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, 25th November 2024
6:30 PM
Monday, 25th November 2024
6:30 PM
End:
Monday, 25th November 2024
9:30 PM
Monday, 25th November 2024
9:30 PM
Meeting Status
Status:
Confirmed
Confirmed
Date:
25 Nov 2024
25 Nov 2024
Location:
Committee Rooms 1 & 2 - Deanes
Committee Rooms 1 & 2 - Deanes
Webcast:
Available
Available
Meeting Attendees
Chair
Chair of the Audit and Accounts Committee
Committee Member
Leader of the Conservative Group
Committee Member
Reserve
Chair of the Human Resources Committee
Vice-Chair
Committee Member
Chair of the Resources Committee
Committee Member
Deputy Mayor and Chair of the Resident Services 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
Guest
Co-Leader and Cabinet Member for Finance and Property
Reserve
Chair of the Investigating and Disciplinary and Standards Appeals Committee
Agenda
1
Apologies for absence and substitutions
Minutes
Apologies were received from Councillor D Conquest.
2
Declarations of interest
Minutes
There were no declarations of interest.
3
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.
4
Minutes of the meeting held on 30 September 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 30 September 2024 14 Nov 2024
Minutes
The minutes of the meeting held on 30 September 2024 were confirmed by the Committee as a correct record and signed by the Chair.
5
EY completion report for those charged with governance year ended 31 March 2023
Contact Officer: Adam Swain
The purpose of this report is for the external auditors, EY, to present the audit results report to the committee for discussion, along with their findings in relation to the Value for Money conclusion.
The purpose of this report is for the external auditors, EY, to present the audit results report to the committee for discussion, along with their findings in relation to the Value for Money conclusion.
Attachments:
- Document Report 14 Nov 2024
- Document Appendix 1 14 Nov 2024
- Document Appendix 2 14 Nov 2024
Minutes
The Chair introduced Andrew Brittain and Nimisha Dosa from EY, who introduced the report and presented the audit results report for the year ended 31 March 2023 along with their findings related to the value for money conclusion.
The external auditors confirmed that they intended to issue a disclaimed audit opinion on the financial statements for the year ended 31 March 2023. They explained that this was due to updated regulations introduced by government (new National Audit Office Audit Code enacted on 14 November 2024) to address the national backlog of audit opinions for local government. This required all outstanding audits for financial years up to and including the financial year 2022/23 to be completed by 13 December 2024. Additionally, the auditors confirmed completion of their review of the council’s value for money arrangements, with no significant risks identified.
The Committee discussed the report and made the following comments:
Raised concern about approving the statement of accounts for year ended 31 March 2023 despite the lack of external audit opinion and emphasised an overreliance on the Chief Finance (Section 151) Officer. Noted that EY appeared to hold a significant share of the local authority audit market. The external auditors confirmed that the value for money conclusion was completed, and the minimum procedures were carried out to disclaim the audit opinion, and that the reasons for this were set out in their report. Acknowledged that further assurance would be provided once the 2023/24 accounts for the year ended 31 March 2024 were audited. The Chief Finance (Section 151) Officer expressed confidence that the 2022/23 accounts for the year ended 31 March 2023 were true, fair and of a high quality. It was confirmed that if the 2022/23 accounts were not approved by the 13 December deadline, the council would be required to publish a notice explaining the reasons for not signing the accounts and inform the relevant Secretary of State. Stated that although a disclaimed audit opinion was a serious issue, it was a common occurrence across the sector due to regulations and not unusual for local authorities to approve financial statements before receiving an audit opinion. Noted that the council received a value for money conclusion report, unlike some local authorities which had multiple years of disclaimed audit opinions. The Committee emphasized its service expectations, stating that it expected EY to complete the audit as engaged and provide a certain level of assurance. Expressed disappointment over the lack of a full audit, and EY’s explanation and timeline of events in the report was considered incomplete and misleading. EY had decided to issue a disclaimed audit opinion instead of completing the planned audit, influenced by national legislation proposed in July 2023. The decision was communicated to the Committee earlier in 2024 while EY awaited approval of government legislation. It was requested that the approval of the statement of accounts for the year ended 31 March 2023 be noted, based on the Chief Finance Officer’s recommendation with clarity on the lack of an external audit opinion and its context for residents. The Committee acknowledged its legal obligation to approve the accounts but noted the lack of usual reassurance due to the absence of a full audit and intended to make its decision with this understanding.
Resolved: The Committee notes the report from the External Auditors, EY, on the results of the audit of accounts for the year ended 31 March 2023.
