Gosport Borough Council
Councillors:
28
Wards:
14
Committees:
10
Meetings (2025):
48
Meetings (2024):
47
Meeting
Standards and Governance Committee - Gosport
Meeting Times
Scheduled Time
Start:
Tuesday, 3rd August 2021
6:00 PM
Tuesday, 3rd August 2021
6:00 PM
End:
Tuesday, 3rd August 2021
10:00 PM
Tuesday, 3rd August 2021
10:00 PM
Actual Time
Started:
Tuesday, 3rd August 2021
12:00 AM
Tuesday, 3rd August 2021
12:00 AM
Finished:
Tuesday, 3rd August 2021
10:51 PM
Tuesday, 3rd August 2021
10:51 PM
Meeting Status
Status:
Confirmed
Confirmed
Date:
03 Aug 2021
03 Aug 2021
Location:
Council Chamber
Council Chamber
Meeting Attendees
Chairman
Councillor Sean Blackman
Present, as expected
Committee Member
Councillor Mrs Diane Furlong
Not required
Committee Member
Councillor Mrs Lynn Hook
Not required
Council Staff
Head of Planning and Regeneration and Assistant to the Chief Executive
Debbie Gore
Expected
Committee Member
Councillor Marcus Murphy MSc IEng MInstMC MIET MInstLM
Present, as expected
Agenda
1
Apologies for non-attendance
Minutes
The Chairman noted that due to ongoing concerns regarding Covid the Group Leaders agreed to reduce the number of Members in attendance.
2
Election of Vice Chairman
To elect from the Members of the Committee a Vice Chairman for the municipal year 2021-2022.
Minutes
RESOLVED: That Councillor Alan Scard be elected as Vice Chairman of the Standards and Governance Committee for the municipal year 2021/22
3
Declarations of interest
All Members are required to disclose at this point in the meeting or as soon as possible thereafter, any disclosable pecuniary interest or personal interest in any item(s) being considered at this meeting.
Minutes
There were none
4
Minutes of previous meeting
Attachments:
- Document Minutes Public Pack, 08/04/2021 Standards and Governance Committee 26 Jul 2021
Minutes
RESOLVED: That the minutes of the of the meeting held on 8th April 2021 be signed as a true and correct record.
5
Deputations - Standing Order 3.4
(NOTE: The Board is required to receive a deputation(s) on a matter which is before the meeting of the Board provided that notice of the intended deputation and its object shall have been received by the Borough Solicitor by 12 noon on Friday 30th July 2021)
Minutes
There were none
6
Public Questions - Standing Order 3.5
(NOTE: The Board is required to allow a total of 15 minutes for questions from members of the public on matters within the terms of reference of the Board provided that notice of such questions(s) shall have been submitted to the Borough Solicitor by 12 noon Friday 30th July 2021)
Minutes
There were none
7
Audit Planning Report
The Audit Planning Report sets out the work planned to enable the audit opinion on the financial statements and the value for money commentary for 2020/21.
Attachments:
- Document 7. EY Audit Planning Report 2020-21 26 Jul 2021
- Document 7. 2020-21 Gosport Borough Council - Audit Planning Report 26 Jul 2021
Minutes
Consideration was given to a report by Ernst & Young setting out the planned work to enable the issuing of the audit opinion on the financial statements and the value for money commentary for 2020/21.
Members were advised that it was hoped to have brought this report to Committee in March before the year end, but delays in deadlines being moved due to Covid continued to impact the conduct of the audit. A target date of the end of September would not be achieved, but following discussions with finance it was hoped that October/November would be achievable with the timetable being back on track for the following year.
Members were advised that there was a new area of audit in regard to the accounting of Covid Grant Income.
Members were advised that there were changes in Value For Money requirements following the national Audit Office new code of practice. The Value For Money criteria are Financial Sustainability, Governance and Improving Economy, Efficiency and Effectiveness. The key change will be seen in the commentary, which will be more valuable for the taxpayer, and can be published on the website.
A Member stated that he had received excellent feedback from local busineses on the way the Council had dealt with Covid Grants and hoped this would not be an area of concern. Members were advised that the audit would focus on how the grants were accounted for and will not be sample testing criteria so would be unlikely to pick up if a grant falls outside of the parameters set.
In answer to a Members question, the Auditors advised that there were significant increases in the amount of evidence required as a result of changes in the ISA 570 and that Officers would need to give more time to answering questions.
Officers advised that two streams of accounting have been applied to Covid grants, that which has passed through the books and that which we have passed on as agents for the Government. The classification of what has and has not gone through the books will from part of the audit.
