Basingstoke & Dean Borough Council
Councillors:
54
Wards:
18
Committees:
22
Meetings (2025):
68
Meetings (2024):
72
Meeting
Audit and Accounts Committee - Basingstoke & Dean
Meeting Times
Scheduled Time
Start:
Monday, 31st July 2023
6:30 PM
Monday, 31st July 2023
6:30 PM
End:
Monday, 31st July 2023
9:30 PM
Monday, 31st July 2023
9:30 PM
Actual Time
Started:
Monday, 31st July 2023
12:00 AM
Monday, 31st July 2023
12:00 AM
Finished:
Monday, 31st July 2023
12:00 AM
Monday, 31st July 2023
12:00 AM
Meeting Status
Status:
Confirmed
Confirmed
Date:
31 Jul 2023
31 Jul 2023
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
Deputy Mayor and Chair of the Resident Services Committee
Committee Member
Mayor
Committee Member
Chair of the Resources Committee
Council Staff
Executive Director of Corporate Services and Assets
Sue Cuerden
Expected
Agenda
1
Apologies for absence and substitutions
Minutes
Apologies were received from Councillor Falconer.
Councillor Gaskell was replaced by Councillor Mummalaneni.
Councillor Gaskell was replaced by Councillor Mummalaneni.
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 2023/24 municipal year.
Minutes
Councillor Falconer was provisionally appointed as Vice-Chair subject to his acceptance at the next meeting of the Committee.
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 6 March 2023
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 6 March 2023 20 Jul 2023
Minutes
The minutes of the meeting held on 6 March 2023 were confirmed by the Committee and signed by the Chair as a correct record.
6
Internal Audit Progress Report- March- July 2023
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 March to July 2023 and the current position with all 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 March to July 2023 and the current position with all audit recommendations.
Attachments:
- Document Report 20 Jul 2023
- Document Appendix 1 20 Jul 2023
- Document Appendix 2 20 Jul 2023
- Document Appendix 3 20 Jul 2023
- Document Appendix 4 20 Jul 2023
- Document Appendix 5 20 Jul 2023
- Document Appendix 6 20 Jul 2023
- Document Appendix 7 20 Jul 2023
- Document Appendix 8 20 Jul 2023
- Document Appendix 9 20 Jul 2023
- Document Appendix 10 20 Jul 2023
- Document Appendix 11 20 Jul 2023
- Document Appendix 12 20 Jul 2023
Minutes
The Senior Auditor introduced the report which informed members of the Audit and Accounts Committee of the work completed by the Internal Audit Team during the period March to July 2023 and the current position with all audit recommendations.
The Committee discussed the report and made the following comments:
Queried certain outstanding audit recommendations regarding overdue original target dates and their categories of high risk. The Senior Auditor clarified that target dates were monitored on a regular basis and only extended when necessary. Asked whether there had been any updates to the contract standing orders audit. The Executive Director clarified that the contract standing orders had been reviewed as part of the Constitution update and that it was expected that proposals would be brought to the October Council meeting. Requested that a written response on the proposed changes to contract standing orders be circulated to the Committee.
Resolved: The Committee note the report.
The Committee discussed the report and made the following comments:
Queried certain outstanding audit recommendations regarding overdue original target dates and their categories of high risk. The Senior Auditor clarified that target dates were monitored on a regular basis and only extended when necessary. Asked whether there had been any updates to the contract standing orders audit. The Executive Director clarified that the contract standing orders had been reviewed as part of the Constitution update and that it was expected that proposals would be brought to the October Council meeting. Requested that a written response on the proposed changes to contract standing orders be circulated to the Committee.
Resolved: The Committee note the report.
7
Internal Audit Annual Report 2022/23
Contact Officer: Paul Gundry
This report provides the Committee with the annual opinion of the Chief Internal Auditor on the effectiveness of the council's risk management, control and governance process for 2022/23.
This report provides the Committee with the annual opinion of the Chief Internal Auditor on the effectiveness of the council's risk management, control and governance process for 2022/23.
