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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 the GAC Terms of Reference was acknowledged.
RESOLVED: - That the GAC Development Programme was acknowledged.
RESOLVED: That the Governance & Audit Committee considered the report and obtained satisfactory explanations regarding any areas of concern.
RESOLVED:- (i) That the Governance & Audit Committee noted the Council’s Draft Statement of Accounts for the financial year 2023/24. (ii) That The Governance & Audit Committee noted the Audit Wales update report for the Statement of Accounts for the financial year 2022/23. (iii) The Governance & Audit Committee acknowledged the need for ongoing updates regarding audit progress and adjustments, ensuring transparency and effective governance.
RESOLVED:- That the Governance and Audit Committee considered the responses to Audit Wales’ ‘Audit enquiries to those charged with governance and management’ letter as attached at Appendix A.
RESOLVED:- Urgent items raised by the Chair were noted.
Apologies for absence were submitted on behalf of Councillor Trevor Batesand Independent Lay Member Neil Benson.
The Chair will follow up on arranging a presentation to raise awareness of the change programme for the committee at the March meeting. RESOLVED:- That the Minutes of the meeting held on 19 December 2024 be signed as a correct record.
Decision as recorded
RESOLVED: - That the GAC Terms of Reference was acknowledged.
RESOLVED: - That the GAC Terms of Reference was acknowledged.
Decision as recorded
RESOLVED: - That the GAC Development Programme was acknowledged.
The Head of Service for Audit and Technical provided an update on the Audit Development Programme, highlighting areas for improvement based on feedback from the recent audit skills matrix. Key topics included governance, internal audit, and changes to global internal audit standards, with a focus on providing training sessions for committee members. Suggestions for training on governance and internal audit were welcomed, with an emphasis on balancing self-learning with structured sessions. Members emphasised the significance of formal governance training to build skills beyond self-learning, highlighting a valuable Local Government Association (LGA) session. The importance of in-house training, particularly for new members, was widely supported to address governance challenges. Suggestions included providing clearer guidance on external training access and offering hard copy materials to boost engagement. RESOLVED: - That the GAC Development Programme was acknowledged.
Decision as recorded
RESOLVED: That the Governance & Audit Committee considered the report and obtained satisfactory explanations regarding any areas of concern.
The Head of Internal Audit and Technical presented the draft Governance and Audit Work Programme, highlighting key aspects. The following key points were discussed: • Eighteen audits were underway at different stages. The work programme remained adaptable and open to feedback. • Members discussed the self-assessment process, which followed CIPFA guidance and has been conducted through interactive surveys. Future assessments will be addressed in planning meetings. • A member highlighted the absence of the committee’s new responsibilities related to complaints in the work programme. It was confirmed that complaints were included in the terms of reference, with a report scheduled for September. RESOLVED: That the Governance & Audit Committee considered the report and obtained satisfactory explanations regarding any areas of concern.
Decision as recorded
RESOLVED:- (i) That the Governance & Audit Committee noted the Council’s Draft Statement of Accounts for the financial year 2023/24. (ii) That The Governance & Audit Committee noted the Audit Wales update report for the Statement of Accounts for the financial year 2022/23. (iii) The Governance & Audit Committee acknowledged the need for ongoing updates regarding audit progress and adjustments, ensuring transparency and effective governance.
