Agenda and draft minutes

The Chairperson welcomed everyone to the meeting and went through some general housekeeping arrangements for the meeting.

Apologies for absence were received from Councillors M G Bassenger, U G C Siddall-Norman and W Stamp.

To confirm the Minutes of the Performance, Governance and Audit Committee held on 16 January 2025 (copy enclosed).

RESOLVED that the Minutes of the meeting of the Committee held on 16 January 2025 be approved and confirmed.

To note the Matters Arising from the last meeting of the Committee – 16 January 2025.

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 Interim Chief Finance Officer (copy enclosed).

The Committee considered the report of the Interim Chief Finance Officer presenting a number of external audit documents for review. The Officer presented the report before referring to the external auditors to provide further information in relation to their reports (appendices 1 – 3).

·                International Standards on Auditing (ISA) 260 Audit report (Appendix 1 to the report)
This report aimed to ensure that auditors communicated significant findings from the audit to those responsible for governance. An updated version of this appendix had been circulated prior to the meeting.

It was noted that due to a number of factors, including the completion of the 2022 / 23 financial year audit, the external auditors had not been able to progress significant volumes of work. All risk assessments had been completed along with planning work in order to allow an audit opinion to be issued. The audit disclosure checklist had been completed along with basis casting and consistency checks of the financial statements. Therefore, a disclaimed audit opinion was being issued on the 2023 / 24 financial statements. It was noted that page 46 of the report pack outlined the rationale behind this.

·                Annual Audit report for the financial year 2023 / 24 (Appendix 2)

This report evaluated how effectively an organisation used its resources to achieve its objectives. An updated version of this appendix had been circulated prior to the meeting.

This was required to be published alongside the Council’s financial statement on its website and provided a high-level overview of the findings of both external audit’s financial statement audit along with more rationale and detailed assessment of the findings of Value for Money (VFM) work. It was noted that external audit had raised a recommendation in response to significant weakness detailed within the report and a management response to this was set out on page 96 of the report pack. Members were informed that the rationale for the significant weakness was in respect of the Council’s delivery of the draft 2023 / 24 financial statements and external audit being unable to progress the 2023 / 24 external audit due to what they believed were constraints within the Council’s finance team.

·                Audit Plan report for 2023 / 24 (Appendix 3)

This report set out the plan for the accounts audit and it was noted that this was normally presented before the audit took place, however due to constraints of backstop dates issued by the Government this report was being presented at this time. The Terms of Reference of this Committee included a requirement to review the external auditor’s opinion on the Statement of Accounts of the Council.

It was highlighted that page 103 of the report pack outlined the significant risk areas for the 2023 / 24 report which external audit had identified through its planning and risk work along with enquiries with the Council as well as knowledge of the wider Local Government sector. Three areas of significant risk had been identified and the external auditors took Members through each of  ...  view the full minutes text for item 557.

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

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

8a)       Progress Report 2024 / 25 (February 2025)

8b)       Follow-Up of Recommendations Report (February 2025)

8c)       Capital and Commercial Project Management Final Report (January 2025)

8d)       Contract Management Final Report (January 2025)

8e)       Health and Wellbeing 2024 / 25 Final Report (January 2025)

8f)        Internal Audit Annual Plan 2025 / 26 and Strategic Plan 2023 - 26

Mr Andrew Billingham (BDO LLP) presented his report to the Committee which provided and update on completion of the 2024 / 25 internal audit plan. It was noted that since the last report to the Committee three further reviews had been finalised, two were at draft report stage and field work was ongoing for the remaining three audits which would be completed by the end of the financial year.

Mr Billington (BDO LLP) presented the report and advised that no recommendations had been reached their implementation dates, so there was no follow-up. There was one outstanding recommendation on Licensing and Management of Property and Members were advised that this would be due and followed-up before the next meeting of the Committee.

Mr Billington (BDO LLP) presented the report and advised that this had received a substantial opinion for the design of controls and a moderate opinion for effectiveness of controls. It was noted that three recommendations had been raised around ensuring the business case templates were completed in all cases and updating project management guidance, the Asset Management and Commercial Strategies.

Mr Billington (BDO LLP) presented the report and advised that this had received a substantial opinion for the design of controls and a moderate opinion for effectiveness of controls. It was noted that two recommendations had been raised the first was around ensuring contract managers received the correct training and establishing a quality assurance process and the second about updating contract management guidance.

Mr Billington (BDO LLP) presented the report and advised that this had received a substantial opinion for both the design of controls and effectiveness of controls. It was noted that two low priority recommendations had been raised and were to ensure that actions resulting from the staff survey were SMART (Specific, Measurable, Achievable, Realistic and Time-bound) and improving governance arrangements for the Council’s Mind, Body and Sole Group.

