Hart Borough Council
Councillors:
33
Wards:
11
Committees:
14
Meetings (2025):
60
Meetings (2024):
60
Meeting
Audit Committee - Hart
Meeting Times
Scheduled Time
Start:
Tuesday, 23rd July 2024
7:00 PM
Tuesday, 23rd July 2024
7:00 PM
End:
Tuesday, 23rd July 2024
11:00 PM
Tuesday, 23rd July 2024
11:00 PM
Meeting Status
Status:
Confirmed
Confirmed
Date:
23 Jul 2024
23 Jul 2024
Location:
Council Chamber
Council Chamber
Meeting Attendees
Officer
Executive Director, Corporate Services & S151 Officer
Graeme Clark
In attendance
Officer
Committee and Member Services Officer
Emma Evans
Democratic Services
In attendance
Agenda
0
23-24 Audit Committee Annual Report
Attachments:
- Document 23-24 Audit Committee Annual report AC July 2024 v2 (1) 25 Jul 2024
Minutes
1
Election of Vice-Chair for 2024/25 Municipal Year
Minutes
Two nominations were received for Vice Chairman.
Cllr Taylor (proposed Cllr Brown)
Cllr Axam (proposed Cllr Southern)
Voting:
For Councillor Taylor – Brown, Khepar, Taylor (3)
For Councillor Axam – Axam, Hale, Makepeace-Browne, Southern (4)
Decision
Cllr Axam was elected Vice Chairman of Audit Committee for the municipal year 2024/25.
Cllr Taylor (proposed Cllr Brown)
Cllr Axam (proposed Cllr Southern)
Voting:
For Councillor Taylor – Brown, Khepar, Taylor (3)
For Councillor Axam – Axam, Hale, Makepeace-Browne, Southern (4)
Decision
Cllr Axam was elected Vice Chairman of Audit Committee for the municipal year 2024/25.
2
Minutes of the Previous Meeting
The minutes of the meeting held on 26 March 2024 are attached for confirmation and signature as a current record.
Attachments:
- Document Minutes of Previous Meeting 15 Jul 2024
Minutes
The minutes of 26 March 2024 were agreed and confirmed and signed as a correct record.
3
Apologies for Absence
To receive any apologies for absence from Members*.
*Note: Members are asked to email Committee Services in advance of the meeting as soon as they become aware they will be absent.
*Note: Members are asked to email Committee Services in advance of the meeting as soon as they become aware they will be absent.
Minutes
No apologies received.
4
Declarations of Interest
To declare disclosable pecuniary, and any other, interests*.
*Note: Members are asked to email Committee Services in advance of the meeting as soon as they become aware they may have an interest to declare.
*Note: Members are asked to email Committee Services in advance of the meeting as soon as they become aware they may have an interest to declare.
Minutes
No declarations made.
5
Chairman's Announcements
Minutes
No announcements.
6
Annual Internal Audit Report and Opinion 2023-24
To note the Internal Audit Report and Opinion for 2023/24.
Attachments:
- Document HDC - Annual Internal Audit Report Opinion 2023-2024 15 Jul 2024
Minutes
Iona Bond from Southern Internal Partnership (SIAP) presented the key findings from the Annual Internal Audit Report and Opinion 2023-24.
Ms. Bond mentioned that sufficient assurance work has been conducted to reasonably conclude on the adequacy and effectiveness of the internal control environment. The opinion frameworks of governance, risk management, and management control are considered reasonable. When weaknesses were identified through internal audit review, they collaborated with management to agree on appropriate corrective actions and a timeline for improvement.
The overall opinion showed that 7 out of the 12 Audits were considered to have a substantial or reasonable level of assurance, while 5 Audits were deemed to have limited assurance: HR – Workforce Strategy, Accounts Receivable and Debt Management, Climate Change, Licensing, and Legal Services.
Although the Climate Change, Licensing, and Accounts Recoverable Audits had been completed, their reports have not been issued yet, and they will be part of the Opinion for 2024-25.
Ms. Bond commended officer engagement and thanked everyone involved in the process. The Chairman also commended the report.
Members enquired about the nature of the Audits that received limited assurance and the actions taken by management to address the raised issues.
The Executive Director – Corporate agreed to bring a report outlining the raised issues and management action being taken to address them to the October O&S Committee.
Members also asked about the £201,179.24 amount of debt on hold.
