Agenda and minutes

Apologies for absence were received from Councillor J.Patel with Councillor Kansagra attending as a substitute.

Members are invited to declare at this stage of the meeting, the nature and existence of any relevant disclosable pecuniary or personal interests in the items on this agenda and to specify the item(s) to which they relate.

David Ewart (Chair) declared a personal interest as a member of CIPFA.

Councillor S.Butt declared a personal interest in Agenda Item 8 (I4B Holdings Ltd & First Wave Housing (FWH) Ltd performance) as a Council appointed Director on the Board of both i4B Holding Ltd and FWH Ltd.

To hear any deputations received from members of the public in accordance with Standing Order 67.

There were no deputations considered at the meeting.

4.1   To approve the minutes of the previous meeting held on Tuesday 6 February 2024 as a correct record.

4.2   To note the updated Action Log arising from previous meetings of the Committee.

RESOLVED that the minutes of the previous meeting held on Tuesday 6 February 2024 be approved as a correct record, subject to:

·         Deletion of reference to David Ewart as a councillor in the attendance list; and

·         Correction of the spelling of Cllr J.Patel in the attendance list

Members noted the following updates provided in relation to items listed on the Action Log, including circulation of the following update papers via email in advance of the meeting:

·         Update on Green Finance Options available to Council – Having reviewed the paper members were invited to feedback (via the Vice-Chair) any comments/issues arising from the briefing paper it was felt may need to be covered in more detail as part of the Committee’s 2024-25 work programme; and

·             Final Treasury Management Strategy 24-25

As a further comment in relation to the following action:

·             External Audit Progress and Plan 2023-24: It was agreed that an update be sought from Grant Thornton on the progress in resolving the outstanding regional Bus Lane camera objection as part of the ongoing work around the Statement of Accounts external audit process.

To consider any matters arising from the minutes of the previous meeting.

None.

The Chair agreed to amend the order of business so that the Strategic Risk Report (Agenda Item 11) was considered in advance of the Internal Audit Strategy 2024-2027 & Internal Audit Plan 2024 – 25 (Agenda Item 10).  The minutes reflect the order in which the items were considered at the meeting.

This presents the Monitoring Officer’s Annual Report to the Audit and Standards Advisory Committee (ASAC) for 2023. The report provides an update on Member conduct issues and the work of the Audit and Standards Advisory Committee, the Audit and Standards Committee (ASC) and the Monitoring Officer during 2023, together with the quarterly report on gifts and hospitality registered by Members as well as highlighting (for reference) a recent standards related case involving a prosecution for failing to disclose a disclosable pecuniary interest.

Debra Norman, Corporate Director of Governance, introduced a report updating the Audit and Standards Advisory Committee (ASAC) on Member conduct issues and the work of the Audit and Standards Advisory Committee, the Audit and Standards Committee (ASC) and the Monitoring Officer during 2023, together with the quarterly report on gifts and hospitality registered by Members. The Committee noted the following key points:

·             The summary of the work undertaken by the Audit & Standards Advisory Committee during 2023 on standards related issues (as detailed within section 3.2 of the report) which had included regular monitoring updates in relation to members declaration of gifts and hospitality and attendance at mandatory training sessions as well as updates on standards related Ombudsman and other relevant legal cases.  Members noted that the Audit & Standards Committee has also met on one occasion during 2023 (in relation to governance and standards issues) to formally approve the Annual Governance Statement.

·             Following the appointment of Rhys Jarvis (in September 2024) to join Stephen Ross as Independent co-opted Members (both Standards focussed) on the Advisory Committee, it was noted that Full Council would also be asked to confirm (at the Annual Council meeting in May 2024) the ongoing appointment of the three existing Independent Persons – William Goh, Keir Hopley and Julie Byrom for the 2024-25 Municipal Year

·             During 2023, six complaints were received against different Councillors for alleged breaches of the Members Code of Conduct, on which a summary had been provided within Appendix A of the report.  Members were advised that three of these complaints had been resolved at Initial Assessment Stage and three concluded at Assessment Stage.  None of the complaints had been upheld.

·             The details of Gifts and Hospitality registered by members in the final quarter of 2023-24 (Jan – March 24) as detailed in section 3.11 and Appendix B of the report.  In terms of the overall summary, members noted that the main types of declarations had related to FA tickets at Wembley Stadium, as well as various dinners, awards, ceremonies, and theatre shows.

