There were apologies for absence from Councillor Bob Matthews.

To receive details any details of members nominated to attend the meeting in place of a member of the committee.

There were no named substitutes.

To receive declarations of interests in respect of Schedule 1, Schedule 2 or Other Interests from members of the committee in respect of items on the agenda.

There were no declarations of interest.

To approve the minutes of the meeting held on 5 May 2020.

The action tracker attached to the minutes was discussed:

1.      It was noted that actions in connection with the corporate risk register were linked to the approval of the performance, risk, opportunity (PROM) framework so the due date would need to be moved to October 2020.

2.      Action number 42 (Cross referencing work to be undertaken with the internal audit plan and corporate risk register with regard to the risks not covered in the plan for 2020/21) will be included in the progress update for 2020/21 quarter 1 scheduled for the committee meeting on 30 July 2020.

RESOLVED:

That the minutes of the meeting held on 5 May 2020 be confirmed as a correct record and signed by the chairperson.

To receive questions from members of the public.  

Deadline for receipt of questions is 5.00 pm on 10 June 2020 (3 clear working days from date of meeting).

Questions must be submitted to councillorservices@herefordshire.gov.uk. Questions sent to any other address may not be accepted.

Accepted questions and the response to them will be published as a supplement to the agenda papers prior to the meeting. Further information and guidance is available at https://www.herefordshire.gov.uk/getinvolved

There were no questions from members of the public.

To receive any questions from councillors.  

Deadline for receipt of questions is 5.00 pm on 10 June 2020 (3 clear working days from date of meeting).

Accepted questions and answers will be published as a supplement prior to the meeting. 

Questions received and responses given are attached as appendix 1 to the minutes.

To update members on the progress of internal audit work and to bring to their attention any key internal control issues arising from work recently completed. To enable the committee to monitor performance of the internal audit team against the approved plan.

South West Audit Partnership (SWAP) presented the report and highlighted that since the last update to committee 7 audits had been completed, 6 audits were at report stage and 7 audits in progress.  For the audits completed 3 audits were assessed as reasonable assurance, one as partial assurance, and three were advisory audit reports.

The savings targets internal audit had result in a partial assurance with 2 priority 2 findings.    SWAP confirmed that 6 savings targets had been looked at and these were 1 (adults and communities directorate); 1 (children and families directorate), 2 (economy and place), 1 (corporate support centre) and 1 (centrally held budget).  The savings target in children and families directorate was not going to be achieved and SWAP could not say what the impact that then had on the corporate risk register.  

The biggest challenge for SWAP was trying to balance the continuation of the work outlined within the internal audit plan and supporting the council with Covid-19 activities.   The council had paid out significant amounts of money and SWAP looked at the controls in place.   SWAP acknowledged that officers had been accommodating so that SWAP could continue their work but there had been some disruption to their activities. 

The committee praised the work of the teams in connection with the speed at which the money received from government had been passed to those who qualified.  It was acknowledged that there was a risk as there were very sophisticated frauds.   The council and SWAP used their access to various databases in order to check for fraudulent activity.    These steps were taken in order to minimise the risk but there was some inherent risk that monies may have been paid to fraudulent recipients. 

It was noted that the chief finance officer and SWAP would be discussing the internal audit plan for 2020/21 to consider the areas of high risk and which audits will not be completed.   The committee would be updated when audits would not be continued.

RESOLVED that:

(a)             performance against the approved plan was reviewed and any areas for improvement identified; and

(b)              assurances provided were considered and the recommendations which the report makes, and comments were provided as necessary.

To provide the committee with a progress update of the work being undertaken by the external auditor, Grant Thornton.

Grant Thornton presented the report and highlighted that progress was currently on track. 

It had been helpful that the Secretary of State had extended the external audit deadline to end of November 2020.   One potential risk was that there may be drift or cost implications with the extension to 30 November.  

The Council would want to have its 2019/2020 accounts signed off as soon as possible as this would mean that the council could set its budget on an audited set of statement of accounts.  