The Executive Director – Corporate explained that this was a historical allocation of an indicator that suppressed invoices. Once this was brought to their attention, the action ceased immediately. The debt mainly relates to homelessness deposits. Members requested that the success rate of recovering the funds should be included in the October report.
Decision
The Committee noted the Internal Audit Report and Opinion 2023-24 and acknowledged the excellent report by SIAP.
Ms. Bond mentioned that sufficient assurance work has been conducted to reasonably conclude on the adequacy and effectiveness of the internal control environment. The opinion frameworks of governance, risk management, and management control are considered reasonable. When weaknesses were identified through internal audit review, they collaborated with management to agree on appropriate corrective actions and a timeline for improvement.
The overall opinion showed that 7 out of the 12 Audits were considered to have a substantial or reasonable level of assurance, while 5 Audits were deemed to have limited assurance: HR – Workforce Strategy, Accounts Receivable and Debt Management, Climate Change, Licensing, and Legal Services.
Although the Climate Change, Licensing, and Accounts Recoverable Audits had been completed, their reports have not been issued yet, and they will be part of the Opinion for 2024-25.
Ms. Bond commended officer engagement and thanked everyone involved in the process. The Chairman also commended the report.
Members enquired about the nature of the Audits that received limited assurance and the actions taken by management to address the raised issues.
The Executive Director – Corporate agreed to bring a report outlining the raised issues and management action being taken to address them to the October O&S Committee.
Members also asked about the £201,179.24 amount of debt on hold.
The Executive Director – Corporate explained that this was a historical allocation of an indicator that suppressed invoices. Once this was brought to their attention, the action ceased immediately. The debt mainly relates to homelessness deposits. Members requested that the success rate of recovering the funds should be included in the October report.
Decision
The Committee noted the Internal Audit Report and Opinion 2023-24 and acknowledged the excellent report by SIAP.
7
Statement of Accounts 2022/23
To approve the Statement of Accounts 2022/23.
Attachments:
- Document Statement of Accounts 2022-23 pre-audit v6a 15 Jul 2024
Minutes
The Executive Director – Corporate presented Members with the Statement of Accounts 2022/23, he advised that Preeti Malik from EY was available if Members had any questions. In line with the Government reset on Audit, this set of accounts will not get a full audit. This position may change if further legislation is published. The 2023/24 set of accounts were published on 31 May 2024 and will be brought to the October meeting for approval, alongside EY’s audit findings report.
Members requested an explanation of the pension liability.
The Executive Director – Corporate explained that HDC staff are part of the statutory Local Government Pension Scheme (LGPS) and that Hampshire County Council are the Pensions Authority. The scheme for most councils has been historically in deficit, but changes to the schemes over the past 15 years have meant that the deficit for Hart, whilst still substantial, is decreasing.
The Executive Director – Corporate agreed to hold a briefing session on the 2023/24 accounts for Members in September.
The recommendation was proposed by Cllr Southern and, seconded by Cllr Axam.
Unanimous.
Decision
Audit Committee approved the Statement of Accounts 2022/23.
Members requested an explanation of the pension liability.
The Executive Director – Corporate explained that HDC staff are part of the statutory Local Government Pension Scheme (LGPS) and that Hampshire County Council are the Pensions Authority. The scheme for most councils has been historically in deficit, but changes to the schemes over the past 15 years have meant that the deficit for Hart, whilst still substantial, is decreasing.
The Executive Director – Corporate agreed to hold a briefing session on the 2023/24 accounts for Members in September.
The recommendation was proposed by Cllr Southern and, seconded by Cllr Axam.
Unanimous.
Decision
Audit Committee approved the Statement of Accounts 2022/23.
8
Annual Governance Statement 2023/24 incorporating Review of Local Code of Corporate Governance
To consider and approve the draft Annual Governance Statement for 2023/24 which is required under the Local Authority Accounts and Audit Regulations and is a core function of Hart’s Audit Committee.