·             Five Monitoring Officer Advice Notes (MOANs) had been issued to date during 2023 addressing (as part a focus on the Members Code of Conduct) use of resources, respect, outside bodies, gifts and hospitality, impartiality and bringing members individual office/the Council into disrepute.

·             The update provided in relation to member attendance at mandatory training sessions, with the Committee advised that all mandatory training had now been completed by members, with the exception of one member still required to complete Data Protection training as a result of being on maternity leave.

·             The update provided on a recent legal case relating to the prosecution of a member of a District Council for failure to disclose a disclosable pecuniary interest, as detailed within section 3.17 – 3.18 of the report.

The Committee was then invited to raise any comments/issues on the update provided, which are summarised below:

·             In welcoming the update provided on the resolution of complaints relating to alleged breaches of the member code of  ...  view the full minutes text for item 7.

This report provides a summary of the Member Learning and Development Programme since the last report to the Committee in March 2023 along with details on the Members Allowance Scheme.

Amira Nassr, Head of Chief Executive & Member Services introduced a report that provided members with a summary of the Member Learning and Development (MLD) Programme since the last report to Committee in March 2023, and information regarding the Members’ Expenses Scheme as well as an update on the annual review of the financial and procedural rules governing the Mayor’s Charity Appeal.

In considering the report the Committee noted:

·             The role of the Member Learning and Development Steering Group in providing constructive input to shape and evaluate development of the Member Learning & Development programme with an outline of upcoming sessions detailed within Appendix 1 of the report.

·             Whilst most Member and Learning Development sessions continued to be delivered online as the preferred method of learning and development identified by members, the benefits and effectiveness of in person face to face training had also been recognised.  The use of hybrid sessions had also been trialled as a further alternative means of delivery with the offer of this type of training session moving forward to be reviewed as part of the planning of future training opportunities.

·             The feedback provided on the current Member Learning & Development Programme, as detailed in Appendix 2 of the report, which it was noted would be used to assist shaping development of the future programme of activity.

·             The offer of individual Personal Development Plan (PDP) sessions to all members to support identification of individual training needs and assist in shaping future training programmes. Details of the offer provided were set out in section 8 of the report with 31 of 57 members having taken the opportunity since 2022 for a PDP.  A summary of the key priorities identified as a result were detailed within section 8.2 of the report with the core attributes identified for development focussed around chairing and facilitation skills.  A further programme of follow up reviews had been scheduled from June 2024 with Brent’s Councillor Development Charter Plus re-assessment also due to undertaken during 2024-25.

·             The update provided in relation to Members Allowances and expense claims, as detailed within section 9 and Appendix C of the report.  Members were advised that most expense claims related to training as well as caring duties.

·             The update provided in relation to the review of the financial and procedural rules governing the Mayors Charity Appeal, as detailed in section 10 of the report, which had resulted in no changes or modifications being identified for consideration.

·             The update provided in relation to Personal Safety training for members and way in which incidents reported by members were logged, as requested at the previous meeting.  In terms of trends, members were advised that there had been one incident relating to members personal safety reported in 2020, five in 2022 and three during 2023 with an online training session held in January 2023 as part of the LGA Civility in Public Life Programme.  Safeguarding guidance and personal safety support continued to be offered to all members with future training needs and opportunities continuing to  ...  view the full minutes text for item 8.

8.1   Report on i4B Ltd

This report provides the Audit and Standards Advisory Committee with an update on the work of i4B Holdings Ltd to deliver against its business plan for 2023-24 which was agreed with the Council as Shareholder, and an update on the company’s upcoming 2024-25 business plan.

8.2   Report on First Wave Housing Ltd

This report provides the Audit and Standards Advisory Committee with an update on the work of First Wave Housing Ltd to deliver against its business plan for 2023-24 which was agreed with the Council as Guarantor, and an update on the company’s upcoming 2024-25 business plan.

Ahead of the formal introduction of the item, the Chair reminded members of the change in reporting arrangements for i4B Holdings Ltd (i4B) and First Wave Housing Ltd (FWH) with the role of the Audit & Standards Advisory Committee now focussed around assurance relating to the arrangements the Council, as Shareholder (in the case of i4B) and Guarantor (in the case of WFH), had in place to oversee the governance and performance of both companies rather than on their detailed operational management & performance, which would be monitored through the Council’s scrutiny function.