The external auditors confirmed that they intended to issue a disclaimed audit opinion on the financial statements for the year ended 31 March 2023. They explained that this was due to updated regulations introduced by government (new National Audit Office Audit Code enacted on 14 November 2024) to address the national backlog of audit opinions for local government. This required all outstanding audits for financial years up to and including the financial year 2022/23 to be completed by 13 December 2024. Additionally, the auditors confirmed completion of their review of the council’s value for money arrangements, with no significant risks identified.
The Committee discussed the report and made the following comments:
Raised concern about approving the statement of accounts for year ended 31 March 2023 despite the lack of external audit opinion and emphasised an overreliance on the Chief Finance (Section 151) Officer. Noted that EY appeared to hold a significant share of the local authority audit market. The external auditors confirmed that the value for money conclusion was completed, and the minimum procedures were carried out to disclaim the audit opinion, and that the reasons for this were set out in their report. Acknowledged that further assurance would be provided once the 2023/24 accounts for the year ended 31 March 2024 were audited. The Chief Finance (Section 151) Officer expressed confidence that the 2022/23 accounts for the year ended 31 March 2023 were true, fair and of a high quality. It was confirmed that if the 2022/23 accounts were not approved by the 13 December deadline, the council would be required to publish a notice explaining the reasons for not signing the accounts and inform the relevant Secretary of State. Stated that although a disclaimed audit opinion was a serious issue, it was a common occurrence across the sector due to regulations and not unusual for local authorities to approve financial statements before receiving an audit opinion. Noted that the council received a value for money conclusion report, unlike some local authorities which had multiple years of disclaimed audit opinions. The Committee emphasized its service expectations, stating that it expected EY to complete the audit as engaged and provide a certain level of assurance. Expressed disappointment over the lack of a full audit, and EY’s explanation and timeline of events in the report was considered incomplete and misleading. EY had decided to issue a disclaimed audit opinion instead of completing the planned audit, influenced by national legislation proposed in July 2023. The decision was communicated to the Committee earlier in 2024 while EY awaited approval of government legislation. It was requested that the approval of the statement of accounts for the year ended 31 March 2023 be noted, based on the Chief Finance Officer’s recommendation with clarity on the lack of an external audit opinion and its context for residents. The Committee acknowledged its legal obligation to approve the accounts but noted the lack of usual reassurance due to the absence of a full audit and intended to make its decision with this understanding.
Resolved: The Committee notes the report from the External Auditors, EY, on the results of the audit of accounts for the year ended 31 March 2023.
6
Approval of the Statement of Accounts for the year ended 31 March 2023
Contact Officer: Adam Swain
The purpose of this report is to provide the Committee with the Statement of Accounts for the year ended 31 March 2023.
The purpose of this report is to provide the Committee with the Statement of Accounts for the year ended 31 March 2023.
Attachments:
- Document Report 14 Nov 2024
- Document Appendix 1 14 Nov 2024
Minutes
The Chief Finance Officer introduced the report which provided the Committee with the annual statement of accounts for the year ended 31 March 2023.
The Committee discussed the report and made the following comments:
Noted that the Independent Auditors disclaimed opinion was included in the Statement of Accounts. The Chief Finance Officer agreed to include additional information in plain English about the wider context of the accounts and the external audit position when the accounts were published. It was also agreed to collaborate with the council’s communications team on the wording.
Resolved: Authority is delegated to the Chief Finance Officer (Section 151 Officer), in consultation with the Chair of the Audit and Accounts Committee, to approve the Statement of Accounts for the year ended 31 March 2023 and that the Chair of the Audit and Accounts Committee is authorised to subsequently sign the Statement of Responsibilities to that effect on behalf of the committee.
The Committee discussed the report and made the following comments:
Noted that the Independent Auditors disclaimed opinion was included in the Statement of Accounts. The Chief Finance Officer agreed to include additional information in plain English about the wider context of the accounts and the external audit position when the accounts were published. It was also agreed to collaborate with the council’s communications team on the wording.
Resolved: Authority is delegated to the Chief Finance Officer (Section 151 Officer), in consultation with the Chair of the Audit and Accounts Committee, to approve the Statement of Accounts for the year ended 31 March 2023 and that the Chair of the Audit and Accounts Committee is authorised to subsequently sign the Statement of Responsibilities to that effect on behalf of the committee.
7
Fraud Update – Protecting The Public Purse
Contact Officer: Paul Gundry
The purpose of this report is to inform members of the Audit and Accounts Committee of the work that has been carried out during 2024/25 in protecting the public purse.
