Venue: remotely via Microsoft Teams
Contact: Democratic Services
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Declarations of Interest To receive declarations of personal and prejudicial interest (if any) from Members/Officers in accordance with the provisions of the Members’ Code of Conduct adopted by Council from 1 September 2014. Minutes: None. |
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Approval of Minutes PDF 109 KB To receive for approval the minutes of the Committee of 28/01/2021 Minutes: RESOLVED: That the minutes of a meeting of the Governance and Audit Committee dated 28 January 2021, be approved as a true and accurate record. |
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Audit Wales Governance and Audit Committee Reports PDF 267 KB Additional documents:
Minutes: The Audit Wales Representative presented a report which updated the Committee on financial and performance audit work undertaken, and due to be undertaken, by Audit Wales, and the Audit Wales 2021 Audit Plan.
He explained that Audit Wales had prepared a number of reports for the committee to consider, namely:
The Audit Wales Representative outlined the financial audit work and its progress update carried out by Audit Wales, listed in table one of appendix A.
The Audit Wales Representative outlined the performance audit work and the main changes since the last Governance and Audit Committee meeting. She explained that the performance audit work programme was drawing to a close, with much of the work completed and the remainder of the work to finish by around July 2021. She added that the Review of the Council’s arrangements to become a ‘Digital Council’ had been reflected upon and a report on this had been re-issued. She was confident that the work on this would come to a close shortly.
The Chairperson stated that Audit Wales were due to look at the Carbon Reduction Plans and asked for some elaboration on this. The Audit Wales representative explained that this formed part of the 2020-21 work programme as a component of the assurance and risk assessment. She stated that the scope was to look at BCBC’s early plans for reducing the carbon footprint.
The Audit Wales Representative presented the Audit Wales Plan which set out the programme of work for the financial year. He explained that while he did not anticipate changes to the timings set out in the report, he stated that such changes were possible, due to the negative effects of Covid-19.
The Audit Wales Representative outlined the financial audit section at pages 5-9 of the Audit Wales Plan. He stated that the primary responsibility was to audit the statement of accounts and to reflect whether or not they gave a true and accurate view, by taking a risk-based approach. The financial statement audit risks were set out in Exhibit 1 with the key risk identified being related to Covid-19, including additional cost expenditures and the pressures on staffing.
The Audit Wales Representative added that the fee for the audit work on the accounts was set out on page 13 of the document and was based on the actual fee of last year, which was £6,000 less than the estimate included in last year’s Audit Plan.
The Audit Wales Representative also outlined the Performance Audit Programme 2021-22 which was set out in Exhibit 3 of the report which she summarised as follows:
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Fraud Strategy & Framework 2021/22 To 2024/25 PDF 71 KB Additional documents:
Minutes: The Interim Chief Officer – Finance, Performance and Change presented a report which provided the Committee with the Council’s draft Fraud Strategy and Framework 2021/22 to 2024/25 and the draft Fraud Risk Register in accordance with the functions of the Governance and Audit Committee as outlined in the Terms of Reference, prior to submission to Cabinet for approval.
She thanked the staff who contributed to the report and stressed the importance of the fraud strategy and framework. She explained that there had been a large number of attempts to commit fraud, particularly during Covid-19.
The Senior Fraud Investigator stated that in July 2020 Audit Wales produced a report entitled ‘Raising Our Game – Tackling Fraud in Wales’.
The report identified seven key themes that all public bodies needed to focus on in raising their game to tackle fraud more effectively and made 15 recommendations across these themes.
He explained that the Fraud Strategy & Framework 2021/22 to 2024/25 was attached at Appendix A and outlined the aims and objectives of the strategy, identified fraud risks and this included a 3 year action plan, which will further improve the Council’s resilience to fraud, bribery and corruption.
The Senior Fraud Investigator stated that the report also included measures of success and a flow chart to demonstrate the Council’s approach to a suspected fraud. He outlined the key points in the strategy and framework including Roles & Responsibilities, Aims & Objectives, Current Fraud Landscape & Risks, the managing of the risk of fraud, bribery & corruption, action plan and measuring of success.
The Senior Fraud Investigator outlined the draft fraud risk register which was at Appendix B to the report and listed 20 potential fraud risks that had been identified throughout the Council. The register outlined the consequences of each risk and how each risk was being addressed.
The Chairperson thanked all involved with producing the report and stated that it was a clear and understandable read.
A Member asked if anyone had been prosecuted for fraud in the past financial year by the Council. The Senior Fraud Investigator confirmed that there had been some prosecutions relating to benefit fraud, with previous years being higher and relating more to blue badge fraud. A Member believed that highlighting fraud prosecutions to the public may deter future fraud attempts.
A Member asked what checks were carried out in terms of the tender process and was the Council confident that no fraud had taken place in this area.
