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The decisions as the council's minutes record them. A plain-language summary follows once it has been written.
RESOLVED- That, subject to the above amendment, the minutes of the Audit and Governance Committee held on 14 February 2022 and 9 March 2022 be approved and signed as a correct record.
RESOLVED:- a) That a training exercise, utilising the national and regional reports in respect of commissioning older people’s care home placements, be included within the Forward Work Programme. b) That, subject to the above addition, the Governance and Audit Committee Forward Work Programme be approved.
RESOLVED: That the 2022 Audit Plan - Conwy County Borough Council be noted.
RESOLVED: That the revised Terms of Reference of the Governance and Audit Committee be noted.
RESOLVED: That the Internal Audit Annual Report 2021/2022 be noted.
RESOLVED: That the Internal Audit Charter and Annual Plan for 2022/2023 be approved.
RESOLVED: That the Corporate Risk Register and Corporate Issues Register be noted.
It was proposed and seconded that Ian Whyte (Lay Member) be appointed as Chair of the Governance and Audit Committee for 2022/2023. Mr Whyte provided the Committee with some background information which included the following: • He had been a Lay Member on the Governance and Audit Committee for 5 years. • His career covered 37 years with Shell in Aberdeen, the Netherlands and Manchester. Latterly his focus was on contracts and procurement for which he was a global audit manager for several years. • He lived locally in Colwyn Bay. • He had maintained an interest in Audit following his retirement 8 years ago. RESOLVED- That Ian Whyte be appointed as Chair of the Governance and Audit Committee for 2022/2023.
It was proposed and seconded that Councillor Stephen Price be appointed as Vice-Chair of the Governance and Audit Committee for 2022/2023. RESOLVED- That Councillor Stephen Price be appointed as Vice-Chair of the Governance and Audit Committee for 2022/2023.
Apologies for absence were received from Councillors John Roberts, Michael Smith and Iwan Davies (Chief Executive).
None.
None.
Decision as recorded
RESOLVED- That, subject to the above amendment, the minutes of the Audit and Governance Committee held on 14 February 2022 and 9 March 2022 be approved and signed as a correct record.
The minutes of the meetings of the Governance and Audit Committee held on 14 February 2022 and 9 March 2022 were submitted for approval. In respect of Minute 829 (Corporate Risk Register and Corporate Issues Register), 14 February 2022, it was noted that reference had not been made to new risks 2 and 4 as follows: - NR2 the risk that the Council will not be able to transition to a rapid rehousing approach due to the lack of suitable , affordable housing provision. - NR4 the risk that the Governance and Audit Committee Members will not be appropriately inducted in to their roles, responsibilities and requirements of the new Local Government and Elections (Wales) act 2021. RESOLVED- That, subject to the above amendment, the minutes of the Audit and Governance Committee held on 14 February 2022 and 9 March 2022 be approved and signed as a correct record.
Decision as recorded
RESOLVED:- a) That a training exercise, utilising the national and regional reports in respect of commissioning older people’s care home placements, be included within the Forward Work Programme. b) That, subject to the above addition, the Governance and Audit Committee Forward Work Programme be approved.
The Governance and Audit Committee Forward Work Programme (FWP) was presented. • Assurance was provided that risks associated with short term borrowing were being monitored; an update would be provided in September, 2022. • It was queried whether a report in relation to reserves and a 5 year budget was to be presented to the Governance and Audit Committee. - In response, the Strategic Director – Finance and Resources advised that a report in respect of the outturn position and reserves and balances would be presented to the Finance and Resources Overview and Scrutiny Committee and Cabinet in July, 2022, with a subsequent report to be presented in August, 2022. • Assurance was sought in respect to the management of outstanding debt owed to the Council. - The Strategic Director – Finance and Resources advised that the Statement of Accounts would be presented to the Governance and Audit Committee for approval. • It was suggested that Agenda items for the municipal year be included within the FWP. • Concern was raised in respect of the frequency that the Corporate Risks and Issues Registers were presented to the Governance and Audit Committee. - The Corporate Performance and Improvement Manager advised that there was a timeline in respect of reporting which was dependent on Service Performance Reviews (SPR). - The possibility of more frequent reporting would be explored. - The Head of Corporate Improvement and HR advised that a series of challenges took place after each SPR prior to reporting to the Governance and Audit Committee. • It was proposed that the national and regional reports, in respect of commissioning older people’s care home placements, be utilised as a training exercise. RESOLVED:- a) That a training exercise, utilising the national and regional reports in respect of commissioning older people’s care home placements, be included within the Forward Work Programme. b) That, subject to the above addition, the Governance and Audit Committee Forward Work Programme be approved.
Decision as recorded
RESOLVED: That the 2022 Audit Plan - Conwy County Borough Council be noted.
