Basingstoke & Dean Borough Council
Councillors:
54
Wards:
18
Committees:
22
Meetings (2025):
67
Meetings (2024):
72
Meeting
Audit and Accounts Committee - Basingstoke & Dean
Meeting Times
Scheduled Time
Start:
Monday, 24th June 2024
6:30 PM
Monday, 24th June 2024
6:30 PM
End:
Monday, 24th June 2024
9:30 PM
Monday, 24th June 2024
9:30 PM
Meeting Status
Status:
Confirmed
Confirmed
Date:
24 Jun 2024
24 Jun 2024
Location:
Committee Rooms 1 & 2 - Deanes
Committee Rooms 1 & 2 - Deanes
Webcast:
Available
Available
Meeting Attendees
Committee Member
Committee Member
Chair of the Resources Committee
Committee Member
Richard Harbord (Co Opted Member of the Audit and Accounts Committee)
Present, as expected
Reserve
Mayor
Reserve
Chair of the Development Control Committee
Chair
Chair of the Audit and Accounts Committee
Committee Member
Reserve
Chair of the Human Resources Committee
Reserve
Chair of the Investigating and Disciplinary and Standards Appeals Committee
Committee Member
Leader of the Conservative Group
Committee Member
Deputy Mayor and Chair of the Resident Services Committee
Committee Member
Co-Leader and Cabinet Member for Finance and Property
Agenda
1
Apologies for absence and substitutions
Minutes
Apologies were received from Councillor S Tom.
2
Declarations of interest
Minutes
There were no declarations of interest.
3
Appointment of Vice-Chair
To appoint a Vice-Chair to the Audit and Accounts Committee for the 2024/25 municipal year.
Minutes
Councillor S Kotecha was appointed as Vice-Chair of the Committee for the 2024/25 municipal year.
4
Urgent matters
To consider any items of business, other than those shown on this agenda and which, by reason of special circumstances to be stated at the meeting, in the opinion of the Chairman, should be considered at the meeting as a matter of urgency.
Minutes
There were no urgent matters.
5
Minutes of the meeting held on 4 March 2024
The Chair will move that the minutes of the meeting be signed as a correct record. The only part of the minutes that can be discussed is their accuracy.
Attachments:
- Document Minutes of the meeting held on 4 March 2024 13 Jun 2024
Minutes
The minutes of the meeting held on 4 March 2024 were confirmed by the Committee as a correct record and signed by the Chair.
6
EY Audit Planning Report 2023/24
Contact Officer: Adam Swain
The purpose of this report is for the External Auditors, EY, to present their planning document which will form the basis of the external audit that they will carry out on the Council’s accounts for the financial year 2023/24.
The purpose of this report is for the External Auditors, EY, to present their planning document which will form the basis of the external audit that they will carry out on the Council’s accounts for the financial year 2023/24.
Attachments:
- Document EY Audit Planning Report 2023-24 - cover report 13 Jun 2024
- Document Appendix 1 - EY Audit Planning Report 2023-24 13 Jun 2024
Minutes
The Council’s external auditors, EY, introduced their planning report which formed the basis of the external audit to be carried out on the Council’s accounts for the financial year 2023/24.
The Committee discussed the report and made the following comments:
Queried the implementation of the new IFRS 16 lease standard. The external auditor stated that that this would improve visibility of the Council’s leases for readers of the Council’s accounts. As a result of councillor’s concerns, it was clarified that an audit opinion had not been given for the Council’s 2022/23 accounts due to nationwide issues with local government audit delays which had not been solved with national legislation. EY confirmed that it had taken a strategic decision, under advisement of Public Sector Audit Appointments (PSAA), to not commence any 2022/23 council audits while the national position on overdue audit reports awaited resolution at a government level. In response to questions, The Chief Finance Officer (Section 151 Officer) stated that the purpose of the report was to inform the Committee of EY’s planned work. Highlighted that the General Election had caused uncertainty regarding how local audit delays would be addressed. Queried the reasoning as to why the Council’s pension fund was in deficit of £19.8 million as of 31 March 2023. The Chief Finance Officer (S151 Officer) stated that the deficit had reduced and was the responsibility of Hampshire Pension Fund. The external auditor confirmed that The Chief Finance Officer (S151 Officer) was a former colleague at EY. EY had considered its independence and concluded that it was appropriate. The external auditor stated that the Council’s audit fee would be finalised in discussion with officers and would update the committee at the appropriate time.
Resolved: The Committee note the contents of the report.
