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The decisions as the council's minutes record them. A plain-language summary follows once it has been written.
RESOLVED to approve the minutes of the Governance and Audit Committee held on 15th March 2024 as an accurate reflection of the meeting.
RESOLVED: 1. To note the update.
RESOLVED: 1. To note the update.
RESOLVED: 1. To comment on the information provided within the Capital Strategy attached as Appendix 1 to the report; and 2. To consider whether they wish to receive further detail on any matters contained in the Appendices.
RESOLVED: 1. To review the draft report and consider what comments and / or recommendations, if any, they wish to make; and 2. To endorse the Internal Audit Annual Report 2023/24.
RESOLVED: 1. To critically review the Annual Governance Statement and suggest any material amendments and recommend its certification by the Leader of the Council and the Chief Executive for inclusion within the Council's 2023/24 certified draft Statement of Accounts; and 2. That in the event that reports from relevant External Inspectors be provided to the Council before the Statement of Accounts are approved, authorise the Deputy Chief Executive and Group Director - Finance, Digital and Frontline Services to include reference within the Annual Governance Statement.
RESOLVED: 1. To review the Annual Report and self-assessment and determine whether the Annual Report forms a balanced summary of the work undertaken by Governance and Audit Committee during 2023/24; 2. To endorse the recommendations to further support the Governance and Audit Committee in the effective discharge of its Terms of Reference and their incorporation into an action plan to enable ongoing monitoring; and 3. To approve the Governance and Audit Committee Annual Report 2023/24 and its presentation to full Council.
RESOLVED: 1. To consider the report and determine whether there are other areas / themes to incorporate within the work plan to aid the effective discharge of the Governance and Audit Committee’s responsibilities; and 2. To approve a work plan for delivery during the 2024/25 Municipal Year.
In accordance with the Council’s Code of Conduct, there were no declarations made pertaining to the agenda.
The Director of Legal and Democratic Services welcomed attendees to the meeting of the Governance and Audit Committee and apologies for absence were received from County Borough Councillors R Bevan and A. Ellis.
Decision as recorded
RESOLVED to approve the minutes of the Governance and Audit Committee held on 15th March 2024 as an accurate reflection of the meeting.
It was RESOLVED to approve the minutes of the Governance and Audit Committee held on 15th March 2024 as an accurate reflection of the meeting.
The Director of Legal and Democratic Services sought nominations for the position of Chair of the Governance and Audit Committee. It was RESOLVED that Mr C Jones be re-elected as Chairman of the Governance and Audit Committee for the Municipal Year 2024/25.
The Chair thanked Members for re-electing him as Chair of the Governance and Audit Committee. Following a change in membership to the Committee, following the Council’s Annual General Meeting in May 2024, the Chair then took the opportunity to welcome County Borough Councillor R Bevan to the Committee and thanked County Borough Councillor L Tomkinson for her contribution during the previous Municipal Year.
The Chair sought nominations for the position of Vice-Chair of the Governance and Audit Committee. It was RESOLVED to re-elect County Borough Councillor M Maohoub as Vice-Chair for the Municipal Year 2024/25.
Decision as recorded
RESOLVED: 1. To note the update.
Following introductions, Audit Wales provided the Committee with the key elements of the Rhondda Cynon Taf County Borough Council Audit Plan. Members were reminded that Audit Wales use the concept of materiality when undertaking financial audit work and were provided with the materiality levels set by Audit Wales for the audit of the 2023/24 financial statements together with areas of specific interest. Members were then provided with the significant financial statement risks, these being inherent risks that are closer to the upper end of the spectrum of inherent risk or which are to be treated as a significant risk in accordance with the requirements of other International Standards in Auditing, and other areas of focus. Audit Wales went on to provide an overview of the planned response to be taken to audit these areas. Audit Wales drew Members’ attention to Exhibit 3 of the report, which documented the key dates for delivery of planned outputs. In terms of the 2024 Detailed Audit Plan, Audit Wales assured the Committee that there was close on-gong working with the Council to meet the deadlines set out. In terms of the planned performance audit work for the Local Authority, Audit Wales advised that the Performance Audit Plan was made up of a combination of Local and National work. Audit Wales drew Members’ attention to Exhibit 4 of the report, which documented the key dates for delivery of planned outputs. It was noted that the ongoing work from 2023/24, such as the financial sustainability thematic work and commissioning work, had not been included as part of the plan. Members were informed that the first piece of local project work was in respect of setting wellbeing objectives and that a second piece was to be confirmed and discussed with the Council. Referring to the management override of controls risk, the Chair queried if this was a common systemic infrastructural issue rather than one specific to RCTCBC. Audit Wales advised that management override had to be considered a significant risk to all Councils, in line with the standards, and explained that the planned response was consistent across all bodies. The Chair thanked Audit Wales for the clear and informative update and the Governance and Audit Committee RESOLVED: 1. To note the update.
