To receive any apologies for absence.

There were no apologies for absence received.

The Committee noted that Councillor Bond was attending the meeting virtually.

To receive any declarations of interest.

Councillor J Tisi declared a personal interest as he was a trustee on Berkshire Maestros, which was part of the council trusts report. However, this item was not ready to be considered and would be deferred to the next Committee meeting.

To consider the minutes of the meeting held on 16^th November 2023.

AGREED UNANIMOUSLY: That the minutes of the meeting held on 16^th November 2023 were approved as a true and accurate record.

For the Committee to receive an update from Deloitte on the current situation around the 2020/21 audit, along with the progress on the 2021/22 and 2022/23 audits.

Jonathan Gooding, Deloitte, provided an update to the Committee. The 2020/21 audit had been considered at the last meeting in November 2023, with the audit largely complete subject to finalising some procedures around indexation and the impact of RAAC concrete on property valuations. The indexation figure was adjusted to a £17.2 million downward movement which was a change of £37.5 million, Deloitte had now concluded on this matter. For RAAC concrete, Deloitte had seen a paper from the council setting out their views. Subject to any further findings being discovered, it was anticipated that the accounts would be ready to sign off in March 2024.

For the 2021/22 audit, Deloitte had now completed the first stage of their work on the potential objections raised by a member of the public. A draft response was current with the legal advisor and this should be shared with Public Sector Audit Appointments Limited shortly for their independent view. This was also anticipated to be shared with the objector in March 2024. The value for money audit work for 2021/22 and 2022/23 was underway and this work was scheduled to be completed in April 2024.

The Department for Levelling Up and Communities was consulting on changing the audit regulations to include backstop dates for historical years of accounts. This meant that if an audit was not completed by the backstop date then the audit would be stopped and the opinion modified on the basis that the work was not complete. The consultation for this arrangement would close in March, while there was also a consultation on value for money arrangements. This would allow multiple years of value for money work to be undertaken at the same time and presented in a single report.

Jonathan Gooding concluded by explaining that Deloitte anticipated being able to complete the 2020/21 audit, and the value for money and objections parts of the 2021/22 and 2022/23 audits, by the September backstop deadline. It was not expected that Deloitte would be able to complete the other aspects of the audit in the time available and it was expected that a modified audit opinion would be issued. These proposals would allow RBWM to clear the backlog of accounts and focus resources on implementing past control recommendations. For the 2023/24 accounts, the backstop deadline would be 31^st May 2025.

The Chair thanked Jonathan Gooding for the comprehensive update and suggested that it would be beneficial for a short briefing note to be supplied with the agenda, to allow Committee Members to see the information in advance and come prepared with questions.

Jonathan Gooding said that he was happy to provide a summary for future Committee meetings.

Councillor Sharpe requested information on the buildings in the borough which were affected by RAAC concrete and the changes in valuation.

Andrew Vallance, Deputy Director of Finance, confirmed that there were no buildings owned by the council that were affected by RAAC concrete.

Jonathan Gooding explained that Deloitte was trying to comprehend whether there was  ...  view the full minutes text for item 28.

This progress report allows monitoring against the 2023/24 internal audit plan agreed by the Committee at the February 2022 meeting. This report is the third progress report on the internal audit plan.

Lisa Fryer, South West Audit Partnership, presented the Committee with the latest progress report on internal audit. Three more audits had been finalised and SWAP was making good progress towards the planned delivery of the audit plan. Changes to the plan were welcomed and there were a number of audits that had been deferred. SWAP followed a risk-based approach and work was in progress on the majority of the strategic risks. In the first year of SWAP being the council’s internal auditors, there had been a number of audits with limited assurance and three high corporate risks. These audits had been followed up this year and remaining actions would be monitored. Information had been provided on the limited assurance opinion period for the housing rent system. This was an addition to the original plan and had been reviewed as it was a new housing rent system. Follow up audits had taken place on corporate debt management and fleet safety compliance checks.

Councillor Sharpe asked for further information on the audit on the RBWM Property Company.

Lisa Fryer explained that the audit was based on the governance of property leases. Weaknesses would be subject to regular monitoring.

The Chair asked about the housing rent audit and what the remedial action would be.

Lisa Fryer said that a new system had been brought in which was why the audit had taken place. The system was sound and there was a good audit trail in place, but the policies and procedures around the system needed to be developed.

The Chair considered the corporate debt management follow up review and which areas were still remaining open.

Lisa Fryer said it was around policies and guidance on recovering debt. There was no policy around suppression and monitoring, the follow up highlighted that progress had been made but full delivery was not yet in place.

The Chair wondered how many of the audits would be completed by the end of the next quarter.

Lisa Fryer felt that she had a team of resources in place to deliver the plan and that she was confident the remainder of the plan could be delivered.

Councillor Sharpe commented that internal audit highlighted where more controls or attention was needed.

Councillor Wilson asked what the 2024/25 internal audit plan would look like.

Lisa Fryer said that a lot of work had already taken place on the creation of the plan and a significant amount of internal consultation had taken place with lead officers at the council. The plan would be considered and approved by the Committee at the next meeting.

AGREED UNANIMOUSLY: That the Audit and Governance Committee noted the internal audit progress report.

To receive a report on the management and administration of those Trusts where Cabinet acts as the Trustees and others in which RBWM has involvement. Any areas of concern identified by the Committee will be raised with relevant officers/Cabinet Members as necessary.

The report will be added as a supplement to the agenda once it is ready to be published.

This item was not ready to be considered and was therefore deferred to the next Committee meeting.

To consider the Committee’s work programme.

The Committee considered the work programme.

Councillor Bond asked if the treasury management strategy should be on the work programme.

Elizabeth Griffiths said there would be regular update reports on the treasury management strategy. The strategy would be going to Full Council next week for approval.

Councillor Sharpe suggested that the Committee should consider data security, to ensure that the council was taking the right steps in this area.

Elizabeth Griffiths said that it was on the risk register. She would check with the Assistant Director of HR, Corporate Projects and IT to see when this was last reviewed. System upgrades that were part of the capital programme were focused on IT security.

ACTION – Elizabeth Griffiths to explore with the Assistant Director of HR, Corporate Projects and IT to see when this area had last been audited.