The purpose of this report is to inform members of the Audit and Accounts Committee of the work that has been carried out during 2024/25 in protecting the public purse.
Attachments:
- Document Report 14 Nov 2024
- Document Appendix 1 14 Nov 2024
Minutes
The Head of Audit, Fraud and Insurance introduced the report, which informed members of the Audit and Accounts Committee of the work that had been carried out during 2024/25 in protecting the public purse.
The Committee discussed the report and made the following comments:
Asked if the figures for actual loss and prevented loss/future savings in the fraud and error table overlapped. The Head of Audit, Fraud, and Insurance confirmed that the two columns did not overlap. Observed that the majority of identified fraud and error cases related to council tax discounts. Suggested that benchmarking fraud detection, such as for single person council tax discounts was feasible despite differences between authorities. In response to a query, the Head of Audit, Fraud, and Insurance agreed to investigate the split between errors and fraud, alongside working with relevant teams to manage processes of benefits and discounts for eligible claimants. The Chief Finance (Section 151 Officer) stated that the Council tax Team wrote to all households in receipt of Single Person Council Tax Discount within the last year. Stated that section 6 of the report related to fraud and error.
Resolved: The Committee considers the Fraud Update – Protecting the Public Purse and provides its comments on the report.
The Committee discussed the report and made the following comments:
Asked if the figures for actual loss and prevented loss/future savings in the fraud and error table overlapped. The Head of Audit, Fraud, and Insurance confirmed that the two columns did not overlap. Observed that the majority of identified fraud and error cases related to council tax discounts. Suggested that benchmarking fraud detection, such as for single person council tax discounts was feasible despite differences between authorities. In response to a query, the Head of Audit, Fraud, and Insurance agreed to investigate the split between errors and fraud, alongside working with relevant teams to manage processes of benefits and discounts for eligible claimants. The Chief Finance (Section 151 Officer) stated that the Council tax Team wrote to all households in receipt of Single Person Council Tax Discount within the last year. Stated that section 6 of the report related to fraud and error.
Resolved: The Committee considers the Fraud Update – Protecting the Public Purse and provides its comments on the report.
8
Internal Audit Progress Report (September-November 2024)
Contact Officer: Richard Bevan
This report is to inform members of the Audit and Accounts Committee of the work completed by the Internal Audit Team during the period September - November 2024 and the current position with overdue audit recommendations.
This report is to inform members of the Audit and Accounts Committee of the work completed by the Internal Audit Team during the period September - November 2024 and the current position with overdue audit recommendations.
Attachments:
- Document Report 14 Nov 2024
- Document Appendix 1 14 Nov 2024
- Document Appendix 2 14 Nov 2024
Minutes
The Senior Auditor introduced the report, which provided members of the Committee with the work completed by the Internal Audit team during the period of September-November 2024 and the current position with overdue recommendations.
The Senior Auditor reported that the following audit references had completed recommendations after their response deadlines: 3- Health and Safety, 9- HR, 1- Health and Safety.
The Committee discussed the report and made the following comments:
Requested a summary to show the progress of overdue recommendations over time, such as in a table format or a timeline to track progress. The Senior Auditor confirmed that this could be provided. Raised concerns about emergency planning and business continuity recommendations, particularly about recruitment challenges, and uncertainty over which elements had been delayed. It was agreed that this would be followed up on. The Head of Audit, Fraud and Insurance confirmed his participation in the Business Continuity Steering Group and offered to provide progress updates to the committee. Asked what actions officers undertook if recommendations were not implemented or were significantly overdue. The Head of Audit, Fraud and Insurance stated that the relevant director would be consulted, and the Committee would be informed. Suggested there was an overlap between internal audit recommendations and the council’s key performance indicators. It was noted that several HR recommendations were overdue, but the council’s HR team had recently hired additional staff for project roles.
Resolved: The Committee considers the Internal Audit Progress Report (September-November 2024) and provides its comments on the report.
The Senior Auditor reported that the following audit references had completed recommendations after their response deadlines: 3- Health and Safety, 9- HR, 1- Health and Safety.
The Committee discussed the report and made the following comments:
Requested a summary to show the progress of overdue recommendations over time, such as in a table format or a timeline to track progress. The Senior Auditor confirmed that this could be provided. Raised concerns about emergency planning and business continuity recommendations, particularly about recruitment challenges, and uncertainty over which elements had been delayed. It was agreed that this would be followed up on. The Head of Audit, Fraud and Insurance confirmed his participation in the Business Continuity Steering Group and offered to provide progress updates to the committee. Asked what actions officers undertook if recommendations were not implemented or were significantly overdue. The Head of Audit, Fraud and Insurance stated that the relevant director would be consulted, and the Committee would be informed. Suggested there was an overlap between internal audit recommendations and the council’s key performance indicators. It was noted that several HR recommendations were overdue, but the council’s HR team had recently hired additional staff for project roles.