The Chief Officer for Finance and Information presented a report (COFI/10/25) to the Governance & Audit Committee that covered the Council’s Draft Statement of Accounts2023/24. The Head of Service Accountancy presented the draft 2023-24 Statement of Accounts, noting that whilst the accounts were submitted for audit, their finalisation depended on resolving a technical valuation issue that related to the 2022-23 accounts. The following was highlighted: • There was a historical valuation matter affecting property, plant, and equipment (PPE), dating back to 2015-16, has delayed the 2022-23 accounts, consequently impacting the certification of the 2023-24 accounts. • Audit Wales has nearly completed its review, with PPE and unusable reserves being the primary areas still under assessment. The issue does not impact usable reserves or the general fund. • The committee was assured that the draft accounts are of high quality, with few amendments outside this historical issue. • The Statement of Accounts include a narrative report, expenditure and funding analysis, comprehensive income and expenditure statement, balance sheet, and supplementary notes. These were covered in a November 2024 training session, ensuring members understand the financial statements. • Any changes to the Statement of Accounts required by the auditor will be reported back to the committee later in the year. A discussion pursued and the main points were raised: · The 2022/2023 Statement of Accounts audit was delayed due to asset valuation complexities, with adjustments needed for 2022-23 accounts. · The 2023-24 Financial Statement of Accounts audit was progressing well, targeting completion (excluding fixed assets) by March, whilst work on 22-23, 23-24, and 24-25 accounts will resume after Audit Wales have completed their NHS audit. · Adjustments to 2022-23 Statement of accounts will affect the December work program, including ratifying both 2022-23 and 2023-24 accounts. · Members sought clarification on the 2024-25 timetable, particularly the usual review of draft accounts. · Concerns raised regarding the 2023-24 surplus and managing £1.77 million of carried-forward funds for 2024-25, emphasising control of in-year overspends. · Issues with historical valuations (some going as far back as 2012) continue to delay finalising an accurate fixed asset register. · It was explained that council dwellings were listed separately in note 20 under property, plant, and equipment, whilst garages were under land and buildings · Segmental income included fees across services, monitored by service, not tied to specific committees. · A review of historical valuation methods ensured that there will be a correct balance sheet allocation between reserves, with no material impact on past accounts or council revenue. · A request was made to update the work program with timelines for account close-offs and draft reviews. · A Member suggested repeating the financial accounts seminar, noting its value despite low attendance. They also requested examples of budget monitoring challenges and their impact on final accounts to enhance financial oversight. · The Budget Monitoring Process was reviewed quarterly by the Executive Board, with lead members and chief officers approving forecasts and reports. Scrutiny committees and all-member information reports provide opportunities for review. Task and finish groups, especially in social care and school transport, act as additional oversight mechanisms. · Concerns were raised about the council's historically low reserves compared to other Welsh authorities and whether current levels were sufficient. · Increasing reserves would require budget cuts or higher council tax, though improved funding could help in the future. · Discussions included social care and education projects aimed at generating long-term savings. The current invest-to-save reserve is £481,000, with larger investments supported by grants and business cases to reduce costs. · A Member emphasised the need for visibility on the Asset re-evaluation timetable and requested a shared schedule for governance. The council followed a four-year cycle, with council dwellings now assessed annually due to rising costs and inflation. The schedule of cyclical valuations is included in Section 7 of the narrative report. · Recent sales of three farms generated £2 million, recorded as capital receipts in 2024-25. Asset transactions are externally audited. Two council-owned properties, Grove School and Erlas House, remain in disrepair but are included in the asset register and valuation cycle. · Concerns were raised about high-salary staff appointments and £3 million spent on supply staff via private agencies. Members were advised to seek details through appropriate committees, as this meeting focused on reviewing financial statements. · Members were directed to address asset management concerns through relevant council committees, with the Life Long Learning Committee identified as an appropriate channel for specific issues. · Members commended the Finance Team for their work and thanked Audit Wales for their support. · A Member raised concerns about COVID-19 and Brexit references in the 2023-2024 Accounts, set to be removed in the final version, and questioned the phrase "direct control over financial and operating policies," prompting clarification of councillors' collective decision-making through committees. · A Member inquired about a £25 million movement in interest payable, which aligned with similar movements in interest receivable that largely offset each other. · It was clarified that