Corporate Governance, Audit and Standards Committee - Monday, 29th March, 2021 7.00 pm - Agenda and minutes

Venue: Council Offices, Farnborough

Contact: Committee Administrator, Kathy Flatt  Tel. (01252 398829) or email  kathy.flatt@rushmoor.gov.uk

Items
No. Item

28.

Minutes pdf icon PDF 92 KB

To confirm the Minutes of the Meeting held on 25th January 2021 (copy attached).

Minutes:

The Minutes of the meeting held on 25th January 2021 were approved and would be signed by the Chairman at a later date.

 

29.

Councillors' Code of Conduct - Update pdf icon PDF 71 KB

To consider the Monitoring Officer’s Report No. LEG2101 (copy attached) on the responses received in respect of the consultation exercise on the Draft Councillors’ Code of Conduct and on finalising the Code for approval.

Additional documents:

Minutes:

The Committee considered the Monitoring Officer’s Report No. LEG2101 which set out a draft new Code of Conduct for Councillors following a period of public consultation.   It was noted that a total of four responses had been received, not all of which were relevant to the proposed update to the Code and the comments received were set out in Appendix B to the Report.

 

It was noted that the consultation exercise had included a consultation page on the Council’s website, a letter to 3,000 residents who had asked to be kept up-to-date on Council news and consultations.  There had also been a social media campaign and the Monitoring Officer had also contacted a number of local and partner organisations asking for their views on the draft Code of Conduct. 

 

The Committee reviewed the responses received to the consultation exercise.  It was considered that the Code, as drafted, provided safeguards around each of the concerns received.

 

RESOLVED: That the Council be RECOMMENDED TO APPROVE the draft Code of Conduct for Councillors, as set out in the Monitoring Officer’s Report No. LEG2101.

30.

Bring Your Own Device Policy pdf icon PDF 126 KB

To consider the Audit Manager’s Report No. AUD2101 (copy attached), which sets out the Council’s Bring Your Own Device Policy for approval.  The Report will be presented by Mr. Nick Harding, Head of IT, Facilities and Projects.

Additional documents:

Minutes:

The Committee considered the Audit Manager’s Report No. AUD2101, which set out the Council’s Bring Your Own Device Policy, which had been developed to allow employees, Members and contractors to access Council emails, contacts and calendar using their own mobile devices.

 

The Head of IT, Facilities and Projects advised the Committee that the Policy referred to any person wishing to use a device owned by someone other than the Council in order to access Council data.  The Council was able to provide access to Outlook email, contacts and calendar through a secure application on such a device.   The Committee noted that user responsibilities were defined within the Policy and included:

 

·         Users are responsible for the safekeeping of their own personal data and ensuring that it was backed up

 

·         Any sensitive information should not be emailed via the user’s mobile device, as it would not be secure.  A Council-owned and managed laptop or PC should be used.

 

·         Users must ensure that their device is compliant with the system requirements and that security software was kept up-to-date.

 

It was also explained that user responsibilities set out in the Policy had been developed in conjunction with IT, Legal Services and Internal Audit and was compliant with cyber security standards.  The Policy would be kept under review annually.

 

RESOLVED:  That the Bring Your Own Device Policy, as set out in the Audit Manager’s Report No. AUD2101, be approved for adoption.

31.

Statement of Accounts 2019/20 - Update 2 pdf icon PDF 156 KB

To receive the Executive Head of Finance’s Report No. FIN2107 (copy attached), which gives details of audit progress for the Council’s Statement of Accounts for 2019/20 and the provision of the audit opinion.

Minutes:

The Committee received the Executive Head of Finance’s Report No. FIN2107, which advised Members of the audit progress for the Council’s Statement of Accounts for 2019/20 and the provision of the audit opinion since the previous meeting on 25th January 2021.  The Committee was reminded that the deadline for issuing a final set out audit statements of accounts and audit opinion of 30th November 2020 had not been met.

 

The Chairman welcomed Maria Grindley from Ernst & Young (EY) to the meeting who was in attendance to provide an update on the work of EY on the current audit.

