Venue: Ashburton Hall, Elizabeth II Court, The Castle, Winchester. View directions
Contact: Members Services
No. | Item |
---|---|
Apologies for absence To receive any apologies for absence. Minutes: Apologies were received from Councillors Tim Davies and Keith House. Councillor David Harrison was in attendance as the Liberal Democrat substitute. |
|
Declarations of Interest All Members who believe they have a Disclosable Pecuniary Interest in any matter to be considered at the meeting must declare that interest and, having regard to Part 3 Paragraph 1.5 of the County Council's Members’ Code of Conduct, leave the meeting while the matter is discussed, save for exercising any right to speak in accordance with Paragraph 1.6 of the Code. Furthermore all Members with a Personal Interest in a matter being considered at the meeting should consider, having regard to Part 5, Paragraph 4 of the Code, whether such interest should be declared, and having regard to Part 5, Paragraph 5 of the Code, consider whether it is appropriate to leave the meeting while the matter is discussed, save for exercising any right to speak in accordance with the Code.
Minutes: Members were mindful that where they believed they had a Disclosable Pecuniary Interest in any matter considered at the meeting they must declare that interest at the time of the relevant debate and, having regard to the circumstances described in Part 3, Paragraph 1.5 of the County Council's Members' Code of Conduct, leave the meeting while the matter was discussed, save for exercising any right to speak in accordance with Paragraph 1.6 of the Code. Furthermore Members were mindful that where they believed they had a Personal Interest in a matter being considered at the meeting they considered whether such interest should be declared, and having regard to Part 5, Paragraph 5 of the Code, considered whether it was appropriate to leave the meeting whilst the matter was discussed, save for exercising any right to speak in accordance with the Code.
No declarations were made. |
|
Minutes of previous meeting held on 7 March 2024 To confirm the minutes of the previous meeting. Minutes: The minutes of the meeting held on 7 March 2024 were agreed as a correct record and signed by the Chairman. |
|
Chairman's Announcements To receive any announcements the Chairman may wish to make. Minutes: The Chairman welcomed newly appointed Members Councillor Stephen Reid, formally a substitute member, and Councillor Malcolm Wallace to the Committee. |
|
Deputations To receive any deputations notified under Standing Order 12. Minutes: There were no deputations received on this occasion. |
|
Information Compliance - Use of Regulated Investigatory Powers To receive the quarterly update on the County Council’s use of regulated investigatory powers. Additional documents: Minutes: The Committee received an update on the County Council’s use of regulated investigatory powers during the previous quarter.
It was heard that this was the third consecutive year when the use of direct surveillance and covert human intelligence source had not been required, which was reflective of the general increase in open access to data through online resources and other less intrusive methods.
Members were informed that there had been further use of communications data during the last quarter in relation to the ongoing investigation of a serious fraud matter, with three arrests and two warrants served in connection with the investigation since the previous meeting of the Committee.
In response to Members questions it was heard that the use of powers could be approved by one of two appointed officers within the County Council, providing appropriate control, with the Director maintaining oversight of the use of powers when applied.
Members questioned whether the format of the report could be revised to include a wider narrative to accompany the report, and it was agreed that this would be incorporated within the report going forward, including a note of any disclosable outcomes resulting from the use of powers.
An additional recommendation was proposed by Councillor Ryan Brent and seconded by Councillor David Harrison and agreed unanimously by all those in attendance:
· That the Use of Regulated Investigatory Powers reports contain a more comprehensive narrative, as permitted, to support the recommendations.
RESOLVED:
· That the Audit Committee receives and notes the data regarding the County Council’s use of surveillance powers as attached.
· That the Use of Regulated Investigatory Powers reports contain a more comprehensive narrative, as permitted, to support the recommendations. |
|
External Audit Plan 2023/24 - Hampshire Pension Fund To receive a report from the External Auditors, Ernst and Young, presenting the provisional external audit plan for the Hampshire Pension Fund for the year ending 31 March 2024. Additional documents: Minutes: The Committee received a report from the external auditors, Ernst and Young, presenting the provisional external audit plan for the Hampshire Pension Fund for the year ending 31 March 2024.
It was heard that the risks outlined within the report were very similar to those reported during the prior year, due to consistency in the investment approach.
It was noted that £8.9bn of assets were held by the Fund at the end of the financial year, and this figure was used to set the materiality level, at 1% of the fund’s assets.
Cllr Stephen Reid declared a personal interest, as a pensioner member in receipt of income from the Hampshire Pension Fund.
In response to Members questions it was heard that:
· Evaluation of external risk was a core element of the audit process, and assumptions were tested rigorously, as set out within the Audit Plan. · As outlined within the plan, the audit process would include a review of Value for Money, including the value of held property and assets. · The auditors had no concerns about the timeliness of information being provided and matters being raised as appropriate by the County Council’s officers. · The Section 151 Officer was responsible for implementing a series of controls to prevent the risk of fraud. External audit conduct a dip sample of transactions, annually, both at levels above and below the materiality level, as well as reviewing any significantly unusual transactions to seek to identify any instances of fraud. · The auditors also considered exposure to environmental risk, for example reduction in the value of assets resulting from climate change and weather events, as well as assessing any potential reduction in value of investments in industries such as fossil fuels, as a result of environmental concerns.
