Agenda and minutes

Apologies for absence were received from M Poppy.

Confirmation of Minutes of the Meeting held on the 21^st January 2025 and the 1^st April 2025.

The minutes of the meeting held on the 21^st January 2025 were presented.

It was proposed by Councillor P Hackett, seconded by Councillor J Gubb and –

Resolved:

That the minutes be confirmed as a correct record and signed by the Chair.

(Vote: For – 5, Against – 0, Abstentions - 1)

The minutes of the meeting held on the 1^st April 2025 were presented.

It was proposed by Councillor P Hackett, seconded by Councillor J Gubb and –

Resolved:

That the minutes be confirmed as a correct record and signed by the Chair.

(Vote: For – 3, Against – 0, Abstentions - 3)

The Committee discussed and updated the Action List.

Members with interests should refer to the agenda item and describe the nature of their interest when the item is considered.

There were no declarations of interest.

The agenda as circulated was agreed.

It was proposed by Councillor P Hackett, seconded by Councillor D Brenton and –

Resolved:

That the Agenda, as published, be agreed.

(Vote: For – Unanimous).

There were no urgent matters brought forward.

To receive a report from Brad Hutton, Senior Assurance Manager at Devon Assurance Partnership.

Brad Hutton, the Senior Assurance Manager at Devon Assurance Partnership presented the report, the purpose of which was for Members to approve the high level audit plan for 2025/2026.

Members were directed to Pages 13 and 14 of the report. The Senior Assurance Manager outlined the audit plan:

·         Core Systems

·         Risk Based Audits

·         Strategic Goal: Develop a Prosperous & Sustainable Economy

·         Strategic Goal: Protect and Enhance the Quality Environment

·         Strategic Goal: Support Stronger, Safer, Healthier Communities

·         Strategic Goal: An Effective and Customer Focused Council

Members noted that work is being conducted on Devolution and Government Reorganisation support.     

A brief discussion occurred. Members questioned the increase in audit days from 159 to 174. The Senior Assurance Manager outlined that this provides contingency.

It was proposed by Councillor P Hackett, seconded by Councillor D Brenton and –

Resolved:

That Members approve the Internal Audit Plan.

(Vote: For – Unanimous).

To receive a report from Brad Hutton, Senior Assurance Manager at Devon Assurance Partnership.

Brad Hutton, the Senior Assurance Manager at the Devon Assurance Partnership presented the report, the purpose of which was to provide a summary of the performance against the Internal Assurance plan to date for the 2024/25 financial year, highlighting the key areas of work undertaken and summarising the main findings and recommendations aimed at improving controls where work has been finalised.

The Senior Assurance Manager outlined that the report reflects work that has been completed until the 21^st March 2025 and explained that five audit reports have been conducted since the last meeting in January:

Cyber Security                                              Reasonable Assurance

Income Management                                  Substantial Assurance

Treasury Management                               Substantial Assurance

Harbour/Pilotage/Port Marine Safety        Reasonable Assurance

Cemeteries                                                    Reasonable Assurance

The Committee were made aware that information on the Cyber Security audit could be requested.

A discussion occurred. Members questioned the progress of the audit plan with reference to the highlighting system on Page 27.

Following on, Members questioned the Cemeteries audit. The Senior Assurance Manager outlined that the audit examines risks associated with health and safety, such as trip hazards.

Overall, Members noted the update.

To receive an update from Brad Hutton, Senior Assurance Manager at Devon Assurance Partnership.

Brad Hutton, the Senior Assurance Manager at the Devon Assurance Partnership provided the update, the purpose of which was to provide an annual update on the audit charter and strategy.

The Committee were informed that there have been no notable changes, excluding the organisation’s name change from ‘Devon Audit Partnership’ to ‘Devon Assurance Partnership’.

Members noted the update.

To receive a report from Bishop Fleming, External Auditors for Torridge District Council.

Craig Sullivan, the Key Audit Partner for Bishop Fleming, presented the report, the purpose of which was to give Members an overview of the nature and scope of the audit work and bring Member’s attention to the key aspects of the audit.

The Key Audit Partner outlined the structure and purpose of the report.

Members were directed to Page 64 of the report to note the implementation of IFRS 16 Leases.

The Committee were informed of the audit timeline with reference to the accounts being finalised in September.

