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There is no summary of this meeting yet. One is written once the council publishes the minutes. The agenda and papers are below.
In accordance with the Code of Conduct adopted by the City and County of Swansea, no interests were declared.
Resolved that the Minutes of the previous meeting(s) of the Governance & Audit Committee were approved as a correct record, subject to the following amendment: - Add David Roberts – Lay Member to the list of apologies.
Derwyn Owen, Audit Wales presented the draft report which summarised the main Audit Wales findings from the audit of the Council’s Statement of Accounts 2023-24. It was noted that the draft Statement of Accounts was received on 9 August 2024, which was later than the Audit Wales deadline of 30 June 2024. However, it was added that this was a significant improvement on the previous year. It was explained that the level of materiality was set at £11.7 million for the audit, except for senior officer’s remuneration - £1,000 and related party transactions for Members and senior officers - £10,000. It was highlighted that Audit Wales intended issuing an unqualified audit opinion on the accounts once the Council had provided a Letter of Representation based upon Appendix 2. The proposed audit report was provided at Appendix 1. The report also detailed that there were initially misstatements in the accounts that had been corrected by management and Appendix 3 provided a summary. It was added that one misstatement was identified in the accounts which had been discussed with management but remained uncorrected as management had chosen not to adjust. We request that this misstatement be corrected. If you decide not to correct these misstatements, we ask that you provide us with the reasons in writing for not correcting the accounts. The misstatement was in respect of the group balance sheet – valuation of the National Waterfront Museum. The misstatement was not considered material to the accounts and the Council would review the valuation of the National Waterfront Museum within the 2024-25 financial statements. The were no other significant issues to report and no issues or recommendations that were sufficiently significant to warrant bringing to the attention of the Council. The Chair and Committee congratulated the Director of Finance / Section 151 Officer and his staff for the unqualified opinion and thanked the Audit Wales representative for presenting the report. It was noted that the report would be presented to Council on Thursday, 20 March 2025. The Director of Finance / Section 151 Officer thanked Audit Wales colleagues for the manner and flexibility in which they had conducted the audit.
Gillian Gillett, Audit Wales presented the Audit Wales Work Programme and Timetable – City and County of Swansea. The report detailed the quarterly update and listed the following: - • Annual Audit Summary • Financial Audit Work • Performance Audit Work • Local Government National Studies Planned / In Progress • Estyn • Care Inspectorate Wales (CIW) • Audit Wales National Reports and Other Outputs Published Since October 2024 • Audit Wales National Reports and Other Outputs (work in progress / planned) • Good Practice Exchange Resources The Committee asked questions of the Audit Wales representative, which were responded to accordingly. Questions were asked by the Committee in relation to unscheduled care. The Audit Wales representative would forward a response. The Chair thanked the Audit Wales representative for presenting the report.
Ben Smith, Director of Finance presented the final near audit completion Statement of Accounts for 2023/24 ‘for information’ and review. The Committee were reminded that the pre-audit draft was submitted previously at its meeting held on 4 September 2024. The Draft Accounts for 2023/24 had been prepared and were signed by the Section 151 Officer on 9 August 2024. A copy was appended at Appendix A of the report. It was confirmed that the Accounts had been formally presented to the Council’s auditors – Audit Wales, who had commenced the audit of the Accounts. It was explained that as part of the audit process, the Accounts were made available for inspection by the public for a four-week period from 6 January to 31 January 2025. Finance Department staff were thanked by the Director for their work on the accounts, which was echoed by the Chair and the Committee. The Committee asked a number of technical questions of the Director of Finance / Section 151 Officer, which were noted and responded to accordingly. It was noted that the Statement of Accounts were scheduled to be presented to Council on 20 March 2025.
Simon Cockings, Chief Auditor provided a report which showed the audits finalised and any other work undertaken by the Internal Audit Section during the period 1 October 2024 to 31 December 2024. It was explained that a total of 14 audits were finalised during the quarter. The audits finalised were provided at Appendix 1, which also showed the level of assurance awarded at the end of the audit and the number of recommendations made and agreed. Appendix 2 provided a summary of the scope of the reviews finalised during the period. The levels of assurance were 7 – high and 7 – substantial, with no moderate levels during the quarter. A total of 85 audit recommendations were made and management agreed to implement all of the recommendations made. It was added that a successful recruitment campaign had resulted in three full-time auditor posts being filled in December. However, unfortunately 71 days were lost in quarter two due to vacant posts. This represented approximately 12% of the total available days in quarter 2, or 10% cumulative days lost of the total available days in the year to date due to vacant posts. 49 days were also lost in the quarter due to one instance on long-term sickness absence, which was ongoing. It was noted that contingencies for vacancies and sickness absence had been built into the annual plan. It was detailed that the Internal Audit Annual Plan for 2024/25 contained 120 separate audit activities. At 31 December 2024, 55 audit activities (46%) had been completed, with two additional activities (3%) substantially complete with the audit report issued as draft. As a result, 57 audit activities had been completed to at least draft report stage (48%). An additional 32 activities were in progress at the end of the quarter (27%). As a result, approximately 75% of the audit activities included in the 2024/25 Audit Plan had either been completed or were in progress. A copy of the plan showing the status of the activities at 31 December 2024 was provided at Appendix 3. Details of the additional work undertaken by Internal Audit in the quarter, follow-up of audits with moderate assurance levels completed 1 October to 31 December 2024 and follow-up of audits with high and substantial assurance levels completed 1 October to 31 December 2024, were provided. The Committee discussed the following: - · It was queried whether the sickness and vacancy in year to date would have an impact on the amount of the plan that would be completed by year end. The Chief Auditor stated that some time had been lost in year due to sickness, vacancies and training of new staff but was hopeful that things would increase in Quarter 4 and hoped that 70-75% of the plan would be completed by year end. · In relation to the File Control audit noted in the report, the level of ICT audit skills within the team was queried and whether this was detailed or to a general standard in the team. The Chief Auditor confirmed that this was to a general standard and that the section was attempting to up-skill the team in this area. The Chief Auditor noted that the availability of an expert ICT audit resource was an issue across Wales and was not unique to Swansea. · The face-to-face format undertaken as part of the annual consultation exercise with all Heads of Service. · Explanations regarding assurance level classifications. · Regular reminders being circulated to Councillors in respect of gifts and hospitality. · New risk management system and policy review – the decision that it was no longer required due to duplication. · Two additional audits no longer being required following restructures in the client department meant the audits would only be reviewing salary costs, both audits being replaced by new contract audits to be included in the 2025/26 audit plan. The Chair expressed concern in respect of the ICT expertise within the Internal Audit Team and the ability to ensure that standards were met and challenged whether the Internal Audit Team had the skills to complete the ICT audits noted as completed in the report. She requested that further discussions take place outside of the meeting in relation to the lack of skills within the Internal Audit Team to complete the ICT audits completed in quarter three, as noted in the monitoring report presented in the public meeting. The Chief Auditor stated that he would be happy to discuss further in order to provide the Chair with assurance in respect of ICT audits. Resolved that the contents of the report be noted.
