Agenda and minutes

Governance and Audit Committee - Thursday, 28th March, 2024 5.00 pm

Venue: Council Chambers - Civic Centre. View directions

Contact: Taylor Strange  Governance Officer

Media

Items
No. Item

1.

Apologies for Absence

Additional documents:

Minutes:

 

1.1  Councillor Harris

2.

Declarations of Interest

Additional documents:

Minutes:

2.1  None received.

 

3.

Minutes of the Last Meeting pdf icon PDF 110 KB

Additional documents:

Minutes:

3.1  The minutes of the meeting held on 25 January 2024 were accepted subject to the following:

 

3.2  Item 4: Internal Audit Plan Progress (Q3):  Paragraph 4.10– for the public record, Mr Reed noted that the wording should read ‘…they mitigated against…’ and not ‘…the mitigated against…’

 

3.3  Item 6 Audit Wales and Regulatory Bodies – Six Month Update: Mr Reed noted that the numbering was out of sync, 6.15, should be 6.16, then 6.17.

 

3.4  Item 3 Minutes of the Previous Meeting of 23 November: Paragraph 3.2, Dr Barry asked if the information provided on behalf of the Strategic Director for Social Services be recorded in writing for the purposes of the Minutes for public accountability. Dr Barry also asked how long the video recordings remained on the website as it was felt that discussions should be recorded which was acknowledged by officers at the time.  The Chair agreed that if the recordings were kept for seven years, the Minutes would be a permanent record.  It was noted for future meetings that these discussions be recorded in the minutes.

 

 

4.

Corporate Risk Register (Quarter 3) pdf icon PDF 236 KB

Additional documents:

Minutes:

4.1  The Transformation and Intelligence Manager presented to the Governance and Audit Committee the report. The Council’s Corporate Risk Register monitored those risks that may prevent the Council from achieving its strategic priorities or delivering services to its communities and service users in Newport.

 

4.2  At the end of Quarter 3, there were 15 risks recorded in the Corporate Risk Register that were considered to have a significant impact on the achievement of the Council’s objectives and legal obligations.

 

4.3   Overall, there were 8 Severe risks (risk scores 15 to 25); 7 Major risks (risk scores 7 to 14); that were outlined in the report. In comparison to the Quarter 2 Corporate Risk Register, one risk score decreased (Failure to achieve completion of the Internal Audit Plan).  The scores for all remaining risks remained the same.

 

4.4  The Programme and Performance Manager referenced the Risk Management Policy, which was presented at the last Committee meeting. The comments from Committee were taken on board and reflected in the final Policy.  The Programme and Performance Manager therefore thanked the Committee for their contribution.

 

4.5  There were 8 severe risks and seven major risks.  The internal audit plan risk score had reduced from 16 to 9, with the summary and explanation included in the report. All other risks remained the same for Quarter 3. Moving to Quarter 4, officers were looking at service planning for 2024/25 for all service areas. Any changes would therefore be reported in Quarter 1.

 

Comments of Committee Members:

 

4.6  Mr Reed referred to page 23, the Risk Heat Map, there were two R8s. The Programme and Policy Manager advised that the R8 in grid 5-3 was incorrect and would be adjusted.

 

4.7  Dr Barry queried the timescale to prepare the Homelessness Prevention and Support Strategy. The Strategic Director for Transformation and Corporate advised that this query could be considered through the Performance Scrutiny Committee – Place and Corporate where it could be raised with the Head of Service.

 

4.8  Dr Barry also commented on the severe risks for the highways network and the property estates.  There was a worry that a lack of investment would lead to greater cumulative expenditure in the future.  The Strategic Director for Transformation and Corporate advised that Newport City Council was facing the same challenges as many other local authorities within the UK, with a significant infrastructure burden including the highways network and other assets. There was a rationalisation programme in place to mitigate this in part.

 

4.9  Councillor Jordan queried the amount of compensation the Council was dealing with regarding potholes.  The Strategic Director for Transformation and Corporate advised that whilst insurance payouts were not large the Council was legally covered through the Highways and Assets Management Plan (HAMP).

 

4.10    Councillor Cocks referred to the direction of travel of risk in relation to highways, which stated in the report that the risk was constant. With no investment and ongoing deterioration, Councillor Cocks considered that this situation would get worse rather than stay  ...  view the full minutes text for item 4.

5.

