The Audit Committee of Ashford Borough Council met to discuss several key issues, including the Corporate Risk Register, the Homes England Compliance Audit Annual Report, the Internal Audit and Assurance Plan for 2024/25, and the progress update on the 2022/23 External Audit.

Corporate Risk Register

The Head of Policy and Performance introduced an update on the Corporate Risk Register, highlighting new risks such as Kent County Council’s budget pressures, potential transport disruption due to the EU entry/exit system, and the introduction of a Joint Complaint Handling Code by the Housing Ombudsman and Local Government and Social Care Ombudsman. The Council's property management framework was also discussed, with a new regulatory approach from the Regulator of Social Housing set to be introduced in April 2024. An independent assessment had identified areas needing improvement to meet high standards as a landlord.

A member suggested a deep dive into the risks related to transport disruption at a future meeting. Concerns were raised about the supply of affordable rented housing and managing nutrient neutrality in the Stour, particularly regarding the on-site wastewater treatment plan. The Deputy Chief Executive clarified that Ofwat and the Environment Agency regulate wastewater treatment plans and that the Council conducts 'appropriate assessments' during planning stages.

The issue of insufficient reserves to respond to unforeseen events was discussed, especially in light of the acquisition of Picture House. The Head of Policy and Performance noted that reputational risk is considered within each risk on the register. The Deputy Chief Executive mentioned an overarching risk related to the Council's commercial investments, including the Picturehouse acquisition.

Homes England – Compliance Audit Annual Report for Ashford Borough Council

The Housing Development and Regeneration Manager presented the Homes England Compliance Audit Annual Report, confirming that the Council complied with Homes England’s policies, procedures, and funding conditions. A minor breach was found related to internal communication on data input for work costs and room sizes. The Council has consistently received a Green Grade in Compliance Audits since 2014.

Internal Audit and Assurance Plan 2024/25

The Head of Mid Kent Audit Partnership introduced the Internal Audit and Assurance Plan for 2024/25, which provides adequate coverage for an annual Head of Audit Opinion. The plan is built on a risk assessment considering internal and external risks. The plan includes 300 audit days, with some audits yet to be determined. The Chair raised concerns about the availability of auditors, which the Head of Mid Kent Audit acknowledged, noting that consultants are covering vacancies.

Progress Update on the 2022/23 External Audit

The Key Audit Partner from Grant Thornton UK presented a progress update on the 2022/23 External Audit, covering value for money for 2021/22 and 2022/23. No significant weaknesses were identified, but nine improvement recommendations were made. The Council's financial sustainability was highlighted positively. The Deputy Chief Executive addressed questions about the Climate Action Plan, sensitivity analysis, and the recommendation to remove Cabinet Members from the Audit Committee. The Council is not currently inclined to change the committee's makeup but will consider the recommendation for an Independent Member.

Presentation of Financial Statements

The Senior Accountant introduced the report on the financial statements for the year ending 31 March. The accounts are prepared on a 'going concern' basis, with a draft publication date of 31 May 2024. The Key Audit Partner from Grant Thornton UK indicated that the audit opinion would likely be issued by the end of December 2024.

Report Tracker and Future Meetings

The Deputy Chief Executive mentioned that a report on the Housing Action Plan would be presented to Cabinet with a recommendation for the Audit Committee to monitor it, and it would be added to the Report Tracker.