Attachments:
- Document Internal Audit Annual Report 2022/23 20 Jul 2023
- Document Appendix 1 - Completed Audit Assignments 22-23 20 Jul 2023
- Document Appendix 2 - Five Year Comparison 20 Jul 2023
- Document Appendix 3 - PSIAS Summary 20 Jul 2023
Minutes
The Chief Internal Auditor introduced the report which provided the Committee with the annual opinion on the effectiveness of the council's risk management, control, and governance process for 2022/23.
The Committee discussed the report and made the following comments:
Enquired about the capacity of the audit team to complete their work. The Chief Internal Auditor stated that he was confident the team had the mechanisms in place to complete the Internal Audit Plan. It was queried how risks were prioritised when forming the Internal Audit Plan. The Chief Internal Auditor answered by stating that this was based on risk assessment, and that some audits were completed more often as a result. It was asked when the next Internal Audit Plan would be brought forward to the Committee. The Chief Internal Auditor clarified it would be presented in March 2024.
Resolved: The Committee note the report.
The Committee discussed the report and made the following comments:
Enquired about the capacity of the audit team to complete their work. The Chief Internal Auditor stated that he was confident the team had the mechanisms in place to complete the Internal Audit Plan. It was queried how risks were prioritised when forming the Internal Audit Plan. The Chief Internal Auditor answered by stating that this was based on risk assessment, and that some audits were completed more often as a result. It was asked when the next Internal Audit Plan would be brought forward to the Committee. The Chief Internal Auditor clarified it would be presented in March 2024.
Resolved: The Committee note the report.
8
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 2022/23 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 2022/23 in protecting the public purse.
Attachments:
- Document Fraud Update - Protecting The Public Purse 20 Jul 2023
- Document Appendix 1 - Press Release Nov 2022 20 Jul 2023
- Document Appendix 2 - Invoiced Debt Recovery 201920 20 Jul 2023
- Document Appendix 3 - Invoiced Debt Recovery 2022/23 20 Jul 2023
Minutes
The Chief Internal Auditor introduced the report, which informed members of the Audit and Accounts Committee of the work that had been carried out during 2022/23 in protecting the public purse.
The Committee queried how the findings compared to the rest of Hampshire. The Chief Internal Auditor stated this was difficult to compare due to differences between authorities.
Resolved: The Committee note the contents of the report.
The Committee queried how the findings compared to the rest of Hampshire. The Chief Internal Auditor stated this was difficult to compare due to differences between authorities.
Resolved: The Committee note the contents of the report.
9
Annual Governance Statement 2022/2023
Contact Officer: Fiona Thomsen
The purpose of this report is for the Committee to approve the draft Annual Governance Statement 2022/23.
The purpose of this report is for the Committee to approve the draft Annual Governance Statement 2022/23.
Attachments:
- Document Annual Governance Statement 2022/2023 20 Jul 2023
- Document Appendix 1 Draft Annual Governance Statement 2022/2023 20 Jul 2023
Minutes
The Legal Services Manager introduced the report, which presented the Committee with the draft Annual Governance Statement 2022/23 for approval.
The Committee discussed the report and made the following comments:
The report lacked reference to councillor training. Raised concern that the Council Plan lacked measurable outcomes.
Resolved: The Committee approve the draft Annual Governance Statement 2022/23.
The Committee discussed the report and made the following comments:
The report lacked reference to councillor training. Raised concern that the Council Plan lacked measurable outcomes.
Resolved: The Committee approve the draft Annual Governance Statement 2022/23.
10
Local Code of Corporate Governance 2023/2024
Contact Officer: Fiona Thomsen
The purpose of this report is for the Committee to approve the Local Code of Corporate Governance.
The purpose of this report is for the Committee to approve the Local Code of Corporate Governance.
Attachments:
- Document Local Code of Corporate Governance 2023/2024 20 Jul 2023
- Document Appendix 1 Local Code of Corporate Governance 2023/2024 20 Jul 2023
Minutes
The Legal Services Manager introduced the report which presented the Committee with the Local Code of Corporate Governance 2023/24 for approval.
The Legal Services Manager agreed to include a table of compliance in future reports, and that a review of the format would take place ahead of the next annual report.
Resolved: The Committee approve the Local Code of Corporate Governance 2023/24.
The Legal Services Manager agreed to include a table of compliance in future reports, and that a review of the format would take place ahead of the next annual report.
Resolved: The Committee approve the Local Code of Corporate Governance 2023/24.
