Agenda a Chofnodion

The Chair welcomed the attendees to the virtual meeting of the Governance and Audit Committee and apologies for absence were received from County Borough Councillor J Barton and Councillor S Powell.

Derbyn datganiadau o fuddiannau personol gan Aelodau, yn unol â gofynion y Cod Ymddygiad.

Nodwch:

1.    Mae gofyn i Aelodau ddatgan rhif a phwnc yr agendwm mae eu buddiant yn ymwneud ag ef a mynegi natur y buddiant personol hwnnw; a

2.   Lle bo Aelodau'n ymneilltuo o'r cyfarfod o ganlyniad i ddatgelu buddiant sy'n rhagfarnu, rhaid iddyn nhw roi gwybod i'r Cadeirydd pan fyddan nhw'n gadael.

In accordance with the Council’s Code of Conduct, there were no declarations made pertaining to the agenda.

Derbyn cofnodion o gyfarfod blaenorol y Pwyllgor Llywodraethu ac Archwilio a gafodd ei gynnal ar 9 Tachwedd 2021.

It was RESOLVED to approve the minutes of the XXXX as an accurate reflection of the meeting.

With the aid of a PowerPoint presentation, the Financial and Performance Audit Managers of Audit General for Wales (AGW) provided Members with an overview of the role and functions of the Audit Wales in ensuring Public Bodies within Wales operate effectively and efficiently under the Public Audit Wales Act (2004), Well-being of Future Generations Act Wales (2015) and Local Government and Elections Wales Act (2021).

The presentation was delivered under the following key headlines: -

-       Who we are – The Auditor General Wales (AGW)

-       RCT Council’s Audit Wales Team

-       Main Legislative duties & powers for audit work in Local Authorities

-       Our Work

-       Annual Audit Plan

-       Our Local Government Financial Audit work

-       Key Reports & Assurances – Financial Audit

-       Performance Audit – Out work at RCT

-       Annual Audit summary

-       Addressing Findings

-       Our Good Practice Exchange

-       Code of Audit Practice

The Performance Audit Manager took Members through the content of the presentation, specifically highlighting on the current work programmes being undertaken at RCT. The current work programmes focus on local work such as the Cwm Taf Morgannwg Health Partnerships and digital ambitions which is work currently underway. The work programmes also focus on understanding the Councils self-assessment and preparedness for changes under the Local Government and Elections Act (2021). Lastly, work is being undertaken on Carbon reduction plans in RCT which will be considered in the New Year.

The Performance Audit Manager continued with the presentation by highlighting to Members the expectation of Audit General for Wales (AGW) to Local Authorities to guarantee that proposals and recommendations made, are acted on by Public Bodies to ensure that progress is monitored and evaluated against any recommendations contained in the reports.

The Performance Audit Manager of AGW stressed to Members the dedication of AGW in improving public services across Wales by encouraging shared knowledge and good practice that are beneficial to Local Authorities.  Webinars and online events allow stakeholders to exchange ideas and share resources. As part of code of audit practice, AGW focuses on 4 key principles that underpin the work undertaken; these are public focus, independence, proportionate and accountability. 

Following the presentation, Members of the Governance and Audit Committee were provided with the opportunity to ask questions based on the information presented.

One Member was pleased with the report, however questioned the effectiveness of liaising with other regulators such as Care Inspectorate Wales (CIW) and Estyn, as it could cause a duplication in the work programmes. A query was raised in respect of the responsiveness of the team in reacting to any urgent inspections. The Performance Audit Manager advised that regular meetings are held with other regulators to share information, discuss any risks or concerns, and programmes of work.

Despite the collaboration, the Performance Audit Manager gave reassurances that the regulators have separate responsibilities and duties which prevents duplication. In conclusion the Performance Audit Manager advised that although the team does not get involved in serious case reviews, the team is  ...  view the full Cofnodion text for item 32.

Through a PowerPoint presentation, the Head of Regional Internal Audit Service provided the Committee with an overview of the role, achievements, visions and responsibilities of Internal Audit and the work of the Regional Internal Audit within Wales.

He continued to outline the purpose of the work undertaken, which comprises of providing Risk-Based plans for all key areas and producing an annual opinion on the risk, governance, and internal control on assurance work undertaken. Similarly, to Audit wales, to avoid a duplication of work, regular meetings with external colleagues and other regulators are held. As it’s a shared service across the four Councils, the team have recently reviewed the category of opinions given and adopted a mirrored categorisation and definitions of Charter institute of Finance and Accounting. 

