Agenda and draft minutes

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

Delegated decision:

That the Minutes of the last meeting held on 1 December 2022 be agreed as a correct record.

There were no matters arising from the Minutes of the last meeting.

Report from the S.151 Officer attached

Appendix A attached

Appendix B attached

Appendix C attached

Sam Evans presented a report providing an update on the Corporate Risk Register.

It was explained that the report provided an update position with regards to the risks identified and assessed on the Council’s Corporate Risk Register.

The report set out a total of 23 risks that had been identified:-

·    23 risks are currently present on the Corporate Risk Register

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

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

· 0 risks are currently rated as Moderate (risk score 4-6)

· 0 risks is currently rated as Low (risk score 1-3)

Of the23 risks: o

·         15 have remained static

·         2 have increased in score

·         3 have decreased in score

·         1 risk is proposed for closure

·         3 new risks have been introduced during the Quarter 4 reporting period.

At the December meeting of the Audit Committee, a further analysis into two risks present on the Register was requested. Two Deep Dive reports into the following two risks:

· CR14 Staff Safety and Wellbeing

· CR21 Project Safety Valve

CR21 Project Safety Valve

Jeanette Richards, Executive Director of Children and Young People attended the meeting to provide an update on Project Safety Valve and the risk of the Council being withdrawn from the project due to not reducing the deficit in the DSG which would rein a loss of £10m.

At the end of February 2023, full-time internal project management capacity had been secured to support delivery of PSV. This increased capacity would enable the development and monitoring of the plans to improve service provision, increase sufficiency and reduce the deficit. Governance of the programme was currently being strengthened to focus on progress, risks and issues.

Significant progress had been made with improving the EHCP process and working with parents and Bury2gether to continue to deliver an improved SEND service in Bury.

An EHCP Team Manager had been recruited and commenced work d in August 2022 to ensure that the team had remained stable. This had enabled a greater focus on quality and co-production.

It was also explained that weekly reporting was providing a better understanding of the trajectory of demand which allowed the team to plan resources more effectively to deliver quality plans in a timely manner.

Jeanette explained that Project Safety Valve had been challenging to manage, there had been a spike in demand for EHCPs post Covid which had seen an increase of 45%. This had now reduced to 12%.

There were proposals for 2 new special schools in the borough which would see 54 new school places coming on stream.

The DfE were leading the establishment of the Free Special Schools in Bury. There was a basic timeline in place and a requirement for the DfE to create a project group and formalise key milestones. This will enable the Council to work through any local issues regarding legal, land and property, planning and highways. A formal ask will be made of the DfE regarding the project group as progress with the  ...  view the full minutes text for item AU.4

Report from the External Auditors Mazars attached

Karen Murray, Partner at the Council’s External Auditors Mazars presented the External Auditors Audit Completion Report year ended 31 March 2022.

The purpose of the document was to summarise Mazars audit conclusions based on the work they had completed to date.

It was explained that the scope of their work, including identified significant audit risks and other areas of management judgement, was outlined in the Audit Strategy Memorandum which was presented to the Audit Committee on 15 March 2022.

Mazars have reviewed their Audit Strategy Memorandum and concluded that the original significant audit risks and other areas of management judgement remain appropriate.

The completion report set out:

·         Significant findings

·         Internal control recommendations

·         Summary of misstatements

·         Value for Money

The status of the audit was set out on page 19 of the report, it was reported that the debtors information had now been received.

Karen explained that the work carried out by the finance team in relation to the accounts had shown a positive trajectory but had been hampered by the level of capacity within the team and the reliance on interim staff members which had proved difficult. There was evidence of improvements, but it was recognised that there were still areas where the team were struggling and areas where amendments were required that were out of the Council’s gift.  

It was explained that while the work of Mazars was substantially complete and there were currently no matters of which they were aware that would require modification of the audit opinion, subject to the following outstanding:-

·         Property, Plant and Equipment: It was reported that the detailed audit testing was complete. Mazars were  working with management to ensure all of the required amendments have been posted through the Council’s Financial Statements.

·         Pensions: it was explained that Mazars were awaiting the conclusion on an error identified by the pension fund auditor at the Greater Manchester Local Government Pension Scheme fund.