Minesh Patel, Corporate Director of Finance & Resources then introduced the reports that updated the Committee on the governance arrangements of both i4B and FWH, including updates on issues considered at the most recent Shareholder and Guarantor meetings in relation to delivery against each respective Business Plan, financial and operational performance along with outline of key risks and the reports provided for the most recent Shareholder and Guarantor meetings attached as an appendix to the update reports on i4B (Agenda Item 8.1) and FWH (Agenda Item 8.2).

Key issues highlighted were as follows:

·             The Committee’s attention was drawn to section 3.4 in both the i4B and FWH reports which detailed the governance arrangements in place relating to both companies along with the updates provided in section 3.5 of both reports on the key issues covered at the most recent Shareholder meeting between the Council and i4B (February 2024) and Guarantor meeting between the Council and FWH (February 2024) relating to operational performance and financial performance as well as progress against each respective Business Plan.

The Chair welcomed Andrew Hudson to the meeting (as newly appointed Chair of the Boards for both i4B Holdings Ltd and FWH Ltd) and then invited the Committee to comment on the updates in relation to both i4B and FWH, with the following issues discussed:

·             Further details were sought on the current structure of both companies and the consideration given to a potential merger in order to generate further efficiencies.  In response, members were advised that expert advice had been sought on a merger in seeking to explore potential tax efficiencies, however, the advice provided had confirmed this would be difficult to achieve given the way both companies had been established particularly with FWH being limited by guarantee and with limited ability to dispose of its assets.

·             In referring to the need for regular scrutiny to be established (under the new performance monitoring arrangements) in relation to the operational performance of i4B and FWH, further details were sought on progress in establishing the joint scrutiny Committee meeting between the Resources & Public Realm and Community & Wellbeing Scrutiny Committees to examine the companies in more detail and consider how the process could best be incorporated within the relevant sections of each Committee’s work programme.  In response, it was agreed by the Chair that a further update be requested on progress in seeking to establish a joint scrutiny work programme planning session to consider the arrangements and remit of  ...  view the full minutes text for item 9.

This report details the Council’s use and conduct of surveillance techniques in accordance with the Regulation of Investigatory Powers Act (RIPA) 2000 in compliance with the annual review obligations set out in Brent Council’s RIPA policy and procedures.

Biancia Robinson, Senior Constitutional & Governance Lawyer, introduced a report providing an update on the Council’s use and conduct of surveillance techniques in accordance with the Regulation of Investigatory Powers Act (RIPA) and in compliance with the annual review obligations within the Council’s RIPA policy and procedures.

In considering the report the Committee noted:

·             The Regulation of Investigatory Powers Act 2000 (RIPA) gave the Council significant powers to investigate serious matters and offences, enabling the Council to use covert surveillance, covert human intelligence sources (CHIS) and to acquire service user or subscriber information in relation to communications data.

·             The Council was periodically inspected by the Investigatory Powers Commissioner’s Office (IPCO). Brent’s last inspection was in March 2020 with members advised of the change in process introduced since then involving an initial written assessment provided by each local authority on compliance with the relevant legislation, tacking account of the general decrease in the use of covert powers by many authorities.  Brent had been required to provide its initial written assessment in July 2023 with the IPCO confirming in August 2023 they were satisfied with the assurance provided in relation to the Council’s compliance and would not require any further inspection during the current year.

·             The outcome of the annual review of RIPA policy and procedures which, whilst not identifying the need for any substantive changes, had resulted in a number of proposed minor amendments to reflect changes made in the Council’s organisational management structure as detailed within Appendix A of the report.

·             The ongoing decline in use of RIPA over recent years, with zero RIPA Directed Surveillance or Covert Human Intelligence Source (CHIS) authorisations in Brent during 2023-24 and twenty requests (all pending applications in relation to three separate investigations) for Communications Data, as detailed within section 3 of the report.  Members were advised that the predominant use of RIPA remained focussed on the enforcement of trading standards controls and in the context of serious fraud investigations.

The Committee was then invited to raise questions on the report, which are summarised below:

·             In response to a query on the use of facial recognition technology, members were advised that this type of technology would not fall within the scope of RIPA requirements.