The Committee discussed the report and made the following comments:
Queried the implementation of the new IFRS 16 lease standard. The external auditor stated that that this would improve visibility of the Council’s leases for readers of the Council’s accounts. As a result of councillor’s concerns, it was clarified that an audit opinion had not been given for the Council’s 2022/23 accounts due to nationwide issues with local government audit delays which had not been solved with national legislation. EY confirmed that it had taken a strategic decision, under advisement of Public Sector Audit Appointments (PSAA), to not commence any 2022/23 council audits while the national position on overdue audit reports awaited resolution at a government level. In response to questions, The Chief Finance Officer (Section 151 Officer) stated that the purpose of the report was to inform the Committee of EY’s planned work. Highlighted that the General Election had caused uncertainty regarding how local audit delays would be addressed. Queried the reasoning as to why the Council’s pension fund was in deficit of £19.8 million as of 31 March 2023. The Chief Finance Officer (S151 Officer) stated that the deficit had reduced and was the responsibility of Hampshire Pension Fund. The external auditor confirmed that The Chief Finance Officer (S151 Officer) was a former colleague at EY. EY had considered its independence and concluded that it was appropriate. The external auditor stated that the Council’s audit fee would be finalised in discussion with officers and would update the committee at the appropriate time.
Resolved: The Committee note the contents of the report.
7
Annual Property Plan 2023/24- Year End Report
Contact Officer: Liz Suatt
This report details the activity relating to the council’s Annual Property Plan 2023-24.
This report details the activity relating to the council’s Annual Property Plan 2023-24.
Attachments:
- Document Report 13 Jun 2024
- Document Appendix 1 13 Jun 2024
Minutes
The Cabinet Member for Finance and Property introduced the report, which detailed the activity relating to the Council’s Annual Property Plan 2023/24.
The Committee discussed the report and made the following comments:
Queried how retail properties and older properties in the Council’s portfolio were maintained. The Cabinet Member stated that the Council had maintenance regimes on properties it owned, alongside working with leaseholders. Questioned why the value of the Anvil had decreased from £20.4 million in March 2023 compared to £15.5 million in March 2024. The Chief Finance Officer (S151 Officer) stated that this valuation related to the cost to replace the building in its current state, and that the cost of build and material costs had increased significantly in the previous year. Stated that progress had been made to decarbonise the Council’s property portfolio. Congratulated officers on the improvement of the Energy Performance Certificate (EPC) banding of the Council’s properties within the previous year. Asked for the view of the Cabinet Member for Climate and Ecological Emergency of the next set of EPC targets for the Council’s properties. Sought an update on the Council’s target to achieve a minimum of four lease renewals a year for community centres following the recent approval of the Community Centre policy. Recommended a review of the Council’s Property Investment Strategy earlier than the scheduled date of 2026.
Resolved: The Committee note the contents of the report.
The Committee discussed the report and made the following comments:
Queried how retail properties and older properties in the Council’s portfolio were maintained. The Cabinet Member stated that the Council had maintenance regimes on properties it owned, alongside working with leaseholders. Questioned why the value of the Anvil had decreased from £20.4 million in March 2023 compared to £15.5 million in March 2024. The Chief Finance Officer (S151 Officer) stated that this valuation related to the cost to replace the building in its current state, and that the cost of build and material costs had increased significantly in the previous year. Stated that progress had been made to decarbonise the Council’s property portfolio. Congratulated officers on the improvement of the Energy Performance Certificate (EPC) banding of the Council’s properties within the previous year. Asked for the view of the Cabinet Member for Climate and Ecological Emergency of the next set of EPC targets for the Council’s properties. Sought an update on the Council’s target to achieve a minimum of four lease renewals a year for community centres following the recent approval of the Community Centre policy. Recommended a review of the Council’s Property Investment Strategy earlier than the scheduled date of 2026.
Resolved: The Committee note the contents of the report.
8
Draft Annual Governance Statement 2023/24
Contact Officer: Fiona Thomsen
The purpose of this report is for the Committee to approve the draft Annual Governance Statement 2023/24.
The purpose of this report is for the Committee to approve the draft Annual Governance Statement 2023/24.
Attachments:
- Document Draft Annual Governance Statement 2023/24 AAC Report 13 Jun 2024
- Document Appendix 1 - Draft Annual Governance Statement 2023/24 13 Jun 2024
Minutes
The Chief Finance Officer introduced the report, which sought the Committee’s approval of the review of the council’s corporate governance arrangements through the preparation of the council’s Annual Governance Statement following the principles of the CIPFA Local Code of Corporate Governance.
The Committee discussed the report and made the following comments:
Queried the transfer of the Local Enterprise Partnership (LEP) function to Hampshire County Council. The Chief Finance Officer stated that the decision of the transfer of functions for the LEP was taken by central government and that projects related to the LEP would continue as planned. The Cabinet Member for Finance and Property stated that an update on the former LEP project- fibre spine broadband from Basingstoke to Guildford – would be referred to the Chair of the Environment & Infrastructure committee. Highlighted the Council’s changes to governance arrangements as part of the Local Government Association (LGA) Corporate Peer Challenge and sought continuous improvement.