Mr Aaron Winter (BDO LLP) presented the report and highlighted the annual plan for 2025 / 26 which had been collated following the annual planning process and consideration by the Council’s Corporate Leadership Team. The Plan detailed nine reviews which the Internal Auditors would undertake during 2025 / 26 which were a mix of cyclical coverage and specific areas of potential risk. It was noted that the Plan would be reviewed to ensured it prioritised the risks that the Council faced, and any changes reported to this Committee.

Members’ attention was drawn to page 219 of the agenda pack which set out the internal audit charter. Mr Winter advised the Committee that from the beginning of January 2025 there were new global audit standards which had become applicable. As a result, there was a new set of Public sector Internal Audit Standards which would come into effect from 1 April 2025 and to which the 2025 / 26 Plan would be delivered. Members were given assurance that there were no significant changes and Mr Winter advised that BDO had already reviewed its process to ensure compliance.

In response to questions raised Members were advised:

·                If any future changes created risk Internal Audit would review this in discussion with senior officers and report back to the Committee. Internal Audit had a statutory requirement to ensure that the Internal Audit Plan was aligned to those risks.

·                The Building Control audit was currently underway, and the concerns and challenges faced had been built into the background of that review. Although the audit could not help improve recruitment by saying that more resources were required if it was the root cause for a backlog or they had concerns around process delivery this would be reflected.

In response to a question regarding the Council’s reserves and the future of the Council, the Deputy Chief Executive advised that the Essex Chief Executives and Leaders Group had commissioned external consultants to look at the various financial issues and options in relation to Devolution and unitary authorities. The Council meeting on 25 February 2025 would be considering a paper on this matter to ensure all Members had a full oversight of the analysis. The internal audit plan also included a preparedness for the Local Government Reform (LGR) audit. He outlined the current timeline relating to LGR and advised that the audit and checklist would be reviewed to ensure the Council was undertaking due diligence.

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

RESOLVED

(i)             that the Committee considered, commented, and approved the following reports as set out on the agenda:

(a)            Progress Report 2024 / 25 (February 2025) at 8a;

(b)            Follow-Up of Recommendations Report (February 2025) – at 8b;

(c)            Capital and Commercial Project Management Final Report (January 2025) – at 8c;

(d)            Contract Management Final Report (January 2025) – at 8d;

(e)            Health and Wellbeing 2024 / 25 Final Report (January 2025) - at 8e

(f)             Internal Audit Annual Plan 2025 / 26 and Strategic Plan 2023 – 26 – at 8f.

The Chairperson thanked the External and Internal Auditors for their reports and attendance. At this point thanks was also given to the Finance Team, particularly the Interim Chief Finance Officer.

To consider the report of the Chief Executive, (copy enclosed).

The Committee considered the report of the Chief Executive that required the Committee to undertake a quarterly review of the Corporate performance, as assurance that performance was being managed effectively to achieve the corporate outcomes as set out in the Council’s Corporate Plan 2023 - 2027. Appendix 1 to the report provided an overview of performance as at the end of Quarter 3 (Q3) (October to December 2024).

The Chairperson introduced the report and deferred to the Assistant Director – Programmes, Performance and Governance to present the detail. The Assistant Director took the Committee through the report highlighted section 3.2 which gave a high level view for each priority of delivery along with the specific indicators within the priority that had been marked at risk. It was noted that a new corporate plan had been adopted in December 2024. Work had been taking place to map the new Key Performance Indicators, along with an internal session booked with Committee Members prior to Quarter 1 being reported against the new corporate plan.

The Chairperson proposed that the recommendations as set out in the report be agreed and this was duly seconded.

In response to questions raised during the discussion that ensued the following information was provided:

·                Develop and launch of Maldon’s youth engagement programme – It was confirmed that this priority was on track with conditional elements.

·                Number of trees planted within the District in partnership – The Assistant Director - Place and Community agreed to supply details of the number of trees planted and their location outside of the meeting.

·                Training – In response to comments from the Independent Person regarding training, the Deputy Chief Executive advised that the Corporate Performance report would not normally provide the level of detail he raised. The comments raised would be taken into account and reviewed within the Council’s review of reporting for the future.

The Chairperson then moved the recommendations set out in the report and these were duly agreed.

RESOLVED

(i)             That Members reviewed the information as set out in this report and Appendix 1 to the report,with priority focus given to the Strategic Priority level performance;

(ii)            That Members confirmed they are assured through this review that corporate performance was being managed effectively.

To consider the report of the Chief Executive, (copy enclosed).

