Eastleigh Borough Council Audit and Resources Committee Meeting

There were no declarations of interest in relation to items of business on the agenda.

RESOLVED –

That the Minutes of the meeting held on 5 March 2024 be confirmed and signed by the Chair as a correct record.

There was no public participation on this occasion.

Mark Hodgson, EY, introduced himself to the Committee and provided context to the report. The importance of the audit timeline was highlighted and noted the agreed audit fees.

Councillors asked if EY and Eastleigh Borough Council had the resources in place to meet the timescales detailed in the plan. Councillors were assured that sufficient resources were in place.

The Independent Co-Opted Member queried the use of controls within the ISAE 3402 report. EY confirmed that this was an error and will be removed from the Audit Plan. A query was also raised regarding ISA 315 and its scope. Mark will circulate the range to members once obtained.

Simon Mathers, EY, introduced the report and explained that the findings and conclusions were the same as January’s report. A discussion took place with regards to nitrate credits.

Councillors thanked Simon and his team for the work carried out over the past five years.

The Corporate Health and safety Officer introduced the report.

A discussion took place with regards to health and safety training and lone working.

RESOLVED –

That the Audit and Resources Committee considered and commented as necessary on the Incident Data for the second six months of 2023/24.

The Deputy Chief Executive introduced the report and outlined the work carried out to date, along with future plans.

Organisational capacity was raised as a concern with Councillors requesting that this is reviewed regularly to ensure there is enough resource. A discussion took place with regards to the building of the new school and the benefits of self-delivery.

Councillors thanked officers for a very detailed report.

RESOLVED –

Noted the Council’s progress across various projects within the One Horton Heath programme and provide observations.

The Service Director of Governance and Support introduced the report.

RESOLVED –

That Audit and Resources Committee:

(1)  considered the revised Procurement Policy following further consultation and review (as requested by Cabinet in December 2022);

(2)  proposed the Policy is adopted by Cabinet; and

(3)  recommended to Cabinet that the policy is reviewed annually.

The Chief Internal Auditor introduced the report and confirmed the Council’s framework of governance, risk management and control were adequate in most areas. The Chief Internal Auditor thanked officers for the speed and openness of their responses.

RESOLVED –

That the Committee considered and commented on:

(1)  the Chief Internal Auditor’s Annual Opinion for 2023/24 that the Council’s framework of governance, risk management and control is adequate in most areas; and

(2)  the performance of the Internal Audit Section against planned outturn for quarter 4 of 2023/24.

The Service Director of Governance and Support introduced the report.

RESOLVED –

That:

(1)  the Annual Governance Statement 2023/24 was approved, and;

(2)  The Code of Corporate Governance 2024/25 was adopted.

The Service Director of Governance and Support introduced the report.

RESOLVED –

That the Audit and Resources Committee:

(1)  considered the Annual Risk Management Report, and;

(2)  noted the content of the Risk Management Framework, Risk Appetite Statement and Terms of Reference for the Strategic Risk Management Group.

The Chair introduced the report and congratulated the successful candidate on their appointment.

RESOLVED –

That the Audit and Resources Committee:

(1)  considered the outcome of the panel interviews and the recommended appointment of an Independent Co-Opted Member; and

(2)  recommended the appointment to Council of Stefan Hargrave as an Independent Co-opted Member of Audit and Resources Committee for a two year term.

The Committee expressed their thanks to those Councillors who had represented the Committee on these groups. The Committee made the following appointments to Procurement Management Group (PEG), Strategic Risk Management Group (SRMG) and the Housing Working Group:

RESOLVED –

(1)  That Councillor D Pretty and Councillor S Holes be appointed to the Procurement Executive Group for 2024/25;

(2)  That Councillor S Holes be appointed to the Strategic Risk Management Group for 2024/25; and

(3)  That Councillor M Attrill and Councillor T Park be appointed to the Housing Working Group for 2024/25.

(a)  Strategic Risk Management Group (SRMG)

Councillor Holes reported that the Group met on 17 June 2024 where the Annual Risk Management Report was discussed. This report was discussed by the Audit and Resources Committee earlier in the meeting. The Corporate Risk Register was discussed, with nothing to escalate. A discussion took place with regards to the response to the Best Value Notice. The Corporate Health and Safety Officer discussed resources and the Procurement and Insurance Officer was tendering for new insurers later this year, with work already underway. The next meeting will take place on 2 September 2024.

(b)  Procurement Executive Group (PEG)

Councillor Holes reported that the Group met on 25 June 2024 and discussed One Horton Heath procurement, including tendering, and noted future report for Audit and Resources Committee and Cabinet. The Procurement and Insurance Officer presented the Procurement Action Plan and discussed progress. The Modern Slavery Statement was reviewed and will be presented to Council on 15 July 2024. The Group reviewed procurement performance indicators and in particular the indicator for payment of invoices. Waivers were reviewed for the last quarter and the Group reviewed the Procurement Policy and suggested amendments before it was presented to Audit and Resources and Cabinet. 

The Committee considered the current Forward Plan of Key Decisions.

It was AGREED -

That the current Forward Plan be noted.

The Committee considered its current Work Programme. The Asset Management Strategy will move to December’s meeting and Future Ways of Working was removed from the Work Programme.

It was AGREED -

That the Work Programme be noted.

The Chair welcomed Councillors K Attrill, Couldrey and Reynolds as new Members to the Committee, introduced Martyn Royle as the Independent Co-Opted Member and thanked Simon and Janet from EY for their work over the past 5 years. Mark Hodgson and Ian Young will be taking over as Partner and Senior Manager.