·         Value for Money: It was reported that the value for money work remains in progress

Councillor Bernstein asked when Karen would expect the work to be completed.

It was explained that there were still some talks ongoing with all of the GM Councils, and some technical details required by the actuary,  but it was hoped that this would be turned around quickly.

Delegated decision

1.    That the contents of the report be accepted.

2.  That the Audit Committee’s thanks to Mazars be recorded.

Report from the Executive Director of Finance, S.151 officer is attached

Sam Evans, Executive Director of Finance presented a report  setting out  the Council’s accounting policies, critical accounting judgements and key sources of estimation that would be used in preparing the 2022-23 Statement of Accounts.

It was explained that the Statement of Accounts summarises the Council’s transactions for any given financial year and its assets and liabilities at 31 March for any given year. For the 2022-23 financial year, the timetable for publishing audited local authority accounts is 30 September 2023 and the deadline for publishing the draft accounts has reverted back to 31 May 2023.

Delegated decision:-

1.   That the accounting policies to be used in the production of the 2022/2023 Statement of Accounts be approved.

2.   That the critical accounting judgements and key sources of estimation set out in Appendix B and C be noted.

Report to follow

It was reported that due to a technical issue relating to the GM Pension scheme, the accounts were unable to be audited and therefore were not presented to the Committee.

It was explained that once the issue had been resolved across Greater Manchester the accounts would be submitted to the Committee for approval.

Report from the Section 151 Officer

Appendix A attached

Appendix B attached

Janet Spelzini presented a report outlining the work undertaken by Internal Audit between 1st April 2022 to 17th March 2023.

The report updated the Committee in relation to:

• The Annual Audit Plan
• Progress made to date against the Annual Audit Plan
• Audits completed and reports issued
• Follow ups
• Assurance work
• Investigations/Fraud/whistleblowing
• National Fraud Initiative
• Information Governance and Data
• Supporting Transformation and change
• School Audits
• Resources

Delegated decisions:

1.   That the content of the report be noted.

2.   That the Committee agree that the Chair of Audit Committee approves the deferral of audit reviews in-between Audit Committee meetings.

Report from the Executive Director of Finance attached

Janet Spelzini presented a report setting out the context of the Internal Audit Service and explaining the approach to the compilation of the 2023/24 internal audit annual plan. The annual plan was incorporated at Annex 1 to the report.

Delegated Decision:

That the Annual Audit Plan for 2023/2024 be approved.

Report attached

Appendix 1 attached

Appendix 2 attached

Andrea Tomlinson, Mayoral and Member Officer presented a report providing an update in relation to the Member’s Discretionary Grant Scheme.

It was explained that following approval of the Council Budget for 2023/2024 it had been agreed that the Discretionary Grant scheme would continue for the 2023/2024 financial year.

The annual allocation would remain at £1000 per member.

Appended to the report was information setting out the spend per Councillor for 2022/2023 including recipients.

Delegated decision:

That the contents of 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.

Delegated decision:

That in accordance with Section 100(A)(4) of the Local Government Act 1972, the press and public be excluded from the meeting during consideration of the following items of business since they involved the likely disclosure of exempt information, relating to any action taken, or to be taken in connection with the prevention, investigation and prosecution of crime.

Report from the S.151 Officer is attached

Appendix 1 attached

Appendix 2 attached

Appendix 3 attached

Appendix 4 attached

Appendix 5 attached

Appendix 6 attached

Appendix 7 attached

Janet Spelzini presented a report setting out information in relation to final reports that had been issued since the last meeting of the Audit Committee meeting in December 2022.

Daniela Dixon attended the meeting to update Members in relation to the Transport Stores report.

Sam Evans and Jacqui Dennis attended the meeting to update Members in relation to the Debtors Key Controls report.

Delegated decision:

That the contents of the report be noted

Report from the S.151 Officer attached

Case 2

Case 3

Case 4

Janet Spelzini, Acting Head of Internal Audit presented a report updating members in relation to Internal Audit Special Investigations reports which have been undertaken to examine significant issues / whistleblowing allegations, raised with the S151 officer.

Delegated decision:

That the contents of the report be noted.