Agenda and minutes

Audit Committee - Thursday 26 September 2024 3.00 pm, MOVED

Venue: Mitchell Room - HCC. View directions

Contact: Members Services 

Media

Items
No. Item

193.

Apologies for absence

To receive any apologies for absence.

Minutes:

Apologies were received from Cllr Ryan Brent.

194.

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.

195.

Minutes of previous meeting held on 25 July 2024 pdf icon PDF 78 KB

To confirm the minutes of the previous meeting.

Minutes:

The minutes of the meeting held on 25 July 2024 were agreed as a correct record and signed by the Chairman.

196.

Deputations

To receive any deputations notified under Standing Order 12.

Minutes:

No deputations were received by the Committee on this occasion.

197.

Chairman's Announcements

To receive any announcements the Chairman may wish to make.

Minutes:

The Chairman thanked Officers for the training that had been provided recently for members.

198.

Information Compliance - Use of Regulated Investigatory Powers pdf icon PDF 124 KB

To receive the quarterly update on the County Council’s use of regulated investigatory powers.

Additional documents:

Minutes:

The Committee received a quarterly update on the County Council’s use of regulated investigatory powers.

 

It was observed that there had been no use of powers during the previous quarter.

 

RESOLVED:

 

That the Audit Committee receives and notes the data/narrative regarding the

County Council’s use of surveillance powers.

 

199.

Corporate Risk Management - Risk Appetite Statements pdf icon PDF 195 KB

To consider a report from the Chief Executive and the Director of People and Organisation updating the Audit Committee on work completed by the County Council to develop organisational risk appetite statements, as part of strengthening the wider Corporate Risk Management framework and Risk Strategy.

Minutes:

The Committee received a report from the Chief Executive and the Director of People and Organisation updating the Audit Committee on work completed by the County Council to develop organisational risk appetite statements, as part of strengthening the wider Corporate Risk Management framework and Risk Strategy.

 

Members noted the development and rationale for each of the 15 risk appetite statements and their integration into the County Council’s risk management framework and Risk Management Strategy 2022-25. These statements will be used by Chief Officers to inform and contribute to recommendations and decision-making. It is expected that this work will support future decision-making to maintain good and efficient services for Hampshire’s most vulnerable residents and meet legal obligations.

 

Members discussed their application within the decision-making process, noting their role in the formation of officer recommendations and the distinction between those and Council decisions.

 

RESOLVED:

 

That the Audit Committee:

 

·         Reviewed the 15 risk appetite statements (see Appendix A) that have been developed and agreed by the Chief Officers Group, that pertain to key strategic areas of the organisation.

·         Recognised the approach that has been agreed with the Corporate Management Team (CMT), for application of these statements by Chief Officers when evaluating and proposing recommendations to support and contribute to informed decision making.

·         Acknowledged that the risk appetite statements have been added to the current Corporate Risk Management Strategy 2022-2025 (see Appendix B), noting that these changes will be recommended to Cabinet in November for approval. A formal review of the 3-year Risk Management Strategy will take place in 2025, for further consideration and approval by Cabinet later that year

 

200.

External Audit Update pdf icon PDF 68 KB

To receive a report from the External Auditors, presenting an update to the Audit Committee on progress against the external audit for Hampshire County Council for the years ending 31 March 2023 and 31 March 2024

Additional documents:

Minutes:

The Committee received a report from the External Auditors, presenting an update on progress against the external audit for Hampshire County Council for the years ending 31 March 2023 and 31 March 2024.

 

Members noted that the new Minister of State for Local Government and English Devolution announced a policy to address the local government audit backlog. The policy aims to ensure sustainable local audits and timely financial reporting. The Government plans to complete the backlog by 13 December 2024. Auditors will disclaim the 2022/23 audit to reset local public audits and focus on recent financial information.

 

RESOLVED:

That the Audit Committee receives and notes the External Audit Progress Report for the years ending 31 March 2023 and 31 March 2024.

 

201.

Statement of Accounts 2022/23 pdf icon PDF 159 KB

To receive a report from the Deputy Chief Executive and Director of Corporate Operations seeking reapproval for the unaudited Statement of Accounts for Hampshire County Council and the Hampshire Pension Fund for the period ending 31 March 2023.

Additional documents:

Minutes:

The Committee received a report from the Deputy Chief Executive and Director of Corporate Operations seeking reapproval for the unaudited Statement of Accounts for Hampshire County Council and the Hampshire Pension Fund for the period ending 31 March 2023.

 

Members were provided with details of the 2022/23 accounts and audit process, noting that the County Council published its unaudited draft accounts on 31 May 2023, which the Audit Committee had approved in September 2023. However, audited accounts were not published by the 30 September deadline due to the national audit backlog. On 30 July 2024, the Minister of State for Local Government announced a policy to address this backlog, setting a backstop date of 13 December 2024 for outstanding audits. The County Council’s external auditor plans to issue a disclaimed opinion on the 2022/23 accounts due to incomplete audits, not due to material issues. The ministerial statement emphasises that local bodies should not be unfairly judged based on disclaimed opinions and that auditors should provide clear reasons for such opinions to mitigate reputational risks.

 

RESOLVED:

 

1.    That the updated Statement of Accounts for 2022/23 for Hampshire County Council and the Hampshire Pension Fund be approved.

