Agenda and minutes

Apologies were recorded above

Members of the Audit Committee are asked to consider whether they have an interest in any of the matters on the agenda and, if so, to formally declare that interest.

There were no declarations of interest made at the meeting

The Minutes of the last meeting of the Audit Committee held on

It was agreed:

That the Minutes of the last meeting be approved subject to the following inclusion:

AU.51 2003/2004 ACCOUNTS

• Councillor Moss referred to a change in the VFM arrangements relating to RAAC and asked if this would be reflected in the document. The Engagement Partner, Forvis Mazars stated that this would be reviewed and amended  in the document.

Councillor Moss referred to a question that had been raised by Mr Webster in relation to the Information Governance Report regarding comparisons of timescales to clear SAR and FOI requests across GM.

Mr Webster stated that he had requested this information be included in the reports going forward.

Councillor Moss reported that Audit training had been arranged for all elected members to be provided by the Local Government Association at 5.30 pm on May 1^st at the Town Hall. All members had been sent a calendar invitation to this.

It was also reported that Audit Committee Specific training had been arranged for 23 July for the Audit Committee as a pre meeting briefing before the next meeting of the Audit Committee on 23 July 2025.

Councillor Moss also explained that training would be provided at 6pm prior to the July meeting of the Audit Committee in relation to finance and the Council budget.

Members of the Committee asked that the pre meeting training be reconsidered due to the meetings lasting until 10pm and if this did go ahead for refreshments to be provided.

It was agreed:

That the training options would be reconsidered, and Members of the Audit Committee would be advised of the decision.

A report from the Section 151 Officer is attached.

Appendix A

Appendix B

The Risk Manager presented a report which provided an updated position with regards to the risks identified and assessed on the Council’s Corporate Risk Register.

25 risks were currently present on the Corporate Risk Register and had been identified as those that have the potential to disrupt the Council’s strategic objectives and service delivery.

The report presents all relevant information and scoring of these risks, an overview being:

Of the 25 risks,

15 risks are currently rated as Significant (risk score 15-25)

9 risks are currently rated as High (risk score 8-12)

1 risk is currently rated as Moderate (risk score 4-6) 

 0 have increased in score

 4 have decreased in score

 19 have remained static

 2 are newly introduced

• Councillor Bernstein asked what happened to a risk if a responsible officer left the organisation and hadn’t been replaced.

It was explained that the risk would have new risk owners allocated to the risk until a replacement was in post.

• Councillor FitzGerald explained that she was the chair of the Health Scrutiny Committee where different information was shared and risks raised and asked how it could be that the risks that were raised to one committee were different than those within the Corporate Risk Register.

The Risk Manager explained that there were three different levels of risk; service risks, departmental risks and corporate risks. If there were concerns that risks were not included the Risk Manager could check that all risks were pulled through from the service risk registers and the departmental risk registers.

• Councillor Rubinstein asked about the treatment of risks and stated that if a risk were so severe in outcome it could never be reduced in score.

The  Risk Manager explained that there would be a level of acceptance associated to all risks which would be mitigated down as far as it could be. There were regular reviews in relation to the potential of something happening in the future  to look forward an continuously review risks.

It was agreed that the Audit Committee:

1. Note the report;

2. Receive the Corporate Risk Register at Appendix A

3. Receive the Risk Matrix presented at Appendix B

4. Confirm that the level of assurance provided against the risks is sufficient;

5. Approve the closure of CR21 – Project Safety Valve

6. Confirm that there will be no deep dive at the next meeting of the Audit Committee.

A report from the Head of Governance is attached

The Audit Committee received a report providing an update in relation to the Member’s Discretionary Grants scheme.

It was reported that all Elected Members had donated their £1000 discretionary grant in accordance with the scheme.

It was agreed;

That the contents of the report be noted

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 AU.70

A report from the Section 151 Officer is attached

Appendix A

Appendix B

The Head of Fraud, Audit, Insurance and Risk (FAIR) presented a report outlining the work undertaken by Internal Audit from 1st January to 28th February 2025 which includes the progress to date to complete the 2024/25 audit plan.

