Apologies for absence were received from Councillor Capewell.

There were no declarations of interest given at the meeting.

Councillor Wainwright commented that there was too much on the agenda for today’s meeting and consequently there was a huge amount of information to digest. This meant that it was difficult for members to take in the information and ask the right questions. He felt it would be better to have more meetings throughout the year and asked if that was a possibility.

The minutes of the meeting held on 3rd April 2025 were confirmed.

Councillor Wainwright requested an update on the appointment of an Independent Person.

The Chair advised that an advert for the appointment had been placed in the Local Press (Great Yarmouth Mercury and Eastern Daily Press) on Friday and that if any member knew of anybody suitable for the role, to encourage them to apply.

The Committee received and considered the report from Debbie Hanson, Key Audit Partner, EY, which outlined their independence, risk assessment, planned audit approach and the scope of their audit.

Debbie advised that as EY did not gain assurance over the closing balances in 2023/24, they do not have assurances over the opening balances for 2024/25 and therefore expect to again issue a disclaimed audit opinion in 2024/25, although work will be ongoing to rebuild assurance ahead of the backstop date. It is hoped that an unqualified opinion will be able to be given for the 2027/28 accounts.

Plans are in place with the Finance Team to work towards this. It is acknowledged that they are currently in a recovery period but the Council needs to be able to provide good quality reports on a regular basis and in a timely and efficient manner.

Committee were given an overview of EY’s initial risk identification for the upcoming audit and changes in risks identified in the current year. There are four new risks, two increased risks and four risks with no change in risk. It was advised that there are more risks than in a normal year.

The Council’s Value for Money responsibilities were set out and VFM weaknesses were identified.  Arrangements and risks will be reviewed regularly and Committee notified of any additional significant weaknesses. Arrangements for the production of the Council’s statement of accounts are currently inadequate, with working papers being provided late and the accounts have not being produced in line with the deadlines in the Accounts and Audit Regulations for a number of years due to a lack of capacity.

For planning purposes, Group and Council materiality for 2024/25 has been set at £1.883m. This represents 2% of the Council’s Group 2023/24 gross expenditure on provision of services. It will be reassessed throughout the audit process.

The audit strategy for performing an audit of an entity with multiple components is risk-based and EY’s scoping of the Group audit responds to the risks of material misstatement that have been identified for the Group financial statements. Full scope audits on Great Yarmouth Borough Council and Great Yarmouth Services will be conducted as well as Specific Scope Audits on Equinox Enterprises Ltd and Equinox Property Holdings Ltd.

The audit will take place from September 2025 – December 2025.

Referring to the Group Accounts being a significant risk, Councillor Wainwright commented that it was concerning that a company controlled by the Council was a significant risk and asked whose fault it was. He was advised that as the 2024/25 audit year is the first year that the consolidation of Equinox Property Holdings Ltd and Great Yarmouth Services Ltd will be audited, it heightens the risk that the consolidation of these subsidiaries is not undertaken in line with the relevant accounting standards and in line with the CIPFA Code of Practice.

Councillor Wainwright also queried whether the new internal valuation specialist made a difference with regard to the Valuation of Land and Buildings risk. He was advised that the new specialist only started in September but that a change in personnel always created a new risk.

Councillor Newcombe questioned whether Debbie foresaw any delays to her aim to get the reports completed by November 2025. She was advised that delays were not envisioned but it would depend on whether the papers were of appropriate quality. If there were concerns, then this would be brought back to Committee. Any additional work would lead to additional costs. Councillor Newcombe commented that it was important for the Finance Team to submit their information on time to avoid additional costs. Councillor Wainwright asked what the total fee would be and was advised that this would be submitted as soon as possible, once it was identified how many leases were involved. This would be shared with management prior to being submitted to the PSAA. The Financial Services Manager advised that the Finance Team was now much stronger and in a position to clear the backlog, once the valuations were received from the Property Team.