RESOLVED:
That the Audit Committee receives and notes the provisional Hampshire Pension Fund external audit plan for the year ending 31 March 2024. |
|
Treasury Management Update To receive an update on the performance of the treasury management function during 2023/24. Minutes: Members received a verbal update on the performance of the treasury management function during 2023/24.
It was heard that the Treasury Management Outturn Report would be reported directly to Cabinet on this occasion. It was noted that this report would normally be brought first to the Audit Committee, however the deadline for completing the 2023/24 financial reporting was not until end of May. To enable the outturn report to be brought to the Audit Committee in future years, before submission to Cabinet, it was heard that future meetings of the Audit Committee would be rescheduled to be held in June.
Members heard that all treasury management activity had been undertaken in compliance with the Council’s Treasury Management policy. It was noted that there had been a reduction of £28m in borrowing during the previous year and that advance payment of the next three years pension contributions, in April 2023, had allowed the County Council to take an advantage of a discount against the contributions.
The County’s investments had realised a 5.28% return on investment, which was benchmarked by Arlingclose and was noted as greater than the return achieved by other comparable local authorities.
RESOLVED: That the update was noted. |
|
Audit Committee Terms of Reference Report To consider a report from the Deputy Chief Executive and Director of Corporate Operations proposing changes to the Audit Committee’s Terms of Reference, following the Committee’s discussion on 7 March 2024. Minutes: The Committee received a report from the Deputy Chief Executive and Director of Corporate Operations proposing changes to the Audit Committee’s Terms of Reference, following the Committee’s discussion on 7 March 2024.
It was heard that the revised terms of reference, as presented, provided greater detail on the role and responsibilities of the Audit Committee, reflecting the model outlined within the CIPFA guidance, with appropriate modifications as discussed at the previous meeting.
It was observed that the terms of reference made clear that the Audit Committee would continue to approve the annual statement of accounts and annual governance statement, in keeping with many other local authorities. The terms of reference also specified that the size of the political composition of the Committee would not be reduced, although proposed the appointment of two, non-voting, co-opted independent members, increasing the total membership to 11 members.
Debate was held over the proposed terms of reference, through which several Members expressed concerns about the necessity of the appointment of independent co-opted members, however the majority spoke in favour of appointing independent co-optees, noting the importance of selecting candidates who could offer complementary skills and commit the necessary time required to be effective.
Members expressed a view that compliance with the CIPFA guidance, where appropriate, would be beneficial to the work of the Committee.
Members also spoke in support of the proposal to enhance the training for members of the Committee, with understanding that this would require a significant time investment from Members and would involve an analysis of training need to maximise the impact of the training.
An amendment to the recommendations was proposed by Councillor Reid and seconded by Councillor Broomfield:
· That the principle of appointing two co-opted independent members to the Audit Committee from May 2025 is supported subject to an appropriate recruitment and selection process being undertaken by the Deputy Chief Executive and Director of Corporate Operations in consultation with the Chairman of the Audit Committee.
A vote was held and the additional recommendation was agreed unanimously.
A vote was held on the substantive recommendations, with the amendment, with six votes for and two Members abstaining.
RESOLVED:
· That the Audit Committee approves the revised Terms of Reference set out in Annex 2 for recommendation to Cabinet for consideration and recommendation to the County Council for approval.
· That the principle of appointing two co-opted independent members to the Audit Committee from May 2025 is supported subject to an appropriate recruitment and selection process being undertaken by the Deputy Chief Executive and Director of Corporate Operations in consultation with the Chairman of the Audit Committee. |
|
Minutes of the Hampshire Pension Fund Panel and Board Meeting - 12 December 2023 (Public) To receive the public minutes of the Hampshire Pension Fund Panel and Board meeting held on 12 December 2023.
Additional documents: Minutes: The Committee received the non-exempt minutes of the Hampshire Pension Fund and Board meeting held on 12 December 2023.
Discussion was held regarding the financial impact of the McCloud judgement. It was heard that only a small number of pensioner members would be impacted by the judgement and the County Council would be undertaking the necessary actions on behalf the Pension Fund.
RESOLVED: That the Audit Committee receives and notes the minutes as attached to this report.
|
|
Exclusion of the Press and Public To resolve that the public be excluded from the meeting during the following item of business, as it is likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during this item there would be disclosure to them of exempt information within Paragraphs 3 of Part 1 of Schedule 12A to the Local Government Act 1972, and further that in all the circumstances of the cases, the public interest in maintaining the exemption outweighs the public interest in disclosing the information, for the reasons set out in the exempt minutes. Minutes: The press and public were excluded from the meeting during the following items of business, as it was likely, in view of the nature of the business to be transacted or the nature of the proceedings, that if members of the public were present during these items there would have been disclosure to them of exempt information within Paragraphs 3 and 5 of Part I Schedule 12A to the Local Government Act 1972, and further that in all the circumstances of the case, the public interest in maintaining the exemption outweighed the public interest in disclosing the information, for the reasons set out in the minutes.
|
|
Minutes of the Hampshire Pension Fund Panel and Board Meeting - 12 December 2023 (Exempt) To receive the exempt minutes of the Hampshire Pension Fund Panel and Board meeting held on 12 December 2023.
Minutes: The Committee received the exempt minutes of the Hampshire Pension Fund and Board meeting held on 12 December 2023.
RESOLVED: That the Audit Committee receives and notes the minutes, as attached to this report.
|