The Committee considered the report of the Chief Executive that required Members to undertake a quarterly review of the Corporate Risk Register as assurance that the Council’s corporate risks were being managed effectively. A summary and detailed table of the Corporate Risk Register, latest ratings and officer commentary was attached as appendix 1 to the report.

The Chairperson introduced the report and deferred to the Assistant Director - Programmes, Performance and Governance to address the detail. The Assistant Director advised that the report covered the Corporate Risks for the third quarter of 2024 / 25, (October - December 2024). She advised that since quarter two there had been three changes to risks, as follows:

·                Failure to maintain a Five-Year Housing Land Supply – this risk has increased.

·                Failure to plan and deliver balanced budgets over the medium term – this risk has decreased.

·                Failure to engage and prepared to be ready any impact of Local Government Review – this was a new risk.

Members were advised that work was taking place to refresh the risk management Policy which was due for renewal in 2025 and as a result of this a review of risk scoring would also take place in the coming quarters.

The Chairperson moved the recommendations set out in the report. These were duly seconded and agreed.

RESOLVED

(i)             That Members reviewed the Corporate Risk Register in Appendix 1 to the reportand provided comment and feedback for consideration;

(ii)            That Members reviewed progress of the Corporate Risk Mitigating actions in Appendix 2 to the report and provided comment and feedback for consideration;

(iii)           That Members are assured through this review that corporate risk is being managed effectively;

(iv)           That Members challenged risk where the Committee felt that the Council’s corporate goals may not be achieved.

To consider the report of the Deputy Chief Executive, (copy enclosed).

The Committee considered the report of the Deputy Chief Executive that provided an update on Health and Safety statistics and activity during Quarter 3 (Q3) (1 October to 31 December 2024). The Chairperson introduced the report and deferred to the Assistant Director - Place and Community and Corporate Health and Safety Manager to present the detail.

The Assistant Director took the Committee through the report advising on the numbers of accidents / incidents, near misses and unacceptable behaviour which were relatively low and dealt with according to Council policies with no particular trends identified during this period. It was noted that the number of accidents and near misses reported demonstrated that Officers continued to follow the correct procedure. The report provided further update in respect of the following areas:

·                Health and Safety Actions – the report detailed a number of actions along with an update on the progress of each. It was noted that those actions completed had been removed.

·                Health and Safety Groups – Reported incidents were scrutinised through the monthly Health and Safety Managers’ Group along with compliance in other areas and monthly performance updates were provided to the extended Corporate Leadership Team.

·                System resources

·                Fire Risk Assessments

·                Policies and procedures

·                Health and Safety inspections

·                Legionella

·                Training – a number of training events had been undertaken during this quarter, including over 70 staff attending training on dealing with violence and aggression.

·                Accident-near miss reporting

·                Health and Safety Audit – Following the recent audit an action plan had been produced and Members were advised that good progress was being made to implement the related recommendations.

The Chairperson proposed that the recommendations as set out in the report be agreed and this proposal was duly seconded.

During the discussion that followed and in response to questions raised, the following information was provided:

·                Shellfish Sampling – Members were advised that there was a statutory requirement for this and certain techniques that had to be employed for sampling and the Council was exploring using an external consultant. The Health and Safety Manager advised he was unable to provide information regarding the suggestion that a boat was used to carry out sampling however, would raise this matter with the appropriate team.

·                The Council employed best practice along with a Strategy regarding the assessment of trees in public parks. The Assistant Director - Customer Services and Operations advised that in addition the Council had a regular programme of tree inspections which provided a good level of reassurance. A high winds new working practice had recently been introduced and provided clear guidance to staff regarding wind speed and the steps taken if there were high winds.

·                In response to a question regarding the impact of unacceptable behaviour on members of staff, the Health and Safety Manager agreed to get an update from the relevant Manager.

The Chairperson then moved the recommendations which were duly agreed. 

RESOLVED

(i)             That Members considered the accident and incident statistics and incidences of unacceptable behaviour reported;

(ii)            That Members considered  ...  view the full minutes text for item 561.

To consider the report of the Chief Executive, (copy enclosed).

The Committee considered the report of the Chief Executive reporting exceptions to operational service and provided visibility of any identified Balance Scorecard Key Performance Indicators (KPIs) that had met their threshold, supported by an action plan to ensure targets were met.

The Chairperson introduced the report and deferred to the Assistant Director, Programmes, Performance and Governance to present the detail. It was noted that the report covered the period July to December 2024 and section 3.2 contained detail on underperforming areas and the action being taken. The Assistant Director drew Members’ attention to section 3.3 which highlighted two indicators where the Council was overperforming, section 3.4 flagged those areas where closer monitoring was taking place and it was noted that areas of tolerance were marked for closer monitoring by the leadership team. Internally, the Senior Management Team monitor this data and discuss it monthly to help address performance issues in real time where possible, with a six-monthly report provided to this Committee to show the exceptions and any areas of under / over performance. Appendix 1 to the report provided further performance data.