11
UK GDPR Notification of Data Breach reported to ICO
Contact Officer: Ann Greaves
The porpose of this report is to provide the Committee with information relating to a recent data breach.
The porpose of this report is to provide the Committee with information relating to a recent data breach.
Attachments:
- Document UK GDPR Notification of Data Breach reported to ICO 20 Jul 2023
- Document Update Report 20 Jul 2023
Minutes
The Legal Services Manager introduced the report, which provided the Committee with information relating to a recent data breach.
The Legal Services Manager also informed the Committee of an update report which set out the response from the ICO alongside further recommendations.
Resolved: The Committee note the contents of the report.
The Legal Services Manager also informed the Committee of an update report which set out the response from the ICO alongside further recommendations.
Resolved: The Committee note the contents of the report.
12
Regulation of Investigatory Powers Act 2000 (RIPA) Annual Report and Annual Review of RIPA Policy
Contact Officer: Ann Greaves
This report provides members of the Committee with an annual update on the use of RIPA, and other associated RIPA activities, and an opportunity to consider whether the RIPA policy and procedure on the use of covert surveillance under RIPA requires further review.
This report provides members of the Committee with an annual update on the use of RIPA, and other associated RIPA activities, and an opportunity to consider whether the RIPA policy and procedure on the use of covert surveillance under RIPA requires further review.
Attachments:
- Document Regulation of Investigatory Powers Act 2000 (RIPA) Annual Report and Annual Review of RIPA Policy 20 Jul 2023
- Document Appendix 1 Regulation of Investigatory Powers Act 2000 Policy 20 Jul 2023
Minutes
The Legal Services Manager introduced the report, which provided members with an annual update on the use of RIPA, and other associated RIPA activities, and an opportunity to consider whether the RIPA policy and procedure on the use of covert surveillance under RIPA required further review.
The Committee were pleased that the Council only exercised these powers in exceptional circumstances and wanted this approach to continue.
Resolved: The Committee note the findings on the annual overview on authorisations under the Regulation of Investigatory Powers Act (RIPA) and other associated activities and agree the amended RIPA Policy at Appendix 1 of the report.
The Committee were pleased that the Council only exercised these powers in exceptional circumstances and wanted this approach to continue.
Resolved: The Committee note the findings on the annual overview on authorisations under the Regulation of Investigatory Powers Act (RIPA) and other associated activities and agree the amended RIPA Policy at Appendix 1 of the report.
13
Viewing of Social Networking Sites
Contact Officer: Ann Greaves
This report provides Members of the Committee with a summary of the viewing of individuals’ social networking sites in an investigatory capacity for the period 1st June 2022 to 14th July 2023.
This report provides Members of the Committee with a summary of the viewing of individuals’ social networking sites in an investigatory capacity for the period 1st June 2022 to 14th July 2023.
Attachments:
- Document Report 20 Jul 2023
Minutes
The Legal Services Manager introduced the report, which provided members of the Committee with a summary of the viewing of individuals’ social networking sites in an investigatory capacity for the period 1st June 2022 to 14th July 2023.
Resolved: The Committee note the contents of the report.
Resolved: The Committee note the contents of the report.
14
Treasury Management Annual Report 2022/23
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 2022/23.
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 2022/23.
Attachments:
- Document Report 20 Jul 2023
- Document Enclosure 1- Draft Report for Council 20 Jul 2023
Minutes
The Head of Financial Services and Commercialisation introduced the report, which showed the activity within the Council’s treasury management function from 1 April 2022 to 31 March 2023.
The Committee discussed the report and made the following comments:
Asked whether Chart 5, which showed the benchmarking for the Council’s externally managed fund investments, could be measured over five years rather than one year. The Head of Financial Services stated that the chart would be amended. Commented that the executive summary of the report was missing a summary of the Council’s capital losses. The Executive Director replied by stating that it would be added into the executive summary. A point was made that the Council’s external advice should not be limited to one company.
Resolved: The Committee note the report and request the comments of the Committee to be included for consideration by Council.
The Committee discussed the report and made the following comments:
Asked whether Chart 5, which showed the benchmarking for the Council’s externally managed fund investments, could be measured over five years rather than one year. The Head of Financial Services stated that the chart would be amended. Commented that the executive summary of the report was missing a summary of the Council’s capital losses. The Executive Director replied by stating that it would be added into the executive summary. A point was made that the Council’s external advice should not be limited to one company.