 

The Report advised Members that, owing to the impact of Covid-19, the deadlines for the completion and publication of the 2019/20 accounts had been relaxed in recognition of the possible disruption to relevant authorities caused by the coronavirus pandemic.  The Report set out the current deadlines, as set out in Accounts and Audit Regulations 2015 and the revised deadlines, as set out in the Accounts and Audit (Coronavirus) (Amendment) Regulations 2020. 

 

The Report set out the background to the current position.  It was noted that 265 public bodies had not received an auditor opinion by 30th November 2020 and that, according to data from Public Sector Audit Appointments, the number of public bodies that had not received their audit opinion by mid-March was 147.

 

The Executive Head of Finance reported to the Committee on the current status of the audit and advised that a meeting had been held with EY the previous week to work through some of the issues raised by EY.  It was anticipated that the information required by EY would be available by the middle of April to give EY time to work through any queries and raise these with the Council.  It was, therefore anticipated that the audited Statement of Accounts and the Audit Results Report would be available to be considered by the Committee at the meeting in May 2021.

 

The Report informed the Committee that deadlines for the completion and publication of the 2020/21 and 2021/22 accounts had been amended as part of the Government’s response to the recommendations of the independent Redmond Review into the effectiveness of external audit and transparency of financial reporting in local authorities.  It was noted that the new regulations, which would come into force on 31st March 2021 would amend the draft and final accounts publication deadlines for relevant bodies from 1st June and 31st July to 1st August and 30th September for the next two accounting years and the position would be reviewed. 

 

The Committee was advised that the Council had amended its 2020/21 accounts closure process to meet the revised Accounts and Audit Regulation 2021 timetable.  It was felt that the timetable would be challenging as a result of continuing Covid-19 pressures.  In addition, the delay in concluding the 2019/20 audit would mean that the opening balance for 2020/21 would be fluid and that working on two audit years at the same time and having to revisit opening  ...  view the full minutes text for item 31.

32.

Audit Plan 2021/22 pdf icon PDF 204 KB

To consider the Internal Audit Manager’s Report No. AUD2102 (copy attached) which sets out the Internal Audit Plan for 2021/22.

Minutes:

The Committee considered the Audit Manager’s Report No. AUD2102, which set out the Audit Plan for 2021/22.  The annual Audit Plan provided a framework for the use of audit resources to enable the Audit Manager to provide the Authority was an overall assurance of the internal control environment. 

 

The Report set out the methodology used for compiling audit coverage, including the updating of the risk universe to show audiable areas as at January 2021 and this would be reviewed as appropriate.  The risk criteria had been developed to ensure all relevant areas had been considered in determining the level of risk exposure within an auditable area.  The Corporate Risk Register and the details within the Annual Governance Statement were also taken into account when reviewing the risk universe and developing the Audit Plan.   The Report set out a timetable for communication on and monitoring of the Plan. 

 

The Report stated that there was currently a vacant full-time auditor post and that the work of this post would be carried out by contract auditors in 2021/22. 

 

The first six months’ work of the 2021/22 Audit Plan was set out in Appendix A to the Report. This work had been selected from the higher risk areas.  However, it was noted that this list was fluid and could be responsive to the changing environments faced by the Council or resource availability.  An update would be provided at the Committee’s meeting in July 2021.

 

RESOLVED: That the Annual Audit Plan, as set out in the Audit Manager’s Report No. AUD2102, be approved to be monitored and updated on a rolling quarterly basis.

33.

Annual Governance Statement - Action Plan Update pdf icon PDF 233 KB

To receive the Audit Manager’s Report No. AUD2103 (copy attached), setting out work carried out towards the implementation of the actions detailed in the Annual Governance Statement,  originally presented to the Committee in July 2020.

Minutes:

The Committee received the Audit Manager’s Report No. AUD2103 which gave details of the work carried out towards the implementation of the actions defined in the Annual Governance Statement, which had been presented to the Committee in July 2020.

 

RESOLVED:  That the Audit Manager’s Report No. AUD2103 be noted.

34.

Future arrangements for the Licensing, Audit and General Purposes Committee pdf icon PDF 89 KB

To consider the Joint Report (No. DC2109 – copy attached) of the Head of Democracy and Community and the Monitoring Officer, which sets out proposals for the future arrangements for the Committee.

