Agenda and minutes

Apologies for absence were submitted on behalf of Councillor Ladkin and Councillor Huw Williams.

To confirm the minutes of the previous meeting.

It was moved by Councillor Fleming seconded by Councillor Pendlebury

                        RESOLVED– the minutes of the meeting held on 24 November                    2020 be approved.

To receive verbally from members any disclosures which they are required to make in accordance with the Council’s code of conduct or in pursuance of Section 106 of the Local Government Finance Act 1992. This is in addition to the need for such disclosure to be also given when the relevant matter is reached on the agenda.

No interests were declared at this stage.

To present the Internal Audit Review – Medium Term Financial Plan

The internal auditors presented the internal audit review and medium term financial strategy review that formed part of 20/21 plan. This was a report they completed in February of this year.

They re-iterated that the planning process for the next three years was further complicated due to significant uncertainties based around the impact of Covid-19 and the lack of certainty of how the Council would be funded by central Government. Only a one year settlement had been awarded which provided a lack of future funding presenting future risks.

They also considered that it would be beneficial to extend the Council’s use of sensitivity analysis and to introduce scenario planning which would mean documenting the best, base and worse case scenarios managing any fluctuation should it arise.

Auditors also reviewed the medium term financial plan and raised two medium risk rated recommendations which were around projected income. Both relating to the financial settlement only being provided for one further year and also the uncertainty around the local economy income from local sources.

Members noted the report.

To present the Annual Internal Audit Plan for 2020/21 and the Strategic Internal Audit Plan for 2020/23

The internal auditors presented the annual internal audit plan for 2020/21 and the strategic internal audit plan for 2020/23 that set out the working for a three year rolling period. They also confirmed that  currently they are only contracted until 2021.

They confirmed they had looked at various policies and procedures and that senior officers and all directors had an input into this plan that had been built up over a number of months.

It was moved by Councillor Pendlebury, seconded by Councillor Hodgkins unanimously

            RESOLVED – the report be agreed.

To present a report of the Internal Auditors - Key Financial Systems Report 2020/21

The internal auditors presented the key financial systems report 2020/21 and confirmed that they had to adapt to different ways of working due to the Covid-19 pandemic and focused on areas they judged to be challenged by these new arrangements as well as considering the more routine financial controls.

They confirmed that they gave partial assurance with improvement required to this committee. They also identified several areas which require improvement which included:

·         Enhanced reporting to budget holders on unrecovered debt should include detailed responses including action being taken or proposed, with deadlines for accountability

·         Inconsistencies in the reporting of key performance indicators relating to sundry debt to the Finance and Performance Scrutiny Committee

·         Sundry debt and recovery and revenue & benefits recovery policies did not completely and accurately reflect current standard practice

·         Reporting of outstanding sundry debt to budget holders did not provide sufficient narrative or accountability to ensure prompt resolutions

Based on their findings the Internal Auditors raised six recommendations to address the weaknesses identified and five improvement recommendations based on their view of best practice in each area.

The Auditors wished to take this opportunity to thank staff for their co-operation during this internal audit and wished the finance team to be credited for their work.

To present the Internal Audit progress report & Sector update report for the year ending 31 March 2021

The internal auditors presented the internal audit progress report & sector update report for the year ending 31 March 2021.  They confirmed that the report contained a summary of emerging national issues and developments that may be relevant and a number of challenge questions in respect of these emerging issues.

The auditors confirmed that there were a number of recommendations that had not yet been implemented. They also confirmed that they would have a push in the summer to go through all of the recommendations to check they were still relevant or had been superseded.  They assured members that they would go back and reflect and cleanse which would provide a better picture moving forward.

Members noted the report.