A discussion occurred. Members were informed that fees will change in relation to leases, and there will also be changes to the auditing standards surrounding group audits. Members noted that a figure could not be provided in the meeting.

Members questioned the number of leases. The Finance Manager (S151 Officer) outlined that the largest number of ‘leases in’ come from temporary accommodation.

The Committee noted the report. 

To receive a report from the Finance Manager (S151 Officer).

The Finance Manager (S151 Officer) presented the report, to provide an opportunity for Members to comment on the draft 2024/25 Annual Governance Statement.

A brief discussion occurred. The Finance Manager (S151 Officer) explained that the statement is updated annually. Members noted that there have not been significant changes from previous years, and the Finance Manager (S151 Officer) agreed, but stated the significance of the Peer Review.

It was proposed by Councillor P Hackett, seconded by Councillor D Brenton and –

Resolved:

It is recommended that Members consider the draft Annual Governance Statement.

(Vote: For – Unanimous).

To receive a report from the Finance Manager (S151 Officer).

The Finance Manager (S151 Officer) presented the report, the purpose of which was to provide an update on any matters of non-compliance with the Contract and Financial Procedure Rules and Waivers approved by the Chief Executive and Section 151 Officer.

The Finance Manager (S151 Officer) outlined the structure and purpose of the report. Members noted that there were seven waivers in the year, which is a decline from previous years.

Following a request for more information, the Finance Manager (S151 Officer) confirmed that the Holsworthy Leisure Centre Environmental Clean waiver relates to asbestos.

The Committee noted the report.

To receive a report from the Finance Manager (S151 Officer).

The Finance Manager (S151 Officer) presented the report, the purpose of which was for Members to review and recommend updates to the Financial Procedure Rules to Full Council.

The Finance Manager (S151 Officer) reminded Members that the Financial Procedure Rules were updated by Full Council in February 2025 due to the Procurement Act. The main changes involve procurement level thresholds, to align the Financial Procedure Rules with the approved Contract Procedure Rules.

A brief discussion occurred. Members questioned how the Financial Procedure Rules compare with other Councils, and the Finance Manager (S151 Officer) explained that the levels are in line with other Councils across Devon.

It was proposed by Councillor P Hackett, seconded by Councillor S Andrews and –

Resolved:

That Members recommend to Full Council that:

a)    The updated Financial Procedure Rules are approved.

(Vote: For – Unanimous).

To receive an update from the Finance Manager (S151 Officer).

The Finance Manager (S151 Officer) provided an update, the purpose of which was for Members to note the changes to the Corporate Risk Register since the last Audit and Governance Committee meeting.

Members were informed that number 11, Local Government Reorganisation, has been added to the Corporate Risk Register. Moreover, the Community Regeneration Partnership, formerly the Levelling Up Partnership, is highlighted under Corporate Risk 10.

A discussion occurred. Members questioned the use of credit cards. The Finance Manager (S151 Officer) outlined that credit cards are included in the Financial Procedure Rules, as monthly staff limits do not amount to a corporate level risk.

The Committee noted the update.

The Committee noted the Forward Plan.

The Chair to move:

That the public be excluded from the remainder of the meeting because of the likely disclosure of exempt information by virtue of paragraph 3 of Part I and paragraph 10 of Part 2 of Schedule 12A of the Local Government Act 1972.

It was proposed by Councillor P Hackett, seconded by Councillor D Brenton and-

Resolved:

That the public be excluded from the remainder of the meeting because of the likely disclosure of exempt information by virtue of paragraph 3 of Part I and paragraph 10 of Part 2 of Schedule 12A of the Local Government Act 1972.

(Vote: For – Unanimous).

To receive a report from the Strategy, Performance & ICT Manager.

The Strategy, Performance & ICT Manager informed the Committee on the draft AI policy.

Following a thorough discussion, Members were notified that AI training could be incorporated into the biannual Member training sessions.

To receive an update from the Strategy, Performance & ICT Manager.

The Strategy, Performance and ICT Manager presented the report.

A brief discussion followed and Members noted the report.

To receive an update from the Finance Manager (S151 Officer).

The Finance Manager (S151 Officer) provided an update on the Corporate Risk Register.

It was proposed by Councillor P Hackett, seconded by Councillor D Brenton and –

Resolved:

That the meeting come out of Part II and close.

(Vote: For – Unanimous).