Agenda and minutes

1.1          The Minutes of the meeting held on 25 July 2024 were accepted subject to the following:

1.2          Dr Barry asked the Committee if actions could have completion dates recorded. The Strategic Director- Corporate and Transformation confirmed to the Committee that the actions would include a progress indicator.

1.3          Additionally, the Strategic Director- Corporate and Transformation would share the information in relation to the Housing Benefits Subsidiary Audit to Committee.

1.4          The Head of People, Policy and Transformation noted to the Committee that the information relating to the Digital Strategy Review had been shared.

1.5          The Committee would like completed recommendations to be removed from the recommendation table.

1.1          Under its Terms of Reference, the Governance and Audit Committee receives and considers audit reports from the Councils’ internal auditors and, where necessary, make recommendations and monitor implementation and compliance with agreed action plans.

1.2          The report presented an update on progress toward actions identified through the internal audit report on safeguarding of children’s monies. The report follows on from previous updates to Governance and Audit Committee.

1.3          The final outstanding action was the production of the Corporate Parent Strategy that was due to go before the Corporate Parenting Board on 17^th October 2024.

Comments of the Committee:

1.4          The Committee felt reassured by the work conducted by the officers and the progress made against the recommendations.

1.5          The Chair highlighted that a draft of the Corporate Parenting Strategy was due to be ratified in November as noted on page 43 of the reports pack.

1.6          The Committee requested that a short report be provided to the Committee on the 30^th January 2024 following the re-audit.

Recommendations

1.7          The Committee noted the contents of the report and satisfied itself that the Council was taking adequate steps to respond to the recommendations set out in those reports.

1.8          A final update on progress report to be presented to Committee in January 2025 following the re-audit.

1.1          Under its Terms of Reference, the Governance and Audit Committee receives and considers audit reports from the Councils’ internal auditors and, where necessary, make recommendations and monitor implementation and compliance with agreed action plans.

1.2          The report presented an update on progress toward actions identified through the internal audit report on adoption allowances. The report follows on from previous updates to Governance and Audit Committee.

1.3          It was confirmed that all actions were in progress with steps taken to make sure that issues and concerns identified were being adequately monitored. This included developing new process flow charts and increasing the training for staff.

Comments of the Committee:

1.4          Dr Barry questioned if the training on adoption allowance was mandatory for the Grade 5 staff. The Service Manager, Childrens Teams, confirmed this training was compulsory for the staff that work on Adoption Allowance processes.

1.5          The Chair gave thanks to the team for the changes that were introduced.

1.6          The Chair asked if dip sampling was used by the adoption team to monitor the outcomes. The Service Manager, Childrens Teams, explained that due to the small number of transactions involved all outcomes were re-checked once completed.

Recommendations

1.7          The Governance and Audit Committee reviewed the contents of the report and the accompanying audit reports and was satisfied that the Council was taking adequate steps to respond to the recommendations set out in those reports.

1.8          The Governance and Audit Committee requested that a final report be brought back to Committee following the re-audit. Date to be confirmed.

1.1          Under its Terms of Reference, the Governance and Audit Committee receives and considers audit reports from the Councils’ internal auditors and, where necessary, make recommendations and monitor implementation and compliance with agreed action plans.

1.2          The report presented an update on progress toward actions identified through the internal audit report on unaccompanied asylum-seeking children’s Imprest. The objective of the audit was to examine and evaluate the financial, governance and administrative controls relating to the operation of the Unaccompanied Asylum-Seeking Children’s Imprest account. The Unaccompanied Asylum-Seeking Children’s Imprest is a system for keeping track of petty cash payments made by the Council to unaccompanied asylum-seeking children.

1.3          Whilst there were no ‘Critical’ weaknesses identified in the audit, a number of ‘Limited’ assurances were noted with key actions required to address these gaps and strengthen the overall process. Newly qualified staff were being trained to understand the processes and the audit trail had been strengthened with paper records and new security measures.

1.4          In the longer term, a new database system would need to be procured that would attach a statement of transactions to a young person’s file.

Comments of the Committee:

1.5          The Chair asked if the team were being re-audited. The Audit Manager (LLE/EE) explained that the re-audit would occur in early 2025.

1.6          The Chair thanked the officers for the work and the report.

Recommendations

1.7          For the Committee to review the contents of the report and the accompanying audit reports and satisfy itself that the Council is taking adequate steps to respond to the recommendations set out in those reports.

1.8          The Committee requested the item be presented to the Committee following the re-audit in early 2025. Date to be confirmed.

1.1          The Local Government and Elections (Wales) Act 2021 and the Well-being of Future Generations (Wales) Act 2015 requires the Council to self-assess its performance and the progress made in delivering the Corporate Plan. The role of the Governance and Audit Committee is to ensure the draft Self-Assessment report has been completed in accordance with the legislation.