Decision as recorded
RESOLVED: 1. To note the update.
Audit Wales provided the Committee with the key elements of the Rhondda Cynon Taf Pension Fund Audit Plan. Members were provided with financial statements materiality information in relation to the 2023/24 audit and areas of specific interest. Members were then provided with the significant financial statement risk and other areas of focus, along with the subsequent planned responses. Audit Wales drew Members’ attention to Exhibit 3 of the report, which documented the key dates for delivery of planned outputs. One Member welcomed the detailed report and looked forward to receiving the outcomes of the work identified within the Audit Plan. The Chair thanked Audit Wales for the informative report and the Governance and Audit Committee RESOLVED: 1. To note the update.
Decision as recorded
RESOLVED: 1. To comment on the information provided within the Capital Strategy attached as Appendix 1 to the report; and 2. To consider whether they wish to receive further detail on any matters contained in the Appendices.
The Service Director – Finance Services provided the Committee with the 2024/25 Capital Strategy Report and 2024/25 Treasury Management Strategy Report, both of which had been approved by Council on 6th March 2024. In terms of the Capital Strategy report, which was attached at Appendix 1, Members were reminded that the Council’s approved capital programme totalled over £165M investment over three years. The Service Director drew Members’ attention to the approved prudential indicators, which were monitored on a quarterly basis within the quarterly performance report and in the mid-year and year end treasury management reviews, which were considered by the Governance and Audit Committee. In terms of the Treasury Management Strategy for 2024/25, which was attached at Appendix 2, the Service Director reminded the Committee of the definition of Treasury Management, which is “The management of the organisation’s borrowing, investments and cash flows, including its banking, money market and capital market transactions, the effective control of the risks associated with those activities and the pursuit of optimum performance consistent with those risks.” Members were informed that the Council’s treasury portfolio position as at the end of December 2023 comprised of £287.257M debt and that the estimated weighted average rate of borrowing for 2023/24 was 3.15% and investments of £38.072M at 4.93%. In terms of prospects for interest rates, the Service Director informed the Committee that the Monetary Policy Committee had met recently and agreed to retain the bank rate at 5.25% with increased probability of a rate reduction later in the year. The Service Director spoke of the Council's borrowing requirement for 2024/25, which was currently £19.0M based on the updated Capital Programme 2024/25 – 2026/27 and emphasised that the Council’s policy would be to continue to maximise “internal borrowing”, running down cash balances and foregoing interest earned. The Chair thanked the Service Director for the report and the Governance and Audit Committee RESOLVED: 1. To comment on the information provided within the Capital Strategy attached as Appendix 1 to the report; and 2. To consider whether they wish to receive further detail on any matters contained in the Appendices.
Decision as recorded
RESOLVED: 1. To review the draft report and consider what comments and / or recommendations, if any, they wish to make; and 2. To endorse the Internal Audit Annual Report 2023/24.
