Agenda and minutes
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Apologies for Absence and Named Substitutes Minutes: Apologies for absence were received from Councillor C. Spencer with Councillor J. Till in attendance as the substitute member.
The Chairman took the opportunity to welcome the new Executive Director of Resources, Bromsgrove District and Redditch Borough Council’s to his first meeting of the Committee.
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Declarations of Interest and Whipping Arrangements To invite Councillors to declare any Disclosable Pecuniary interests or Other Disclosable Interests they may have in items on the agenda, and to confirm the nature of those interests.
Minutes: There were no declarations of interest nor of any whipping arrangements. |
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Minutes: The minutes of the meeting of the Audit, Standards and Governance Committee held on 21st January 2021 were submitted.
RESOLVED that the minutes of the Audit, Standards and Governance Committee meeting held on 21st January 2021 be approved as a correct record.
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Standards Regime - Monitoring Officers' Report Minutes: The Head of Legal, Democratic and Property Services presented the report and in doing so, informed the Committee that the report referred to the Standards complaints that she was currently managing and to the Member Development Steering Group where training for Members would be considered in advance of the new municipal year.
Mr. J. Cypher clarified that he was in attendance as the representative for Bromsgrove Parish Councils. He referred to the points made in the report with regard to the Parish Council complaint and asked to what extent did the Monitoring Officer find herself having to manage complaints that were not related to the Councillors Code of Conduct.
It was reported that in some Parish Councils there was some confusion between the ordinary complaints procedure and Code of Conduct issues and the role of the Monitoring Officer.
The Head of Legal, Democratic and Property Services responded and stated that the Code of Conduct and the Standards regime were not necessarily that easy to navigate for members of the public and that sometimes there was an expectation in terms of the Code of Conduct and its ability to manage procedures, both at Parish and District level.
The Monitoring Officer clarified that she took a pragmatic approach, and that the role of the team was to maintain high standards and so if they could do anything to help the Parishes or members of the public to understand the district procedures then they tended to be quite flexible.
The Head of Legal, Democratic and Property Services further commented that the procedure generally tended to form part of the complaint, but Parish Clerks did not have the same support as District Councils, so the approach taken was to be generous with her time wherever possible.
RESOLVED that the Monitoring Officers' Report be noted. |
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Model Code of Conduct Additional documents:
Minutes: The Principal Solicitor reminded the Committee that at the last meeting held on 21st January 2021, she had indicated that she would be presenting a report regarding the new model Code of Conduct issued by the Local Government Association (LGA).
It was highlighted that the style was very different in the new LGA model Code of Conduct, in addition to the provisions of the model Code there was quite a detailed narrative attached within the model Code itself. Members were advised that the guidance could be separated from the model Code in order to make the model code more streamlined.
The Principal Solicitor drew Members’ attention to the recommendations and highlighted the main areas of difference between the new LGA model Code of Conduct and the Worcestershire Code. Members were reminded that they had previously expressed a preference for a pan-Worcestershire model Code of Conduct that would apply across all three tiers of Local Government.
Members were informed that the countywide Monitoring Officers Group had looked at the existing Code and it was felt that the new LGA model Code of Conduct could be adapted slightly for local purposes, if required. It was clarified that any future changes from Local Government would more than likely be based on the new LGA model Code of Conduct and that a pan-Worcestershire Code would be based on the LGA model Code.
The Principal Solicitor also commented that Members had recently revisited the current Worcestershire Code and had agreed to keep the value for registering gifts and hospitality £15, the LGA model Code would be £50.
During lengthy discussion Members debated the option of a new pan-Worcestershire Code and the adoption of the LGA model Code and questioned the need for a different Worcestershire Code. Members also queried as to why a decision could not wait until primary legislation was passed.
The Principal Solicitor explained that there was currently so much going on with the recommendations to strengthen the Standards regime, that primary legislation may take quite a while to be passed.
The Head of Legal, Democratic and Property Services further informed the Committee that Members had previously looked at the current Code before receiving anything from the LGA as it had taken longer than anticipated to receive the LGA model code. Members had looked at the current Worcestershire Code from a Bromsgrove perspective and had also taken into account the recommendations identified by the Committee on Standards in Public Life.
Mr. J. Cypher commented that the Bromsgrove area Parish Councils continued to support the ‘Worcestershire Way’ and it was felt that the new LGA model Code be adopted and adapted locally, he would emphasise that sticking together with a pan-Worcestershire Code was the way for the future.