Note: Gwilym Bury and Gareth Lucey (Audit Wales) were in attendance for this item. Gwilym Bury (Audit Wales) presented the draft 2022 Audit Plan – Conwy County Borough Council, which outlined the planned audit work for Conwy during 2022. The following points were highlighted: • A programme of performance audit work would be carried out in relation to value for money and sustainable development. • There would be a particular focus on the financial position, Capital Programme management, use of performance information and setting of well-being objectives. • A cross-sector thematic review would take place in relation to unscheduled care, with a focus on the flow of patients out of hospital. • A thematic review on digital issues would also take place. • A follow-up audit would take place in relation to Conwy County Borough Council’s (CCBC) project management arrangements. • Audit fees were set out within the plan and were set in respect of the risk experienced by the Council. Gareth Lucey (Audit Wales) presented information in relation to the audit of financial statements. The following points were highlighted: • Audit Wales were responsible for issuing a report and certificate in respect of the Council’s full accounts, the Conwy Harbour Accounts and certification of grant claims and returns. • Audit risks within the plan would be monitored. Risks were not unique to CCBC and largely related to Covid-19 and asset valuations. • It was proposed that work would be completed by the end of October, 2022. - The statutory deadline was July, 2022 however, flexibility had been granted by the Welsh Government in recognition of pressures faced by local Authorities. Members discussed the following: • It was confirmed that grant claims and returns were required to be certified by Audit Wales. • It was queried whether guidance was provided in respect of the level of reserves that should be held by a Council and the percentage of long term debt. - In response, Gwilym Bury (Audit Wales) advised that a financial sustainability report was produced annually. - Within the last report it had been recommended that CCBC produce a medium term financial plan. - The risk in relation to CCBC’s low reserves had also been highlighted. RESOLVED: That the 2022 Audit Plan - Conwy County Borough Council be noted.
Decision as recorded
RESOLVED: That the revised Terms of Reference of the Governance and Audit Committee be noted.
The Interim Head of Audit and Procurement presented a report outlining the Governance and Audit Committee - Revised Terms of Reference. The Local Government and Elections (Wales) Act 2021 (Part 6) introduced changes to the performance and governance arrangements of principal councils. The revised Terms of Reference for the Governance and Audit Committee was included at Appendix A of the report. The following points were highlighted: • The Audit Committee was renamed the Governance and Audit Committee to strengthen internal governance. • The Act amended rules regarding membership and proceedings, which was effective from 1 April 2022 and was approved by Council on 3 March 2022. Changes included the following: - The Committee membership consisted of 2/3 Elected Members and 1/3 Lay Members, appointed by Council at its Annual General Meeting. - The Chair of the Committee was to be a Lay Member. - The Vice-Chair must not be a member of the Local Authority Executive (Cabinet). · Council approved that the size of the Governance and Audit Committee be set at a static number of 12 members in total, with 8 Councillors and 4 Lay Members. Members discussed the following: · There were 4 Governance and Audit Committee meetings scheduled annually, however additional special meetings could be arranged if necessary. · Partnership arrangement audits would be undertaken as per the assurance map. · Whistleblowing arrangements had been reviewed approximately 3 years ago and had been reported to the Governance and Audit Committee. · It was confirmed that the role of the Report Review Group was to ensure the standard of Committee reports. · The following statement within the terms of reference was queried: ‘The committee will support the development of effective communication with the Head of Internal Audit, by having free and unfettered access to the Chair of the Governance and Audit Committee’. - The Interim Head of Audit and Procurement advised that the wording would be reviewed. RESOLVED: That the revised Terms of Reference of the Governance and Audit Committee be noted.
Decision as recorded
RESOLVED: That the Internal Audit Annual Report 2021/2022 be noted.