other service expenses amounting to £235K included non-pay costs like energy expenses, social care placements, and transport payments, with a significant rise in energy costs from the previous year. · Concerns were raised about the absence of Welsh Government funding for free school meals. A 2022-23 free school meals grant was carried forward to complete the scheme in 2023-24. · A £3.8 million financial movement over two years was attributed to salary adjustments, including pay awards, inflationary uplifts, and incremental progressions, increasing roles within the £60,000 salary banding. · Members, particularly newer ones, highlighted the need for better understanding of the "Change Programme" to evaluate efficiency initiatives. · A query was raised regarding the increase in NHS debtors from £3.9 million in 2023 to £10 million in 2024, attributed to a significant invoice for section 117 services over six years. Officers confirmed that legal discussions were ongoing. · Clarification was sought on Capital Investment (CI) and Education Services (ES), listed under "Grant Income" and the £473,000 linked to the Football Association of Wales (FAW). It was confirmed that the figure represents income, not expenditure, as part of the council's Income and Expenditure statement. · A member emphasised the need to differentiate between members' roles in shaping financial and operating policies versus their non-involvement in operational management, which is the responsibility of the Head of Paid Services. · It was proposed that training be provided to committee members to clarify roles, address expectations, and resolve identified training gaps. · The member expressed appreciation for the significant effort in drafting the accounts and acknowledged the patience and engagement of those involved in addressing questions. RESOLVED:- (i) That the Governance & Audit Committee noted the Council’s Draft Statement of Accounts for the financial year 2023/24. (ii) That The Governance & Audit Committee noted the Audit Wales update report for the Statement of Accounts for the financial year 2022/23. (iii) The Governance & Audit Committee acknowledged the need for ongoing updates regarding audit progress and adjustments, ensuring transparency and effective governance.
Decision as recorded
RESOLVED:- That the Governance and Audit Committee considered the responses to Audit Wales’ ‘Audit enquiries to those charged with governance and management’ letter as attached at Appendix A.
The Chief Officer for Finance and Information submitted a report (COFI/09/25) presenting Audit Wales’ ‘Audit enquiries to those charged with governance and management’ letter. This letter, attached at Appendix A, outlined questions regarding the Council’s governance arrangements, requiring review and confirmation by the Governance and Audit Committee for submission to Audit Wales. During the introduction of the report, it was clarified that this section of the accounts was separate from the ongoing assets-related work and was brought forward to allow for timely finalisation and approval. Key points highlighted include: · The report contained a standard set of questions from Audit Wales, directed at all local authorities. Responses were prepared in a tabular format following established protocols and reviewed by audit colleagues. · The committee was tasked with reviewing the questions and responses to ensure they met required standards. Both the paper and the responses were made available for discussion and clarification. The following was discussed:- · A Member queried why elected members were not included in a question about management's communication on business practices and ethical behaviour (page 107). It was proposed to expand the question to include elected members, as ethical behavior was closely tied to governance and the code of governance. · A Member highlighted the need for clearer definitions of relationships on the related party transactions form (page 115), noting potential gaps in recognising roles such as directorships. Improved guidance was proposed to strengthen governance and transparency. · Officers explained that information was sourced from submitted forms and website declarations, with Audit Wales conducting thorough checks with Companies House and charities to ensure accuracy. · It was clarified that financial audits were distinct from performance audits, which review governance. Audit Wales focused on financial audits and collaborated with the Welsh Government on governance matters. Whilst Audit Wales can qualify financial statements for errors, it did not directly hold councils accountable. · Audit Wales emphasised its strong partnership with the Welsh Government and its collaborative work in Wrexham to address governance aspects effectively. RESOLVED:- That the Governance and Audit Committee considered the responses to Audit Wales’ ‘Audit enquiries to those charged with governance and management’ letter as attached at Appendix A.
Decision as recorded
RESOLVED:- Urgent items raised by the Chair were noted.
The following Key points were discussed: · A Member highlighted the importance of recognising former lay members' contributions, with the Chair agreeing to formally record this in the minutes whilst maintaining a focus on current members. · A pre-meeting preparation session, modelled after the Scrutiny Committee's practice, was proposed to improve coordination and minimise misunderstandings. The committee supported and reinstated this initiative. RESOLVED:- Urgent items raised by the Chair were noted.
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