·             Further detail was also sought on the reasons for the decline in use of directed surveillance and RIPA authorisations, which members were advised was linked to improvements in the use of alternative investigative methods, including the increased use of communications data, social media and data matching and availability of wider enforcement and fraud prevention powers.

·             In response to a Committee query regarding the thresholds to decide on making an application to use RIPA as opposed to alternative methods, it was confirmed that thresholds were high with significant prior intelligence needed to successfully support an application to the magistrates to use RIPA.

As there were no further comments raised the Chair thanked Biancia Robinson for the update and the Committee RESOLVED

(1)    To note the content of the report.  ...  view the full minutes text for item 10.

This report provides an update on the Council’s Strategic Risks as of February 2024. The update has been prepared in consultation with risk leads and Departmental Management Teams and summarises the risks that are considered to be of an impact and/or likelihood of materialising, and which may have an adverse effect on the achievement of the Council’s corporate objectives.

Darren Armstrong, Head of Audit & Investigation, introduced the report providing the Committee with an update on the Council’s Strategic Risks as of February 2024.

In considering the report the Committee noted:

·             The Strategic Risk Register had been prepared in consultation with risk leads, Departmental Management Teams and the Council Management Team in accordance with the key elements of the Council’s Risk Management Policy and Strategy.

·             Since the report was last updated in February 2023, the Council had continued to operate in a heightened risk environment due to several external factors that included the current economic climate and the cost -of-living crisis with the Council’s overall risk profile therefore continuing to reflect the challenging risk environment the Council was operating within.

·             In terms of the main changes since September 2023, 11 of the risks reported were assessed as being on a stable risk trend in terms of scores remaining as previously reported and one risk (Strategic Risk K: non-compliance with statutory housing duties) having shown a small downwards movement in its risk score.

·             The Committee’s attention was drawn to the Strategic Risk Heat Map within the Strategic Risk Report which had shown six of the strategic risks located within the upper quartile with the highest scoring being the risks related to cost-of-living crisis (A); increase in Dedicated Schools Grant High Needs Block deficit (B); lack of supply of Affordable Accommodation(C) and increase in use of emergency temporary accommodation (D).

·             Since the update in September 2023 two new risks had been added to the Strategic Risk Report.  Both related to the climate emergency, with the first focussed around adapting to climate risks and how Brent’s infrastructure, public health and the natural environment may be adversely affected by the physical effects of climate change.  The second related to reaching carbon neutrality, reflecting the risk that the Council may not be able to achieve its ambition of becoming a carbon neutral borough by 2030 due to a lack of funding and the extent to which behavioural change was still required to meet the scale of challenge identified.  Members were advised that both risks had previously formed part of a wider suite of inherent risks held on departmental risk registers, however, following review had now been added as Strategic Risks in their own right.  In this respect they had not been identified as new risks or escalated due to increased risk scores; they had been added to reflect a change in the Council’s risk management approach as part of ongoing efforts to continue to improve and enhance the Council’s risk management framework.

·             The wider improvements made to the Council’s risk management framework, as detailed within section 4.7 of the report along with the additional recommendations which had recently been made by the LGA in relation to risk management following a recent review of governance and financial challenges experienced by a number of other local authorities.  Whilst noting the robust arrangements already established within Brent to satisfy the majority of the  ...  view the full minutes text for item 11.

This report sets out the Internal Audit Strategy for the period 2024-2027, and the Internal Audit Plan for 2024-2025.

Darren Armstrong (Head of Audit & Investigations) introduced a report setting out the Internal Audit Strategy for the period 2024-2027 and the Internal Audit Plan 2024-2025.  In presenting the report the following key areas were highlighted:

·             The introduction of the Internal Audit Strategy as a newly developed document designed to outline the way in which the Council would continue to enhance the effectiveness and delivery of its Internal Audit function.  In covering a three year period, the Strategy set out a number of objectives, priorities and initiatives to ensure that the work carried out by Internal Audit was aligned with the Council’s strategic objectives and assurance needs as well as introducing a new approach to audit planning and delivery.

·             The requirement to develop and implement a strategy for the Internal Audit function had been introduced under the new Global Internal Audit Standards, which would officially come into force in January 2025, with the Strategy having been attached as Appendix 1 to the report.

