Agenda and minutes
Venue: Surrey County Council, Woodhatch Place, 11 Cockshot Hill, Reigate, Surrey, RH2 8EF
Contact: Angela Guest Email: angela.guest@surreycc.gov.uk
Media
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APOLOGIES FOR ABSENCE AND SUBSTITUTIONS
Additional documents: Minutes: An apology was received from Stephen Cooksey.
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MINUTES OF THE PREVIOUS MEETING [20 SEPTEMBER 2021] PDF 215 KB
To agree the minutes as a true record of the meeting. Additional documents: Minutes: The Minutes were approved as an accurate record of the previous meeting. |
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DECLARATIONS OF INTEREST
All Members present are required to declare, at this point in the meeting or as soon as possible thereafter (i) Any disclosable pecuniary interests and / or (ii) Other interests arising under the Code of Conduct in respect of any item(s) of business being considered at this meeting NOTES: · Members are reminded that they must not participate in any item where they have a disclosable pecuniary interest · As well as an interest of the Member, this includes any interest, of which the Member is aware, that relates to the Member’s spouse or civil partner (or any person with whom the Member is living as a spouse or civil partner) · Members with a significant personal interest may participate in the discussion and vote on that matter unless that interest could be reasonably regarded as prejudicial. Additional documents: Minutes: There were none. |
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QUESTIONS AND PETITIONS
To receive any questions or petitions.
Notes: 1. The deadline for Member’s questions is 12.00pm four working days before the meeting (23 November 2021). 2. The deadline for public questions is seven days before the meeting (22 November 2021). 3. The deadline for petitions was 14 days before the meeting, and no petitions have been received.
Additional documents: Minutes: There were none. |
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RECOMMENDATIONS TRACKER AND WORKPLAN PDF 193 KB
To review the Committee’s recommendations tracker and 2021/22 workplan. Additional documents: Minutes: RESOLVED: That the Tracker and Workplan be noted.
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PENSIONS TURNAROUND PROGRAMME PDF 173 KB
Briefing requested at September meeting.
Additional documents: Minutes: Speakers: Neil Mason, Assistant Director Pensions (AD Pensions) Nick Harrison, Chairman of the Surrey Pension Fund Committee (SPFC)
Key points raised during the discussion:
· Dissolution of the Orbis pension partnership between Surrey County Council (SCC) and East Sussex County Council (ESCC). · Reversion of pensions administration to the respective ESCC and SCC sovereign authorities. · Revaluate the relationships with other pension administration customers. · Redesign the pensions function as an integrated Surrey Pensions Team combining administration with all other Fund activities.
Actions/ further information to be provided: None
Resolved: That the pension turnaround programme report be noted.
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EXTERNAL AUDIT UPDATE REPORT PDF 140 KB
To inform the Committee of the result of the external audit of the council’s 2020/21 Statement of Accounts, to receive the external auditor’s final Audit Findings Report and to approve the council’s letter of representation from the Executive Director of Resources. Additional documents: Minutes: Speakers: Barry Stratfull, Chief Accountant (Corporate) Ciaran McLaughlin, Grant Thornton Ade Oyerinde, Grant Thornton Mark Hak-Sanders, Strategic Finance Business Partner Neil Mason, Assistant Director Pensions (AD Pensions)
Key points raised during the discussion:
· There was an adjustment of £45m to the Pension Account due to adjustments in values. · The management representation letter would be signed off tomorrow · Value for money work was still outstanding at the moment, but the deadline of 28 February would be met · The final statement would be presented to the Committee in January with the Annual Report. · Thanks were extended to the Finance and Pension teams for the good working relationship had with the auditors. · Three properties had been missed off the revaluation list. · Reliance on the auditing of subsidiaries, by external auditors, was mentioned in terms of timing for receipt of their papers in order for Grant Thornton to do their work. Papers were received very late which meant additional time and challenge for Grant Thornton. |
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EXTERNAL AUDIT PROCUREMENT PDF 380 KB
We have a choice on whether our external audit is procured directly by SCC; e.g. we approach the market directly, or whether we take part in a national process run by Public Sector Audit Appointments LTD (A subsidiary of the LGA) where they commission external audit on behalf of the sector and allocate us an auditor. Decision to go to full council
Additional documents: Minutes: Speakers: Barry Stratfull, Chief Accountant (Corporate) Mark Hak-Sanders, Strategic Finance Business Partner
Key points raised during the discussion:
· A disadvantage to taking the proposed route was that the council would not have control of the recruitment process. · There was to be a base fee for all authorities and the PSA would act as referee between say Grant Thornton and SCC. · There was no break clause so once in the council would be in for the full five years. · PSA would appraise possible providers
Actions/ further information to be provided: None
Resolved: That the Audit and Governance Committee RECOMMEND that Council approve the decision to opt into the PSAA sector-led option for the appointment of external auditors to principal local government and police bodies for five financial years from 1 April 2023.
