Agenda and minutes

Audit & Scrutiny Committee - Thursday, 5th December, 2024 7.30 pm

Venue: Council Chamber - Council Offices

Media

Items
No. Item

181.

Minutes of the meeting held on 24th September 2024 pdf icon PDF 110 KB

Additional documents:

Minutes:

The minutes were confirmed and signed as a correct record.

182.

Internal Audit Update pdf icon PDF 60 KB

Additional documents:

Minutes:

The Southern Internal Audit Partnership (SIAP) presented a progress report summarising the Council’s internal audit for the period to the end of October 2024. The presentation included an overview of the status of live internal audit reports and an overview of SIAP’s delivery against the Council’s internal audit plan.

 

From the subsequent debate, it was noted that:

 

·         the format of the Internal Audit Overdue Actions table prepared by Officers would be reformatted to assist with interpretation.

·         the new CIL Lead Officer and the Finance Team were working to ensure that the observations raised by SIAP’s assurance opinion were addressed by using the Council’s Salesforce system to reconcile CIL and Section 106 income and expenditure and ensure this agrees with Agresso. This work would include a review of the process for the return of any unused CIL expenditure from parish councils.

·         Officers agreed with Members that a robust system was required to ensure income to the Council was being recorded accurately and fee increases were implemented at the appropriate time.

·         SIAP would check and confirm to the Committee when Income Management was last audited. 

·         the implementation of parking fees and charges would be reviewed as part of a Parking and Enforcement audit which had been included in SIAP’s future planning.

·         SIAP would also discuss a prompt review of income collection, which would incorporate fees and charges, with Officers.

·         final audit reports were brought to Committee as soon as possible following the completion of an audit but SIAP would consider whether additional information could be provided to Members before management actions became overdue.

·         management actions and target dates were set by Officers in response to SIAPs observations and therefore may not directly correlate with SIAP’s audit report.

·         all management actions for IT Disaster Recovery had been completed.

·         a full update on Asset Management (Statutory Checks) would be obtained from the Head of Housing and provided to Committee.

 

R E S O L V E D – that the Committee notes the Internal Audit Progress Report – October 2024.

183.

2024/25 (Q4) internal audit plan pdf icon PDF 61 KB

Additional documents:

Minutes:

SIAP presented a report that contained the audits scheduled for the fourth quarter of the year, which included a review of the Council’s Climate Change Strategy, Planning Enforcement arrangements and a follow up review to the last Annual Governance Statement limited report. It was noted that all of the commissioned plan days had been allocated for the year.

 

In response to questions from Members and the Independent Person, it was noted that:

 

·         SIAP would discuss the possibility of including a future audit focusing on council credit card payments with Officers.

·         the scope of the current procurement audit would potentially include work procured by consultants but only if an example were included through sample testing. SIAP agreed to consider this issue and to discuss how this could be developed outside of the meeting with Members.

·         the Parking Enforcement audit was currently included in the audit for 2025/26 as there were no further unallocated commissioned plan days in 2024/25. SIAP agreed to review the possibility of amending the Q4 audit plan in order to incorporate an audit of Council income, which would include parking fees and charges, as soon as possible. The scope and timing of the audit would be discussed with Officers.

·         following the completion of an audit, SIAP identify weaknesses or non-compliance with current Council processes. Officers propose management actions to remedy any issues, which SIAP would then assess to ensure that they address the identified risks.

 

During the debate, the following amendment to the recommendation was proposed and seconded by the Committee:

 

That the Committee delegate authority to the Director of Resources in consultation with Group Leaders and the Chair of the Audit and Scrutiny Committee to approve the Internal Audit Plan 2024-25 (Q4), recognising the importance of income generation, in particular car parking.

 

Upon being put to the vote, the motion to amend the recommendation was agreed.

 

R E S O L V E D – that the Committee delegate authority to the Director of Resources in consultation with Group Leaders and the Chair of the Audit and Scrutiny Committee to approve the Internal Audit Plan 2024-25 (Q4), recognising the importance of income generation, in particular car parking.

184.

Global Internal Audit Standards pdf icon PDF 90 KB

Additional documents:

Minutes:

The Committee received a report from SIAP relating to the implementation of the Global Internal Audit Standards (GIAS). The GIAS were being introduced by the Institute of Internal Auditors to revise the International Professional Practice Framework and replace the Public Sector Internal Audit Standards that SIAP currently have to comply with.

 

SIAP confirmed that they had undertaken a self-assessment and gap analysis against the new standards and developed an action plan to ensure it is in the strongest position possible to comply with the GIAS when they are introduced in April 2025. Further engagement with Members about the implementation of the standards would take place before the end of the current financial year.

 

In response to a Member question, it was confirmed that there would be no additional cost to the Council for SIAP to comply with the GIAS.

 

R E S O L V E D – that the Committee note the pending implementation of the Global Internal Audit Standards.

