Agenda and minutes

Members in any doubt about such declarations are advised to contact Legal or Democratic Services in advance of the meeting

There were no declarations of interest made in accordance with the Code of Conduct.

To confirm as a correct record the Minutes of the meeting of Audit Committee held on 27 September 2021

RESOLVED:  That the Minutes of the meeting of the Audit Committee held on 27 September 2021 be approved as a correct record and signed by the Chairman.

To recommend to Cabinet and subsequently Full Council that this Council opts into the appointing person arrangements made by Public Sector Audit Appointments Limited (PSAA) for the appointment of external auditors.

The Director of Finance and Transformation recommended that the Council opted into the appointing person arrangements made by Public Sector Audit Appointments Limited (PSAA) for the appointment of external auditors.

It was reported that the Borough Council had previously opted into the PSAA national auditor appointment arrangements covering the five year period 2018/19 to 2022/23.  It was now time to consider external audit arrangements for the period commencing April 2023 and the national appointing arrangements made by the PSAA remained the preferred option.

RECOMMENDED:  That the Borough Council opts into the appointing persons arrangements made by Public Sector Audit Appointments Limited for the appointment for external auditors for the five consecutive financial years commencing 1 April 2023.

*Referred to Cabinet

Our external auditors (Grant Thornton UK LLP) are required to satisfy themselves that the Authority has made proper arrangements for securing economy, efficiency and effectiveness in its use of resources and to report on the same to those charged with governance - which for this purpose is the Audit Committee - followed by Cabinet and Full Council.

The joint report of the Chief Executive and the Director of Finance and Transformation introduced the Auditor’s Annual Report prepared by Grant Thornton UK LLP on the Borough Council’s arrangements for securing economy, efficiency and effectiveness in its use of resources and governance.  Mr Paul Dossett, Engagement Lead, presented the report and answered questions raised.

No significant weaknesses in arrangements were identified.  However, a number of improvement recommendations were made and these were detailed in the report together with management comments.

RECOMMENDED:  That

(1)         the Auditor’s Annual Report for 2020/21, attached at Annex 1, be approved; and

(2)         the management comments to the improvement recommendations made in paragraphs 1.2.3 to 1.2.9  be noted and endorsed.

*Referred to Cabinet

The report asks Members to review the Risk Management Strategy and accompanying Risk Management Guidance and to recommend to Cabinet its adoption by Full Council.

An update on the risk management process and the Strategic Risk Register is also provided.

The report of the Management Team invited the Committee to review the Risk Management Strategy and accompanying Risk Management Guidance which set out the Council’s risk management objectives and detailed roles and responsibilities of officers, Members and partners in the identification, evaluation and cost-effective control of risks.  The report also provided an update on the risk management process and Strategic Risk Register.  Whilst it was noted that no new risks had been added to the Register since the last meeting in September, the number of those categorised as ‘red’ remained unchanged:

·          Financial position/budget deficit

·          EU Transition and economic uncertainty (severely impacted by the coronavirus pandemic)

·          Corporate Strategy and Savings and Transformation Strategy

·          Waste Services

·          Local Plan

A schedule of ongoing risks and risks identified by Service Management Teams and Management Team since the meeting in September 2021 was attached at Annex 4.

RECOMMENDED:  That

(1)         the Risk Management Strategy and accompanying Risk Management Guidance be commended to the Cabinet for approval by the Council; and

(2)         the updates to the Strategic Risk Register since the last iteration with particular emphasis on those risks categorised as ‘RED’ be noted.

*Referred to Cabinet

The report provides details of investments undertaken and return achieved in the first nine months of the current financial year and an introduction to the 2022/23 Treasury Management and Annual Investment Strategy.  Members are invited to recommend adoption of the Strategy to Cabinet.

The report of the Director of Finance and Transformation provided details of investments undertaken and return achieved in the first nine months of the current financial year.  In addition, it provided an introduction to the 2022/23 Treasury Management and Annual Investment Strategy (attached at Annex 5), which reflected the current economic environment, Link Asset Services’ latest interest rate forecast and incorporated the risk parameters summarised in the report.

RECOMMENDED:  That

(1)         the treasury management position as at 31 December 2021 be noted; and

(2)         the Treasury Management and Annual Investment Strategy for 2022/23, as set out at Annex 5 to the report, be commended to Council for adoption.

*Referred to Cabinet

This report presents the Accounting Policies proposed for the 2021/22 Financial Statements for consideration and endorsement

The Accounting Policies proposed for the 2021/22 Financial Statements were presented for consideration and endorsement.  It was noted that only changes required to those adopted for 2020/21 related to the accounting treatment in respect of the charge made for the garden waste service from a cash basis to an accrual’s basis and to the removal of references to the Kent Business Rates Pool for the year 2021/22.

RESOLVED:  That the Accounting Policies to be used in the preparation of the 2021/22 Financial Settlements, as set out at Annex 1 to the report, be endorsed.

This report informs Members of the outcome of the annual review of the Council’s Anti-Fraud, Bribery and Corruption Policy and Whistleblowing Policy.

Members were informed of the outcome of the annual review of the Borough Council’s Anti-Fraud, Bribery and Corruption Policy and advised that, whilst there were no changes required at this time, it was recommended that the Policy be reviewed every two years. 

The Whistleblowing Policy was also presented and Members advised that the latest review had identified that a number of changes were required to bring it up to date with best practice.  These included the publication of a staff whistleblowing procedure (Annex 3) and policy for those working externally to the Borough Council who witnessed wrongdoing by employees or Members (Annex 4). 

RESOLVED:  That

(1)         the Anti-Fraud, Bribery and Corruption Policy be approved; and

(2)         the General Purposes Committee be invited to approve the Whistleblowing Policy (attached at Annex 2) and accompanying Whistleblowing Procedure (Annex 3) and external Policy (Annex 4).

This report informs Members of the outcome of the annual review of the Council’s Anti-Money Laundering Policy and supporting guidance notes.

The report of the Director of Finance and Transformation gave details of the outcome of the annual review of the Borough Council’s Anti-Money Laundering Policy and supporting guidance notes and advised that, whilst there were no changes required at this time, it was recommended that the Policy be reviewed every two years. 

RESOLVED:  That the Anti-Money Laundering Policy and supporting guidance notes (attached at Annexes 1 and 2 respectively) be approved.

Members were provided with an update on the work of both the Internal Audit and Counter Fraud functions for the period April to December 2021.  Attention was drawn to the audit recommendation in respect of validation of parking permit application documents which was now closed as the risk had been accepted by the Service.  Details were set out in Annex 4 for awareness.

RESOLVED:  That the report be noted.

The Chairman to move that the press and public be excluded from the remainder of the meeting during consideration of any items the publication of which would disclose exempt information.

There were no items considered in private.