Resolved: The Committee note the report and request the comments of the Committee to be included for consideration by Council.
15
External Audit- Draft Audit Results Report 2021/22
Contact Officer: Adam Swain
The purpose of this report is for the external auditors, EY, to present the draft audit results report to the committee for discussion.
The purpose of this report is for the external auditors, EY, to present the draft audit results report to the committee for discussion.
Attachments:
- Document Report 20 Jul 2023
Minutes
The Chair introduced Larisa Midoni from EY who introduced the report and presented the Committee with the draft audit results for the year ended 31 March 2022.
The Committee discussed the report and made the following comments:
· The Chair insisted it was an essential part of good governance that members be able to ask certain questions of the Auditors without officers present.
· It was noted that both the Legal Services Manager and the Audit Partner (in absentia) confirmed that it was not appropriate for members to question the external auditor with regards to the statement of accounts without officers present.
· The Executive Director of Corporate Services & Assets noted that the external auditors were happy to attend in advance of one of the programmed AAC meetings to meet with any members who wished to talk to them. The committee questioned what was this likely to be about, and this was confirmed to be if there is an area of concern regarding council governance, risk, controls etc.
· Queried whether extended lease agreements would always be amortised across the life of each policy. The Executive Director advised that the Council had to consider each agreement on a case-by-case basis.
· The audit fees charged by EY were questioned. The Audit Manager stated that the final fees were determined based on time spent on the audit, so were proportionate to the amount of effort required to complete the audit.
· Asked how a gain on disposal of investment property by £4.6m was accounted. The Executive Director emphasised that it was shown as a one-off lump sum, to be amortised over the life of the asset.
· An update was requested about two audit report recommendations in relation to internal controls as part of the audit for future lease payment disclosure, which would be brought at a future meeting this year.
· An update was also requested on the progress of IFRS 16 preparations for a future meeting of the Committee this year.
Resolved: The Committee note the report from the External Auditors, EY, on the draft results of the audit of accounts for the year ended 31 March 2022.
The Committee discussed the report and made the following comments:
· The Chair insisted it was an essential part of good governance that members be able to ask certain questions of the Auditors without officers present.
· It was noted that both the Legal Services Manager and the Audit Partner (in absentia) confirmed that it was not appropriate for members to question the external auditor with regards to the statement of accounts without officers present.
· The Executive Director of Corporate Services & Assets noted that the external auditors were happy to attend in advance of one of the programmed AAC meetings to meet with any members who wished to talk to them. The committee questioned what was this likely to be about, and this was confirmed to be if there is an area of concern regarding council governance, risk, controls etc.
· Queried whether extended lease agreements would always be amortised across the life of each policy. The Executive Director advised that the Council had to consider each agreement on a case-by-case basis.
· The audit fees charged by EY were questioned. The Audit Manager stated that the final fees were determined based on time spent on the audit, so were proportionate to the amount of effort required to complete the audit.
· Asked how a gain on disposal of investment property by £4.6m was accounted. The Executive Director emphasised that it was shown as a one-off lump sum, to be amortised over the life of the asset.
· An update was requested about two audit report recommendations in relation to internal controls as part of the audit for future lease payment disclosure, which would be brought at a future meeting this year.
· An update was also requested on the progress of IFRS 16 preparations for a future meeting of the Committee this year.
Resolved: The Committee note the report from the External Auditors, EY, on the draft results of the audit of accounts for the year ended 31 March 2022.
16
Statement of Accounts for the year ended 31 March 2022
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 2022.
The purpose of this report is to provide the Committee with the Statement of Accounts for the year ended 31 March 2022.
Attachments:
- Document Report 20 Jul 2023
- Document Appendix 1 20 Jul 2023
Minutes
The Executive Director of Corporate Services and Assets introduced the report which provided the Committee with the annual statement of accounts for the year ended 31 March 2022.
The Committee discussed the report and made the following comments:
Concerns were raised about a difference of accounting treatment between two transactions and the different accounting standards that had been applied. It was noted that this was now agreed between officers and external audit in relation to signing off the accounts for 2021/22. Councillor Basham stated that whilst the Committee approved the statement of accounts, he abstained.