The Head of Regional Internal Audit Service explained that at the last Governance and Audit Committee, a report on contracts was brought to Members to give assurance on the processes that were undertaken in Bridgend. The Interim Chief Officer – Finance, Performance and Change also commented on the Council’s own processes and financial and contract procedure rules that were looked at when tendering, and much of these processes are very strictly managed.
The Lay Member welcomed the report and the Senior Fraud Investigator for working hard on tackling and preventing fraud for BCBC. ... view the full minutes text for item 236. |
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Anti-Tax Evasion Policy PDF 230 KB Additional documents:
Minutes: The Interim Group Manager – Chief Accountant presented a report which informed the Governance and Audit Committee of the new Anti-Tax Evasion Policy. He explained the requirement of the policy as per the Criminal Finances Act 2017 and outlined the background at section 3 of the report.
The Interim Group Manager – Chief Accountant explained that the Council was committed to establishing and maintaining effective arrangements to prevent and detect acts of bribery, corruption and tax evasion in relation to Council services.
He explained that the Anti-Tax Evasion Policy was attached as Appendix A to the report and was supplementary to the Council’s wider Anti-Fraud and Bribery Strategy which sets out the key responsibilities with regard to fraud prevention and what to do if fraud or financial irregularity is suspected, including the action that will be taken by management as a result of this.
He advised that Cabinet approved the new Anti-Tax Evasion Policy on 9 February 2021 and the Governance and Audit Committee was asked to consider the policy as part of their role to obtain assurance regarding the Council’s corporate governance and risk management arrangements. The policy was to be reviewed and updated as required on a bi-annual basis.
The Chairperson asked how the policy was going to be rolled out and how would any findings regarding this be reported to the Committee. She also asked how could it be proved that the policy was being implemented effectively.
The Interim Group Manager – Chief Accountant explained that the findings of any tax evasion would be recorded by the Senior Fraud Investigator and his team and presented to the Committee as and when required. He stated that this would play a role in ensuring the policy was implemented.
The Lay Member mentioned that the policy was similar to the fraud risks discussed in the previous report. She suggested that the reporting of this to the Committee be done in conjunction with the fraud risk register.
RESOLVED: That the Committee
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Local Government & Elections (Wales) Act 2021 PDF 89 KB Minutes: The Interim Chief Officer – Finance, Performance and Change presented a report which provided the Committee with an update regarding the Local Government and Elections (Wales) Act 2021 and proposed amendments to the Terms of Reference of the Committee.
She stated that the Act was passed by the Senedd on 18 November 2020 and received Royal Assent on 20 January 2021. The legislation covered a range of areas like electoral reform, public participation, governance and performance and regional working. The Act aimed to provide a more streamlined approach to performance, good governance and improvement and introduced the following:
The Interim Chief Officer – Finance, Performance and Change explained that the Act introduced previously consulted upon reforms to change Audit Committees including:
o consider both the draft and final versions of the Council’s self-assessment report;
o at least once during the period between two consecutive ordinary elections, to consider the Independent Panel Performance Assessment report;
o to review the Council’s response to the Independent Panel Performance Assessment report;
The Interim Chief Officer – Finance, Performance and Change explained that it was proposed that the Terms of Reference of the Committee within Part 3 of the Council’s Constitution be amended to include the points listed in paragraph 4.2 of the report. She added that, in addition to this, it was identified that the purpose of the Committee needed to be updated to reflect responsibilities around governance and the new legislation. Therefore, it was proposed that the purpose of the Governance and Audit Committee be updated as per paragraph 4.3 of the report.
A Member mentioned the point that a third of the Committees members should be Lay members, which included the chair. She asked if there was a default position that the Committee could take if they were unsuccessful in obtaining one third lay members. The Interim Chief Officer – Finance, Performance and Change confirmed that she did not have the details regarding this and expected that some guidance would follow closer to the date of implementation of this part of the Act.
A Member mentioned that some of the changes would have future cost implications. She asked if the Council were aware of what these costs would be. The Interim Chief Officer – Finance, Performance and Change stated that she did not have the details of these, but once the details were confirmed of what the Council was expected to do, what grants or resources were ... view the full minutes text for item 238. |
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Disabled Facilities Grant - Progress Report and Position Statement PDF 160 KB Minutes: The Head of Partnerships presented a report, the purpose of which was to update the Governance and Audit Committee on actions taken to progress improvements to the Disabled Facilities Grant (DFG) service and provide information on the position to date.
He confirmed that, previous reports to Audit Committee, Cabinet and Cabinet / Corporate Management Board (CCMB) have outlined the critical need to re-shape and improve the delivery of the DFG service within Bridgend.