·             In view of the growing challenges and risks faced by the Council, and increasing demand and stakeholder expectations, the Strategy had identified the need to ensure the Internal Audit service remained agile, responsive and closely aligned with the strategic objectives, risks and needs of the Council and was able to provide a programme of robust assurance in the highest risk areas. In developing this strategy, the opportunity had therefore been taken to re-consider and evaluate how the level of assurance and advisory services were delivered with the following four strategic objectives being developed to guide and shape the services work across the next three years - To adopt a more agile and enhanced risk-based approach to planning and delivery; To provide an ongoing and robust programme of core assurance; To offer and provide high-quality insight, foresight and advise; and lastly To lead and coordinate the implementation of an integrated assurance framework.

·             In addition to the Strategy, the Head of Internal Audit was also responsible for creating an Internal Audit Plan based on an assessment of the Council’s strategies, objectives and risks, informed by input senior management as well as the Internal Audit function’s understanding of the Council’s governance, risk management and control processes.  Under the new Global Internal Audit Standards the Plan would now be subject to more frequent update and in view of these new requirements (and in-line with the objectives set-out within the supporting Strategy) the Committee were advised of the new approach and method to audit planning reflected within the Plan (attached as Appendix 2 to the report), which (whilst still focussed around the provision of assurance around core/key systems and processes) moved away from the more traditional ‘annual plan’ to a less rigid, more flexible and agile approach.

·             The Plan had been divided into four sections split between core assurance work; a list of audit areas identified under an agile risk based approach designed to provide enhanced flexibility in order to respond to changing risks and priorities; consultancy & advice work  ...  view the full minutes text for item 12.

This report presents the indicative draft London Borough of Brent Pension Fund External Audit Plan 2023-24.

The Chair welcomed Samantha Morgan to the meeting (representing Grant Thornton as Audit Manager following apologies submitted by Matt Dean – Key Pension Audit Partner) and invited her to introduce the External Audit Plan providing an overview on the planned scope and timing for the 2023-24 Brent Pension Fund audit process.

In presenting the report apologies the following key areas were highlighted:

·             The key matters identified in terms of both the national and local context relating to the present challenges faced by Pension Funds in terms of the impact of inflationary pressures and wider geo-political issues on global investment markets and revised investment strategy guidance.

·             The scope and timescale of the planned audit and outline provided of the significant risks identified (along with the reasons and key aspects of the proposed response) which included (in line with previous years) management of override controls, valuation of Level 3 investments and the revenue cycle including fraudulent transactions (rebutted).

·             The approach identified towards materiality, which at the planning stage of the audit had been set at £18.6m for the Pension Fund (equating to 1.5% of the gross investment assets) and £5.9m for the Fund Account (equating to 10% of the prior year gross expenditure).  The Committee were reminded that external audit would be obliged to report uncorrected omissions or misstatements other than those which had been identified as “clearly trivial” with that level set at £0.93m.  Whilst these levels were the same as 2023-24 the assessment of materiality would be kept under review throughout the audit process with the Committee advised of any adjustments, should they be required.

·             The response and progress identified against prior year audit findings and recommendations, with it noted that progress in terms of the management response against four of the seven recommendations were due to be finalised and confirmed within the Plan as part of the final year end audit.

·             The outline of the approach to be adopted in relation to the IT audit strategy.

·             The background to the audit fees which, whilst having increased from £55,771to £94,414 for the 2023-24 financial year (including an additional £7,530 for the ISA 315 work), it was noted had been determined in accordance with the scale of fees specified within the current PSAA contract.

·             The planned approach identified towards meeting the revised requirements in relation to ISA315 in relation to the Pension Fund Audit.

·             The assurance provided in relation to the independence of the auditor and audit services.

Having introduced the report the Committee was then invited to raise any comments/questions, which are summarised below:

·             Following concerns expressed in response to the increase in audit fees, members highlighted what they felt was a need to ensure that the level of external audit fees and any additional charges incurred, or further increase in fees was kept under review.  In recognising the concerns expressed, the Chair advised these had been raised but also felt it was important to recognise that the initial scale of fees had been set through  ...  view the full minutes text for item 13.

This report details the response provided by the Council to the external auditors Enquiries of Management in order to meet expectations of the Financial Reporting Council (FRC).