In response to Members, the Principal Solicitor explained that should the Committee be minded to approve recommendations C and D, that the new Worcestershire Code would be presented to the Committee for consideration.
The Chairman took the opportunity to thank officers for their detailed responses ... view the full minutes text for item 49/20 |
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Audit Findings 2019/2020 - Grant Thornton Additional documents: Minutes: Mr. J. Murray, the Engagement Lead, Grant Thornton presented the Grant Thornton Audit Findings 2019/20 report and in doing so highlighted that Members had previously been made aware of the challenges faced by both themselves and officers due to the outbreak of the Covid-19 coronavirus pandemic, which had had a significant impact on the normal operations of the Council.
During consideration of this item, Members’ attention was drawn to the following:
· There was one item, in relation to housing benefit payments to claimants, which amounted to £72k, which was shown in 2019/20, rather than in 2020/21. Officers had declined to adjust this owing to the impact on ongoing claim payments and would process the change at the beginning of 2021/22. This was included in the Letter of Representation. · The audit adjustments, as detailed at Appendix C. · Recommendations raised for management, as detailed at Appendix A. · The follow up of recommendations from the prior year’s audit, as detailed at Appendix B. · The work was substantially completed, and it was anticipated that the audit opinion would be unmodified, but would include an ‘Emphasis of Matter, highlighting the material uncertainty around property valuations.
It was explained to members that Grant Thornton had competed the risk-based review of the Council’s value for money arrangements in respect of the significant risks identified in the Audit Plan around financial sustainability. It was concluded that Bromsgrove District Council had proper arrangements to secure economy, efficiency and effectiveness in its use of resources in this area.
It was also considered whether the significant challenges in relation to the financial statements audit also needed to be reflected in our value for money conclusion, given one of the National Audit Office, Value for Money (VFM) criteria which related to ‘Unreliable and untimely financial reporting that doesn’t support delivery of strategic priorities, such as the late submission of financial statements for audit’. This was considered by an independent consistency panel who agreed with their assessment that the VFM conclusion should not be qualified in this regard. This was principally because of the support from the Chief Executive to the Acting S.151 officer, and of the audit process.
Grant Thornton advised Members that they had updated their VFM risk assessment to document their understanding of the Council’s arrangements to ensure critical business continuity in the current environment. It was confirmed that they had not identified any new VFM risks in relation to Covid-19.
As detailed in the ‘Key Messages’ the need to improve the quality of working papers supporting the financial statements had been noted; to reflect the significant amount of additional audit time required as a result of poor quality of working papers.
Grant Thornton would ensure that all findings were actioned appropriately before issuing their audit opinion.
The significant audit risks included the valuation of land and buildings, as detailed on page 67 of the main agenda report. Work was undertaken to challenge management’s processes and assumptions for the calculation of the estimate, the instructions issued to valuation experts and ... view the full minutes text for item 50/20 |
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Statement of Accounts 2019/2020 Additional documents: Minutes: The Head of Finance and Customer Services presented the Statement of Accounts 2019/2020 report and informed the Committee that the Statement of Accounts elements that required signature were detailed at Appendix 1 to the report, which included the core statements for sign off. A full clear set of accounts would be presented to a future meeting of the Committee.
The Head of Finance and Customer Services further stated that he did not anticipate any other changes, however, if there were any changes were identified, they would be reported back to the Committee.
In response to Members’ questions, the Head of Finance and Customer Services clarified the differences between the Balance Sheet and Group Balance Sheet, as detailed on pages 9 and 10 of the Supplementary Agenda Pack. Members were informed that the Group Balance Sheet included the rolling in of the Artrix element.
RESOLVED that the Audit, Standards and Governance Committee approve the Statement of Accounts 2019/2020 elements that required signature, as detailed at Appendix 1 to the report.
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Housing Benefit / Subsidy certification work 2019/20 - Summary Report Additional documents: Minutes: Mr. N. Preece, the Engagement Lead, Grant Thornton, presented the Housing Benefit Subsidy Claim Audit Letter.
Members were informed that they had certified the Housing Benefit Claim for 2019/20 relating to over £12.6m of expenditure. The Department for Work and Pensions (DWP) set the parameters and guidelines that auditors had to go through when auditing. It was almost impossible not to have any errors due to the complexity of the work required.
There were a number of issues that required further testing. Members were asked to note that there was no level of materiality when auditing the housing benefit claim and therefore the errors could be minor in value but required further testing.
