Agenda and minutes

The Chairperson welcomed everyone to the meeting, including Ms Emma Larcombe, Director of KPMG (the Council’s External Auditors) and Mr Aaron Winter from BDO (Internal Audit). He then went through some general housekeeping arrangements for the meeting.

Apologies for absence were received from Councillors M G Bassenger, D O Bown, S J Burwood, J C Hughes, R G Pratt and N D Spenceley.

In accordance with notice duly given it was noted that Councillor N J Swindle was attending as a substitute for Councillor Burwood, Councillor S J N Morgan as a substitute for Councillor Pratt and Councillor Driver as a substitute for Councillor Spenceley.

To confirm the Minutes of the Performance, Governance and Audit Committee held on 5 June 2025 (copy enclosed).

RESOLVED that the Minutes of the meeting of the Committee held on 5 June 2025 be approved and confirmed.

To note the Matters Arising from the last meeting.

The Chairperson proposed that the matters arising be noted. She requested an update at the next meeting on the number of Members who had received General Data Protection Regulations (GDPR) training. In response to a question from the Chairperson, Mr Smith the Independent Person confirmed receipt of the information he had requested at the last meeting.

The Committee noted the matters arising from the last meeting.

To disclose the existence and nature of any Disclosable Pecuniary Interests, Other Registrable interests and Non-Registrable Interests relating to items of business on the agenda having regard to paragraph 9 and Appendix B of the Code of Conduct for Members.

(Members are reminded that they are also required to disclose any such interests as soon as they become aware should the need arise throughout the meeting).

There were none.

To receive the views of members of the public, of which prior notification in writing has been received (no later than noon on the Tuesday prior to the day of the meeting).

Should you wish to submit a question please complete the online form at: www.maldon.gov.uk/publicparticipation.

No requests had been received.

To consider the report of the Chief Finance Officer (copy enclosed).

The Committee considered the report of the Chief Finance Officer (CFO) presenting the draft plan (attached at Appendix 1 to the report) provided by the appointed External Auditor (KPMG) for their annual review of the accounts for 2024 / 25. It was noted that the key findings and recommendations from the review would be presented later in the year before the External Auditor issued their opinion on the Statement of Accounts.

The report provided background information in relation to Local Government External Audit and it was noted that local authorities were required to publish their financial statements and audit reports by a legislative ‘backstop’ date which for the 2024 / 25 financial year was 27 February 2026. This backstop had been necessitated by the accumulation of accounts where an opinion was not provided by the External Auditor.

The Council’s accounts for 2024 / 25 had been prepared in advance of the deadline and were published on 30 May 2025 ahead of the 30 June deadline. The report highlighted the proposed timetable for the audit of the 2024 / 25 accounts, and it was noted that the proposed audit opinion would not be signed off until February 2026.

The CFO took Members through his report, highlighting key issues and areas of focus for the Council. It was noted that in the year referenced in paragraph 3.4 should read 2024/15. The CFO handed over to Emma Larcombe, Director of KPMG (the Council’s External Auditors) to present her draft plan for the audit review of the accounts 2024/25 (Appendix 1 to the report). She highlighted how it was essential to look ahead to the work planned as part of the audit and drew Members’ attention to specific areas including:

·                Risk – including her initial assessment on areas of risk in relation to the valuation of land and buildings. It was noted that KPMG would be engaging with its own internal valuation specialist and carrying out sample checking on assumptions used.

·                Management override of controls

·                Pensions liability – KPMG had a specialist pensions team who had started work on this.

·                Adoption of IFRS16 – a new accounting requirement.

·                Value for Money (VFM)

·                Fees – It was noted that these were set by the Public Sector Audit Appointments and considered reasonable for the statutory audit and VFM work required. Ms Larcombe informed the Committee that the fees did not include any work regarding rebuilding of assurance and were based on the assumption that there were no significant VFM risks and assumptions.

Ms Larcombe advised that assuming they received all the information required from the Council they would expect to complete all tests on 2024 / 25 figures and were expecting to report back on these procedures at the end of year.

A lengthy debate ensued and in response to a number of comments raised by Members, the following information was provided by Officers:

·                In response to the comment on page 5 of Appendix 1 that External Audit did ‘not plan to place any  ...  view the full minutes text for item 167.

To consider the report of the Chief Finance Officer (copy enclosed).

The Committee considered the report of the Chief Financial Officer and associated Internal Audit reports from BDO LLP, attached on the agenda as follows:

8a)       Progress Report;

8b)       Follow-Up of Recommendations Report;

8c)       Asset Management Final Report (June 2025);

8d)       Main Financial Systems 2024 / 25 Final Report (June 2025);

8e)       Annual Report and Annual Statement of Assurance.