The Chairperson moved the recommendations as set out in the report. This was duly seconded and agreed.

RESOLVED

(i)             That the Committee reviewed and commented on exceptions to service reporting provided in the report;

(ii)            That Members noted the additional performance detailed in Appendix 1 to the report;

(iii)           That Members confirmed they were assured through this review, that operational performance was being managed effectively.

To consider the report of the Chief Executive, (copy enclosed).

The Committee considered the report of the Chief Executive providing Members with an update on the actions identified in the Annual Governance Statement (AGS). The Chairperson introduced the report and deferred to the Assistant Director Programmes, Performance and Governance, to present the detail.

The Assistant Director took the Committee through the report that covered the best practice governance actions identified in the 2023 / 24 AGS and an update on progress against these. It was noted that the AGS was in line with the Chartered Institute of Public Finance and Accountancy best practice, reflective of governance matters and forward looking about where the Council could make improvements.

Section 3.5 of the report provided a table of those actions and an update of progress as at Quarter 3 (end December 2024). Actions highlighted in grey denoted actions completed and a further six actions were ongoing for the year, with updated text provided. The Assistant Director highlighted how the draft AGS for 2024 / 25 was due to be considered as a separate item on the agenda and would continue to build on best practice.

The Chairperson proposed that the recommendation as set out in the report be agreed. This proposal was duly seconded and agreed.

RESOLVED that the Committee reviewed the Annual Governance Statement table at paragraph 3.5 and the updates within the report and challenged where necessary.

To consider the report of the Chief Executive, (copy enclosed).

The Committee considered the report of the Chief Executive presenting the Annual Governance Statement (AGS) 2024 / 25 (attached at Appendix 1 to the report) for review and adoption by the Committee.

The Chairperson introduced the report and deferred to the Assistant Director – Programmes, Performance and Governance to present the detail. The Assistant Director advised that the AGS was a key statutory document that had to be produced and appended to the Council’s Statement of Accounts and followed the Council’s adopted template to reflect the Chartered Institute of Public Finance and Accountancy (CIPFA) best practice advice. It was noted that the report commented on the Council’s position against the seven principles of good governance identified by CIPFA and the Society of Local Authority Chief Executives and Senior Managers (SOLACE) in 2016. In addition, comments on the Council’s arrangements against the CIPFA financial management code had been provided, particularly standard C. It was noted that this AGS was being brought forward prior to the end of the financial year, it was not expected that the commentary would change, however should there be any change these would be reported to the Committee.

The first page of the appendix highlighted the achievements of the 2024 / 25 financial year in terms of governance arrangements. Overall, the statement demonstrated that the Council had appropriate governance arrangements in place. It was noted that the appendix identified some actions for the coming year in line with best practice. The AGS also reflected on achievements in the 2024 / 25 financial year.

The Chairperson proposed that the recommendations set out in the report be agreed. This proposal was duly seconded and agreed.

RESOLVED

(i)             That the Annual Governance Statement (attached at Appendix A to the report) be approved and appended to the Statement of Accounts.

(ii)            That the Performance, Governance and Audit Committee monitors the progress of the action plan identified in the Annual Governance Statement through a quarterly report.

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

The Committee considered the report of the Interim Chief Financial Officer presented revised Financial Regulations (attached as Appendix 1 to the report) for review and recommendation to the Council for approval.

The Financial Regulations provided a framework to ensure sound financial management and control within a local authority, aligned with the Chartered Institute of Public Finance and Accountancy (CIPFA) Financial Management Codes, and complied with relevant legislation and best practices in public financial management. It was noted that the Regulations were reviewed annually in accordance with the Council’s Constitution to ensure they remained current and effective. The Interim Chief Financial Officer advised how the Financial Regulations had been updated to reflect the new leadership structure implemented in December 2024 and would be kept under constant review and refined, where necessary to adapt to emerging financial management challenges and opportunities.

The Chairperson moved the recommendation set out in the report and this was duly seconded.

In response to questions raised by the Independent Person, Officers reported that the Finance Working Group was a cross-Committee group that made recommendations to the Strategy & Resources and Performance, Governance & Audit Committees, as appropriate. Further explanation in terms of the remit of each Committee was also provided and the Deputy Chief Executive advised that further clarification could be provided outside of the meeting.

The Chairperson then put the recommendation which was duly agreed.

RECOMMENDED that the revised Financial Regulations at APPENDIX 1 to these Minutes be approved.