The Chair thanked the Head of Regional Internal Audit for the comprehensive and useful presentation.

Following the presentation, members of the Governance and Audit Committee were given the opportunity to ask questions. One Member queried the Commercial approach and how successful the team has been in contacting other bodies to take up the service. In response, the Head of Regional Internal Audit Service stated that staff vacancies, due to Covid has held up the progress of the Commercial approach; the team aim to advertise vacancies across the four Councils and recruit externally for trainee roles (i.e., Graduate Schemes). In relation to developing the Commercial approach, there has been an approach made by some Community Councils, and as soon as the staffing issues have been resolved, a detailed plan will be put in place to see how best this can be taken forward.

The Governance and Audit Committee RESOLVED:

-       To note the content of the presentation.

The Group Audit Manager for Merthyr Tydfil and RCT provided Members with an overview on the progress made against the audit work included and approved within the internal Audit Risk Based plan 2021/22.

The aim was to provide Members with a position statement on the internal audit progress as of the 26^th of November 2021. The Audit Manager directed Members toward appendix A of the report, highlighting the individual audit assignments issued. As part of the report, the Audit Manager focused on the one consultancy audit completed on the Park Lane Special Schools.

At the request of the Director of Education and Inclusion Services, and the Training unit, an audit was undertaken to implement a centralised system to monitor safeguarding training for schools to ensure training was kept up to date for all school staff. The Audit Manager referred Members to Appendix 1 of the report highlighting the recommendations made; This is an area where assurances will be provided in accordance with the Audit plan 2022/23.

Through the Audit work undertaken key issues were identified regarding the internal processes and procedures not being complied with. This resulted in 15 recommendations being provided, 4 of which were of high priority and needed to be acted upon. These included, sicknesses not being recorded in accordance with Council policies and procedures, issues with the School Private Fund, Statutory Polices had not been reviewed in alignment with Statutory requirements; Lastly there was a lack of control over the ordering processes. Progress against these recommendations will be monitored in accordance with routine internal audit monitoring procedure.

The Audit Manager directed members to Appendix 1 of the report, the Audit plan that was agreed by Members in July 2021. To date, the team have provided a total of 51 recommendations, 12 of which are high priority, 25 are medium priority and 14 low priority.

To summarise, the Audit Manager informed Members that as part of next year’s Audit Plan a new reporting procedure will be put in place to ensure recommendations made are being implemented and further testing will be undertaken to provide assurances to Members.

Based on the report presented, one Member sought clarification on the cause for high staff turnover at Park Lane Special School, and whether it was a result of lack of stability within the Acting Head Teacher/Executive Head Teacher and Governing Body. In response, the Audit Manager stated that it would be difficult to measure the cause of staff turnover in the special schools as work undertaken is based on a specific time frame of transactions.

In response to a query concerning safeguarding issues at the school, the Audit Manager stated that from the findings, none of the 15 recommendations made related to the safeguarding concerns.

The Chair thanked the Audit Manager of Merthyr Tydfil and RCT Councils for the informative report.

The Governance and Audit Committee RESOLVED:

-       To note the content of the report

The Service Director of Performance and Improvement provided Members with an update on the implementation of proposals of improvements reported in the Audit Wales, Annual Audit Summary 2020 (AAS). The report sets out the important processes in parallel, with the Governance and Audit Committee in respect of the role of the Councils Scrutiny function which is noted on paragraph 3.6 and 3.7 of the report.

The Service Director of Performance and Improvement referred to the Terms of Reference of the Governance and Audit Committee, which enable Members to consider the reports of an external auditor and to seek assurance of the arrangements in place to monitor and evaluate progress. Members were reminded of the Committee’s ability to refer those matters where progress has been insufficient to the relevant Scrutiny Committee to consider in more detail.

The Service Director of Performance and Improvement referred to section four of the report, the Annual Audit Summary 2020 (AAS) previously reported to full Council. The Audit Summary 2020 (AAS) provided Members with proposals for improvement or recommendations from published reports that were specific to RCT, national reports, and the Welsh Government. The first progress updates were previously provided to the Governance and Audit and Scrutiny Committee. 

The report highlighted the progress updates as of November 2021.

