To consider the minutes of the meeting of the Audit and Governance Committee meeting held on 8^th March 2023.

RESOLVED

That the minutes of the Audit and Governance Committee held on the 8 March 2023 be approved as a correct record.

Members are required to declare any disclosable pecuniary, personal or personal and prejudicial interests they may have and the nature of those interests relating to items on this agenda and/or indicate if S106 of the Local Government Finance Act 1992 applies to them.   

There were no declarations of interest.

To consider the report from the external Auditors.

The Council’s external auditors submitted their Audit Strategy Memorandum for the year ending 31 March 2023 for consideration by the Committee.

In presenting the report, Members were advised on key factors including:

·         The scope of the audit and respective responsibilities of the Council and auditors;

·         Management override of controls;

·         Areas of risk, which were noted as being common to all local authorities;

·         The approach to value for money.

Members of the Committee were informed that the Accounts for 2020/21 had still not been signed off due to nationwide issues remaining unresolved.  Upon questioning it was confirmed that it was not a result of matters within the controllable remit of Rochdale BC.

Members sought clarification in relation to the robustness of the Manchester Airport Group valuations; supporting data for valuations; and, the strength of report mechanisms to Councillors via the Audit and Governance Committee.

Resolved

That

To consider the report of the Chief Finance Officer.

Consideration was given to a report of the deputy Chief Finance Officer detailing the outturn 2022/23 financial position as at the end of March 2023, including the position at the end of Q4.

The Committee were advised that

·         The 2022/23 Revenue outturn position, held an in-year saving of £37k, prior to the transfer of this balance to the Equalisation Reserve.

·         The 2022/23 General Fund pressure relating to Covid related issues is £3,439k, and was offset by the use of government funding;

·         £3,292k of the Contain Outbreak Management Fund (COMF) grant brought forward from 2021/22 had been spent in 2022/23.

·         Capital expenditure in 2022/23 of £104,897k, after rephasing in the final quarter of £16,619k into future years and capital budget increases of £11,235k.

·         The 2022/23 Collection Fund position being a surplus of £6,650k,

The Chair questioned the amount of underspends being due to carrying vacant posts.  Members sought clarification on governance arrangements for the performance of the Property Growth Fund. 

Resolved

That

1.    The report be noted.

2.    The Employment and Equalities Committee consider the number of vacant posts and impacts on staffing.

To consider a report of the Head of Internal Audit and Risk.

Consideration was given to a report of the Portfolio Holder for Finance and

Corporate / Director of Corporate Services summarising the work of the Counter Fraud Team throughout 2022/23, incorporating quarter four.

It was reported that throughout 2022/23 the Counter Fraud Team have received 648 referrals achieving £577,962 in overpayments and savings. In quarter four there had been 139 referrals and £133,547 in overpayments and savings. The Counter Fraud Team had participated in over twelve proactive Partnership

Enforcement Team days of action including multi-agency visits in 2022/23.

Resolved

That the report be noted.

To consider a report of the Head of Internal Audit and Risk.

Consideration was given to a report of the Portfolio Holder for Finance and Corporate / Director of Corporate Services summarising the work of the Internal Audit team during both the financial year and quarter four of 2022-23.

It was reported that in the Chief Internal Audit & Compliance Officer’s opinion on the effectiveness of Rochdale Borough Council’s (RBC’s) overall control environment, governance and risk management for 2022-23. Internal Audit had completed 96% of the agreed Audit Plan which is ahead of target. All of the issued audits during 2022-23, had either an ‘adequate’ or ‘substantial’ opinion on the adequacy of internal controls.

The Chief Internal Audit & Compliance Officer concluded that an adequate level of assurance can be given that the Council's overall framework of governance, risk management and that controls remain appropriate and have been complied with.

Resolved

That the report be noted.

To consider a report of the Head of Internal Audit and Risk.

Consideration was given to a report of the Portfolio Holder for Finance and Corporate / Director of Corporate Services summarising the work of the Risk Management and Insurance team during both the financial year and quarter four of 2022-23.

It was reported that at the end of Quarter One, the Service Level Agreement with Tameside regarding sharing the services of the Risk Manager came to an end. As a result, the Risk Manager returned to their role at Tameside on a full time basis.  

Information and relevant updates relating to the Corporate Risk Registers

managed by both the Council and the Heywood Middleton and Rochdale

Integrated Care Partnership (ICP) have been collated and are reflected within

the report. A full Corporate Risk Register review is currently being undertaken with a view to ensuring that they reflect current and horizon risks.  The Insurance had team closed 74 cases in quarter four, and achieved a claims cost mitigation result of £969,843. For the financial year 2022-23, the Insurance team closed 275 cases, and achieved a cost mitigation result of £3,687,398.

Resolved

That the report be noted.

To consider a report of the Chief Finance Officer.

Consideration was given to a report of the Portfolio Holder for Finance and Corporate / Director of Corporate Services presenting the Council’s draft Statement of Accounts, issued on the 31st of May 2023.

It was reported that the accounts and supporting documents were available for inspection by any person interested between Thursday the 1st June and 13th July 2023.

The Council is required to prepare a Statement of Accounts for each financial year. The accounts must be prepared in accordance with statutory timelines and accounting practices. Since 2010/11 those accounting practices have been based on International Financial Reporting Standards (IFRS) which attempt to facilitate the production of accounts in a standardised and consistent format across the public and private sectors giving greater transparency for stakeholders. These accounting practices are set out in the Chartered Institute of Public Finance and Accountancy (CIPFA) 2022/23 Code of Practice on Local

Authority Accounting in the UK and any additional CIPFA guidance such as the year end Final Accounts Bulletins. Members of the Audit Committee were assured that the accounts were prepared so that all the requirements of the

Code had been complied with.

Resolved

That the report be noted.