Issue - meetings

Report from the Section 151 Officer is attached

The Director of Finance presented a report giving a progress update from the Council to the Statutory Recommendation received from the External Auditor under schedule 7 of the Local Audit and Accountability Act 2014.

It was explained that the Council’s external Auditors, Forvis Mazars, presented the outcome of their audit work in relation to their judgements in the area of the Council’s Value for Money arrangements for the 2021/22 and 2022/23 financial years to the December Audit Committee meeting.

They identified three significant weaknesses in the Council’s arrangements. These weaknesses are across all three reporting criteria that they are required to consider under the Code of Audit Practise, namely; financial sustainability, governance and for improving the economy, efficiency and effectiveness of services.

Forvis Mazars determined that use of their statutory reporting powers under the Local Audit Accountability Act 2014 was necessary and issued a statutory recommendation formally to the Chief Executive on 12 December 2024. They recommended that “The Council should, as a matter of urgency, develop a comprehensive Council wide improvement plan to reflect the transformation and cultural change needed across all departments, to ensure the Council can deliver the range, level and quality of services that it deems appropriate and within its statutory responsibilities in a financially sustainable way. Appropriate management and member oversight is required to ensure the improvement plan is delivering changes that are embedded into the organisation." A response was provided by the Council to the January 2025 Audit Committee meeting which included the publication and approval of an improvement action plan which was also subsequently approved at Council.

It was explained that there had been significant progress made within the expected target dates across the plan.

The plan was split into the following areas

• Financial Resilience (including financial strategy)
• Finance Capacity and Transformation (mostly concerned with the finance restructure)
• Governance and compliance including Estate Management and Leadership and Governance Arrangements

Finance resilience - Actions due to be complete by quarter 4 had been completed. Budget timetable for 2025-26 including plans for zero based budget approach had been agreed. Development of budget proposals for 2026-27 on track for October 25 deadline.

Finance Capacity and Transformation – All actions complete or on track apart from recruitment to phase 1 of the finance restructure as awaiting completion of 30 day consultation.

Governance and Compliance – All actions complete or on track for associated deadlines. All assurance boards set up and have met  with agreed terms of reference and forward work plans. Highlight reporting from the boards is being reported at ELT and Members Assurance Group.

It was explained that the only outstanding item was in relation to the required RAAC surveys of the Council’s estate. All RAAC assessments and surveys had been completed including council owned buildings with leases under 30 years and no further RAAC risk identified. There are also a number of buildings that are on longer land leases of above 30 years which are not Council owned and have therefore been determined not to  ...  view the full minutes text for item 70