In answer to a Members question regarding the opinion on Value For Money, the Auditors advised that they would be looking to see that the procedures were correct rather than the detail. A subjective judgement would not be made, but the questioning of Officers would determine if the arrangements were in place and if not it would be identified as a risk.
RESOLVED: That the Committee;
· Reviewed the 2020/21 Audit Plan and noted the risks and areas of focus identified and the planned response to them
· Recommended the Audit Planning Report 2020/21 to the Policy & Organisation Board.
Members were advised that it was hoped to have brought this report to Committee in March before the year end, but delays in deadlines being moved due to Covid continued to impact the conduct of the audit. A target date of the end of September would not be achieved, but following discussions with finance it was hoped that October/November would be achievable with the timetable being back on track for the following year.
Members were advised that there was a new area of audit in regard to the accounting of Covid Grant Income.
Members were advised that there were changes in Value For Money requirements following the national Audit Office new code of practice. The Value For Money criteria are Financial Sustainability, Governance and Improving Economy, Efficiency and Effectiveness. The key change will be seen in the commentary, which will be more valuable for the taxpayer, and can be published on the website.
A Member stated that he had received excellent feedback from local busineses on the way the Council had dealt with Covid Grants and hoped this would not be an area of concern. Members were advised that the audit would focus on how the grants were accounted for and will not be sample testing criteria so would be unlikely to pick up if a grant falls outside of the parameters set.
In answer to a Members question, the Auditors advised that there were significant increases in the amount of evidence required as a result of changes in the ISA 570 and that Officers would need to give more time to answering questions.
Officers advised that two streams of accounting have been applied to Covid grants, that which has passed through the books and that which we have passed on as agents for the Government. The classification of what has and has not gone through the books will from part of the audit.
In answer to a Members question regarding the opinion on Value For Money, the Auditors advised that they would be looking to see that the procedures were correct rather than the detail. A subjective judgement would not be made, but the questioning of Officers would determine if the arrangements were in place and if not it would be identified as a risk.
RESOLVED: That the Committee;
· Reviewed the 2020/21 Audit Plan and noted the risks and areas of focus identified and the planned response to them
· Recommended the Audit Planning Report 2020/21 to the Policy & Organisation Board.
8
Internal Audit Opinion 2020/21
To table the Annual Audit Opinion for 2020/21 for noting to the Members with responsibility for governance.
Attachments:
- Document 8. Covering report Audit opinion 2021 26 Jul 2021
- Document 8. GBC Annual Report 2021 v2 26 Jul 2021
Minutes
Consideration was given to a report by the Chief Internal Auditor tabling the Annual Audit Opinion for 2020/21.
The Chief Internal Auditor advised Members that there had been an increase in audits that met the Assurance and Reasonable Assurance levels, with improvement needed completing follow up actions from previous reports.However it is understood that timescales have been pushed back by Covid. The one area of concern was the procurement audit.
In answer to a Members question, officers advised that the Proactis system was perfectly adequate and robust and used in other Local Authorities. Training had taken place but needed to be refreshed and support given to those who use the system infrequently to help them gain confidence and understanding. Officers had not receive feedback that staff were having issues with the functionality of the system.
Members were advised that developing a contract for minor works drawn down from a contract structure would make a marked improvement.
Officers agreed that there may not be an issue with the software or training, just that users are not following the process, but the audit does not identify what the issue is and is only a statistical audit comparing procurement entries on Proactis against financial entries in the accounts.
Members were advised that work on the Contract Procedure Rules had started in consultation with CIPFA and training on any changes would be carried out in the Autumn.
Officers reassured Members again that the system was fit for purpose and addressing the cultural and behavioural issues, alongside further training and support would improve comprehension of the system.
The Chief Internal Auditor suggested an action plan to understand where the issues are in order to rectify them.
RESOLVED: That the Committee noted the Annual Audit Opinion for 2020/21
The Chief Internal Auditor advised Members that there had been an increase in audits that met the Assurance and Reasonable Assurance levels, with improvement needed completing follow up actions from previous reports.However it is understood that timescales have been pushed back by Covid. The one area of concern was the procurement audit.
In answer to a Members question, officers advised that the Proactis system was perfectly adequate and robust and used in other Local Authorities. Training had taken place but needed to be refreshed and support given to those who use the system infrequently to help them gain confidence and understanding. Officers had not receive feedback that staff were having issues with the functionality of the system.
Members were advised that developing a contract for minor works drawn down from a contract structure would make a marked improvement.
Officers agreed that there may not be an issue with the software or training, just that users are not following the process, but the audit does not identify what the issue is and is only a statistical audit comparing procurement entries on Proactis against financial entries in the accounts.