The Head of Internal Audit provided the Governance and Audit Committee with the Head of Internal Audit’s Annual Opinion on the Council’s control environment in relation to governance, risk management and internal control. The report sought to inform the Governance and Audit Committee of the work and performance of Internal Audit for the financial year 2023/24, with this information conforming with the Public Sector Internal Audit Standards. The Draft Internal Audit Annual Report sought to provide an overview of the work undertaken by the Internal Audit Service during 2023/24, including the overall opinions for each audit review along with the recommendations raised. The report also provided information in respect of the performance of the service along with a statement in respect of conformance with the Public Sector Internal Audit Standards. It was noted that 72% of the Audit Plan had been completed to report stage and that within the Annual Report, reasons as to why 100% of the Audit Plan had not been completed were provided. It was noted that based upon the work completed during 2023/24, the Head of Internal Audit’s opinion was that the Council’s overall governance, risk management and internal control environment during 2023/24 operated effectively with some areas identified for improvement. The Chair thanked the officer for the update and was pleased to note that there had been zero instances where there had been no assurance in respect of the assignments. The Chair was assured that the six medium priority recommendations that had not been implemented would be followed up. One Member wished to be reminded of the process in terms of how areas for improvement are dealt with. The officer advised that the recommendations are tracked to ensure they have been implemented and should Members have concerns around audit reviews, a follow up review is undertaken. The officer explained that the outcome of all work is reported to the Governance and Audit Committee. The officer added that the work plan for the new year included additional information, in terms of the performance of the Internal Audit Service and that themes of recommendations would be identified towards the end of the financial year, to support the Committee in identifying any areas it considers should be afforded further attention. A Member noted that the service was back in-house and questioned if the officer felt there was enough resources to carry out the duties. The officer was confident in the resources available to deliver the audit plan. The officer advised that the team consisted of experienced auditors and explained that a graduate had also recently been recruited. One Member spoke positively of the additional resource within the Internal Audit Service and questioned if the service planned its work to deal with the higher risks in the first instance, in case of any changes to resources. The officer informed the Committee that the risk based internal audit plan was ranked on priority and that work was planned on a combination of priority and the most appropriate time to work with a service area. The Governance and Audit Committee RESOLVED: 1. To review the draft report and consider what comments and / or recommendations, if any, they wish to make; and 2. To endorse the Internal Audit Annual Report 2023/24.
Decision as recorded
RESOLVED: 1. To critically review the Annual Governance Statement and suggest any material amendments and recommend its certification by the Leader of the Council and the Chief Executive for inclusion within the Council's 2023/24 certified draft Statement of Accounts; and 2. That in the event that reports from relevant External Inspectors be provided to the Council before the Statement of Accounts are approved, authorise the Deputy Chief Executive and Group Director - Finance, Digital and Frontline Services to include reference within the Annual Governance Statement.
The Service Director of Finance and Improvement Services provided Members with the Council’s draft 2023/24 Annual Governance Statement, which was attached as Appendix 1 to the report. The Service Director explained that the Draft Annual Governance Statement for 2023/24 had been produced in accordance with the requirements contained within the ‘Delivering Good Governance in Local Government: Framework (2016)’. The compilation of the draft Annual Governance Statement entailed reviewing the activities in place around the Council’s main governance arrangements as set out in the Local Code of Corporate Governance and associated key processes, engagement with senior officers across services in respect of these arrangements, taking account of the findings from a range of existing reports including external regulator reports and review and challenge by the Senior Leadership Team. Members’ attention was drawn to section 5 of the report which summarised the review process across the 7 principles set out in the 2016 Framework and the five proposals for improvement to further strengthen the Council’s existing governance arrangements. Referring to the ‘Elected Councillor and Officer Codes of Conduct - setting out the standards of behaviour to be followed based on the principles of integrity, honesty, impartiality and objectivity’ requirement, one Member noted that the ‘basic rules’ booklet had been updated and is distributed to new staff as part of their starter paperwork but questioned whether existing staff receive copies to ensure they are aware of changes. The Service Director advised that new staff receive the booklet and the feedback would be relayed to the Council’s Human Resources service for consideration. The Chair thanked the Service Director for the detailed report and the Governance and Audit Committee RESOLVED: 1. To critically review the Annual Governance Statement and suggest any material amendments and recommend its certification by the Leader of the Council and the Chief Executive for inclusion within the Council's 2023/24 certified draft Statement of Accounts; and 2. That in the event that reports from relevant External Inspectors be provided to the Council before the Statement of Accounts are approved, authorise the Deputy Chief Executive and Group Director - Finance, Digital and Frontline Services to include reference within the Annual Governance Statement.