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INTERNAL AUDIT PROGRESS - Q2 PDF 156 KB
To report on Internal Audit progress during quarter 2
Additional documents: Minutes: Speakers: Russell Banks, Chief Internal Auditor David John, Audit Manager (SCC) Mark Winton, Audit Manager (ESCC)
Key points raised during the discussion:
· The follow up report on the LAS LiquidLogic system, which showed a marked increase in the level of assurance from Partial to Substantial Assurance · an initial review of the Council’s revised and refreshed risk management framework, which had received Reasonable Assurance and actions were in hand regarding agreed areas to improve · work with the DB&I Programme Board to provide ongoing advice and assurance to the project for replacing SAP with a new ERP solution · Output on school audits – two had been undertaken and eight were in progress and there would be more to follow, and · Changes to the Audit Plan, as detailed in the report. · there were approximately 180 maintained schools and it was hoped that 40 schools would be audited each year but that schools would be prioritised where there were concerns or higher risk. · Whilst schools were unique and entities in their own right, it was the intention that where generic issues or control weaknesses affected them all, we would report them to Governors through bulletins etc. to aid shared learning. · It was confirmed that as the programme of school audits continued that there should be less repeated findings due to the shared learning of previous audits. There was no obligation on schools to respond to the council on how they had applied the shared learning communicated to them. · That there were several avenues available, and used, for feeding back audit findings to schools and governors. Governors were targeted as they hold the schools to account.
Actions/ further information to be provided: None.
Resolved: That the Internal Audit progress report be noted.
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ANTI-FRAUD AND CORRUPTION STRATEGY AND FRAMEWORK PDF 125 KB
An update to Surrey’s Counter Fraud Strategy for the Committee to approve
Additional documents: Minutes: Speakers: Russell Banks, Chief Internal Auditor Simon White, Audit Manager Paul Evans, Director of Law and Governance
Key points raised during the discussion:
Actions/ further information to be provided: For the Council’s Constitution to be updated.
Resolved: That the Audit & Governance Committee agreed the updated Council’s Anti-Fraud and Corruption Strategy and Framework and RECOMMEND that Council agree the Constitution change.
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TREASURY MANAGEMENT HALF YEAR REPORT PDF 393 KB
This report summarises the council’s treasury management activity.
Additional documents: Minutes: Speakers: Mark Hak Sanders, Strategic Finance Business Partner
Key points raised during the discussion:
Actions/ further information to be provided: None.
Resolved: That the half year treasury management update be noted.
At 12.52pm the Committee adjourned for a 10-minute comfort break.
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CORPORATE RISK UPDATE PDF 264 KB
To receive an update on the overall corporate risks and a more detailed review on a specific risk
Additional documents: Minutes: Speakers: David Mody, Interim Strategic Risk Business Partner Ruth Hutchinson, Director of Public Health
Key points raised during the discussion:
1. The Strategic Risk Business Partner introduced the report and explained it was in two parts: 2. The Director of Public Health described the internal governance structures dealing with Covid as well as a high-level overview of the management plan, action taken for dealing with new variants and public engagement. With regard to the new Covid variant Omicrom she stated that a meeting was to take place at 6pm that evening with national directors. 3. In response to a Member query on the definition of a major health crisis and whether it was quantifiable the Director for Public Health stated that the pandemic was a major health crisis as it had an impact on both the NHS and local government services with increased pressures. There was no quantifiable rates nationally. 4. A Member asked how public health reacted to the news of Guildford being a hotspot. The Director of Public Health explained the very quick communication methods using social media for that area and the work undertaken on boosting the vaccine uptake. She also went on to report that funding assistance had been good which had meant quick responses with partner teams. She also praised teachers for continuing education through a very difficult time. 5. The Director of Public Health confirmed that she was happy with rating of the risk as shown on the risk heat map and that it would be continuously reviewed given the volatile situation.
Actions/ further information to be provided: None.
Resolved:
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ANNUAL GOVERNANCE STATEMENT - HALF YEAR REPORT PDF 127 KB
Report attached. Additional documents: Minutes: Speakers: Paul Evans, Director of Law and Governance
Key points raised during the discussion:
1. The Director of Law and Governance gave a brief introduction to the submitted report that provided an update on progress on the improvement areas identified in the 2020/21 Annual Governance Statement. 2. In response to a query about why the report did not mention the Fire & Rescue service the Director of Law and Governance explained that the report only contained those items identified by the Committee at the last annual governance statement. However, the Committee could take a look at whether it wanted to included governance issue to watch in future governance statements.
Actions/ further information to be provided: None
Resolved: That satisfaction with the progress made so far be confirmed.
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APPOINTMENT OF INDEPENDENT MEMBER PDF 136 KB
This report details the process undertaken to date to recruit an Independent Member to the Audit and Governance Committee and confirms that the preferred candidate will be recommended to County Council for appointment as the Independent Member to the Audit and Governance Committee. Additional documents: Minutes: Speakers: Paul Evans, Director of Law and Governance
Key points raised during the discussion:
Actions/ further information to be provided: None
Resolved: That the Audit and Governance Committee notes the recruitment process being undertaken and following an interview process, will recommend the preferred candidate to County Council to be appointed as the Independent Member to the Audit and Governance Committee.
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DATE OF NEXT MEETING
The next meeting of Audit & Governance Committee will be on 24 January 2022. Additional documents: Minutes: It was noted that the next meeting would be held on 24 January 2022.
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