Report by Executive Director of Resources

Further to Minute 14 of the Policy Committee held on 10 July 2023, the Executive Director of Resources submitted a report on the CIPFA Practical Guidance for Local Authorities on Audit Committees.  Attached to the report at Appendix 1 were proposed revised terms of reference for the Committee and at Appendix 2 a self-assessment of good practice against the CIPFA Practical Guidance for Local Authorities on Audit Committees.  The report noted that the Guidance updated previous CIPFA guidance from 2018 and complemented the CIPFA Position Statement on Audit Committees; it also incorporated recent legislative changes and professional developments following the Redmond Review into the effectiveness of external audit and transparency of financial reporting in local authorities.

The report explained that a self-assessment using the CIPFA self-assessment tool had been conducted by Internal Audit in January 2023.  This had concluded that current arrangements partially complied with the guidance, with ‘moderate’ improvement required.  One of the outcomes from the self-assessment review was to propose that the Committee’s terms of reference should be updated to those suggested by CIPFA for local authorities. 

The following motion was moved by Councillor Terry and seconded by Councillor Williams and CARRIED:

Resolved –

(1)        That the revised Audit & Governance Committee’s terms of reference, as attached at Appendix 1, and the removal of its decision-making powers in relation to the approval of the annual financial statements, returning the latter to Council, as recommended by Policy Committee, be approved.

(2)        That the recommendations of the Redmond Review and Policy Committee that the external audit annual report should be submitted to Council by the external auditor be endorsed. 

(3)        That, in accordance with Policy Committee’s recommendation, the Audit & Governance Committee be required to submit a public report annually to Council on an assessment of its performance, which would include how it had complied with the CIPFA position statement and discharged its responsibilities.