Decision as recorded
RESOLVED: 1. To review the Annual Report and self-assessment and determine whether the Annual Report forms a balanced summary of the work undertaken by Governance and Audit Committee during 2023/24; 2. To endorse the recommendations to further support the Governance and Audit Committee in the effective discharge of its Terms of Reference and their incorporation into an action plan to enable ongoing monitoring; and 3. To approve the Governance and Audit Committee Annual Report 2023/24 and its presentation to full Council.
The Chair introduced the report and explained that if approved, the Annual Report would be presented to the full Council meeting on 17th July 2024, and that it was his view that the Committee had provided robust challenge and meaningful review as part of its role during the 2023/24 Municipal Year. The Service Director of Finance and Improvement Services then presented the detail of the Governance and Audit Committee Annual Report 2023/24 together with a self-assessment against the Chartered Institute of Public Finance and Accountancy (CIPFA) publication ‘Audit Committees - Practical Guidance for Local Authorities & Police 2022 Edition’. It was explained that the CIPFA publication ‘Audit Committees - Practical Guidance for Local Authorities & Police 2022 Edition’ (from hereon the CIPFA Guidance) sets out a position statement that represents CIPFA’s view of audit committee practice and principles that local government bodies in the UK should adopt and had been prepared in consultation with sector representatives. The Service Director added that the position statement also sets out that the Committee should prepare an annual report that provides assurance to all those charged with governance that it fulfils its purpose and can demonstrate its impact, this being a key output of the Committee, and that the report should be publicly available, supporting the Authority’s accountability to wider stakeholders, including the public. Members’ attention was drawn to the draft Governance and Audit Committee Annual Report which sought to set out the work of the Committee during 2023/24, in line with the CIPFA Guidance, and to the 2023/24 self-assessment and review process, which demonstrated how the Committee delivered its Terms of Reference and its influence on the Council’s governance, internal control and risk management arrangements alongside proposed recommendations. It was noted that there were a small number of recommendations that sought to further support the Committee in the effective discharge of its Terms of Reference. The Service Director concluded that the Annual Report provided assurance that the targeted programme of work delivered by the Governance and Audit Committee during 2023/24 enabled the Committee to deliver its Terms of Reference and ensured compliance with the CIPFA Guidance, and that the Committee’s work had contributed to the robustness of the Council’s governance, internal control and risk management arrangements. One Member commended the recommendations for improvement and in particular the focus on Member training. The Member emphasised the importance of strengthening knowledge, where possible, to ensure the Committee’s duties continue to be carried out effectively. One Member questioned the need for column four in Appendix 1D and the Service Director confirmed that it was a duplication of Appendix 1C and would be removed from the version to be included within the Council’s certified draft Statement of Accounts. The Chair thanked the Service Director for the update and the Governance and Audit Committee RESOLVED: 1. To review the Annual Report and self-assessment and determine whether the Annual Report forms a balanced summary of the work undertaken by Governance and Audit Committee during 2023/24; 2. To endorse the recommendations to further support the Governance and Audit Committee in the effective discharge of its Terms of Reference and their incorporation into an action plan to enable ongoing monitoring; and 3. To approve the Governance and Audit Committee Annual Report 2023/24 and its presentation to full Council.
Decision as recorded
RESOLVED: 1. To consider the report and determine whether there are other areas / themes to incorporate within the work plan to aid the effective discharge of the Governance and Audit Committee’s responsibilities; and 2. To approve a work plan for delivery during the 2024/25 Municipal Year.
The Internal Audit Manager set out a draft work plan for the 2024/25 Municipal Year to enable the Committee to effectively fulfil its Terms of Reference. The officer drew Members’ attention to the draft Governance and Audit Committee Work Plan for 2024/25, which was attached at Appendix 1 to the report. The Work Plan set out the Committee’s Terms of Reference together with a timetable for bringing reports and information updates before Committee for review and challenge. It was noted that the work plan would be subject to on-going review during the year and where further areas are identified, these will be reported to Governance and Audit Committee for consideration and, if deemed appropriate, incorporated into the work plan. The Chair thanked the officer for the report and the Governance and Audit Committee RESOLVED: 1. To consider the report and determine whether there are other areas / themes to incorporate within the work plan to aid the effective discharge of the Governance and Audit Committee’s responsibilities; and 2. To approve a work plan for delivery during the 2024/25 Municipal Year.
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