Resolved: Authority is delegated to the Chair of the Audit and Accounts Committee, in consultation with the Executive Director of Corporate Services and Assets (Section 151 Officer) to approve the Statement of Accounts for the year ended 31 March 2022 and 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:
Concerns were raised about a difference of accounting treatment between two transactions and the different accounting standards that had been applied. It was noted that this was now agreed between officers and external audit in relation to signing off the accounts for 2021/22. Councillor Basham stated that whilst the Committee approved the statement of accounts, he abstained.
Resolved: Authority is delegated to the Chair of the Audit and Accounts Committee, in consultation with the Executive Director of Corporate Services and Assets (Section 151 Officer) to approve the Statement of Accounts for the year ended 31 March 2022 and is authorised to subsequently sign the Statement of Responsibilities to that effect on behalf of the committee.
17
Annual Property Plan 2022 23 Year End Report
Contact Officer: Liz Suatt
The purpose of this report is to outline the activity within the council’s property services team in implementing the approved Annual Property Plan 2022-23 during the year.
The purpose of this report is to outline the activity within the council’s property services team in implementing the approved Annual Property Plan 2022-23 during the year.
Attachments:
- Document Report 20 Jul 2023
- Document Appendix 1- Confidential 20 Jul 2023
Minutes
The Investment Portfolio Lead introduced the report, which outlined the activity within the Council’s Property Services team in implementing the approved Annual Property Plan 2022-23 during the year.
The Committee discussed the report and made the following comments:
Asked whether investments in sustainable property would increase. The Executive Director advised that officers were discussing what opportunities there were to improve sustainability of the Council’s assets. The increase in the valuation of the Anvil was queried. The Head of Financial Services stated that the valuation method used for the operational asset was based on the cost related to replacing the building in its current state, and therefore this was impacted by the increased build and materials costs experienced in the last year. Commented that Cabinet should address the community asset transfer to Whitchurch Parish Council alongside similar asset types that were being negotiated.
Resolved: The Committee note the contents of the report.
The Committee discussed the report and made the following comments:
Asked whether investments in sustainable property would increase. The Executive Director advised that officers were discussing what opportunities there were to improve sustainability of the Council’s assets. The increase in the valuation of the Anvil was queried. The Head of Financial Services stated that the valuation method used for the operational asset was based on the cost related to replacing the building in its current state, and therefore this was impacted by the increased build and materials costs experienced in the last year. Commented that Cabinet should address the community asset transfer to Whitchurch Parish Council alongside similar asset types that were being negotiated.
Resolved: The Committee note the contents of the report.
18
External Investments Fund Monitoring as at 31 March 2023
Contact Officer: Adam Swain
The purpose of this report is to provide an update on the council’s externally managed pooled fund investments.
The purpose of this report is to provide an update on the council’s externally managed pooled fund investments.
Attachments:
- Document External Investments Fund Monitoring as at 31 March 2023 20 Jul 2023
- Document Enc. 1 for External Investments Fund Monitoring as at 31 March 2023 20 Jul 2023
Minutes
The Chair introduced the report, which provided an update on the Council’s externally managed pooled fund investments.
Due to the confidential nature of the information to be discussed, the committee passed a resolution that, by virtue of paragraphs 3 of Schedule 12A of the Local Government Act 1972, the public be excluded from the meeting.
Resolved: The Committee note the Pooled Funds Review.
Due to the confidential nature of the information to be discussed, the committee passed a resolution that, by virtue of paragraphs 3 of Schedule 12A of the Local Government Act 1972, the public be excluded from the meeting.
Resolved: The Committee note the Pooled Funds Review.
19
Audit and Accounts work programme
The Committee is asked to note and review it’s work programme.
Attachments:
- Document Work Programme 20 Jul 2023
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 Executive Director advised that Arlingclose would provide a training session for the Committee which would be held before a future meeting.
It was stated that the review on the Committees effectiveness would be brought to the September meeting.
The meeting ended at 8:34pm.
Chair
The Executive Director advised that Arlingclose would provide a training session for the Committee which would be held before a future meeting.
It was stated that the review on the Committees effectiveness would be brought to the September meeting.
The meeting ended at 8:34pm.
Chair
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