Simon Cockings, Chief Auditor presented a ‘for information’ report which provided a briefing to the Committee on the methodology used to prepare the Internal Audit Annual Plan in advance of the Draft Internal Audit Annual Plan for 2025/26 being reported to the Committee. It was explained that the Public Sector Internal Audit Standards (PSIAS) would remain in force until 31 March 2025. Thereafter, the Council’s internal audit function would be required to apply the Global Internal Audit Standards (GIAS), subject to the interpretations and requirements of an Application Note: Global Internal Audit Standards in the UK public sector. It was added that from 1 April 2025, the new standards – Global Internal Audit Standards (UK public sector), would be mandated consisting of: · The IIA’s Global Internal Audit Standards (GIAS); · Application Note: Global Internal Audit Standards (UK public sector) The Global Internal Audit Standards set forth principles, requirements, considerations, and examples for the professional practice of internal auditing globally. The Standards applied to any individual or function that provided internal audit services and were organized into five domains and 15 principles. Details were also provided on the application note, Code of Practice for the Governance of Internal Audit in UK Local Government, the Audit Plan and Internal Audit Plan methodology. The Committee discussed the following: - · Compliance with the new standards. · A future training session be provided to assist the Committee in understanding the new standards.
Part of an issue followed across 2 meetings
Ness Young, Director of Corporate Services provided a report which presented an overview of the status of the Council’s Strategic Risks and Strategic Issues at Quarter 3 to provide assurance to the Committee that they were being managed in accordance with the Council’s revised risk management framework. It was explained that the new risk management framework adopted for quarterly reporting was based on the following: Strategic Risk, Strategic Issue, Operational Risk, Operational Issue and Project Risk. The report was the first time the quarterly overview data had been compiled using the new InPhase risk app, rather than the former corporate Risk Register. The Committee were provided details of the risk management process and the risk status at the end of Quarter 3 2024/25. It was added that during Quarter 2, all risks on the risk register were extensively reviewed and steps taken to bring them into alignment with the new risk management framework. This process continued into Quarter 3, where services were asked to review all risks to ensure they were accurately categorised. All strategic risks and issues were recorded as having been reviewed at least once during Quarter 3. The risk scores for strategic risks and strategic issues remained static, with the exceptions of: 86 Sustainable Communities for Learning / QEd - Resourcing delivery of the Strategic Outline Programme Score increase 9 to 12 335 Workforce Sustainability and Capability Gaps Score increase 6 to 9 338 Net Zero 2030 target Score decrease 16 to 12 360 Development of New Waste Strategy – Transformation programme Score decrease 9 to 6. The RAG status for each of the 14 strategic risks and 6 strategic issues at Quarter 3 were also provided, along with the risks / issues at Appendix A. The Committee discussed the following: - · Bedding in process of the new system. · The system below risks / issues, e.g. project risks. · Setting risk / target criteria. Resolved that the contents of the report be noted.
The Revenue and Capital Budget Monitoring – 3rd Quarter 2024/25 Report was presented ‘for information’. The Chair highlighted and noted the comments made at paragraph 6 f – Revenue Budget Summary. The Chair reinforced the statements made by the Section 151 Officer and asked that the Committee be kept informed of the situation.
The Audit Wales Recommendations Tracker was reported ‘for information’ and the Committee noted the content of the report.
Part of an issue followed across 6 meetings
The Governance & Audit Committee Action Tracker was reported ‘for information’.
The Governance & Audit Committee Work Plan was reported ‘for information’. It was added that the draft Work Plan for 2025/26 would be presented to the next Committee meeting. The Director of Corporate Services highlighted the forthcoming Panel Performance Assessment training scheduled for 10 March 2025.
The Committee was requested to exclude the public from the meeting during consideration of the item(s) of business identified in the recommendation(s) to the report on the grounds that it / they involved the likely disclosure of exempt information as set out in the exclusion paragraph of Schedule 12A of the Local Government Act 1972, as amended by the Local Government (Access to Information) (Variation) (Wales) Order 2007 relevant to the item(s) of business set out in the report. The Committee considered the Public Interest Test in deciding whether to exclude the public from the meeting for the items of business where the Public Interest Test was relevant as set out in the report. Resolved that the public be excluded for the following items of business.
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