Agenda item

To present the Annual Report of the Audit Committee covering the work performed by the Committee during the period 2023-24. 

Cabinet was provide with an update on the details of the work performed by the Audit Committee during 2023/24.

Cabinet was asked to consider and note the annual report which sets out how Audit Committee has discharged responsibilities within its terms of reference, the outcome of its self-assessment of effectiveness against recommended practice and an overview of the activity it has undertaken during the year.

Dr Stuart Green, currently acting Chair of the Committee, was invited to talk Cabinet through the Committee’s work.

Dr Green thanked Cabinet for the opportunity to present the Audit Committee Annual Report.

Firstly, Dr Green asked for thanks and gratitude to the previous Chair, Malcolm Wilkinson to be recorded, for his significant contribution over 10 years of service and his leadership as Chair in recent years.

Dr Green also thanked all Elected Members who served on the Committee during 2023/24 and welcomed the new members who joined the Committee in May of this year.  

Dr Green advised that given our constantly changing and evolving risk profile, challenges and financial pressures the provision of independent assurance to the Authority has, arguably, never been more important. Audit Committee plays a vital role in supporting and maintaining a culture and environment to support the integrity of governance arrangements and the provision of information for decision making for the Authority.

Dr Green advised that it is, therefore, important that Cabinet are assured the Audit Committee discharges its responsibilities, as set out within the Constitution, and it is operating effectively.

The annual report sets out the work the Committee has undertaken in discharging its responsibilities and the reports we have received in relation to finance and external audit, internal audit, risk management and counter fraud.

As a Committee Dr Green advised that a self-assessment against recommended practice and guidance on the operation of an audit committee in local government, which is produced by the Chartered Institute of Public Finance and Accountancy has been undertaken.

Dr Green was pleased to report that this self-assessment concluded the Committee is operating effectively and, in the main, complies with recommended practice. It was noted that this is only recommended practice and there is no impact on compliance with statutory requirements in relation to the two areas where the Committee does not operate in line with recommended practice.

Firstly, the Committee is responsible for approving the annual statement of accounts. Recommended practice is that the Committee maintains its advisory role by not taking on decision making powers. However, there is no suitable alternative within the Authority’s existing Committee structure and this responsibility remains with the Committee who benefit from having co-opted members with financial skills and experience to effectively support this process.

Secondly, the Committee’s annual report is presented to Cabinet. Recommended practice is that the Audit Committee reports to full Council. This does not impact on transparency or accountability with both Audit Committee and Cabinet papers publicly available.

Dr Green hoped that Cabinet found the report interesting and helpful in providing assurance that Audit Committee continues to be a vital assurance link for the Authority and in turn, residents, businesses, and all those who live or work within the borough.

Dr Green thanked Cabinet for their time and was happy to take any comments or questions on the report. 

Cabinet thanked Dr Green, the officers and Committee members for its assurances.

Cabinet Resolved that the Audit Committee Annual Report for 2023/24 be noted.