1.2          This Annual Report provided an overview of the Council’s 2023/24 performance, and an assessment of the governance and performance arrangements in place. To support the council’s assessment, it had considered a wide range of annual, statutory and strategic reports that were published during the last financial year.

1.3          It was noted the report had been considered by Performance Scrutiny Committee before being presented to Cabinet and Council.

1.4          An accessible report would be developed for the public with greater focus on the purpose of the report.

Comments of the Committee:

1.5          The Chair was pleased that an executive summary would be published as a more accessible public version of the report.

1.6          Dr Barry noted that the report made for good reading in terms of progress made, and highlighted the challenges faced within the Council. Dr Barry was pleased to see targets were exceeded in some areas and that this could indicate that more challenging targets could be set for next year. Dr Barry added that she had revisited Welsh Government guidance to assess the extent to which the document met its requirements and had noted the emphasis on challenging the status quo, self- awareness and being open and honest. Dr Barry also felt that as only one area of weakness had been noted in the report, it would benefit from more detailed information on the issues identified through risk and audit reports, and actions required to address them.

1.7          Dr Barry recommended that Cabinet be made aware of the recommendation to focus more on improvement measures within the report.

1.8          The Strategic Director, Corporate and Transformation, thanked the officers for the report and noted the feedback received from Scrutiny. The Strategic Director confirmed that any recommendations proposed by the Committee would be presented to Cabinet.

1.9          The Chair agreed with Dr Barry that there should be more detailed information concerning areas of weakness that required improvement.

1.10       The Chair considered the pressures on local government and accepted that some outcomes were no longer achievable due to financial limitations faced by the Council but noted that where this was the case, then the reason should be highlighted. The Chair considered that whilst Cabinet did not have to accept recommendations from the Committee, those that were not accepted should be confirmed to the Committee along with a reason given for the refusal. The Chair reiterated the importance of creating an easier to digest version of the document for publication.

Recommendations

1.11       The Committee noted the contents of the Annual Corporate Well-Being Self-Assessment Report 2023/24.

1.12       The Committee recommended that areas of challenge and performance self-improvement be made more prominent within the report.

1.1          As set out in the Council’s Risk Management Policy, the Governance and Audit Committee review the Corporate Risk Register on a quarterly basis ensuring procedures are in place to monitor the management of significant risks.

1.2          The Council’s Corporate Risk Register monitors those risks that may prevent the Council from achieving its strategic priorities or delivering services to its communities and service users in Newport.

1.3          At the end of quarter 1, there were 15 risks recorded in the Corporate Risk Register that are considered to have a significant impact on the achievement of the Council’s objectives and legal obligations.

1.4          There were 8 Severe risks (risk scores 15 to 25); 7 Major risks (risk scores 7 to 14); that are outlined in the report. In comparison to the quarter 4 (23/24) Corporate Risk Register, there was no change to the risk scores for 13 of the 15 risks. There were two risks (Pressure on Housing & Homelessness services and Stability of Adult Social Services providers) which had changed risk scores in quarter 1.

1.5          The Officers thanked the Members for attending the risk training prior to the committee meeting and noted the changes in cabinet members portfolios since the last quarterly update was presented.

Comments of the Committee:

1.6          Dr Barry noted the amber rating for the city centre risk and the assurance that the monitoring and actions were being managed effectively. Dr Barry sought further assurance around management oversight of these arrangements. The Strategic Director, Corporate and Transformation, explained that senior managers were monitoring the situation with Heads of Service and the Directorate meeting regularly to review the situation and the arrangements in place.

1.7          The Chair highlighted the constant and increasing risk of delivering homelessness and housing services, in context with increasing pressure on social services and asked whether the risk rating regarding the Council’s medium term financial plan would increase as a result. The Strategic Director, Transformation and Corporate, agreed that circumstances were challenging, and this was likely to become more difficult in the next few years with continued increases in demand for complex services that have high delivery costs.

1.8          The Chair noted that policy changes to eliminate profiteering from the provision of social care was an issue within Wales that local authorities are working through. The Chair recommended that the budget risk rating was closely monitored with this in mind.

Recommendations

1.9          The Governance and Audit Committee noted the contents of the report and the risk management arrangements for the Authority.

1.10       The Committee recommended that the risk ratings continued to be closely monitored by the Council in the context of the social and economic challenges faced by local authorities.

1.1          This report provided update on progress of the 2024/25 audit plan during the first quarter, providing information on audit opinions given to date and progress against key performance targets.

1.2          The report also outlined progress in improving the Council’s anti-fraud activities through the completion of a high-level anti-fraud risk assessment which was currently under review by the Council’s Corporate Management Team.