Resolved: The Committee considers the Internal Audit Progress Report (September-November 2024) and provides its comments on the report.
9
Treasury Management 2024/25 Mid-Year Report
Contact Officer: Adam Swain
This report shows the activity within the council’s treasury management function from 1 April 2024 to 30 September 2024.
This report shows the activity within the council’s treasury management function from 1 April 2024 to 30 September 2024.
Attachments:
- Document Report 14 Nov 2024
Minutes
The Chief Finance Officer introduced the report, which showed the activity within the council’s treasury management function from 1 April 2024 to 30 September 2024.
The Committee discussed the report and made the following comments:
Questioned the council’s shift from bond funds towards investments in gilts and supranational bonds. The Chief Finance Officer explained that bond sales were planned to fund the capital programme. Reassurance was sought that property sales were being pursued where appropriate. The Chief Finance Officer stated that the Director of Regeneration would be informed of the question.
Resolved: The Committee note the Treasury Management 2024/25 Mid-Year Report.
The Committee discussed the report and made the following comments:
Questioned the council’s shift from bond funds towards investments in gilts and supranational bonds. The Chief Finance Officer explained that bond sales were planned to fund the capital programme. Reassurance was sought that property sales were being pursued where appropriate. The Chief Finance Officer stated that the Director of Regeneration would be informed of the question.
Resolved: The Committee note the Treasury Management 2024/25 Mid-Year Report.
10
Quarter Two- Annual Property Plan Monitoring 2024-25
Contact Officer: Liz Suatt
This report provides an update on the delivery against the Annual Property Plan 2024 to 2025 for the second quarter of the year, between July and September 2024
This report provides an update on the delivery against the Annual Property Plan 2024 to 2025 for the second quarter of the year, between July and September 2024
Attachments:
- Document Report 14 Nov 2024
- Document Appendix 1 14 Nov 2024
Minutes
The Investment Portfolio Lead and the Cabinet Member for Finance and Property introduced the report, which detailed the activity related to the council’s Annual Property Plan 2024/25 for the second quarter (period 1st July to 30 September 2024).
The Committee discussed the report and made the following comments:
Observed the decrease in the council’s capital property value which fell from over £300 million in 2022 to £283.4 million in 2024. A request was made for a clearer comparison of the council’s property values, considering disposals and market changes. The Investment Portfolio Lead stated that this would be reviewed. Queried progress of the council’s community centre lease restructuring. The Head of Property and Assets stated that progress had been slower than anticipated due to the need to ensure good building condition but emphasised that the leases were managed alongside service agreements.
Resolved: The Committee considers Quarter Two- Annual Property Plan Monitoring 2024-25 and provides its comments on the report.
The Committee discussed the report and made the following comments:
Observed the decrease in the council’s capital property value which fell from over £300 million in 2022 to £283.4 million in 2024. A request was made for a clearer comparison of the council’s property values, considering disposals and market changes. The Investment Portfolio Lead stated that this would be reviewed. Queried progress of the council’s community centre lease restructuring. The Head of Property and Assets stated that progress had been slower than anticipated due to the need to ensure good building condition but emphasised that the leases were managed alongside service agreements.
Resolved: The Committee considers Quarter Two- Annual Property Plan Monitoring 2024-25 and provides its comments on the report.
11
Audit and Accounts work programme
The Committee is asked to note and review it’s work programme.
Attachments:
- Document Audit and Accounts Work Programme 14 Nov 2024
- Document Action Tracking Log 14 Nov 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.
The Committee sought to ask the Cabinet Member for Finance and Property how the council would handle the disposal of a property in its portfolio if the need arose unexpectedly, as opposed to a planned disposal.
The Chair thanked the officers for their hard work and acknowledged the attendance of the external auditors.
The meeting ended at 8:16pm.
Chair
The Chair also introduced the list of actions from previous Committee meetings.
The Committee sought to ask the Cabinet Member for Finance and Property how the council would handle the disposal of a property in its portfolio if the need arose unexpectedly, as opposed to a planned disposal.
The Chair thanked the officers for their hard work and acknowledged the attendance of the external auditors.
The meeting ended at 8:16pm.
Chair
Previous Meetings
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