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

This report concludes on the internal audit activity undertaken during 2024/25 and provides an annual opinion concerning the Council’s framework of governance, risk management and control, concludes on the effectiveness of internal audit and provides key information for the Annual Governance Statement.

The Head of Internal Audit directed Members to Appendix 1 of the report which showed the progress to date in relation to the implementation of the agreed recommendations. This appendix also reflected the year in which the audit was undertaken and identified between outstanding recommendations that had previously been reported to the Committee and then those that had become outstanding this time round. A total of 59 recommendations (5 Urgent, 30 Important and 16 Routine) were currently outstanding. 




Having considered the audit work for 2024/25 for the Council, the Head of Internal Audit is able to provide Reasonable / Limited Assurance in relation to the framework of risk management, governance, and internal control, which is the same as last year.

The overall performance status for the main Contractor performing internal audits for the Council is ‘red’. 

Regarding the QAIP, the service is compliant with internal audit standards as per the external quality assessment in October 2022 and is reviewing compliance with the new Global Internal audit Standards in the UK Public Sector which come into effect on1 April 2025.

 
RESOLVED:- 

That Committee:-

(1) Received and considered the contents of the Annual Opinion Report of the Head of Internal Audit.

(2) Noted that a reasonable / limited audit opinion has been given in relation to the framework of governance, risk management and control for the year ended 31 March 2025.

(3) Noted that the opinions expressed together with significant matters arising from internal audit work and contained within this report should be given due consideration when developing and reviewing the Council’s Annual Governance Statement for 2024/25; and

(4) Noted the outcomes of the Internal Audit’s performance measures and the Quality Assurance and Improvement Programme (QAIP).

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

The Head of Internal Audit reported on the progress made in relation to the delivery of the Annual Audit Plan for 2024/25.

The Head of Internal Audit directed Members to Appendix 1 of the report which showed the progress to date in relation to the implementation of the agreed recommendations. Fourteen audits have been completed, two draft reports have been issued, and six audits have been cancelled. 

It was noted that progress is being made and that several of the outstanding recommendations should be cleared by the end of the year, with the implementation of the new housing IT system.

RESOLVED:-

That Committee received the progress update relating to the Internal Audit Plan for 2024/25.

The Committee received and considered the report from the Head of Legal and Governance, which was presented by the Corporate Services Manager, Sammy Wintle.

The report provided the Audit, Risk and Standards Committee with the 24/25 Annual Complaints Report for all Corporate complaints, Local Government Ombudsman Complaints and the Social Landlord Service Annual Complaint and Improvement Report (Appendix A).

2024/25 saw a slight increase in the number of complaints received compared to the previous two years, however the Council has seen an improvement in the performance of complaint handling and complainants are receiving responses to initial complaints more promptly and in line with the requirements of the Local Government and Social Care Ombudsman complaint handling code. 

RESOLVED:-

That Committee noted the contents of the 24/25 Annual Complaints Report for all Corporate complaints, Local Government Ombudsman Complaints and the Social Landlord Service Annual Complaint and Improvement Report (Appendix A).

The Committee received and considered the report from the Head of Legal and Governance.

The report provided an annual update to the Council’s Code of Corporate    Governance, in accordance with best practice. 

The Code of Corporate Governance showed that GYBC has a high degree of compliance with CIPFA principles and sub-principles. Any areas where further work is to be undertaken to further strengthen the governance arrangements will be included in the Annual Governance Statement Action Plan. 

RESOLVED:-

That Committee approved the updated Code of Corporate Governance as appended to the report. 

The Committee received and considered the report from the Head of Legal and Governance on behalf of the Corporate Risk Officer, who had now left the Council.

GYBC has approved and adopted a Code of Corporate Governance, which is consistent with the principles of the CIPFA/SOLACE Framework Delivering Good Governance in Local Government. This Annual Governance statement explains how GYBC has complied with the Code and also meets the requirement of regulation 4(2) of the Accounts and Audit Regulations 2011 in relation to conducting a review of the effectiveness of its system of internal control. 