185.

External Audit Update pdf icon PDF 108 KB

Additional documents:

Minutes:

The progress of the external audit for the Financial Years (FY) 2021/22 to 2023/24 including an update on the audit fees with Deloitte and the Public Sector Audit Appointments (PSAA) was presented to Committee. 

 

Statement of Accounts and External Audit Reports

 

Members were informed by Officers and Deloitte that:

 

·         the FY2021/2022 audit was a full and unqualified audit opinion and presented for approval. The opinion contained misstatements and audit control findings that had previously been reported to Committee. A small change had been made to the audit findings report due to the exclusion of the fee variation in the Statement of Accounts by the Council as this cost had not been agreed.

·         the FY2022/2023 Statement of Accounts and audit findings report were in draft and further changes would occur before the audit opinion was finalised. The audit findings report contained a disclaimed audit opinion as it could not be completed before the Government’s backstop date of 13th December 2024.

·         the Annual Governance Statements (AGS) for both FY2021/2022 and FY2022/2023 had been amended slightly and were presented for approval.

·         the External Auditors Value for Money report for FY2020/2021 to FY2022/2023 inclusive were reported to Committee. A significant weakness reported in 2021 relating to Financial Sustainability had been lifted for subsequent years.  Despite improvements, it was noted that a significant weakness remained in respect of Governance for all financial years, due to the “limited” overall internal audit assurance opinion. Officers noted that this had improved to “reasonable” for FY2023/2024, but this was outside of the scope of the external audit for FY2022/2023.

·         due to the high level of information contained in the agenda Members had the option to delegate the finalisation of the accounts to the Director of Resources and the Chairman.

 

In response to questions from Councillors and the Independent Person, it was confirmed that:

 

·         the Letter of Representation had not been received and would need to be reviewed by the Director of Resources prior to signature.

·         due to the limited procedures being used to complete the FY2022/2023 accounts, Grant Thornton would be disclaiming on the opening balances and no reliance would be placed on the completed audit.

·         the Council had improved its process for assessing which salaries should be capitalised, which had been demonstrated in the 2024/2025 Quarter 2 Monitoring Report which had shown a reduction in the number of capitalised salaries when compared to the original budget.

·         the Council did not agree that there was an error in the accounts in respect of pension valuation. Any material changes to the LGPS Surrey Pensions Fund would be reflected in the Council’s actuary report, the details of which were replicated in the Council’s accounts. Deloitte confirmed that this uncorrected misstatement was consistent with other Local Authorities. 

·         Deloitte gathered information from interviews, discussions and news articles to create a judgement which then completes a quality review process. The accuracy of any statements contained in the Value For Money reports are checked by the Council and can be altered if it contained  ...  view the full minutes text for item 185.

186.

Whistleblowing Policy Review pdf icon PDF 62 KB

Additional documents:

Minutes:

A report was presented to the Committee which included an annual report of the Council’s whistle-blowing arrangements and a review of the Whistle-blowing Policy. The policy had been amended to improve clarity and to introduce a template document for recording any allegations received.

 

It was noted that the Council had received no whistle-blowing disclosures in 2023/24.

 

In response to Member’s questions it was clarified that:

 

·         either the Head of Legal and Monitoring Officer or the Director of Resources was permitted to have overall responsibility for the maintenance of the Policy.

·         it was the duty of the Responsible Officer defined in the Policy to complete the Whistle-blowing Case Record form.

 

It was agreed by Officers that the wording explaining which officers would conduct an internal investigation or escalation of a concern would be made clearer.

 

R E S O L V E D  that the Whistle-blowing Policy attached at Appendix A is approved by the Committee and recommended for adoption.

 

 

 

187.

Update on draft Annual Governance Statement and Action Plan 2023/24 pdf icon PDF 75 KB

Additional documents:

Minutes:

A report was submitted that included a draft of the Council’s Annual Governance Statement (AGS) for the 2023/24 financial year for review and an update on the progress made against the AGS Action Plan.

 

It was noted that no comments had been received from members of the public following publication of the draft AGS on the Council’s website, although minor amendments had been made following suggestions from the Committee and EMT Officers. The Committee was informed that that the AGS and Action Plan were considered regularly by Senior Officers.

 

In response to questions and comments from the Committee and the Independent Person, it was noted that:

 

·         it had been the Officer’s intention to focus the contents of the AGS on areas that the Council could control and therefore accounts production and the external audit backlog had not been referred to.

·         Officers were happy to make further changes to the AGS provided that it was approved to coincide with the backstop for the 2023/24 external audit.

·         issues relating to recruitment processes and retaining staff had been highlighted in the action plan but the documentation could be updated to make recruitment risks more prominent in the AGS.

 

Officers agreed to circulate the final draft AGS before the publication of the next committee agenda. Members were asked to review draft AGS when circulated and provide any suggested amendments in advance of the publication of the February committee papers.

