There were no apologies for absence given at the meeting.

The minutes of the meeting held on 11th December were confirmed.

The minutes of the meeting held on 11th December were confirmed.

Councillor Wainwright sought an update regarding outstanding recommendations.

Teresa Sharman advised that outstanding recommendations should start to decrease and it would be reported fully at the next meeting. Karen Sly added that officers would then be called in.

Councillor Wainwright requested an update on the Beach Huts.

Teresa Sharman advised that she would instigate work on this and action a separate report.

The Committee received and considered the report from the Head of Internal Audit.

           
The Head of Internal Audit reported progress made between 1 December 2023 to 31 March 2024 in relation to the delivery of the Annual Internal Audit Plan for 2023/24. The report also provided an update on the implementation of internal audit recommendations.

Councillor Wainwright commented on the property debt and stated it may have been lessened if it had been flagged earlier.

Karen Sly advised that monthly meetings were now being held with Sundry Debts and Property Services and this will now be picked up as part of the follow up.

Councillor Newcombe queried GY2411 and cited Broadland Rugby Club as an example – the interior was good but the exterior was in a poor condition.

Teresa Sharman advised that there would be an audit next year on non-housing property.

RESOLVED:-

That the Committee received the progress update relating to the Internal Audit Plan for April 2023/24.

The Committee received and considered the report from the Head of Internal Audit.

 
The Head of Internal Audit informed Committee that the report provided an overview of the stages followed prior to the formulation of the Strategic Internal Audit Plan for 2024/25 to 2026/27 and the Annual Internal Audit Plan for 2024/25. The Annual Internal Audit Plan would then serve as the work programme for the Council's Internal Audit Services Contractor; TIAA Ltd. It would also provide the basis for the Annual Audit Opinion on the overall adequacy and effectiveness of the Council's framework of governance, risk management and control.

She also informed the Committee that the Annual Internal Audit Plan for 2024/25 totals 271 days allocated to Great Yarmouth Borough Council, encompassing 22 Internal Audit reviews, three of which cover IT processes.

RESOLVED:-

That the Committee noted:-

a) the Internal Audit Charter; 

b) the Internal Audit Strategy; 

c) the Strategic Internal Audit Plans 2024/25 to 2026/27; and 

d) the Annual Internal Audit Plan 2024/25.

The Committee received and considered the report from Ernst Young, the Council's External Auditors.

Debbie Hanson reported that due to the complexity of the weaknesses identified in the Council’s value for money arrangements and difficulties with obtaining relevant supporting evidence the delay in reporting had been extended significantly. She advised that issues with capacity within the Finance team had impacted on the completion of the audit.

Members were advised that no changes were made to the previous materiality assessment, which was set using the draft Statement of Accounts, with overall materiality remaining at £1.46 million for the Council.

Councillor Wainwright commented that it was very difficult for Local Authorities to increase departments in the current climate.

Debbie Hanson stated that she understood the situation of Local Government, but the errors identified were higher than expected. She did appreciate that due to the location, there were difficulties with recruitment.

Subject to satisfactory completion of three outstanding items EY will be issuing a modified opinion on the Council’s financial statements.

Councillor Wainwright asked when it was envisaged that the account reporting would be up to date.

Debbie Hanson advised that consultation from DLUC concluded a month ago. The reports would focus on VFM for the 2021/22 and 2022/23 accounts and the 2023/24 accounts should be back on track by the end of the calendar year. Following this strategy would ensure that the accounts would be back on track as soon as possible.

RESOLVED:-

That the Committee noted the report.

The Committee received and considered the report from Ernst Young, the Council's  External Auditors.

Debbie Hanson introduced her report and outlined the findings which had already been drawn out in the Audit Opinion.

RESOLVED:-

That the Committee noted the report.

The Executive Director - Resources presented her report, regarding the 2020/21 Statement of Accounts. She explained that the draft Statement of Accounts had been approved on 31 October 2022. At that meeting the committee also received the provisional 2020/21 Audit results report as presented by Ernst Young, the Council’s External Auditors. The audit work at that time was substantially complete with a number of areas of testing still to be completed including the following:-

• Completion of testing on valuation of other land and buildings and investment property

• Testing of additions to property plant and equipment to address our fraud risk 

• Cashflow statement 

• Going concern assessment and disclosure 

• Movement in reserves statement and corresponding notes –note 8 adjustments between accounting and funding basis and Capital Financing Requirement 

• Subsequent events 

• Management representation letter 

• Final manager and partner reviews 

Since then, work has been completed by both GYBC officers and EY to conclude the audit work and present the final accounts for 2020/21 for approval by the Audit and Risk Committee. A large part of the delay of the completion of the audit has been due to additional testing on the value for money part of the external audit required following the referral to the Regulator of Social Housing in August 2022, which was then lifted in January 2024, details of this are referenced in the accounts under the contingent liabilities note. The Council proactively developed a Compliance Improvement Plan to address the necessary changes required to ensure a return to full compliance with the Regulatory Standards. The actions of the improvement plan have been completed which led to the lifting of the formal notice. 

This report along with the final External Audit Report 2020/21 (as included on this agenda) now present the conclusion of this work. 

The audit result report details the Audit differences from the audit review which were highlighted in the previous audit report, overall the changes from the accounts presented in October 2022, to the final version now presented for approval in terms of impact to the general fund balance is a net improvement on the general fund balance of £293k – this was largely as a result of an amendment to the bad debt provision. 

Further details on the results of the audit can be found in the EY Audit results Report for the Year ended 31 March 2021. 

 As part of the conclusion of the audit work for 2020/21 a revised Annual Governance Statement has been produced also to reflect the matters referred to above. 

The Chair thanked Officers and EY for their substantial hard work.

Councillor Wainwright commented on the capacity issues that had been raised and asked the Executive Director – Resources how many more staff were required.

The Executive Director – Resources advised that she would like to speak with Debbie as to where the gaps are but the Council would be taking on additional resourcing for GYS and GYN. She would like to understand why errors were made and by whom. There had been some turnover of staff and the Council had not been successful with recruiting.

Councillor Wainwright requested that this matter comes back to Committee following discussion.

RESOLVED:-

That Committee considered and approved the final audited statement of accounts for 2020/21.

The Committee received and considered the Work Programme for 2023/2024.

RESOLVED:- 

That the Committee noted the Work Programme for 2023/24.

The Executive Director – Resources requested an additional meeting of the Audit, Risk and Standards Committee to consider the GYN report.