The Governance and Audit Committee of South Holland Council met on Thursday, 13 June 2024, to discuss various issues including the Internal Audit Progress Report, the Internal Audit Plan for 2024/2025, and the Q3 Treasury Management Update for 2023/2024. Key decisions were made regarding the approval of the Internal Audit Plan and the Accounting Policies for the Financial Statements of 2023/2024.

Internal Audit Progress Report - March 2024

The committee reviewed the Internal Audit Progress Report for March 2024, which included updates on the Procurement Card Audit Management Response. The Head of Internal Audit highlighted several points, including the progress of the audit plan, the status of internal audit activities, and the outcomes of various audits. Members raised concerns about account coding issues during the Payroll Control Account Reconciliation audit and the consequences of these issues. The Chief Finance Officer (PSPS) assured members that the issues were being addressed and that a briefing note would be provided.

Internal Audit Plan 2024/2025

The committee considered the Internal Audit Plan for 2024/2025, which outlined the annual plan for internal audit activities. The plan conformed with Public Sector Internal Auditing Standards (PSIAS) and covered a wide range of key issues across the council. Members requested that highly technical items be spaced out across different meetings and noted that the plan had been welcomed by Assistant Directors and Portfolio Holders.

Q3 Treasury Management Update 2023/24

The committee reviewed the Q3 Treasury Management Update for 2023/2024, which provided an update on Treasury Management performance and activity. The report included an economic update, interest rate forecasts, and details on the council's borrowing position. Members expressed hope that the £67.456 million debt to central government would be cancelled in the future and were reassured by the council's financial situation.

Financial Statements 2023/24 - Accounting Policies

The committee reviewed and approved the Accounting Policies for inclusion in the Financial Statements for 2023/2024. The policies detailed specific principles applied by councils in the preparation and presentation of Financial Statements in accordance with CIPFA’s Code of Practice on Local Authority Accounting. Members were pleased that an accruals method was in use and noted that pensions training would be arranged for committee members.

Recruitment of Co-opted Independent Members to the Governance and Audit Committee

The committee discussed the recruitment of Co-opted Independent Members to the Governance and Audit Committee. The report outlined the benefits of appointing Independent Members and the next steps for recruitment. Members agreed that the addition of Independent Members would benefit the committee and suggested that the positions be advertised through various channels, including the local press.

Q3 Risk Report 2023/24

The committee reviewed the Q3 Risk Report for 2023/2024, which provided an update on the council’s current strategic risks. Members welcomed the level of detail presented within the Risk Register and requested that the report be reformatted for easier readability when printed.

Governance and Audit Work Programme

The committee considered the Work Programme of the Governance and Audit Committee. Members were updated on postponed reports and requested to be invited to any training sessions arranged following the appointment of Independent Members. The External Audit Director (KPMG) provided an update on the delay of the external audit report and the situation regarding the 2022/2023 Financial Accounts.

The meeting concluded with no urgent items or exclusion of the press and public.