1.3          The staffing position remained the same and longer-term arrangements for the internal audit function were still under consideration.

1.4          The report presented ‘Limited’ opinion on the audit for Fleet/ Vehicle Maintenance. This would be brought back to Committee as a call-in at a later meeting.

1.5          The report also provided an update on the actions being taken to strengthen the Counter Fraud Arrangements at the Council.

Comments of the Committee

1.6          Dr Barry referred to the new procurement legislation coming into force in 2025 and asked if training and appropriate documentation was being rolled out. The Strategic Director, Corporate and Transformation, confirmed to the Committee that all relevant work had taken place. The Head of Finance confirmed that training had taken place within the Council, with online training provided to a variety of staff to be compliant with the new regulations. The Audit Manager highlighted a readiness review that would be undertaken before the legislation was introduced.

1.7          The Chair queried the date for the call-in and the required actions following the ‘Limited’ opinion and asked if the Directorate had been informed.

1.8          The Audit Manager mentioned that the Limited outcome was delivered in June 2024 with an action plan developed by the service area as a result. The results of the action plan would be reviewed by late 2024 and it was noted this would be fully re-audited before the end of the financial year.

Recommendations

9.9          The content of the report was noted by the Council’s Governance & Audit Committee.

1.1          members of the Governance and Audit Committee to consider and comment on the Draft Governance and Audit Committee Annual Report 2023/24 prior to the final draft being produced. The report demonstrates how the Committee had met its Terms of Reference under the Council’s Constitution as set out by the Local Government Measure 2011 and the Local Government and Elections (Wales) Act 2021.

1.2          The Committee has achieved this by concentrating on its core responsibilities during the year.

1.3          The Governance and Audit Committee Annual Report 2023/24 will be presented to full Council.

Comments of the Committee:

1.4          Dr Barry wished to highlight the work that the Committee had carried out in raising their concerns over the Internal Audit resource available in during the 2023/24 period and wanted this to be more well-documented within the report.

1.5          The Chair added that the report did not name members of the Committee and would like this to be included, along with some biographical information of lay members.

1.6          The Chair wished to include examples of the Committee contributing to the positive outcomes following audit as a result of the call-ins made during the year.

Recommendations

1.7          The Committee wanted to include further information in the report:

·         their contribution to overcoming the resource challenges faced by the Internal Audit team.

·         their names and biographical information.

·         their contribution to achieving positive outcomes through call-ins to Committee following unsatisfactory or limited audit opinions.

1.8          The Committee requested that an updated version of the report be brought to the following Committee including these recommendations.

1.1          Establishing a training programme and ongoing support for Governance and Audit Committee members is essential to ensure that they can confidently and effectively discharge their responsibilities.

1.2          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 distributed to the members of this Committee. The responses have been collected and analysed to identify existing skills, knowledge, and areas of expertise, as well as any gaps or training requirements.

1.3          The results conclude that the priority areas identified for improvement are Counter Fraud and Values of Good Governance. Accountancy and IT Systems and Governance were also areas where the respondents felt they had the least knowledge and experience to add value to the overall Committee.

1.4          The report provided the Committee with a proposed plan for training to address some of the identified gaps.

Comments of the Committee:

1.5          Dr Barry noted on page 259 it showed on a table that six responses had been given              on the summary of responses which was incorrect. The Democratic and Electoral Services Manager would correct this.

1.6          Councillor Reynolds supported all-member training sessions being shared with lay members.

1.7          The Chair also wished to endorse Lay Members being trained alongside elected members and recommended that training sessions on the weak areas be passed to members as soon as they became available. The Democratic and Electoral Services Manager noted this.

Recommendations.

1.8          The Committee noted the contents of the report and endorsed the recommendations for further training and development.

Verbal Update.

1.1          The Head of Housing and Communities gave a verbal update on the audit of Private Sector Housing (HMO) that received a ‘Limited’ assessment, noting that a full report on progress made against actions would be brought back to the Committee in November.

Comments of the Committee:

1.2          The Committee thanked the Head of Service for the update and looked forward to the further detailed report.

Recommendations

1.3          The Committee noted the Comments made by the officers and awaited the full report at the next Committee.

1.1          The purpose of a forward work programme was to help ensure Committee Members achieve organisation and focus on the undertaking of enquiries through the Governance and Audit Committee function. This report presents the current work programme to the Committee for information and details the items due to be considered at the Committee’s next two meetings.

Comments of the Committee:

1.2          The Chair asked when the audit of the Adoption Allowances was due to take place. The Audit Manager confirmed this would be in November.

1.3          The Chair requested that the Adoption Allowances item be moved from the November 2024 Committee to the January 2025 Committee

Recommendations

1.4          The Committee endorsed the proposed schedule for future meetings.