The Engagement Lead, Grant Thornton further commented that the number of cases tested had increased, however, the error rate had decreased. He was pleased with the error rate and was happy that there would be less testing to carry out next year.
Members’ attention was drawn to Appendix 1, and the table that detailed the number of cases tested and the number of errors found in recent years.
He also asked the Committee to note that the work had been finished by the extended deadline given.
RESOLVED that the Grant Thornton certification letter 2019/20 be noted. |
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Internal Audit - Progress Report Minutes: The Head of the Worcestershire Internal Audit Shared Service presented the Internal Audit Monitoring Report to Members and explained that this was the regular update report that was presented to the Committee and summarised the reviews and progress made in respect of the Audit Plan since the last Committee meeting.
Members were informed of the following:
· Two reviews had been finalised - Treasury Management and Debtors. · Three reviews were awaiting sign off – Council Tax, National Non-Domestic Rates and Benefits. · One audit was progressing through clearance stage – Health and Safety. · Audits progressing through testing stage – Creditors, Main Ledger and Risk Management.
The outcomes of all of the above would be reported to the Committee in due course, once completed and once management had confirmed an action plan.
The 2020/21 plan reflected the delayed start and certain lesser risk reviews would be needed to be rolled to next year’s plan. Priority continued to be given to potentially higher risk areas, e.g. limited assurance audits. As we returned to the new normal the impact of restrictions of the Covid-19 lockdown on the plan had being closely managed as the year had progressed.
Members’ attention was drawn to:
· Appendices 1 and 2 which reflected the challenges faced over the eleven months. · Appendix 5 – Quality Assurance Improvement Plan.
The Head of the Worcestershire Internal Audit Shared Service commented that despite that challenges faced, the Council was in a position whereby he was comfortable and confident that come year end he would be able to give an audit opinion. He would also be looking at other potential assurance work that had taken place in the Council over the last 12 months in order to provide that opinion as at the year end.
Members’ attention was further drawn to the National Fraud Initiative (NFI), as detailed on page 98 of the main agenda report. Going forward he would need to work closely with the Head of Finance and Customer Services team to get information loaded onto the new (ERP) system. The new ERP system should make it easier for the Head of Finance and Customer Services team to extract this information and upload in the format that the NFI required it.
The Head of the Worcestershire Internal Audit Shared Service explained that he had not presented the 2021/22 Audit Plan to this meeting, as he had wanted to engage with the new Executive Director of Resources before presenting it to the Committee. The 2021/22 Audit Plan would be presented to Members at the next meeting of the Committee.
The Chairman took the opportunity to thank the Head of the Worcestershire Internal Audit Shared Service and his team for a comprehensive report.
RESOLVED that the Internal Audit Monitoring Report be noted.
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Audit, Standards and Governance Committee Draft Annual Report Minutes: The Chairman briefly introduced the Audit, Standards and Governance Draft Annual report 2020/2021 and in doing so, stated that the report highlighted the work of the Committee and the reports presented and considered by Committee Members during the municipal year 2021/2021.
He expressed his sincere thanks to all serving Members of the Committee and those Members that had served the Committee during the year. He also thanked the Portfolio Holder for Finance and Enabling, senior officers, officers and the Council’s external auditors who had supported and presented reports to the Committee during the course of the year; and to the support given by the Democratic Services Officer.
The Chairman further extended his sincere thanks to Councillor K. J. Van Der Plank, as the Committee’s Risk Champion. Councillor Van Der Plank had really added depth and dimension to her role. He appreciated the work she had undertaken as the Committee’s Risk Champion.
RESOLVED that the draft annual report for the Audit, Standards and Governance Committee 2020/2021, be noted and presented at Council as a final version.
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Risk Champion - Verbal Update Report (Councillor K. Van Der Plank) Minutes: Councillor K. J. Van der Plank, as the Committee’s Risk Champion, provided a verbal update to the Committee, as attached.
The Chairman thanked Councillor K. J. Van Der Plank for her verbal update and for her work as Risk Champion. He further took the opportunity to express thanks on behalf of the Committee; and stated that it was a unique role to fill.
RESOLVED that the Risk Champion verbal update be noted and that the Democratic Services Officer to include a copy of Councillor K. J. Van Der Plank’s written update with the published minutes.
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Audit, Standards and Governance Committee Work Programme Minutes: The Democratic Services Officer undertook to update the work programme to ensure that all items were considered at the appropriate time and to provide an amended version at the next meeting of the Committee.
RESOLVED that the Committee work programme be noted.
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