Lessons Learned 2022/23 Accounts Closedown and Financial Statements Preparation pdf icon PDF 137 KB

Additional documents:

Minutes:

5.1   The Senior Finance Business Partner (Chief Accountant) presented the report. Following the closedown of the 2022/23 accounts, a lessons learned review was undertaken to put into place further improvements for the closedown of the accounts process. The lessons learned review was taken as a matter of course, and with the issues that arose from the audit of the 2022/23 accounts, this review was of high importance to ensure improvements were delivered for 2023/24. 

 

5.2   The Chief Accountant advised the Governance and Audit committee on the key highlights within the report, including the process for improvement, fixed assets, annual governance statement and grant testing.

 

Comments of Committee Members:

 

5.3   The Chair thanked the Chief Accountant for the report as well as the team involved and had taken on board what was raised.

 

5.4   Dr Barry referred to the ongoing monitoring and asked how the Committee could be assured that everything was being followed up on.  The Chief Accountant had a list of any issues raised by the Council and Audit Wales, which would be part of the review and added to the timetable to be taken back to the Committee.

 

5.5   The Chair added that it was hoped that by the time of the closing accounts in June, there would be fewer issues raised.

 

Recommendation:

The Governance and Audit Committee noted the lessons learned process carried out to date and the planned improvement following lessons learned review.

 

6.

Internal Audit Annual Plan 2024-25 pdf icon PDF 172 KB

Additional documents:

Minutes:

 

6.1  The Interim Chief Internal Audit presented the report to the Committee. Internal auditing was an independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helped an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

 

6.2  It objectively examined, evaluated, and reported on the adequacy of internal control as a contribution to the proper, economic, effective, and efficient use of the Council’s resources.

 

6.3  The attached report was the Internal Audit Plan for 2024/25, which was based on an assessment of risk and available audit resources for the 12 months of the financial year. The plan was based on the available resource of 971 audit days.

 

6.4  The Council's Section 151 Officer has the legal responsibility for the provision of Internal Audit.

 

6.5  Key highlights were presented to the Governance and Audit Committee as outlined in the report and appendix 1.

 

Comments of Committee Members:

 

6.6  The Chair thanked the Interim Chief Internal Auditor for his presentation and asked if the high risks identified could be addressed before the medium risks.  The Chair also thanked the Head of Finance for appointing staff within the Audit team.

 

Recommendation:

The Governance and Audit Committee approved the Internal Audit Plan 2024/25.

 

7.

Member Development Self Evaluation Exercise pdf icon PDF 107 KB

Additional documents:

Minutes:

7.1  The Strategic Director for Transformation and Corporate presented the report which established a training programme and ongoing support for Governance and Audit Committee members.  This was essential to ensure that they could confidently and effectively discharge their responsibilities. Exact needs depended on the composition of the Committee and members’ existing knowledge and experience.

 

7.2  A self-assessment questionnaire, based on the Chartered Institute of Public Finance and Accountancy (CIPFA) publication ‘Audit Committees – Practical Guidance for Local Authorities and Police’,  was attached to the report.

 

7.3  It was proposed that members of this Committee completed and returned the questionnaire in order to assess the existing skills, knowledge, and areas of expertise of members and identify any gaps or training requirements.  The results would assist in developing a learning and development plan for the Committee.

 

Comments of Committee Members:

 

7.7  The Chair considered that the questions were fairly robust and training sessions that took place before Committee commenced were useful.

 

7.8  The timescale suggested by the Chair to complete the questionnaire was 30 April, this gave four weeks for completion to report back to committee on 30 May.

 

7.9  The Strategic Director for Transformation and Corporate would discuss mechanisms with the Chair and the Democratic and Election Services Manager outside of the Committee.

 

7.10   Mr Reed added that he did not want the questionnaire to be anonymous.

 

Recommendation:

The Governance and Audit Committee:

i.             Considered and noted the contents of this report.

ii.            Agreed the wording of the draft self-assessment questionnaire which was appended to the report.

iii.           Agreed a timescale for completion of the questionnaire by members of this Committee; and

iv.           Resolved to consider the questionnaire responses by 30 April to be presented at the 30 May Committee meeting.

 

8.

Work Programme pdf icon PDF 94 KB

Additional documents:

Minutes:

 

8.1  The purpose of the forward work programme was to help ensure Members achieved organisation and focus on the undertaking of enquiries through the Governance and Audit Committee function. The report presented the current work programme to the Committee for information and detailed the items due to be considered at the Committee’s next two meetings.

 

Recommendation:

 

That the Governance and Audit Committee noted the Work Programme subject to the above.

 

9.

Date of Next Meeting

Additional documents:

Minutes:

 

9.1  The next meeting will take place on 30 May 2024 at 5pm.