A further audit report undertaken by the Regional Internal Audit Service in 2019/20 had concluded that there was Limited Assurance in relation to the service at that time. This report had also made some recommendations required in order to improve the service and these were detailed at paragraph 3.4 of the report.
At a subsequent meeting of Cabinet, a report was considered that reflected some proposals and actions that needed to be pursued, in order to take forward and improve the DFG service. Paragraph 4.1 of the report, confirmed that these had been acted upon and also outlined progress to date on these. The Head of Partnerships gave a resume of these for the benefit of Members.
The Head of Partnerships confirmed that in parallel to the activity outlined in the report were the actions that respond to the recommendations of the Wales Audit Office report. These actions met the Council objectives at paragraph 2.1 of the report, as well as supporting the 5 ways of working under the Well-being Future Generations (Wales) Act 2015 and the Social Services and Well-Being (Wales) Act 2014.
A project team had been established which will be responsible for the development, implementation and monitoring of the pilot. Discussions were currently taking place with colleagues from Social Services, to strengthen the role of the Social Services Occupational Therapist service and its role in children’s cases and initiating adult DFG referrals to the housing team. This will ensure that medium and large DFG works are processed in a standardised and consistent manner across the Council and will ensure the pathway to a DFG and related Social Services support is clear.
To ensure compliance with Council processes and procurement, a Framework Agreement was being developed under which contractors shall be appointed to carry out the works on DFG applications in line with the CPRs.
The steps being put in place to streamline the service and the collaborative working with Neath Port Talbot Council, would allow BCBC to develop new processes and procedures. Monitoring, review and evaluation processes would be established, to ensure the Council has appropriate controls in place, he added.
Performance improvements were also being targeted, further added the Head of Partnerships. Targets for improvement here were itemised in the report, in order to ensure that BCBC’s performance improves to meet an All Wales average. Though he stressed that the internalisation changes and moving to a new operational model may delay these improvements being implemented, particularly for reasons of staff recruitment of suitable experienced and qualified staff to take on, in order to ... view the full minutes text for item 239. |
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Effectiveness of the Governance & Audit Committee Self-Assessment update PDF 84 KB Additional documents:
Minutes: The Head of the Regional Internal Audit Service presented a report, in order to update members of the Committee, following feedback, on the findings of the Self-Assessment of Good Practice from the Chartered Institute of Public Finance & Accountancy (CIPFA) Audit Committees Practical Guidance 2018, (originally reported on 28th January 2021). As well as to summarise the members’ responses to a skills questionnaire issued to gauge their level of knowledge and experience of key areas.
He advised that the effectiveness of this Governance and Audit Committee should be evaluated in line with the Self-Assessment of Good Practice included in CIPFA guidance. This provides a high-level review that incorporates the key principles set out in CIPFA’s Position Statement.
The checklist was presented to Committee on 28th January 2021. During the meeting it was agreed that members of the committee would be given the opportunity to provide their own feedback. In addition the Chairperson arranged some sessions which members were invited to join if they preferred.
The Head of the Regional Internal Audit Service, added that a draft audit report was attached at Appendix A to the report, which provided a summary of the findings and the feedback received from members of the Committee, whilst Appendix B included the updated checklist. The draft audit report includes a management implementation plan which lists the recommendations being made as a result of this work.
A skills and knowledge questionnaire was also presented to Committee on 28th January 2021. It was agreed that this would be circulated for completion by all members. The results are also provided in the attached draft audit report at Appendix A, whilst the questionnaire is attached at Appendix C for reference.
The Head of the Regional Internal Audit Service, then referred Members to the Action Plan attached to the report, where there were bullet points for members to consider, going forward.
The Chairperson advised that these were shown at page 133 of the report (6.1.2) and she would take members through these individually, in order to see the consensus of opinion of which of these recommendations, should be taken forward.
enhanced and better articulated so the Committee is able meet this responsibility. - Agreed – Chairperson to discuss further with the Head of the Regional Internal Audit Service.
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Progress against the Internal Audit Risk Based Plan 2020-21 PDF 74 KB Additional documents: Minutes: The Audit Client Manager presented a report, so as to provide Members of the Committee with a position statement on progress being made against the audit work included and approved within the Internal Audit Risk Based Plan 2020-21.
She gave some background information, then advised that progress made against the plan during 2020-21 was attached at Appendix A to the report. It should be noted the Audit Client Manager stated, that this was a draft position as some work was in the process of being completed and the outcome of this work would be included in the Head of Audit’s Annual Internal Audit Report 2020-21, to be brought to a future Governance and Audit Committee.
Appendix A detailed the status of each planned review, the audit opinion and the number of any high or medium recommendations made to improve the control environment. It should be noted, she explained, that some reviews listed have no audit opinion, for example advice and guidance, Governance and Audit Committee and Corporate Management Board (CMB) reporting. This was because the audit work carried out in respect of these items is planned, but the nature of the work does not lead to testing and the formation of an audit opinion.