It was noted that the impact of Covid-19 on the value for money statement was expected to be a factor for the 2020/2021 accounts. 

Following a query from a member of the committee, it was confirmed that discussions were still ongoing with government about securing all the funding for, e.g. road flooding repairs.  The council did have reserves but would prefer the funding to be provided by central government.   It was hoped that these discussions would be concluded by November 2020 and Grant Thornton would be kept updated. 

The chief finance officer confirmed that the draft statement of accounts would available for inspection by 26 June 2020.   The council would be accommodating as much as possible for members of the public who wish to inspect the documents and books.

RESOLVED that

The external audit progress report be noted.

To review and agree changes to the council’s whistleblowing policy.

With the agreement of the committee, the chairperson used his discretion to move this report to the next agenda item.

The solicitor to the council presented the report.  

The policy had been revised in 2017 and it was appropriate at this stage to undertake a review of the way the scheme worked and what changes could be made to clearer to understand.    Internal audit and the solicitor to the council were notified whenever whistleblowing occurred to ensure that there was corporate oversight. 

A member of the committee indicated that they had tried to read the policy from the view of a concerned person and whilst the policy may be legally correct, this was an opportunity to make it more user friendly for those desiring to whistle blow.   It was noted that other public sector organisations did have a policy which appeared to be more user friendly.  There was also a need to consider external involvement.   It was also noted that the document was legally correct and that it was good practice to have a whistleblowing policy but not a legal requirement.   It was noted that the NHS was required to have a whistleblowing policy.

The solicitor to the council explained that prior to 2017 there had been a low number of concerns raised and they were not formally recorded.    The policy had increased the numbers and when it is promoted it, it is fresh in the minds of members of staff. 

It was acknowledged that the policy was not clear as to who could use the policy and Hoople were used as an example.   The solicitor to the council confirmed that Hoople could use the policy. 

It was agreed to defer this item to the October meeting and that a working group comprising Councillor Nigel Shaw and Councillor Peter Jinman be formed.   The purpose of the working group would be to look at the revised draft document prepared by the solicitor to the council.

RESOLVED that:

(a)   the whistleblowing policy be deferred until the audit and governance committee in October 2020;

(b)   A working group comprising of Councillor Nigel Shaw and Councillor Peter Jinman be set up; and

(c)   The purpose of the working group would be to review revisions to the policy drafted by the solicitor to the council.

To consider the status of the council’s corporate risk register in order to monitor the effectiveness of risk management within the Performance, Risk and Opportunity Management framework.

The corporate risk register was as at the end of March 2020.   In response to members of the committee queries, the head of corporate performance confirmed that there had been capacity issues in updating the risk registers.   The committee would prefer to see a more up to date version in order to assure themselves that risks were being appropriately considered in line with the council’s risk framework.   It was noted that cabinet on 25 June 2020 were also due to see the risk register and they would be receiving the same version.    It was further noted that it would be for the Executive to act on the risk register.   

Cllr Peter Jinman left the meeting at 11.43 am. 

It was noted that the children and families directorate savings had a risk in terms of the medium term financial strategy (MTFS) and there was a specific risk with the children and families directorate being able to balance their budget.   There had been no change to the risk score and it was currently the joint second highest risk on the register

The top 6 risks had been on the corporate risk register from between 2014 to 2017 and these long standing risks are listed as further mitigation being required.  This indicated that they were above the council’s current “risk appetite.”   The head of corporate performance confirmed that these risks and mitigation would be in the county delivery plan, directorate plans, service plans.   There would be some transformational plans, for example getting to good in children and families directorate.  

It was noted that the children and families directorate risk register appeared to be light when compared to the adults and communities directorate and economy and place directorate and given the budget and nature of the directorate.  

The committee discussed the possibility of the director of children and families directorate being invited to the meeting to explain the process of mitigation which had applied to the risks in the directorate.  This may provide assurance to the committee that the risks were being managed in such a manner as to mitigate them in line with the council’s risk appetite.   It was agreed that the chairperson would speak to the director to outline the areas which the committee were seeking assurance on and potentially the director attending the meeting on 30 July 2020.

