Agenda item

The Deputy Director of Finance submits a report to the Audit and Risk Committee setting out the Committee’s achievement over the municipal year 2021/22.

The Committee is recommended to approve the report for submission to the Council.

The Deputy Director of Finance submitted a report to the Audit and Risk Committee which set out the Committee’s achievements over the municipal year 2021/22. The Committee was recommended to approve the report for submission to the Council.

The Head of Finance presented the report, and the following points were noted:

·         The annual report provided information on the activities the Committee completed over the past year, such as the Statement of Accounts approval, the receiving of risk management reports, the fact the Committee had met regularly, and was the standard report usually presented.

Members were asked to note the report and the following comments were made:

·         A discussion took place which related to the previous agenda item’s comments about the performance of the Committee, and whether the Committee was undertaking its role to the fullest.

·         The potential provision of metrics and data was discussed such as, meetings – how many meetings were held, attendance figures, how long meetings lasted, how many questions were asked, and what actions were reported at the next meeting, etc. Once data was collected, patterns would be seen.

·         The Committee carried a large amount of responsibility as to how the Council conducted its business.

Officers stated the report confirmed roles and functions had been completed by the Committee over the year, such as the agreement by Committee to recruit an Independent Member, confirmation the Committee was active in promoting its remit, ensuring it had the knowledge and expertise going forward and was a positive step. Information suggested such as the metrics going forward would be looked at for inclusion at future meetings.

The Deputy Director of Finance acknowledged the perspective of Members on where they felt the Committee was operating. He welcomed any suggestions and recommendations that could be made to improve its operation. He added that he felt the evening’s meeting had been good, with a strong level of engagement and questioning at the meeting which had been good to see. He noted that external and internal auditors would have raised concerns on the performance of the Committee when required. It was further noted that the Chair was also involved with the East Midlands Regional Audit Forum as Chair which the Government and LGA had set up in 2022 and would be good for the Council’s Audit and Risk Committee.

Grant Patterson, External Auditor, was asked if there was a difference in quality of challenge based on the political structure of an authority, whether balanced, or with one-dominant party. The External Auditor responded that the challenge in a meeting was not to do with politics but more to do with the confidence of individual members, and that the minutes should reflect the level of challenge.

He added that the point was covered in an External Auditor’s Annual Report for 2021 which would be followed up again, with one area saying there were things the Audit and Risk Committee could do such as self-assess annually around its confidence in the skill set of the Committee, and once that was identified what training was required.

The External Auditor continued that he believed the Council’s Audit and Risk Committee provided an appropriate level of challenge, and that continuous training would provide Members with confidence and skill to challenge, and that he had no fundamental concerns, with a good level of questions at the meeting that evening, which was the Committee’s role to oversee processes and arrangements and have assurance in auditors.

It was recognised that one challenge of an audit committee was continuity, with members changing, and that it was good to see the Chair in the role for the new municipal year.

It was acknowledged that added continuity would be gained with the addition of the independent member, with a professional background to challenge officers..

The Chair noted that over time, and joining with the East Midlands Regional Audit Forum, she had come to understand just how critical it was that Members knew what their role on the Audit and Risk Committee was. She added that the Team of support, in Internal and External Audit, and Teams in the Council were a good network of support for Members, and by looking at the committees of other authorities around the country she recognised just how good the Council’s Committee was working. She added it was essential that Members read the reports before the meeting, with questions raised receiving answers either at the meeting or shortly thereafter.

The Chair added that the level and type of statistical analysis needed to be discussed further but felt that the Committee was doing what it needed to do, but was glad that the point had been raised. She said that as Chair it was her role to monitor and pick up on weaknesses, but on the whole the team worked very well and there were no concerns.

RESOLVED:

1.    That the report be approved prior to its submission to Council.

2.    Any suggestions and recommendations on the operation of the Committee that members may have to be forwarded to the Deputy Director of Finance.