The report enables Members to monitor the work of the Internal Audit service, raise any issues for further consideration and provide an opportunity to request further information or to suggest areas for additional or follow up work.

Members were given the opportunity to ask questions and make comments and the following points were raised:

• Councillor Moss referred to several items at 2.1.4 of the report being removed  from the audit plan and asked whether these would be considered for inclusion in the 2025/2026 audit plan.

The Head of FAIR explained that this was something that would be considered.

• David Webster asked whether the planned audit work in relation to Risk Management and Insurance that had been deferred from the 24/25 plan and would be reconsidered for inclusion in the 25/26 plan would be carried out and, if so whether an independent reviewer would be employed.

It was explained that the work in relation to these two areas was now being picked up through service plans but if audit work was required in relation to the two areas it would be undertaken by the audit team who would report directly to the Director of Finance.

It was agreed:

1. That the Audit Committee note the report and the work undertaken by Internal Audit.

2. That the Audit Committee approve the changes to the 2024/25 Audit Plan.

A report from the Section 151 Officer is attached.

The Head of Fraud, Audit, Insurance and Risk presented a report setting out the Council’s Internal Audit Charter.

It was explained that the purpose of Bury Council’s internal audit Charter is to define internal audit’s purpose, authority, and responsibility.

The Charter establishes the internal audit activity’s position within the council and reporting lines; authorises access to records, personnel, and physical property relevant to the performance of audit work; and defines the scope of internal audit activities.

The Charter also covers the arrangements for the appointment of the Head of Internal Audit and internal audit staff, and identifies the nature of professionalism, skills and experience required.

The work of internal audit has been governed by the UK Public Sector Internal Audit standards (PSIAS) since 1st April 2013. The Institute for Internal Auditors have released new Global Internal Audit Standards, that become mandatory for the UK public sector from April 1st, 2025.

Internal Audit is currently adapting its governing documents and other processes to achieve conformity to the new Standards.

As a result, the Internal Audit Charter has been updated using the new public sector model published by the Institute.

The Standards are mandatory for all internal auditors working in the UK public sector.

Internal Audit is subject to external quality assessments every 5 years, and the assessors consider the Charter’s conformity with the Standards as part of the work. The most recent review was carried out in 2024.

It was agreed:

That the internal Audit Charter 2025/2026 be approved.

A report and Appendix A from the Section 151 Officer is attached

Audit Strategy

Appendix B

Appendix C

Appendix D

The Head of Fraud, Audit, Insurance and Risk presented the Internal Audit Strategy and Quality and Assurance and Improvement Programme.

It was explained that Public Sector Internal Audit Standards (PSIAS) require the formal documenting of a Quality Assurance and Improvement Programme (QAIP). This covers all aspects of the internal audit activity and enables compliance with all aspects of the PSIAS to be evaluated. It is designed to provide assurance that internal audit function performs its work in accordance with the PSIAS. 1.1

The QAIP provides a structure for the assessment of the efficiency and effectiveness of the internal audit activity and identifies opportunities for improvement. This includes through both internal and external assessments. The requirement for an external assessment of the internal audit activity is at least once in every 5 years. The external assessment has recently been carried out as part of a peer review process, set up by the North West Chief Audit Executives’ Group. The assessment team have confirmed that the council’s internal audit function partially conforms to the PSIAS and provided some suggestions regarding how the function can further develop and improve.

The work of internal audit has been governed by the UK Public Sector Internal Audit standards (PSIAS) since 1st April 2013. The Institute for Internal Auditors have released new Global Internal Audit Standards, that become mandatory for the UK public sector from April 1st, 2025.

The results of the QAIP must be reported to senior management and the Audit Committee on an annual basis. This is done within internal audit’s annual report and opinion.

The release of new Global Internal Audit Standards necessitates updating many of the internal audit functions documents, including the QAIP, in order to maintain conformance with the Standards

The new Standards require the Head of Internal Audit to develop and implement a Strategy for the internal audit function that supports the strategic objectives, the success of the council, and aligns with the expectations of the Audit and Accounts Committee and other key stakeholders. A Strategy document has been produced and was appended to the report.