Ben Ainsworth (Head of Finance) introduced a report providing the Audit & Standards Advisory Committee with the opportunity to review the responses provided by management to the External Auditors Enquiries of Management 2023-24, in order to comply with the expectations of the Financial Reporting Council (FRC).  Members were advised that the Enquiries of Management related to those charged with governance for both the Council and also Council’s Pension Fund with the management responses detailed in Appendix 1 (Brent Council Enquiries of Management) and Appendix 2 (Pensions Fund Enquiries of Management).

The Committee noted the following key points:

·             Confirmation was provided that the key issues identified as having a significant impact on the financial statements for 2023-24 had included the cost-of-living crisis, inflation, increase in demand for temporary accommodation, Dedicated Schools Grant High Needs Block deficit and pressures on the Housing Revenue Account.

·             The confirmation provided in relation to the ongoing appropriateness of the accounting policies adopted by the Council which, subject to a minor technical change identified in relation to the treatment of cash in transit, remained in accordance with the CIPFA Code of Practice.

·             The response had also identified no change in circumstances that would lead to any impairment in relation to non-current assets with all financial investments (covered under the accounting standards) also confirmed as being subject to an Expected Credit Loss review  under IFRS9.

·             The outcome of the fraud risk assessment, with no concerns or issues having been identified within the response in respect of fraud that may result in a material misstatement to the financial statements and assurance provided that all know material risks had been considered as part of the Council’s Internal Audit planning process and key financial system/control programme of work.  Reference was also included to the work of the Counter Fraud Team in seeking to prevent, detect and prosecute fraud and role of the Audit & Standards Advisory Committee in monitoring this activity.

·             The response also provided assurance in relation to the Council’s compliance with relevant laws and regulations highlighting the range of management controls in place to support the process including the recruitment and training of staff, robust policy and procedure framework and effective management oversight and control.  These controls were supported by the inclusion of legal and financial considerations in all reports for decision alongside the independent and objective assurance provided through the Internal Audit function and Internal Audit Plan, with activity focussed around the highest risk areas for the Council and the scope for each audit review including compliance with policy, plans, law and regulations.  In terms of the impact of any litigations and claims these were also subject to a detailed review process involving legal with any likely to impact on the financial statements disclosed as part of the Statement of Accounts as either provisions or contingent liabilities.

·             The outline included as part of the response in relation to the arrangements for disclosure of related party transactions and related procurement policy as well as the audit approach adopted in relation  ...  view the full minutes text for item 14.

To consider and note the Committee’s provisional work programme for the 2024-25 Municipal Year and dates identified (as set out below) for future meetings:

Tuesday 4 June 2024 (including Member Learning & Development session)

Wednesday 24 July 2024

Tuesday 24 September 2024

Wednesday 4 December 2024

Tuesday 4 February 2025

Tuesday 25 March 2025

Please note all of the above meetings are scheduled to commence at 6pm and will be held in person at Brent Civic Centre.

It was RESOLVED to note the Committee’s current Forward Plan and Work Programme for the 2024-25 Municipal Year with the provisional dates for meetings noted as:

·             Tuesday 4 June 2024 (subsequently changed in the process of finalising the Council’s municipal calendar of meetings for 2024-25 to Wednesday 12 June 2024)

·             Wednesday 24 July 2024

·             Tuesday 24 Septembers 2024 (subsequently changed in the process of finalising the Council’s municipal calendar of meetings for 2024-25 to Wednesday 25 September 2024)

·             Wednesday 4 December 2024

·             Tuesday 4 February 2025

·             Tuesday 25 March 2025

Prior to closing the meeting, David Ewart (as Chair) also took the opportunity to welcome Councillor Mili Patel back from maternity leave as Deputy Leader and Cabinet Member for Finance, Resources & Reform before ending by advising members this was also due to be Vineeta Manchanda’s final meeting, in her role as Independent Advisor to the Advisory Committee. In paying personal tribute, he thanked Vineeta (on behalf of the Committee) for all her effort and guidance in supporting both himself and the wider Committee as Independent Advisor and wished her all the best for the future.

Notice of items to be raised under this heading must be given in writing to the Head of Chief Executive and Member Services or their representative before the meeting in accordance with Standing Order 60.

None.