The Committee’s approval was sought for a draft work programme for 2024/25 in response to a request from Members of the Committee.  This review also looked at the frequency of meetings and whether additional meetings were needed to reflect the evolved role and to review the steps being taken to address receipt of the non-statutory Best Value Notice as there would be a series of updates being submitted over the next few months.  With regard to the last point, Officers outlined the proposed reporting process taken from the Programme Charter.

Members noted that Article 8 of the Council’s Constitution set out the Committee’s current remit.  This was essentially divided between a governance role and one of auditing and oversight of risk management and internal control.  It was acknowledged that the audit role had expanded, with the Local Code of Corporate Governance and Annual Governance Statement being two large responsibilities and having significant input from both internal and external auditors.

Officers advised that working with 4 sets of auditors in the transitionary period gave rise to additional work at least in the short term.  An additional meeting in March each year had been suggested, which the Committee agreed was sensible.  The extra meeting contained a full agenda, as would May with all the auditors having something to report before the new auditors took the programme forward over the next five years.

The Committee agreed that the work programme as presented was fuller than desirable in the early part of the year.  Therefore, it was agreed to move the following items from the Work Programme and Forward Plan from the May 2024 meeting to the meeting of the Committee in July 2024:

·         Fraud Update and Review of the Anti-Fraud Policy

·         Complaints about Councillors – municipal year 2023/24

·         Adoption of the Local Government Ombudsman Complaint Handling Code

In addition, Officers from Grant Thornton would combine the report on the Annual Audit Letter with the External Audit and Auditor’s Annual Report at the meeting of the Committee in January 2025.

With regard to the backlog in external audit, the Committee was advised that as at 31 December 2023 there were 771 outstanding audit opinions in local bodies in England.  Parliament had set out proposals to tackle this in 3 stages, each of which were detailed in the report.  This put enormous pressure on the auditing process both for councils and auditors to return to a more normal timetable by 2028 and take into account the findings of the Redmond Review which formed phase 3 of the process, looking into the challenges that had led to the backlog and a long term reform of financial reporting.  It was reported that an Audit, Reporting and Governance Authority would be established which would require primary and secondary legislation to be in place.  Further recommendations would be incorporated into various sector guidance such as CIPFA’s Position Statement on Audit Committees 2022 or other CIPFA codes.

Officers suggested other proposals for change which were all supported by the Committee.  These were to consider a paper at a future meeting on the inclusion of co-opted independent members to provide appropriate technical expertise, undertaking an annual self-assessment of the Committee’s performance and reporting annually to full Council on the Committee’s work.  In addition, it was agreed to request that full Council approve transferring ownership of the Statement of Accounts and Annual Governance Statement from Corporate Management Committee to the Standards and Audit Committee.  This would also reduce the duplication of currently submitting identical reports to each committee.  Full Council was due to consider the Council’s Constitution review at its meeting in April 2024.  Therefore, Officers would prepare a report updating Article 8 as detailed in the report and recommendations.

It was suggested by some Members that a verbal update on the BVN programme be provided at future meetings.  However, Members were reminded that written reports would come through as part of the Programme.

Some Members asked that consideration be given to the title of the Committee in the new Municipal Year with an initial suggestion of ‘Governance and Ethics Committee’ being made.  In the meantime the Monitoring Officer would review the narrative on the website of the Committee’s function and remit to make it clearer.

Members noted the financial, risk and legal implications of the report and endorsed the proposals accordingly which it was agreed would establish the Committee’s key role in maintaining the Council’s governance framework.

In closing the meeting, the Chair thanked the Committee, Auditors and Officers for their contribution.

Resolved that –

i)             the draft work programme at Appendix ‘A’ be approved;

ii)            request that the Assistant Chief Executive (s151) develops an
appropriate process for self-assessment of the Committee’s
effectiveness based on Cipfa guidance and examples of best practice, in consultation with the Chair and Vice-Chair of the Committee and the Corporate Head of Law and Governance;

iii)           commit to providing an annual report on its work programme to Full
Council;

iv)           instruct that officers explore the potential to seek co-opted
independent members of the Committee, reporting options back to the Standards and Audit Committee for consideration; and

v)            full Council be requested to confirm that responsibility for the
Annual Governance Statement and the Statement of Accounts sits with the Standards and Audit Committee