Recommendation
The Audit Committee:
· approve the 2023/24 Annual Governance Statement, incorporating the review of Local Code of Corporate Governance, and
· authorise the S151 Officer, in consultation with the Audit Committee Chairman, to make any non-material changes to the document arising from the external audit of the Accounts for 2023/24
Recommendation
The Audit Committee:
· approve the 2023/24 Annual Governance Statement, incorporating the review of Local Code of Corporate Governance, and
· authorise the S151 Officer, in consultation with the Audit Committee Chairman, to make any non-material changes to the document arising from the external audit of the Accounts for 2023/24
Attachments:
- Document 23-24 AGS and Local Code of Corporate Governance - AC July 2024 v2 (1) 15 Jul 2024
- Document Annual Governance Statement 23-24 draft for publication (1) 15 Jul 2024
Minutes
The Executive Director – Corporate introduced the draft Annual Governance Statement for 2023/24. In preparation of the statement all aspect of governance were scrutinised. A number of significant governance issues were
Identified and the action taken to address them are detailed in the report.
Members requested that progress made against the issues be brought to the October O&S Committee.
A Member queried the wording in the self -assessment against good practice section Annex 1. It was agreed that this would be amended.
A Member asked for an update in the 5C’s Capita contract.
The Executive Director – Corporate explained that an exempt update had been included in the July Cabinet meeting.
It was agreed a copy of the Cabinet minutes would be circulated to Committee Members.
The recommendation was proposed by Cllr Southern and seconded by Cllr Axam.
Unanimous.
Decision
The Audit Committee:
• asked the Executive Director -Corporate to amend the report to include in the governance improvement plan table one additional action in relation to internal audit reports, and to amend the wording in the column header in Annex A.
• approved the 2023/24 Annual Governance Statement, incorporating the review of Local Code of Corporate Governance, and
• authorised the S151 Officer, in consultation with the Audit Committee Chairman, to make any non-material changes to the document arising from the external audit of the Accounts for 2023/24
Identified and the action taken to address them are detailed in the report.
Members requested that progress made against the issues be brought to the October O&S Committee.
A Member queried the wording in the self -assessment against good practice section Annex 1. It was agreed that this would be amended.
A Member asked for an update in the 5C’s Capita contract.
The Executive Director – Corporate explained that an exempt update had been included in the July Cabinet meeting.
It was agreed a copy of the Cabinet minutes would be circulated to Committee Members.
The recommendation was proposed by Cllr Southern and seconded by Cllr Axam.
Unanimous.
Decision
The Audit Committee:
• asked the Executive Director -Corporate to amend the report to include in the governance improvement plan table one additional action in relation to internal audit reports, and to amend the wording in the column header in Annex A.
• approved the 2023/24 Annual Governance Statement, incorporating the review of Local Code of Corporate Governance, and
• authorised the S151 Officer, in consultation with the Audit Committee Chairman, to make any non-material changes to the document arising from the external audit of the Accounts for 2023/24
9
Audit Committee Annual Report 2023/24
To consider and approve a report summarising the work of the Audit Committee in 2023/24 and comparing its function and activity to the best practice guide as set out in CIPFA’s Position Statement for Audit Committees in Local Authorities (2022).
Recommendation
The Committee reviews and approves the Audit Committee Annual Report 2023/24.
Recommendation
The Committee reviews and approves the Audit Committee Annual Report 2023/24.
Attachments:
- Document 23-24 Audit Committee Annual report AC July 2024 v2 (1) 15 Jul 2024
Minutes
The Executive Director – Corporate introduced the Annual Report to the Committee explaining that this was a new document to be produced annually at the request of Committee Members. The report had been produced in line with Chartered Institute of Public Finance and Accountancy (CIPFA) best practice and provides a look back at the work of the Committee each year.
The Chair explained as there was no mechanism within the Constitution for this report to be presented to Council, it will be added as an appendix to the minutes, which are presented to Council for information.
The recommendation was proposed by Cllr Axam and seconded by Cllr Hale.
Unanimous.
Decision
The Committee approved the Audit Committee Annual Report 2023/24.
The Chair explained as there was no mechanism within the Constitution for this report to be presented to Council, it will be added as an appendix to the minutes, which are presented to Council for information.
The recommendation was proposed by Cllr Axam and seconded by Cllr Hale.
Unanimous.
Decision
The Committee approved the Audit Committee Annual Report 2023/24.
10
Audit Committee Work Programme
Attachments:
- Document July 2024 Audit Committee Work Programme 15 Jul 2024
Minutes
The committee considered the Audit Committee Work Programme, the programme was welcomed.
Members queried the Audit Fee’s consultation and that the requested management report on action taken to address issues raised within the Internal Audit Report is added to the October meeting.
Members queried the Audit Fee’s consultation and that the requested management report on action taken to address issues raised within the Internal Audit Report is added to the October meeting.
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