The Audit, Governance and Standards Committee of Kingston upon Thames Council met on Wednesday 17 July 2024 to review the council's financial audit plans, internal audit performance, governance statement, and treasury management activities. The committee noted the external auditor's plan for the 2023/24 accounts, received the annual internal audit report and the Head of Internal Audit's opinion on the council's risk management, control, and governance processes, and approved the Annual Governance Statement for 2023/24 along with the associated action plan for the upcoming year. They also noted the Treasury Management Annual Report for 2023/24, confirming the council's performance within its prudential indicator limits.

External Audit Plan 2023/24

The committee received and noted the external auditor's plan for the audit of the 2023/24 statement of accounts and pension fund accounts. The report, produced by KPMG, outlined the audit approach, significant risks, materiality levels, timelines, fees, and key personnel involved. It was noted that the council is required to publish its final audited accounts by 30 September 2024, and the audit plan's timeline is consistent with this deadline. Officers assured the committee that they were working closely with Grant Thornton, the previous auditor, to finalise the 2022/23 accounts, which is a prerequisite for the current audit to proceed.

Annual Internal Audit Report

The committee considered the Annual Internal Audit Report for 2023/24, which summarised the service's work and included the Head of Internal Audit's annual opinion on the council's governance, risk management, and internal control framework. The report confirmed that the Internal Audit Service conforms with the Public Sector Internal Audit Standards (PSIAS). The Head of Internal Audit provided an opinion that the council has reasonable risk management arrangements, a reasonable internal control framework, and reasonable governance arrangements in place. Members inquired about the repayment of credit balances mentioned in paragraph 1.16 of the report, and officers stated they were working to identify the beneficiaries and had engaged a tracing agency, with a further update promised for the September meeting.

Annual Governance Statement

The committee reviewed and approved the council's Annual Governance Statement (AGS) for 2023/24. This statement serves as an honest self-assessment of the organisation's performance and outlines actions to address areas of concern or improvement. The assessment indicated that services generally have robust governance arrangements, with some areas identified for improvement, which will be addressed in the 2024/25 AGS Action Plan. The committee resolved to approve the AGS for formal sign-off by the Leader of the Council and the Chief Executive, and also approved the 2024/25 AGS Action Plan, noting actions already taken.

Treasury Management Annual Report 2023/24

The committee received the Treasury Management Annual Report for 2023/24, which detailed the council's treasury management activities and performance. The report summarised the council's operations, including its borrowing and investment activities, and confirmed compliance with the Chartered Institute of Public Finance Accountants (CIPFA) Code of Practice on Treasury Management and the CIPFA Prudential Code for Capital Finance. The council invested surplus funds when available and operated within its agreed Treasury Management Strategy and prudential indicator limits. The committee noted the report and the council's performance against its prudential indicators.