To consider the minutes of the meeting of the Audit and Governance Committee held on 25 March 2024.

In relation to minute 39(2), the Chair noted the action was incomplete and sought confirmation as to when the information would be available.

Resolved

That the minutes of the meeting of the Audit and Governance Committee held on the 25 March 2024 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 receive the report of the External Auditor.

Consideration was given to a report of the external auditors from Mazars detailing the Audit Strategy Memorandum for Rochdale Borough Council for the year ending 31 March 2024. The purpose of the report was to summarise the audit approach, highlight significant audit risks and areas of key judgements.

It was reported that in planning work for the audit no risks of significant weakness in arrangements had been identified, planning work was an iterative process and should any risks emerge through the audit they would be communicated to future meetings of the Audit and Governance Committee.

In considering the report Members sought assurances that risks in relation to council owned companies would be reported to the Audit and Governance Committee.  Members were advised that the external auditors would report risks in relation to companies to the Committee whilst the Corporate Overview and Scrutiny Committee would review performance and could refer any issues to the Audit and Governance Committee.

Resolved

That the report be noted.

To receive the report of the Chief Internal Auditor

Consideration was given to a report of the Chief Internal Auditor summarising the work of the Risk Management and Insurance team during both the financial year and the fourth quarter of 2023-24.

It was reported that there were two high risked items on the corporate risk register and two residual Directorate high risk items. 

In relation to the corporate risks Members sought assurances that the corporate body had business continuity plans suffice for failures similar to those which had been experienced elsewhere.  It was confirmed that all Services with risks marked within the red categorisation would appear before the Audit and Governance Committee at future meetings. The Chair highlighted concerns in relation to the legal shared services for Children’s Services and requested a report be brought to a future meeting. Additionally Members requested an update on ICT risks being included within the work programme for the Committee within this municipal year.

Members enquired about the peer review of risks undertaken by Officers from other Authorities and requested that the report be brought to a future meeting.

In considering the work of the Insurance team it was reported that 403 insurance cases were closed and £2,102,796 had been achieved in claims cost mitigations during the financial year equating to 71.76% of the highest reserve total.  For quarter four 88 insurance cases were closed and £349.776 was achieved in claims cost mitigations for quarter four.

A Member requested that reports to future meetings provide details of the total number of insurance claims/outstanding claims to enable a wider understanding.

Resolved

That the report be noted.

To receive the report of the Chief Internal Auditor

Consideration was given to a report of the Chief Internal Auditor summarising the work of the Counter Fraud Team throughout 2023- 24, incorporating quarter four updates.

It was reported that the Counter Fraud Team had received 642 referrals and have achieved £365,942 in overpayments and savings over the year, with 28 referrals and £68,302 in overpayments and savings being from quarter four.

Resolved

That the report be noted.

To receive the report of the Chief Internal Auditor

Consideration was given to a report of the Chief Internal Auditor summarising the work of the Internal Audit team during both the financial year and quarter four of 2023-24.

It was reported that all of the issued audits during 2023-24, had either an ‘adequate’ or ‘substantial’ opinion on the adequacy of internal controls. On this basis, the Chief Internal Audit & Compliance Officer concluded that an adequate level of assurance could be given to the Council's overall framework of governance and risk management controls being appropriate and have been complied with.

Seventeen of the twenty one recommendations made in the external quality assessment during quarter four of 2022-23 had been completed. The remaining four are due to be completed during financial year 2024-25.

Members sought clarification as to how assurance could be provided that no services were unaudited over a rolling period. 

In relation to the number of issues arising from Children’s Services Members requested that schools be reported separately at future meetings.

Resolved

That the report be noted.

To receive the report of the Chair of the Audit and Governance Committee / Chief Internal Auditor

Consideration was given to a report of the Chief Internal Auditor summarising work undertaken by the Committee through the municipal year 2023-24.

Members of the Committee sought assurance that risks associated with the Heywood, Middleton and Rochdale Locality Board where being reviewed by a Committee of the Council.  It was reported that the Locality Board Strategic Risk Register is approved annually by the Heywood, Middleton and Rochdale Locality Board and therefore subject to scrutiny by the Health, Schools and Care Overview and Scrutiny Committee.

In relation to the annual review of the Council’s Constitution Members were informed that the revised Constitution was included in the work programme for the Committee and would be reported to the meeting in March 2025.

Resolved

That the report be summited to the next ordinary meeting of Council.

To receive the report of the Director of Corporate Services

Consideration was given to a report seeking approval of the Annual Governance Statement. The Committee were informed that the Council was required under Regulation 4(3) of the Accounts and Audit Regulations 2015 to produce an Annual Governance Statement (AGS) to accompany the Annual Statement of Accounts which must be signed by the Leader of the Council, Chief Executive, Chief Finance Officer (Section 151 Officer) and the Monitoring Officer.

The purpose of the AGS process was to provide a continuous review of the effectiveness of the Council’s internal control and risk management systems so as to give assurance on their effectiveness and/or to produce a management action plan to address identified weaknesses in either process.

The Annual Governance Statement for the year ended 31st March 2024 was submitted for approval, together with the annual audit opinion from the Chief Internal Auditor, the external review and inspection reports and an action plan to address issues raised and ensures that there is continuous improvement in the governance of the Authority.

Resolved

That the Annual Governance Statement be approved.

To receive the report of the Director of Corporate Services

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 2024.

It was reported that the accounts and supporting documents were available for inspection by any person interested between 13 and 25 June 2024.

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) 2023/24 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