The Audit Manager (Systems and Compliance) presented Members with the Internal Audit Annual Report 2021/2022. Under the terms of the Accounts and Audit (Wales) Regulations 2014, the Council was required annually to conduct a review of the effectiveness of its system of internal control. Internal Audit was an integral part of that system, and was a significant contributor to the preparation of the Annual Governance Statement (AGS). The following points were highlighted: • The Annual Report, included at Appendix A of the report, analysed the work and overall performance of the Internal Audit Service for 2021/2022. • The Service performed numerous risk based reviews on a broad range of activities during the year. • A schedule giving an audit opinion in respect of all audit assignments undertaken during 2021/2022 was included at Appendix B of the report. • Internal Audit gave 33 audit opinions during the year and there were 2 audits which were work in progress at the year-end. • 97% of the planned audits completed during the year were assessed as providing positive levels of assurance. - The Corporate Procurement audit provided a limited level of assurance, with 14 recommendations made, 3 of which were considered to be major. • A schedule of the 7 follow up audits conducted during 2021/2022 was included at Appendix C of the report. - A progress report in respect of Fleet Services (plant) was included at Appendix D of the report. - A progress report in respect of Direct Payments would be provided to Members at the next Governance and Audit Committee. • The Service had undertaken 2 special investigations during 2021/2022, which together with National Fraud Initiative (NFI) work had accounted for 40 days work, as compared to a budget of 140 days. - An analysis of the types of investigation undertaken during the year and their current status and related outcomes was included within Appendix E of the report. • The impact of COVID-19 on public services had been considerable and had raised the question of whether Internal Audit would be able to undertake sufficient internal audit work to gain assurance during 2021/2022. - In accordance with the Chartered Institute of Public Finance and Accountancy (CIPFA) guidance, the Head of Audit and Procurement had obtained adequate assurance to support the annual opinion, by taking into account both internal audit work and other sources of assurance. Members discussed the following: • Concern was raised in relation to the figure of 100% in respect of recommendations accepted. - In response, the Audit Manager (Systems and Compliance) advised that following an audit, an action plan was issued and a meeting with management would take place. - Figures had been less than 100% in previous years. · It was queried as to why only 52% of Audits had been completed within the budgeted time. - In response, the Audit Manager (Systems and Compliance) advised that remote working had impacted on the time taken to complete audit reviews and job budgets had also been reduced. - The Interim Head of Service - Audit and Procurement advised that a Service Performance Review target had been re-introduced which would include setting targets for each member of the audit team. • Context in relation to the percentage of audits completed was requested. - The Audit Manager (Systems and Compliance) advised that there was an allowance of 10% and, therefore, only those that had exceeded 10% would be reported as over budget. • In respect of Fleet Services (plant), concern was raised in respect of 311 items of plant being written off. - In response, the Audit Manager (Systems and Compliance) advised that 74% of items were over 12 years old and had exceeded their life expectancy. - Break-ins and thefts from depots in 2013 had not resulted in plant items being removed from inventory records. - Items may have been transferred to other departments or third parties. - There was a lack of clarity in respect of the definition of small plant within the inventory. - A new process had been implemented and was reviewed on an annual basis. - Monitoring was ongoing and a progress report would be provided to the Committee in September, 2022. - A meeting would be arranged for the Chair and Vice-Chair of the Governance and Audit Committee to discuss Fleet Services (plant) with the Head of Environment, Roads and Facilities, the Audit Manager (Systems and Compliance) and the Interim Head of Audit and Procurement. • The contradiction between the following statements within the Annual Report was highlighted: ‘It is the Head of Internal Audit’s opinion that the internal audit work undertaken during the year, and the other sources of assurance, allows him to draw a reasonable conclusion that for 2021/2022, Conwy County Borough Council has satisfactory internal control, risk management and corporate governance processes to manage the achievement of the organisation’s objectives.’ ‘In giving an audit opinion, it should be noted that assurance can never be absolute’ • It was confirmed that Head of Integrated Adult and Community Services would attend the Governance and Audit Committee on 25 July, 2022 in respect of Direct Payments. RESOLVED: That the Internal Audit Annual Report 2021/2022 be noted.
Decision as recorded
RESOLVED: That the Internal Audit Charter and Annual Plan for 2022/2023 be approved.
The Audit Manager (Systems and Compliance) presented Members with the Internal Audit Charter and Annual Plan 2022/2023. The report provided the Governance and Audit Committee with the Internal Audit Charter and Annual Plan 2022/2023 in compliance with the Public Sector Internal Audit Standards (PSIAS). The following points were highlighted: • The Internal Audit Charter was a formal document which defined the Service’s purpose, authority and responsibility in terms which were consistent with the definition of Internal Auditing, the Code of Ethics and the Standards. • The Charter established the Service’s position within the Council, including the nature of the Head of Audit’s functional reporting relationship with the Governance and Audit Committee and Senior Management Team. • The provision of the Internal Audit Service would be delivered by a team of 8 officers, which equated to 7.2 full time equivalents • The available audit resource stood at 1,987 days and It was is considered that there was sufficient skills and expertise within the Service to provide the full range of audits contained in the Annual Plan and to manage the service efficiently and effectively. • To allow the Service to provide a more flexible approach and take account of an ever changing environment a Corporate Assurance Map had been developed. • The Annual Plan did not provide a definitive list of projects that would be carried out during 2022/2023, but provided the latest projects