 

2.    That delegated authority be given to the Deputy Chief Executive and Director of Corporate Operations in consultation with the Chairman of the Audit Committee to approve minor changes to the accounts agreed between the County Council and the external auditor to allow the audited accounts to be published by the proposed backstop date of 13 December 2024.

 

3.    That it is noted that the audit of the 2022/23 will not be completed due to the impact of the national audit backlog meaning that it is the auditor’s intention to give a disclaimed opinion on the County Council’s accounts.

 

4.    That the Audit Committee agrees that no updates are needed to the Annual Governance Statement approved in September 2023.

 

5.    That it is noted that the Letters of Representations will be signed by the Chairman of the Audit Committee and Chief Financial Officer (the Deputy Chief Executive and Director of Corporate Operations) as required by the external auditor at the conclusion of the audit.

202.

Statement of Accounts 2023/24 pdf icon PDF 145 KB

To consider a report from the Deputy Chief Executive and Director of Corporate Operations seeking approval for the unaudited Statement of Accounts for Hampshire County Council and the Hampshire Pension Fund for the period ending 31 March 2024.

Additional documents:

Minutes:

The Committee received a report from the Deputy Chief Executive and Director of Corporate Operations seeking approval for the unaudited Statement of Accounts for Hampshire County Council and the Hampshire Pension Fund for the period ending 31 March 2024.

 

Officers provided a summary of the 2023/24 accounts and audit process, noting the County Council published its unaudited draft accounts on 31 May 2024, with public inspection following.

 

Through discussion and in response to Members’ questions it was heard that:

·         The County Council was very successful in relation to the utilisation of Section 106 developer funding contributions.

·         The County Council’s budget deficit would continue to increase due to the pressures on Adult’s and Children’s Social Care and Special Educational Needs.

 

RESOLVED:

 

1.    That the Statement of Accounts for 2023/24 for Hampshire County Council and the Hampshire Pension Fund be approved (Appendix 1).

 

  1. That delegated authority be given to the Deputy Chief Executive and Director of Corporate Operations to approve minor changes to the accounts agreed between the County Council and Ernst and Young (EY) prior to the issue of the final audit opinion and publication of the audited Statement of Accounts. Should any non-minor changes be required as a result of the audit of the accounts, the Statement of Accounts for 2023/24 would be brought back to the Audit Committee for review and re-approval.

 

  1. That it is noted that the audit of the 2023/24 accounts has not yet been completed meaning that the County Council will publish the approved unaudited accounts on its website together with a notice in accordance with regulation 10(2)(a) of the Accounts and Audit Regulations 2015 stating that it has not been able to publish the audited statement of accounts.

 

  1. That it is noted that the Letters of Representations will be signed by the Chairman of the Audit Committee and Chief Financial Officer (the Deputy Chief Executive and Director of Corporate Operations) as required by the external auditor at the conclusion of the audit.

203.

Internal Audit Progress Report 2024-25 pdf icon PDF 98 KB

To receive a report from the Chief External Auditor, providing an overview of internal audit activity against the assurance work completed in accordance with the approved audit plan (2024-25) and an overview of the outstanding management actions.

Additional documents:

Minutes:

The Committee received a report from the Chief External Auditor, providing an

overview of internal audit activity against the assurance work completed

in accordance with the approved audit plan (2024-25) and an overview of

the outstanding management actions.

 

Through discussion and in response to Members’ questions it was heard that efforts were being made to clear all outstanding actions and reductions have taken place over the last two years. The level of risks attached to each action varies and details are reported to Directors so that they are aware of those due or overdue for completion.

 

RESOLVED:

 

That the Audit Committee note the Internal Audit Progress Report.

 

204.

2024/25 Quarter 1 Treasury Management Report pdf icon PDF 290 KB

To receive a report of the Deputy Chief Executive and Director of Corporate Operations providing a quarterly update on treasury management activity.

Minutes:

The Committee received a report of the Deputy Chief Executive and Director of Corporate Operations providing a quarterly update on treasury management activity. This report fulfilled the County Council’s legal obligation under the Local Government Act 2003 to adhere to the CIPFA Code and provided an update on the treasury management performance for 2024/25.

 

Members noted the treasury management strategy as updated in February 2024. Officers summarised the first quarter 2024/25 performance, confirming compliance with the strategy and relevant regulations, with support from Arlingclose.

 

RESOLVED:

 

The Audit Committee note the review of treasury management activities in Q1 2024/25.

205.

Minutes of the Hampshire Pension Fund Panel and Board Meeting - 30 May 2024 (Public) pdf icon PDF 67 KB

To receive the public minutes of the Hampshire Pension Fund Panel and Board meeting held on 30 May 2024.

 

Additional documents:

Minutes:

The Committee received and noted the public minutes of the Hampshire Pension Fund and Board meeting held on 30 May 2024.

206.

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.

 

207.

Minutes of the Hampshire Pension Fund Panel and Board Meeting - 30 May 2024 (Exempt)

To receive the exempt minutes of the Hampshire Pension Fund Panel and Board meeting held on 30 May 2024.

 

Minutes:

The Committee received and noted the exempt minutes of the Hampshire Pension Fund and Board meeting held on 30 May 2024.