Appendix A illustrated that to date 26 items of work had been completed of which 19 audits have resulted in an opinion being provided. A total of 13 audits were currently on-going and would be included within the final annual opinion report.
The above Appendix identified that a total of 28 medium (significant) recommendations had been made to improve the control environment of the areas so reviewed.
The Audit Client Manager, further added that Appendix A showed that some of the planned audit reviews had been deferred following a request from the service department and will be considered in the following year’s plan. However, from the work undertaken there had been sufficient coverage to form an audit opinion for 2020-21, which will be included in the Head of Audit’s Annual Internal Audit Report.
The Audit Client Manager concluded her submission by referring to certain examples of the audit work that had been undertaken, as referred to in the report’s appendix.
The Lay Member asked if any of the audit work carried out by the Shared Internal Audit Service had revealed any fraud related issues.
The Audit Client Manager confirmed that no such fraud related matters had arisen in respect to any of the audit work completed as detailed in Appendix A.
The Lay Member noted that there was an investigation into a service area where work to date had revealed a security breach and she asked if Members could be advised what this related to/receive further information regarding this.
The Head of the Regional Internal Audit service advised that as this investigation had not yet been fully completed, further information regarding it could not yet be shared with Members. However, when the investigation had been concluded, Members would be advised of relevant issues arising. ... view the full minutes text for item 241. |
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Regional Internal Audit Service Charter 2021-22 PDF 74 KB Additional documents: Minutes: The Head of the Regional Internal Audit Service presented a report, in order to submit to Members of the Governance and Audit Committee, the Regional Internal Audit Service’s Internal Audit Charter for 2021/22.
The purpose of the Regional Internal Audit Service Charter, was to define the purpose, authority and responsibilities of the Regional Internal Audit Shared Service across Bridgend, Merthyr Tydfil, Rhondda Cynon Taf and the Vale of Glamorgan Councils.
The Head of Internal Audit sections was responsible for reviewing the charter and presenting it to each Council’s Audit Committee annually for review and approval, in line with the Public Sector Internal Audit Standards (PSIAS).
He confirmed that the Regional Internal Audit Charter for 2021/22 was attached at Appendix A to the report. The Charter was fully reviewed and amended for 2020/21, to have a consistent Charter for the four Councils. This was consistent with the objectives of the Regional Shared Service, that is, to eliminate duplication and apply best practice.
The Head of the Regional Internal Audit Service, advised that this had been reviewed again for 2021/22, to ensure it continues to reflect the requirements of the PSIAS and is applicable to all four Councils involved in the Shared Service. The only changes made to the Charter, he advised, related to the change of title of the Audit Committee to the Governance and Audit Committee as a result of the Local Government & Elections (Wales) Act.
RESOLVED: That Members of the Committee considered and approved the Regional Internal Audit Service Charter for 2021/22, as attached at Appendix A to the report. |
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Forward Work Programme 2021-22 PDF 227 KB Additional documents: Minutes: The Interim Deputy Head of Finance presented a report, the purpose of which was to seek approval for the proposed Forward Work Programme for 2021-22.
She advised that in order to assist the Committee in ensuring that due consideration is given to all aspects of their core functions, the proposed Forward Work Programme for 2021-22 was attached at Appendix A to the report.
Paragraph 4.2 of the report, listed the items scheduled to be placed on the Agenda at the next Committee meeting dated 18 June 2021.
The Interim Deputy Head of Finance, added that there may be additional agenda items presented to the Committee as the Local Government and Elections (Wales) Act 2021 comes into effect, particularly in respect of the Committee’s new responsibilities in respect of performance and complaints. These would be added to the Forward Work Programme, where necessary, as and when known/required.
RESOLVED: That the Committee considered and approved the proposed Forward Work Programme for 2021-22. |
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Urgent Items To consider any other items(s) of business in respect of which notice has been given in accordance with Rule 4 of the Council Procedure Rules and which the person presiding at the meeting is of the opinion should by reason of special circumstances be transacted at the meeting as a matter of urgency. Minutes: There were no urgent items. The Chairperson however advised that the next date of the Committee had been delayed from a provisional date in May to 18 June 2021, in order to consider, in a more timely manner, the year-end Statement of Accounts.
This meeting was scheduled at 10.00am on that date, but following discussion with Members, it was felt that it may be better to hold the meeting in the afternoon at 2.00pm.
The Interim Chief Officer - Finance, Performance and Change confirmed that she would liaise with the Monitoring Officer (and Proper Officer for Committees) and staff in Democratic Services, in order to establish if the meeting on this date could be moved from the morning to the afternoon. |