Members were advised that work on the Contract Procedure Rules had started in consultation with CIPFA and training on any changes would be carried out in the Autumn.
Officers reassured Members again that the system was fit for purpose and addressing the cultural and behavioural issues, alongside further training and support would improve comprehension of the system.
The Chief Internal Auditor suggested an action plan to understand where the issues are in order to rectify them.
RESOLVED: That the Committee noted the Annual Audit Opinion for 2020/21
9
Annual Governance Statement 2020/21
To seek approval from Members in regards to the draft Annual Governance Statement (AGS) 2020/21
Attachments:
- Document 9.Covering report AGS 2021 July 26 Jul 2021
- Document 9. AGS Draft 21 v5 MS 26 Jul 2021
Minutes
Consideration was given to a report by the Chief Internal Auditor seeking approval from Members in regard to the draft Annual Governance Statement 2020/21
The Chief Internal Auditor advised Members that the Annual Governance Statement will go along with the Annual Accounts to the Policy & Organisation Board.
In answer to a Members question, the Chief Internal Auditor advised that the lack of Counter Fraud would be given high priority, taken forward as soon as possible within the current financial year.
Members recognised that members of the audit team had been seconded to assist with Covid related work, hence the delay.
Members were advised that significant progress had been made regarding GDPR since the last audit and a follow up audit had seen improvements and putting in place of arrangements already in place elsewhere in the Partnership.
Members were advised that the audit process had changed in as much as it was far more risk based now, and more issues were being identified because of this new approach.
In answer to a Members question the Chief Internal Auditor explained that there was in place an audit universe tracking various auditable activities in the Council. Every year that is risk assessed following consultation with Section Heads and Senior Management to see if there have been any changes. Audits are carried out on those with the higher scores and deemed high risk. Some are conducted annually, such as key financial systems while others aim to be covered once within a five year cycle.
Members were advised that compliance to Contract Procedure Rules is low and they are being re-written in consultation with CIPFA. These had originally been revamped quickly when Proactis was introduced and once in place would be fit for purpose and ensure continued improvement.
RESOLVED: That the Committee approved the draft Annual Governance Statement 2020/21
The Chief Internal Auditor advised Members that the Annual Governance Statement will go along with the Annual Accounts to the Policy & Organisation Board.
In answer to a Members question, the Chief Internal Auditor advised that the lack of Counter Fraud would be given high priority, taken forward as soon as possible within the current financial year.
Members recognised that members of the audit team had been seconded to assist with Covid related work, hence the delay.
Members were advised that significant progress had been made regarding GDPR since the last audit and a follow up audit had seen improvements and putting in place of arrangements already in place elsewhere in the Partnership.
Members were advised that the audit process had changed in as much as it was far more risk based now, and more issues were being identified because of this new approach.
In answer to a Members question the Chief Internal Auditor explained that there was in place an audit universe tracking various auditable activities in the Council. Every year that is risk assessed following consultation with Section Heads and Senior Management to see if there have been any changes. Audits are carried out on those with the higher scores and deemed high risk. Some are conducted annually, such as key financial systems while others aim to be covered once within a five year cycle.
Members were advised that compliance to Contract Procedure Rules is low and they are being re-written in consultation with CIPFA. These had originally been revamped quickly when Proactis was introduced and once in place would be fit for purpose and ensure continued improvement.
RESOLVED: That the Committee approved the draft Annual Governance Statement 2020/21
10
Gifts and Hospitality Return for Council Staff
To advise the Committee of the Gifts and Hospitality declared by Council Staff for the period April 2019- March 2021, and to advise the Committee of some minor typographical amendments to the Policy.
Attachments:
- Document 10.Gifts and hospitality return report 08.07.21 PG 26 Jul 2021
- Document 10.Gifts_and_Hospitality_updated July 2021 PG 26 Jul 2021
Minutes
It was agreed to take this report as Item 7 of the agenda
Consideration was given to a report by the Borough Solicitor and Monitoring Officer seeking approval from the Committee for the Gifts and Hospitatlity declared by Council Staff for the period April 2019-March 2021, and advising of some minor typographical amendments to the Policy.
RESOLVED: That the Committee noted the report and approved the policy.
Consideration was given to a report by the Borough Solicitor and Monitoring Officer seeking approval from the Committee for the Gifts and Hospitatlity declared by Council Staff for the period April 2019-March 2021, and advising of some minor typographical amendments to the Policy.
RESOLVED: That the Committee noted the report and approved the policy.
11
Any Other Items
Minutes
Previous Meetings
Future Meetings
Join the Discussion
You need to be signed in to comment.
Sign in