Additional documents:

Minutes:

The Committee considered the Joint Report of the Head of Democracy and Community and the Monitoring Officer (Report No. DC2109), which proposed changes to ensure the future effectiveness of the Committee, with a strong focus on its corporate governance role providing oversight, protection and public confidence in Council activities.

 

In introducing the Report, the Monitoring Officer explained that the Council, along with many other authorities within the sector, had been diversifying its range of activities to both mitigate the risk of financial restructuring as a result of Central Government funding changes, and to facilitate the Council to take a much stronger role in place shaping and to influence the regeneration of the area.  In order to deliver against this more diversified agenda, the Council had sought to establish key delivery vehicles such as the Rushmoor Development Partnership to pursue regeneration and Rushmoor Homes Ltd to deliver local housing solutions.  The Council had also sought to become more commercially focused in seeking out income generating sources and had considered a wide range of commercial income investment opportunities.   All of these areas of activity required good governance, careful oversight and risk management, supported with transparent arrangements to provide the public oversight, protection and confidence necessary.  It was felt that high quality Elected Member oversight was a pivotal lynchpin to providing that public confidence.

 

The Report advised that the Council was keen to build on lessons learned by high profile local authority failures, especially in respect of the role of corporate governance, use of expertise and independence and the approach to risk management and transparent decision making. 

 

The Report set out proposals to implement arrangements for the Licensing, Audit and General Purposes Committee to help ensure and support the Committee’s effectiveness in the future.  The proposed arrangements were:

 

·                Committee Name – It was proposed to change of the Committee’s name to ‘Corporate Governance, Audit and Standards Committee’, which was a more accurate reflection of the Committee’s work and focus.  This would take effect from the first meeting of the new Municipal Year in May 2021.

 

·                Terms of Reference and Statement of Purpose - It was proposed to add a new Statement of Purpose as an introduction to the Committee’s terms of reference to bring greater focus to the corporate governance and audit role.  This was set out in Appendix 1 to the Report.

 

·                Membership – It was proposed to continue the membership of the Committee as 11 Members (non-executive and politically balanced) with a new provision to appoint up to three additional non-voting, co-opted Independent Members.  These Independent Members would be invited to join meetings for discussion on all corporate governance and audit matters.

 

·                Independent Members – It was proposed to follow good practice, which showed that for committees with audit responsibilities, the co-option of independent members with technical knowledge and expertise could be beneficial, helping with the process of in-depth questioning and committee discussion.  A copy of the Person Specification for Independent Members was set out in Appendix 3 to the Report.  ...  view the full minutes text for item 34.

35.

Extension of Term of Office for Designated Independent Person pdf icon PDF 160 KB

To consider the Joint Report (No. DC2110 – copy attached) of the Head of Democracy and Community and the Monitoring Officer, which recommends a two-year extension to the term of office for the Council’s Designated Independent Person – Mrs. Mary Harris.

Minutes:

The Committee considered the Joint Report of the Head of Democracy and Community and the Monitoring Officer (Report No. DC2110), which recommended a two-year extension to the term of office for the Council’s Designated Independent Person, Mrs Mary Harris.  It was explained that this was a role which was required under the Localism Act 2011 to assist the Council in promoting and maintaining high standards of conduct amongst its elected Members.

 

The Report set out role description and statutory functions of the Designated Independent Person.  It was noted that there was no payment for this role, however, a small annual retainer allowance was paid, which was the same amount allowed for a co-opted committee member (currently £514 per annum). 

 

The Committee was advised that it was open to the Council to carry out a fresh recruitment process or to make an extension to Mrs Mary Harris’ term of office.  It was noted that, since her appointment, Mrs Harris had attended training, attended regular update meetings with the Monitoring Officer, carried out her role diligently and had gained experience from which the Council could benefit for a further period.  There had been very few Member conduct related complaints and the call on the Designated Independent Person has been minimal.

 

The Report set out details about Mrs Harris, including her qualifications, work experience and voluntary experience and it was proposed that the Committee should recommend to the Council to extend the term off office of Mrs Mary Harris for two years until the end of the 2022/23 Municipal Year.

 

RESOLVED:  That the Committee RECOMMEND TO THE COUNCIL that the term of office of Mrs Mary Harris, as the Council’s Designated Independent Person, be extended for two years until end of 2022/23 Municipal Year.