The Chief Finance Officer introduced his report, highlighting how the function of Internal Audit provided assurance on key aspects of the Council’s services.

Mr Aaron Winter (BDO LLP) presented his report to the Committee which provided an update on completion of the 2024 / 25 internal audit plan and commencement of the 2025 / 26 plan. It was noted that since the last report to the Committee three further reviews had been finalised and it was anticipated that the remaining two audits would be reported to the next meeting of this Committee.

Mr Andrew Billingham (BDO LLP) presented the report and advised that the outstanding recommendations for 2021 / 22 and 2024 / 25 had been closed. In respect of 2023 / 24 one recommendation was now complete and a recommendation regarding Licensing categorised as ‘overdue’. It was reported that Officers were progressing the Licensing recommendation and once the evidence had been received BDO would be able to close it. Mr Winter referred to the positive position, with no other outstanding recommendations.

Mr Billingham presented the report advising that a review of the Council’s Asset Management function had taken place and outlined the purpose of the review. It was noted that this review related to the controls in place and not the financial values. One medium and three low priority recommendations had been raised.

Mr Billingham presented the report advising that a review of the Council’s main financial systems for 2024 / 25 had taken place and outlined the purpose of the review. It was noted that a number of areas of good practice had been identified along with areas for moving forward.

Mr Winter presented the report which provided a summary of the work Internal Audit had undertaken for the year. It was noted that nine reviews had been completed, with limited assurance being given for two reviews. However, Mr Winter highlighted that the audits were risk focused and directed to some areas of risk or concern that might need improvement. He reported that the outcomes were positive with the Council receiving an overall assurance opinion for the year of moderate, which was a good result.

In response to a question regarding the Leisure Contract, Mr Winter advised that this was not an area which was on the Internal Audit Plan, however, if it was an area of concern or emerging risk, they could discuss this with Officers. The Chairperson asked the Chief Finance Officer to note this and keep it under review.

The Chairperson questioned why the management response to the detailed finding on reconciliation had not followed the recommendation from Internal Audit. In response, the Chief Finance Officer explained that Officers’ rationale was that the valuation didn’t need to be maintained on a regular basis as long as it was maintained no less than annually to properly inform the preparation of the accounts. The most important point was to ensure the Asset Register was up to date and therefore to avoid unnecessary burden on Officers, it was felt more efficient to focus time on the annual reconciliation.

The Chairperson then moved the recommendations set out in the report, taking into consideration the earlier discussions. This was duly seconded and approved.

RESOLVED that the Committee approves the following Internal Audit reports:

8a)       Progress Report;

8b)       Follow-Up of Recommendations Report;

8c)       Asset Management Final Report (June 2025);

8d)       Main Financial Systems 2024 / 25 Final Report (June 2025);

8e)       Annual Report and Annual Statement of Assurance.

The Chairperson thanked the Internal Auditors for their reports and attendance.

To consider the report of the Chief Finance Officer (copy enclosed).

The Committee considered the report of the Chief Finance Officer presenting the 2024 / 25 Statement of Accounts (SoA) for Maldon District Council (Appendix 1 to the report), prior to the start of their review by the external auditor.

The report set out the Local Authority deadlines for publishing financial statements, including how the order of the statements and schedules was set out in the Code for Local Authority Accounts. A table within the report highlighted the key statements in the Council’s 2024 / 25 accounts, together with commentary on the key issues.

The Chairperson referred to an information session that the Chief Finance Officer (CFO) had given on the SoA, and it was confirmed that a recording of this was available online for those unable to attend.

The CFO took Members through his report and paid credit to the previous Section 151 Officer (Mr Cookson) and the Interim Lead Finance Specialist (Mr Mulloy) for their work enabling the Finance team to prepare the SoA ahead of the deadline. He highlighted how the structure of the SoA was very prescriptive and there were many rules that had to be followed when compiling it. Members’ attention was drawn to the narrative statement in the SoA which highlighted a number of key points along with notes 7b, 7c, 9a and 9b.

In response to question raised regarding the Hythe Quay desilting project, the CFO advised that this was future work and the SoA being presented relating to activities from April 2024 to March 2025. No reserves were being earmarked for this work because the costs had yet to be determined.

The Chairperson moved the recommendation set out the report. This was duly seconded and agreed.

RESOLVED that the Committee considered the 2024 / 25 Statement of Accounts.