is likely to reveal the identity of an individual.
    • Information relating to the financial or business affairs of any particular person (including the authority holding that information).

Attendance

Apologies
NameReason for Sending ApologySubstituted By
Councillor Geoff Lynch  
Absent
NameReason for AbsenceSubstituted By
No absentee information has been recorded for the meeting.

Declarations of Interests

Member NameItem Ref.DetailsNature of DeclarationAction
No declarations of interest have been entered for this meeting.

Visitors

Officers present:  Chris Bally (Chief Executive) Chris Bing (Head of Legal and Democratic Services), Jon-Paul Farthing (Finance and Business Manager, Coastal Partnership East),Heather Fisk (Head of Housing), Alexander Ford (Information Governance Administrator), Laura Fuller (Audit Manager), Andy Jarvis (Strategic Director), Nick Khan (Strategic Director), Sandra Lewis (Head of Digital, Programme Management and Customer Services), Siobhan Martin (Head of Internal Audit Services), Marie McKissock (Deputy Chief Finance Officer), Sheila Mills-James (Corporate Fraud Manager), Stacey Ransby (Performance & Risk Officer), Philip Ridley (Head of Nationally Significant Infrastructure Planning), Lorraine Rogers (Chief Finance Officer), Katherine Scott (Principal Planner (Development Management, Technical Lead)), Julian Sturman (Specialist Accountant – Capital and Treasury Management), Sarah Thacker  (Senior Information Governance Officer), Karen Thomas (Head of Coastal Partnership East), Ben Woolnough (Head of Planning, Building Control and Coastal Management), Frances Wykes (Assistant Internal Audit Manager)

Others present:

Debbie Hanson (Ernst & Young LLP)