The Audit, Governance and Standards Committee of Kingston upon Thames Council met on Wednesday 28 February 2024 to discuss the progress of audits and proposals for the appointment of independent members to the committee. The committee noted the interim auditor's annual report for 2022/23 and progress on the 2021/22 and 2022/23 accounts audits. They also agreed to recommend to the Council that the committee's membership be increased to include two independent members.

Accounts and Audit Update

The committee received an update on the progress of the financial audits for the 2021/22 and 2022/23 financial years. The external auditors, Grant Thornton, produced an Interim Auditor's Annual Report for 2022/23, which concluded that no significant weaknesses had been identified in the Council's arrangements for ensuring economy, efficiency, and effectiveness in its use of resources. However, the report did make two recommendations for improvement.

The first recommendation was that corporate key performance indicator (KPI) reporting should be made quarterly to the Corporate and Resources Committee, including benchmarking and explanations for any performance or risk scores that fall below target, along with actions to address these issues. The second recommendation was for a governance audit of the arrangements for the Cambridge Road Estate project with Countryside Properties to be undertaken as soon as possible, which is included in the internal audit plan.

The audit of the Council's financial statements for 2022/23 is ongoing, with findings expected in March 2024. The audit for 2021/22 is substantially complete, with final work outstanding. The external auditors intend to complete both audits by the end of March 2024, which would place Kingston significantly ahead of many other local authorities facing audit delays. The 30-day public inspection period for the 2022/23 Statement of Accounts was completed in 2023.

Independent Member of the AG&S Committee

The committee considered proposals for the appointment of new Independent Members to the Audit, Governance & Standards Committee. It was noted that the committee has traditionally included one non-elected, non-voting Independent Member to bring specialist knowledge and provide independent challenge to the Council's financial and governance arrangements. The current Independent Member, Mr Paul Eardley, who was appointed in October 2018, has stepped down.

The report proposed increasing the committee's membership to include two independent members, aligning with CIPFA best practice guidance from 2022. This change requires a formal amendment to the Council's constitutional arrangements, which would need approval from the full Council. A refreshed role profile for the Independent Member position was presented for approval. The proposed appointments would initially be until the May 2026 Borough elections, after which they would align with four-year Council terms. Recruitment would begin after the February Council meeting, with shortlisted candidates invited to meet with the Chair of the Committee, the Monitoring Officer, and the S151 Officer.

The committee agreed to recommend to the Council that the membership of the Audit, Governance & Standards Committee be amended to include two Independent Members. Subject to Council approval, the Monitoring Officer would be authorised to recruit two independent members for a term of office until the end of the 2025/26 Municipal Year. The role profile for the Independent Member was also agreed. The Chair thanked Mr Eardley for his contributions to the committee.