The Service Director referred Members to Appendix 1 of the report which highlights two main areas; local reports, specifically relevant to RCT, as it sets out proposals for improvement in relation to statutory reporting responsibilities; but also refers to progress updates that have been reported this year to the relevant Scrutiny Committee in respect of the Care Inspectorate Wales and Estyn. Local reports have also covered the Wellbeing of Future Generations Act Wales (2015) where specific focus of the Audit Wales study will be considered in preparing for the Council Leisure Strategy 2022-27. Furthermore, Local reports have also considered the Financial Sustainability Assessment to the 2019/20 financial year published in March 2020; as shown on Appendix 1 further Financial Sustainability Assessment has been reported in November 2021 and first update of progress will be investigated in the next round of reporting.

The second area of Appendix 1 covers the national reports; thus far seven national reports have been undertaken in total, and the progress updates highlight how the Council is implementing proposals for improvement where relevant to RCT.

Members of the Governance and Audit Committee were provided with the opportunity to ask questions.

One Member sought clarification on the reason for the reduction in registered resources from 617 to 442 in Dewis Cymru. In response, the Service Director of Performance and Improvement stated as part of the Councils quarterly performance, and reporting arrangements local groups and third sector organisations collaboratively work with Dewis Cymru and it’s their responsibility to update their Website pages with relevant information; If they are not updated for 6 months intervals, they are removed.

The Chair requested further clarification on the timeline of future progress updates to the Committee. In response, the Service Director  ...  view the full Cofnodion text for item 35.

The Service Director of Performance and Improvement provided the Committee with an update on progress being made to implement recommendations which were included in the Councils Annual Governance Statement 2020/21.

The Service Director of Performance and Improvement referred Members to Appendix 1 of the report which highlights the position statement of progress. In relation to high level position statements, all actions are on target or completed with the exception of the reporting of an updated Risk Management strategy to the Governance and Audit Committee.

A review of the Risk Management strategy has been completed and considered the internal audit report that was undertaken on the Councils Risk Management arrangements; Members were informed that the information is currently being finalised and will be included in the Risk Management Strategy to be reported to the Council as at Quarter Four.

Following the completion of the update, Members were given the opportunity to ask questions regarding the content of the report. 

A Member requested further information regarding the Councils arrangements when compiling progress updates with the Annual Governance Statement recommendations prior to it being reported to the Committee.

In response, the Service Director of Performance and Improvement provided Members with assurance that arrangements for the checks and balances are undertaken in place internally before being presented to the Committee. He provided information on the service delivery plan arrangements, and the review and challenge process, which ensures adequate progress has been achieved. This process includes Chief Officers, or the Senior leadership team as shown in Appendix 1 who will oversee these updates and approve them.

One Member noted that the first recommendation had been revised to early next year; and queried whether this will cause any adverse impacts on the Councils Risk Management Strategy.

In response, the Service Director of Performance and Improvement stated that through utilising the Internal Audit report, recommendations have been made which clearly set out the role of the Cabinet Members, Senior Leadership officers and Chief officers in the Risk Management process particularly the service delivery plan process. He added that the Internal Audit report also recommended that the Council set up a risk level; research is currently underway on a UK level and across Wales Local Authorities to identify their strategy of risk. The results are currently being processed and will be shared with the Senior Leadership Team early next year.

The Governance and Audit Committee RESOLVED:

-       To note the content of the report

“Bod y cyfarfod hwn yn cadw aelodau o'r wasg ac aelodau o'r cyhoedd allan o ystafell y cyfarfod, dan Adran 100A(4) o Ddeddf Llywodraeth Leol 1972 (fel y'i diwygiwyd), yn ystod trafod yr agendwm nesaf, ar y sail y byddai'n debygol o olygu datgelu gwybodaeth eithriedig yn ôl diffiniad paragraff 14 o Ran 4 o Atodlen 12A i'r Ddeddf.”

It was RESOLVED that the press and public be excluded from the meeting under Section 100A(4) of the Local Government Act (as amended) for Item 5 of business on the grounds that it involves the likely disclosure of the exempt information as defined in paragraph 14 of Part 4 of the Schedule 12A of the Act.

The Service Director for Pensions, Procurement and Transactional Services outlined to members the progress made to date against the Anti-Fraud, Bribery and Corruption work programme for 2021/22.

Following discussions, it was RESOLVED:

-       To review the work undertaken in 2021/22 and provide direction and guidance where necessary within the Terms of Reference of the committee.

Trafod unrhyw faterion sydd, yn ôl doethineb y Cadeirydd, yn faterion brys yng ngoleuni amgylchiadau arbennig.