that had been identified as the main priorities. • As a result of the impact of Covid-19 on the previous two years’ work plans, it was considered prudent to increase the number of days allocated to Consultancy to 230 days, including an allocation of 30 days for Covid-19 related issues. There was also a contingency of 150 days included to allow for unplanned work to be carried out. • Progress against the Annual Plan would be kept under review by the Interim Head of Audit and Procurement Services and through monitoring corporate and service developments. • The Charter also provided the Service’s performance targets, which had been established based on best professional practice, which were used for comparison on an all Wales basis. • Progress against targets would be reported to the Governance and Audit Committee on a quarterly basis and in the Annual Report. Members discussed the following: • The status of the Procurement Service was queried. - The Interim Head of Audit and Procurement Services advised that an audit of the Service been carried out in 2021 and had identified resource issues. - A recruitment process was currently being undertaken in respect of a Corporate Procurement and Contracts Manager. - As the Head of Audit was also the Head of Procurement, the report had been issued from the Strategic Director – Finance and Resources. • It was confirmed that the St David’s Day Fund was part of the flexible funding grant scheme. • Concern was raised in respect of tribunals relating to children and young people with an additional learning need (ALN), as this was traumatic for the families and had a financial implication for the Council. - It was suggested that the strategy be revisited and that consultancy be considered. - The Interim Head of Audit and Procurement Services confirmed that this would be considered as part of assurance mapping. • Concern was raised that no requests in respect of significant consultancy work had been presented to the Governance and Audit Committee. - The Interim Head of Audit and Procurement advised that the last major consultancy request was reported in 2017. - Quarterly reporting could include an update on consultancy. • It was requested whether a list of working groups attended by Audit could be provided to the committee. - In response, The Audit Manager (Systems and Compliance) advised that the number of days was currently reported as opposed to a breakdown of which groups were attended. - The Strategic Director – Finance and Resources advised that a list could be included, however it was important that the element of independence was not compromised. • It was suggested that an audit programme that underpinned the medium term financial plan should be considered. • It was queried as to how audits were allocated, including joint audit work with other authorities and organisations. - Gwilym Bury (Audit Wales) advised that joint audits would form part of the audit plan. - A regional report of the North Wales Economic Ambition Board had been undertaken. - Joint pieces of work had been carried out with Betsi Cadwaladr University Health Board. - The audit plan was a living document, which is based on the Assurance Map that consisted of projects that had the highest audit risk score, which may change during the year. - The Interim Head of Audit and Procurement Services would look at including training for Governance and Audit Members in relation to the assurance map. RESOLVED: That the Internal Audit Charter and Annual Plan for 2022/2023 be approved.
Decision as recorded
RESOLVED: That the Corporate Risk Register and Corporate Issues Register be noted.
The Corporate Performance and Improvement Manager presented a report on the Corporate Risk Register and Corporate Issues Register. The Register provided a record of all corporate risks and issues that had been identified throughout the Authority. The following points were highlighted: • Whilst a formal review of risks and issues was undertaken twice annually, risks and issues were continually monitored by services throughout the year. • Risks and issues were identified and monitored via:- - Service Performance Reviews (SPRs); - internal and external audit reviews / reports; - Improvement and Audit Group meetings; - Srategic Leadership Team meetings; and - Senior Management Team meetings. • Following the last round of SPRs it was concluded that:- Corporate Risk Register - 2 corporate risks would be transferred to the corporate issues log. - 1 corporate risk would be transferred to the service risk register. - 1 corporate risk would be removed from the corporate risk register. - 10 of the risks remaining were classified as “Critical.” - 7 of the risks remaining were classified as “Major.” - 5 of the risks remaining were classified as “Moderate.” - 1 of the risks remaining was classified as “Minor.” Corporate Issues Register - 5 of the issues remaining were classified as “High Priority.” - 1 of the issues remaining was classified as “Medium Priority.” The following two new issues had been added to the Corporate Issues Register: - Unable to recruit certain positions across the authority. - Welsh Government proposals to remove the priority need and intentionality for homelessness. • All risks and issues would be further reviewed as part of the SPR process during July and August 2022 and subsequently reported through the political process. - There was an open invitation to all Elected Members to attend the Service Performance Reviews. Members discussed the following: • A diagram of risks showing the direction of travel and comparison to other risks was requested. - In response, the Corporate Performance and Improvement Manager advised that risk trends were available as part of the summary document and that she would consider a comparison to other risks. - The Head of Corporate Improvement and HR advised that a matrix was available within the reporting system. • It was queried as to why financial risks, such as the rising cost of living, were not included as risks. - In response, the Corporate Performance and Improvement Manager advised that risks may cause future problems, as opposed to issues which were already having an impact. - Each service had their own risks and issues registers. - The Strategic Director – Finance and Resources advised that financial pressure had been identified as a corporate risk and that risk scores were subject to change, if mitigating actions were required. - Work had commenced in relation to medium term financial planning. • All risks were managed and monitored equally and were robustly reviewed and managed. • The possibility of providing updates on a more regular basis would be explored. RESOLVED: That the Corporate Risk Register and Corporate Issues Register be noted.
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