                           
The governance arrangements have been effectively operating during the year with the exception of those areas identified in the statement. 

Over the coming year steps will be taken to address the matter identified in the report to further enhance the governance arrangements. These steps will address the need for improvements that were identified during the review of effectiveness and will monitor their implementation and operation as part of our next annual review. 

Councillor Newcombe queried the e-learning undertaken by Members. The Monitoring Officer advised that not all Member training is mandatory; the only mandatory training is for those Members who sit on the development Control and Licensing committees.

RESOLVED:-

That Committee considered and approved the 2024/25 Annual Governance Statement.

Members were presented with the draft 2024/25 Accounts by Lorna Snow, the Financial Services Manager, with an update on the audit of the accounts.

Members of the Committee were provided with a position on the status of the production of the Statement of Accounts at the previous committee in December 2024 and made aware of the national and local delays with the completion of external audits. 

At the previous meeting an update was provided on the action being taken to tackle the local audit backlog in England. This essentially set out backstop dates for the completion of audits for financial years 2024/25 up to 2027/28.

The draft 2024/25 accounts were completed by the statutory deadline of the 30 June 2025 and published on the Council’s website the same day. The audit of these statement of accounts should be concluded by 27 February 2026. 

Members were advised that getting these draft 2024/25 accounts published was a huge step to achieving expected reporting timeframes.

In line with agreed timescales, the Finance Team have started responding to audit requests for information to support with audit regaining assurance over the accounts and meeting the audit backstop date of the 27 February 2026. Members were advised that the letter the S151 Officer, Karen Sly, received from the auditors, Ernst & Young, around the expectations for the audits of the 2024/25 accounts for local authorities was provided at Appendix B. This was in line with the audit planning report presented by Debbie Hanson from EY earlier in the agenda.

The finance team will continue to work with the auditors over the coming months to make every effort to meet the backlog dates for the audit of the statements, alongside colleagues from other services involved in the account preparation.

Members were asked to receive and note the draft statements and that upon completion of the audit, the committee will receive the final audited accounts along with the external audit report. 

RESOLVED:-

That Committee noted and considered the draft 2024/25 accounts.

The Committee received and considered the report from the Head of Legal and Governance.

The purpose of this report is to provide Members with an annual report of key risk management developments across the Council over the last 12 months for review. 

The report provides a significant source of evidence to enable the Committee to approve the Annual Governance Statement.

Over the last year the Corporate Risk Officer and the Management Team has undertaken further steps towards establishing the Risk Management Framework which together with the culture ensures effective and consistent risk management is an integral part of the authority’s activities.

Fundamental to the successful implementation of risk management is an adherence to the principles as set out within the framework. At the time of writing, there are no significant non-compliance issues to report with regards to corporate risk management. 

RESOLVED:-

That Committee noted and approved the annual report on the Council’s risk management arrangements.

The Work Programme was discussed.

Councillor Wainwright commented that there was too much on today’s agenda and asked whether it would be possible to amend the Work Programme so there are not as many items on each agenda, as it would have been good to concentrate on the report from the Head of Internal Audit at the meeting today.

Councillor Lawn stated he was in agreement. The Monitoring Officer advised that the Statement of Accounts would always be a large item as it required several linked reports. She also commented that Committee had not utilised the full two hours of the meeting.

Councillor Newcombe responded that there was a lot to read and digest in the agenda document pack and it was quite complex at times. The Monitoring Officer advised she was open to the possibility of adding a fifth meeting to the Work Programme. A show of hands was taken, with five members in agreement and one against.

The Chairman reported that there was no other business being of sufficient urgency to warrant consideration at the meeting and advised Members that the next meeting of the Audit, Risk and Standards Committee would be held on 6th October 2025.