Agenda and minutes

Mr H Rayner moved, seconded by Mr D Jeffrey that Mr R A Marsh be elected Vice-Chairman of the Committee.

            Carried unanimously.

Membership: 9 Members; Conservative 7, Labour 1, Green/Independents 1 plus, 1 independent member.

The purpose of this Committee is to:

(a)   ensure the Council’s financial affairs are properly and efficiently conducted and;

(b)  review assurance as to the adequacy of the risk management and governance framework and the associated control environment.

The Governance and Audit Committee is responsible for ensuring that:

(a)  risk management and internal control systems are in place that are adequate for purpose and effectively and efficiently operated,

(b)  the Council’s corporate governance framework meets recommended practice, is embedded across the whole Council and is operating throughout the year with no significant lapses,

(c)  the Council’s Internal Audit function is independent of the activities it audits, is effective, has sufficient experience and expertise and the scope of work to be carried out is appropriate,

(d)  the appointment and remuneration of external auditors is approved in accordance with relevant legislation and guidance, and the function is independent and objective,

(e)  the external audit process is effective, taking into account relevant professional and regulatory requirements, and is undertaken in liaison with Internal Audit,

(f)   the Council’s financial statements (including the pension fund accounts) comply with relevant legislation and guidance and the associated financial reporting processes are effective,

(g)  any public statements in relation to the Council’s financial performance are accurate and the financial judgements contained within those statements are sound,

(h)  accounting policies are appropriately applied across the Council,

(i)    the Council has a robust counter-fraud culture backed by well designed and implemented controls and procedures which define the roles of management and Internal Audit, and

(j)    the Council monitors the implementation of the Bribery Act policy to ensure that it is followed at all times.

Please note that Selection and Member Services Committee has recommended changes to these Terms of Reference which will be considered by the County Council.  Any agreed changes will be reported to a future meeting of the Committee.

The Committee noted its Terms of Reference and that revisions to them were due to be considered by the County Council at its meeting on 23 July 2021.

23 April 2021

27 May 2021

RESOLVED that the Minutes of the meetings held on 23 April 2021 and 27 May 2021 are correctly recorded and that they be signed by the Charman.

Mr S Webb informed the Committee that he drew a pension from the Kent Superannuation Fund. He would therefore not participate in any discussion of the Superannuation Fund.   He also informed the Committee in respect of the draft Statement of Accounts (Item 9) that he was a Member of the Kings Hill Golf Club which appeared in the draft accounts.

(1)          Dr D A Horne declared an Other Significant Interest and left the meeting for this item.

(2)       The Corporate Director of Finance introduced the report which recommended the reappointment of Dr D A Horne for a further period of two years. This was agreed.

(3)       RESOLVED that Dr D A Horne be re-appointed as the Independent Member of the Committee for a further period of two years and that the next two-year appointment be included in the Committee Work Programme in 18 months time. 

(1)          The General Counsel provided an outline of the training programme proposed for Members of the Committee. 

(2)       Members of the Committee suggested that the potential of providing training in partnership with other Local Authorities should be considered.

(3)       RESOLVED that agreement be given to the training programme proposed in paragraph 2 of the report and that a further report setting out the proposed training programme and delivery programme be submitted to the next meeting of the Committee.  

(1)       The Chief Accountant introduced the draft Statement of Accounts for 2020/21.  These were due to be audited before the October meeting of the Committee, which would consider the finally audited accounts.

(2)       The Committee congratulated the Corporate Director-Finance and her Team for producing the draft accounts in an efficient and timely manner despite the very adverse prevailing conditions caused by the pandemic.

(3)      The Corporate Director of Finance agreed to provide a detailed response to the Committee Members on in respect of the relative high rise in remuneration for Non-Schools as opposed to Schools staff.

(4)      The General Counsel explained that the Committee Members would have advanced sight of the Annual Governance Statement ad that this would be the subject of a training session before the next Committee meeting.

(5)       RESOLVED to note

(a)          the draft Statement of Accounts for 2020-21; and

(b)          that the final audited accounts will be presented to the October meeting of the Committee, which will also the Letters of Representation for approval.

(1)          The Acting Business Partner – Kent Pension Fund gave a summary of Treasury Management activity in 2020-21.

(2)      In response to Members’ questions, the Acting Business Partner – Kent Pension Fund said that the County Council and the County Councils Network were lobbying the Government in respect of the effect on the County Council of having responsibility for debts that the Government had originally agreed to finance.

(3)       RESOLVED that approval be given to the report for consideration by the County Council.

(1)          The Corporate Director of Finance and the Head of Internal Audit introduced the report on the significant outcomes of the independent External Quality Assessment process undertaken between January and April 2021 in compliance with the requirements of the Public Sector Internal Audit Standards.  This report contained no requirement to enhance performance. It made recommendations which had all been accepted.

(2)       RESOLVED that the positive outcome of the External Quality Assessment 2021 be noted for assurance.

(1)       The Counter Fraud Manager introduced the report which set out Counter Fraud activity undertaken for 2020/21, including reported fraud and irregularities.  The report also contained the draft Counter Fraud Action Plan for in 2021/22, covering reactive and proactive activity as well as reviews of the Anti-Fraud and Corruption Strategy; the Anti-Bribery Policy and the Anti Money Laundering Policy. 

(2)       It was agreed that the Whistleblowing Policy would be placed on the County Council’s website. 

(3)       RESOLVED that :-

(a)          the outturn of the Counter Fraud Activity for 2020/2 be noted for assurance; and

(b)          approval be given to:-

(i)           the Counter Fraud Plan for 2021/22;

(ii)          the Anti-Fraud and Corruption Strategy;

(iii)         the Anti-Bribery Policy; and

(iv)         the Anti-Money Laundering Policy.  

(1)       The Head of Internal Audit reported the overall outcomes and key themes from Internal Audit work undertaken during 2020-21.  This included the translation of these outcomes to the resultant annual opinion on the Council’s systems of governance, risk management and internal control that was incorporated into the Annual Governance Statement as well as the related performance of the Internal Audit service in delivering this work.

(2)       Resolved that:-

(a)       the report be noted for assurance as a source of independent assurance regarding the risk, control and governance environment across the Council; and

(b)       the outcomes from 2020-21 Internal Audit work be noted together with the resultant Adequate opinion to the Annual Governance Statement.

(1)       The Audit Manager introduced the report which gave detailed summaries of completed Audit reports for the period April to June 2021. She informed the Committee that the work on cyber security had now been finalised and would be reported to the Committee in October. 

(2)       The Audit Manager agreed to provide the Committee Members with an estimate of the income not being collected by KCC as a result of Housing Benefit not being paid over to the housing provider.

(3)       RESOLVED that the Internal Audit Progress Report for the period April to June 2021 be noted.

(1)       The Audit Manager provided details of the proposed Internal Audit Plan for 2021/22 together with the Internal Audit Charter, which underpinned the plans and practice of the Internal Audit team as well as the key performance indicators to be tracked and monitored during 2021/22.

(2)     RESOLVED that:-

(a)       agreement be given to the proposed Internal Audit Plan for 2021/22;

(b)       the Internal Audit Charter be approved; and

(c)       the Key Performance Indicators for 2021/22 be noted for assurance. .

(1)       Mr Paul Dossett from Grant Thornton UK LLP introduced the report which provided recent updates and information. This report had previously been circulated to the Committee Members and published on the KCC website.

(2)       RESOLVED that the report be noted for assurance.