Those present were given the opportunity to ask questions and make comments and the following points were raised:-

• Ben Thomas referred to the targets set out within the report and asked how realistic the 95% Auditor Utilisation target was.

It was explained that 95% was potentially achievable. The targets need to be achievable but also challenging. It was essential that to meet the targets realistic timeframes were set

A report from the Section 151 Officer is attached

The Head of Fraud, Audit, Insurance and Risk presented the Internal Audit Annual Audit Plan 2025/2026.

The report set out the context of the Internal Audit Service and explained the approach to the compilation of the 2025/26 internal audit annual plan.

The plan was appended to the report.

Those present were given the opportunity to ask questions and make comments and the following points were raised:

• Councillor FitzGerald referred to the resources available to the audit team to carry out the work included within the plan and asked whether cost benefit analysis work was undertaken to show how the work that the outcome of the audit would cover itself similar to invest to save.

The Director of Finance stated that this was something that would be reviewed as part of the zero based budget work.

• Councillor Moss referred to the inclusion of Persona and five schools within the plan and asked why this was when they were not part of the organisation.

The Head of Fraud, Audit, Insurance and Fair explained that Persona had to be audited as part of the agreement with the Council and the schools that were included in the plan were council controlled schools so therefore part of the Audit process.

It was agreed:

1. That the Audit Committee note the contents of the report

2. That the Audit Committee approve the plan based on current resources as set out in the report.

3. That the resources set out within the plan would be reviewed and a report brought back to the October 2025 meeting of the Audit Committee.

A report from the Section 151 Officer is attached

Appendix A

The Head of Fraud, Audit, Insurance and Risk presented the Annual Fraud Plan 2025/2026.

It was explained that the Fraud Investigators are members of the FAIR (Fraud, Audit, Insurance and Risk) Team. The team comprises two Senior fraud Investigators, one of which is part-time, and one Fraud Investigator.

The plan has been compiled which sets out the work the team aims to deliver throughout 2025/26. The plan is very much based on the teams’ experience and knowledge of work undertaken in previous years. It is the intention that the plan will be under continuous review and will be continually developed. The team have contacts within Councils both within the boundaries of GMCA and in other regions in the country.

It was agreed:

That the contents of the report be noted

A report from Forvis Mazars is attached

A report setting out the progress made to date by the External Auditors, Forvis Mazars was  presented to the Audit Committee.

The Business Partner informed that Committee of two publications that were highlighted in the report that it was felt would be beneficial to them.

It was agreed:

That the contents of the report be noted

Report from Forvis Mazars attached

The External Auditor’s Annual Report was presented to the Committee.

It was explained that the report was for information and confirmed that  the External Auditors, Forvis Mazars, had completed the work in relation to the 2023/2024 financial statements.

It was agreed:

That the report be noted

To consider passing the appropriate resolution under Section 100(A)(4) of the Local Government Act 1972 that the press and public be excluded from the meeting during consideration of the following items of business since they involve the likely disclosure of the exempt information stated.

It was agreed:

That the press and public be excluded from the meeting under Section 100 (A)(4), Schedule 12(A) of the Local Government Act 1972, for the reason that the following business involves the disclosure of exempt information as detailed against the item

Report from the Section 151 Officer is attached

A confidential report was submitted for information only on Special Investigations carried out by the Internal Audit Team.

It was agreed:

That the report and information received at the meeting be noted

Report from the Section 151 officer attached

A confidential report was submitted for information and the Committee received a verbal update from the Director of Operations in relation to work that head been undertaken following a follow up report.

It was agreed:

That the report and information received at the meeting be noted

Report from the Section 151 Officer attached

Appendix attached

The Committee received a report providing an update on the Annual Counter Fraud Plan 2024/25 and the work undertaken by the Counter Fraud Team during the period 14 December 2024 to 28 February 2025.

It was agreed:

That the report and information received at the meeting be noted.