Agenda and minutes

There were no disclosures of interest

RESOLVED:

That the minutes of the meeting held on 27 November 2024 be approved as a correct record.

The External Auditors advised that, following receipt of the outstanding pension fund audit, an unqualified audit opinion had been issued in January.  The audit certificate will be issued once authorised by the National Audit office.  The Auditors thanked the Finance Team for their support throughout the audit, adding that HPBC were one of the first district councils in the country to sign off. Planning for 2024/25  is underway and will be reported to the next meeting.  The backstop date is the end of February 2026 but this is reliant on the pension fund authority concluding their work. In terms of the risk assessment, there is a new accounting standard for leases, IFRS16 which takes effect in 2024/25 and operating leases will now appear in the balance sheet as well as the accounting treatment for the new Alliance Leisure Ltd.  In response to a query, it was confirmed that it was unlikely that the new IFRS16 will affect leases given by the council to community groups.

The Chair thanked the External Auditors, and Finance Teams for the work undertaken and commented that it was pleasing to have the audit completed prior to the backstop.

RESOLVED:

That the update be noted.

The report set out an overview of strategic, operational and project risks to enable the Committee to seek assurance as to the adequacy of the Council’s Risk Management arrangements in accordance with good practice.

It was reported that 10 of the strategic risks and 16 of the operational risks are rated as ‘high’, and therefore above the Council’s risk tolerance threshold, details of which are outlined in the appendices to the report.

Consideration was given to the risks reported in respect of the Council’s arms length companies and contractors.  Members were advised that additional capacity has been created around compliance and reference was made to an increased frequency of meetings of the Strategic Operating Boards together with increased Councillor representation to oversee various elements.  Reference was also made to legal measures in place should works be not done to the required standard.

It was suggested that climate change should be included as a strategic risk, particularly with reference to the Council’s parks where extreme weather could have an adverse impact and lead to additional expenditure and impact on people.  This would be referred to the Risk Management Group.

It was suggested that the insurance costs for the Council’s buildings should be included in SRRT-12, due to the increase in costs and the impact of the environment on older buildings.  It was also suggested that the IT risk (SRRT-16) be updated to reflect the implications of Local Government Reorganisation (LGR). Regarding LGR, the risk to staff was discussed and it was confirmed that information has been shared with staff and will continue to be shared with staff and Councillors as soon as possible.

RESOLVED:

That, subject to the above suggestions, the Council’s current risk position and the mitigation / fruition plans summarised within Appendix A (strategic risks), Appendix B (operational risks), Appendix C (project risks) and Appendix D (opportunity risks), be noted.

The Committee scrutinised a report which set out the Council’s Treasury Management performance in 2024/25 in compliance with the Chartered Institute of Public Finance and Accountancy (CIPFA) Code of Practice on Treasury Management and generally accepted good practice. 

In response to queries, an explanation was provided in respect of the meaning of ‘cash flow fluctuations’ (paragraph 3.5) and ‘operational boundary’ (paragraph 5.2).  

RESOLVED:

That the current Treasury Management position as at the end of the third quarter 2024/25 be noted.

The Committee considered the Council’s Treasury Management Strategy for 2025/26, which aims to ensure that the Council’s capital and treasury activities for the next four years are affordable and properly managed.

With reference to intra-local authority investing and the effect of LGR, committee were advised that the limit for investments of this nature is 12 months, in line with the Council’s current usual practices for financial investments.

The Chair thanked the officer for her work on developing the Strategy.

RESOVLED:

That the Treasury Management Strategy Statement (TMSS) 2025/26 be recommended to Council for approval.

The Accounts and Audit Regulations 2015 requires the Council to “undertake an effective internal audit to evaluate the effectiveness of its risk management control and governance processes taking into account public sector internal auditing standard or guidance”.  In accordance with the Public Sector Internal Audit Standards, the Audit Manager must report periodically to the Audit Committee on the internal audit activity’s performance relative to its plan.

Discussion ensued around the limited assurance for the audit of taxi licensing in 2023/24 and members were advised that policies are up to date.  Other issues were discussed pertaining to taxi licensing which could be considered by the Licensing Committee.

RESOLVED:

That the report be noted.

The Committee must have arrangements in place to ensure compliance with the Regulation of Investigatory Powers Act 2000 (RIPA) and those arrangements are subject to inspection by the Investigatory power Commissioners’ Office (IPCO),  This is achieved through the adoption of a set of Policy and Procedures that ensure compliance with the requirements of the legislation.  THE Council has had arrangements and procedures in place for authorising and conduction necessary surveillance since 2002.  Councillors should review the use of RIPA and set the policy at least once per year and should also considered internal report son use of RIPA periodically to ensure it is being used consistently with the policy and the that the policy remains fit for purpose.

Discussion ensued around overt and covert uses of CCTV and it was noted that RIPA refresher training will be provided to relevant staff in due course.

RESOLVED:

1.    That the Council’s use of RIPA powers be noted; and

2.    That the Regulation of Investigatory Powers Act 2000 Policy and Procedures attached at Appendix A be approved and adopted.

RESOLVED:

That the Work Programme, be noted.