 

During the course of the debate, an alternative recommendation was requested by Members. The following recommendation wording was agreed between Officers and Members and proposed and seconded by the Committee:

 

That the Committee notes the current draft of the AGS for 2023/24 and that the AGS and Action Plan be reported back to the Audit & Scrutiny Committee in February 2025.

 

Upon being put to the vote, the alternative recommendation was carried.

 

R E S O L V E D – that the Committee notes the current draft of the AGS for 2023/24 and that the AGS and Action Plan be reported back to the Audit & Scrutiny Committee in February 2025.

188.

Future Tandridge Programme Update pdf icon PDF 87 KB

Additional documents:

Minutes:

A report was submitted which included:

 

1)    the progress in delivering the 2024/25 saving target.

2)    an update on the Future Tandridge Programme (FTP) and the proposed savings targets for 2025/26.

3)    the FTP Risk Register.

 

Member’s attention was drawn to the risk register and the proposals to close risks, particularly in relation to the grounds maintenance tender and the digital programme. Officers stated that the process of reporting the FTP to Committee would be reviewed in the future in order to reduce any repetition with similar reports to the Strategy & Resources Committee.

 

Members were assured by Officers that there a rigorous process was in place to ensure that double counting of stated savings did not occur. All projected savings were monitored via the Future Tandridge Programme governance method which acted as an additional check and balance. The governance method had also been reviewed by Internal Audit who had given the process the highest possible assurance rating.

 

It was confirmed that any recommendations from a review of community asset funding that was being conducted with a pilot group of parish councils would not be imposed on all parish councils. The aim of the process was to provide a range of options for all parish councils to consider implementing.

 

R E S O L V E D – that the Committee:

 

1. note the progress made in delivering the savings identified for delivery in 2024/25.

 

2. note the approach to risk management being applied and the current FTP

programme level risks identified in Appendix B.

 

3. note the contents of the draft budget including the delivery of savings and wider transformation benefits (the detail of which is set out in report to the Strategy and Resources Committee on 27th June and further details provided in the September and November 2024 Strategy and Resources Committee papers).

189.

Quarter 2 2024/25 Key Performance Indicators Exceptions and Risk Registers - Audit & Scrutiny Committee pdf icon PDF 58 KB

Additional documents:

Minutes:

The Committee received a report that provided a performance and risk exception update for the Council’s four policy committees for Quarter 2 of 2024/25. The following performance information was noted as being off target:

 

Community Services Committee

 

The performance indicator for Environmental Health percentage of Housing in Multiple Occupations (HMO) inspections carried out was partially met at 80% (the target is 100%).

 

The performance indicator for street cleaning was just off target at 92% (the target was 95%).

 

Housing Committee

 

HO4: The number of households living in temporary accommodation was off target at 50 (the target was 30 households).

 

The following red risks were also noted on the Corporate Risk Register:

 

·         SR17: Responding to FOIs, SARs and Ombudsman complaints within the set timescales.

·         H6: Inability to procure compliance contracts due to lack of resource.

 

Both risks were being closely monitored by the relevant Officers.

 

In response to questions from Members, the following points were noted:

 

·         Officers agreed to consider whether to bring a report to the committee setting out the progress in delivering the objectives in the Corporate Plan.

·         Officers agreed to revisit the Strategy & Resources risk register with a view to including a further risk in respect of fees and charges.

·         references to tolerating risks in respect of rental income related to the inability of Council tenants being able to pay.

·         the cost of any measures that could be put in place to mitigate risks in respect of disaster recovery were disproportionate for the Council and therefore the risks were tolerated.

·         Officers would review the methodology and risk score in respect of SR11 and SR16 and report back to Members.

 

R E S O L V E D – that the Committee review and note the policy committees’ performance exceptions for Quarter 2 2024-2025 and the committee and corporate risks.

190.

Complaints and Freedom of Information update – December 2024 pdf icon PDF 82 KB

Additional documents:

Minutes:

A report providing a breakdown of the 22 new complaints and 3 Stage 2 complaints received by the Council for the period 1 July 2024 to 30 September 2024 was presented to the Committee. The report also stated that 5 complaints had been received by the Local Government and Social Care Ombudsman of which 2 were not being investigated and 3 were ongoing.

 

It was reported that 157 Freedom of Information (FOI) requests had been received during the period which had created 222 tasks for Officers. The areas with the most requests were Business Rates and Environmental Health. 

 

In response to Member questions, it was confirmed that:

 

·         many of the FOI requests received were similar in nature and often repetitive commercial enquiries.

·         any noise complaints received from residents were dealt with by the Environmental Health Department and recorded accordingly.

·         FOIs received in respect of Human Resources tended to be from recruitment agencies enquiring about vacancies and how the Council recruited to those positions.

 

R E S O L V E D – that the Committee accepted and noted the report.