The revised PROM was due for approval by Cabinet in October 2020 and it was anticipated that this may provide assistance in mitigating the risks in the children and young people’s directorate.  It was agreed that the revised PROM would form part of the corporate risk register report due to be presented at the committee’s meeting on 30 July 2020. 

The committee requested sight of the Covid-19 risk register.

It was noted that in connection with the CRR37 (corporate risk register), there were references to February 2020 and March 2020 actions and these actions should be updated as the report was up to end of March 2020. 

RESOLVED that:

(a)  The committee  ...  view the full minutes text for item 444.

To review the progress of audit recommendations implementation.

The head of corporate performance presented the report.

It was noted that the audit action “ICT Access Controls, - Adults Wellbeing Applications and Children's Wellbeing Applications” had been outstanding since 2018.  It was queried whether given Covid-19 and the nursery staff being furloughed whether further mitigation would be required or the recommendation revised.  This audit action did have inappropriate data sharing implications.  The head of corporate performance agreed to provide a written briefing note on this action. 

The committee commented that it would be prudent for service areas to consider how Covid-19 might affect their ability to deliver on such actions.

RESOLVED THAT

(a)   A briefing note on the ICT Access Controls, - Adults Wellbeing Applications and Children's Wellbeing Applications be provided as the action had been outstanding since 2018.

(b)   The report be noted. 

To consider the suggested amendments to the council’s constitution proposed by the health and wellbeing board for recommendation to Council.

The assistant director, Talk Community programme and the deputy solicitor to the council presented the report.  

It was noted that the chief executive of Herefordshire Council was not a member of the Health and Wellbeing Board, although he did routinely attend the meetings.   The three directors of Herefordshire Council would be members of the Board.   It was requested that the membership of the Board be reviewed in 9 to 12 months.

RESOLVED that

(a)         having regard to the health and wellbeing board review, the amendments to the constitution as set out in appendix 1 be recommended to full Council for adoption, with implementation; and

(b)         the technical changes to the constitution to be made by the monitoring officer as set out in paragraphs 15 and 16 of this report be noted.

(c)         The membership of the health and wellbeing board be reviewed in 9 to 12 months.

The solicitor to the council presented the report. 

It was noted that due to Covid-19 the all member workshops had not taken place in person but rather via webinar which was not ideal.    An all member survey was currently running until the end of June 2020.  The working group were currently on track but the timetable will be very tight. 

All councillors were encouraged to respond to the survey. 

RESOLVED that

The progress report of the re-thinking governance working group be noted.

To provide an update on the Committee’s work programme.

The work programme was discussed. 

It was agreed that the annual internal audit report be moved to the November meeting so that it was considered at the same time as the external audit findings report.

The committee also agreed that a working group consisting of Councillor Nigel Shaw, Councillor Christy Bolderson and Councillor Yolande Watson be formed.  The purpose of the working group would be to review the core functions, membership and effectiveness of the committee and review work programme items not currently scheduled. The review will be structured using the CIPFA practical guide for Local Authorities & Police Audit Committees.  It was agreed that Councillor Christy Bolderson would be the chairperson of the working group. 

RESOLVED that

(a)   The work programme be approved, subject to the:

                            i.            corporate risk register being reported quarterly to the committee,

                           ii.           the annual internal audit report moving to the November 2020 meeting

                         iii.           Confidential Reporting Code (Whistleblowing) going to the October 2020 meeting

(b)   An audit and governance effectiveness review working group be set up comprising of Councillors Christy Bolderson, Nigel Shaw, and Yolande Watson.   Councillor Christy Bolderson to be the chairperson of the working group.

(c)   The purpose of the working group would be to review the core functions of the committee, membership and effectiveness of the committee and review work programme items not currently scheduled. The review will be structured using the CIPFA practical guide for Local Authorities & Police Audit Committees.and report back to the committee.