Resolved: The Committee approve the draft Annual Governance Statement 2023/24.
The Committee discussed the report and made the following comments:
Queried the transfer of the Local Enterprise Partnership (LEP) function to Hampshire County Council. The Chief Finance Officer stated that the decision of the transfer of functions for the LEP was taken by central government and that projects related to the LEP would continue as planned. The Cabinet Member for Finance and Property stated that an update on the former LEP project- fibre spine broadband from Basingstoke to Guildford – would be referred to the Chair of the Environment & Infrastructure committee. Highlighted the Council’s changes to governance arrangements as part of the Local Government Association (LGA) Corporate Peer Challenge and sought continuous improvement.
Resolved: The Committee approve the draft Annual Governance Statement 2023/24.
9
Treasury Management Annual Report 2023/24
Contact Officer: Adam Swain
The purpose of this report is to provide an update on the outturn position in relation to the council’s treasury management activity for the financial year 2023/24.
The purpose of this report is to provide an update on the outturn position in relation to the council’s treasury management activity for the financial year 2023/24.
Attachments:
- Document Treasury Management Annual Report 2023/24 13 Jun 2024
- Document Enc. 1 for Treasury Management Annual Report 2023/24 13 Jun 2024
- Document Treasury Management 2023 24 Annual Report 13 Jun 2024
Minutes
The Accountancy Manager introduced the report, which showed the activity within the council’s treasury management function from 1 April 2023 to 31 March 2024.
The Committee discussed the report and made the following comments.
Stated that due to a technical error, an updated version of the Treasury Management Investment Allocation chart had been distributed to members. Highlighted that a high percentage of the Council’s investment portfolio was in long-term externally managed funds and emphasised the table which showed previous returns from the Council’s externally managed funds. The Chief Finance Officer (S151 Officer) stated that the Council’s investments were always under review. Commented that the Council had appointed Link Treasury Services as treasury management advisors effective from 1 April 2024. It was clarified that Arlingclose would continue to provide external fund monitoring services throughout 2024/25. The Chief Finance Officer confirmed that representatives from Link Treasury Services would attend a future meeting of the committee. It was confirmed that where Section 106 money was repaid to developers who did not implement the related planning, the council was required to pay interest at the rate set out in the 106 agreement.
Resolved: The Committee note the report and provides its comments for consideration by Council.
The Committee discussed the report and made the following comments.
Stated that due to a technical error, an updated version of the Treasury Management Investment Allocation chart had been distributed to members. Highlighted that a high percentage of the Council’s investment portfolio was in long-term externally managed funds and emphasised the table which showed previous returns from the Council’s externally managed funds. The Chief Finance Officer (S151 Officer) stated that the Council’s investments were always under review. Commented that the Council had appointed Link Treasury Services as treasury management advisors effective from 1 April 2024. It was clarified that Arlingclose would continue to provide external fund monitoring services throughout 2024/25. The Chief Finance Officer confirmed that representatives from Link Treasury Services would attend a future meeting of the committee. It was confirmed that where Section 106 money was repaid to developers who did not implement the related planning, the council was required to pay interest at the rate set out in the 106 agreement.
Resolved: The Committee note the report and provides its comments for consideration by Council.
10
Audit and Accounts work programme
The Committee is asked to note and review it’s work programme.
Attachments:
- Document Audit and Accounts Committee Work Programme 13 Jun 2024
- Document Action Tracking Log 13 Jun 2024
Minutes
The Chair introduced the work programme and gave a brief overview of the items that would be included on the agenda for the upcoming meetings.
The Chair also introduced the list of actions from previous Committee meetings. It was confirmed that the Head of IT and Digital Transformation would attend the next meeting of the committee to discuss progress on cybersecurity and IT actions.
The Chair stated that the External Audit - Audit Results Reports scheduled for 30 September 2024 and 25 November 2024 would possibly be delayed.
It was confirmed that training would take place for committee members before the next meeting.
The meeting ended at 7:59pm.
Chair
The Chair also introduced the list of actions from previous Committee meetings. It was confirmed that the Head of IT and Digital Transformation would attend the next meeting of the committee to discuss progress on cybersecurity and IT actions.
The Chair stated that the External Audit - Audit Results Reports scheduled for 30 September 2024 and 25 November 2024 would possibly be delayed.
It was confirmed that training would take place for committee members before the next meeting.
The meeting ended at 7:59pm.
Chair
Previous Meetings
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