Agenda and minutes

There were no apologies for absence.

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.

To receive any deputations requested in accordance with Standing Order 67.

There were no deputations considered at the meeting.

To approve the minutes of the previous meetings held on Wednesday 6 December 2023 as a correct record and note the action log arising from previous meetings.

RESOLVED that the minutes of the previous meetings held on Wednesday 6 December 2023 be approved as a correct record, with the Chair taking the opportunity to formally thank Natalie Connor for her support to the Committee as Governance Officer following her move to a new position outside of the authority and with the following additional action identified for inclusion within the Action Log:

Minute 8: Treasury Management Mid-Term Report

Members requested an update at a future meeting on options being considered to utilise the Mayors Energy Efficiency Fund (MEEF) & Green Finance Fund, which Minesh Patel, as Corporate Director of Finance & Resources, advised would be included as part of a wider paper already being prepared for the Committee in relation to the issue of funding for green initiatives.

Members noted the following updates provided in relation to items listed on the Action Log:

·             Treasury Management Strategy 2024-25: That an update was due be provided at the March 2024 meeting on the Green Bonds market.

·             Interim Counter Fraud Report 2023-24 – The breakdown provided on the percentage of time spent on different categories of investigations (outside of blue badge activity) as follows - External Fraud 55%, Housing Tenancy Fraud 27%, Internal Fraud types 11% and proactive work 7% with members advised that a further update would be provided as part of Counter Fraud Update due to be considered by the Committee in June 2024.

In addition, Councillor Chan (as Vice-Chair) advised members of a Member Enquiry submitted on behalf of the Committee seeking further details on the possible introduction of a virtual Blue Badge scheme.  In response, the Healthy Streets & Parking team had advised that initial works were being undertaken on the necessary Traffic Management Orders and, whilst still to be finalised, the current potential timescale for introduction of any scheme was likely to be mid-late April 2024.

·             External Audit Progress and Plan 2023-24: The Committee were advised that a further update would be provided by Grant Thornton once a response on the outstanding regional Bus Lane camera objection had been finalised and issued.

·             Update on 2023-24 Audit Plan: Members noted the report to be considered on the agenda relating to this item, with the action (subject to its consideration) therefore marked as complete.

As an additional item to be included on the Action Log the request was made for an update on the position regarding the Dedicated School Grant (DSG) High Needs Block Recovery Plan, which it was AGREED to add to the Committee work programme for 2024-25.

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 CIPFA Financial Management Code & Redmond Review (Agenda Item 7) and London Borough of Brent Draft Audit Plan 2023-24 (Agenda Item 9) were considered ahead of the remaining agenda. The minutes reflect the order in which the items were considered at the meeting.

This report provides an update on the outcome of the work to implement CIPFA’s Financial Management (FM) Code and the independent review by Sir Tony Redmond into the effectiveness of external audit and transparency of financial reporting in local authorities (the Redmond Review).

Francis Austin (Finance Analyst) introduced a report providing an update on the outcome of the work undertaken (since the previous report to the Committee in December 2021) to implement CIPFAs Financial Management (FM) Code and the recommendations within the independent review by Sir Tony Redmond into the effectiveness of external audit and transparency of financial reporting in local authorities, known as the Redmond Review.

In considering the update in relation to the CIPFA FM Code the Committee noted:

·             The progress update provided within section 4.6 of the report in relation to the outcome of the seven initial workstreams and associated activities within the project plan designed to support implementation of the FM Code with all tasks initial identified as having successfully been completed.

·             The benefits identified in relation to the work undertaken to ensure the Council’s financial management arrangements were compliant with the FM Code in terms of providing a foundation and catalyst for future review of the Council’s financial position and in providing the necessary financial resilience and sustainability given the current economic and financial pressures faced by the authority.

·             The scope which had also been identified, in completing the original project plan relating to the Financial Resilience Assessment, to deliver further areas for improvement in relation to the following areas:

Ø   Performance Management – This would involve further potential alignment and cross referencing of performance, financial and risk management information to provide a full picture of the Council’s service delivery supported by more regular and formal benchmarking.

Ø   Links to Other Plans – This would involve the potential to more clearly articulate links between key policy plans (Borough Plan) and forward financial plans (Medium Term Financial Strategy (MTFS), Capital Strategy) in a joined-up policy and financial framework.

Ø   Effective Medium and Long-Term Planning – This would involve the potential for further work to be undertaken on risk identification and management supported by more robust modelling of demographic and other service pressures as a means of enhancing the budget setting and medium-term financial planning process over both the medium and longer term including a focus on identifying significant known and forecast resource requirements.

The Committee was then invited to raise questions on the update provided in relation to implementation of the FM Code, which are summarised below:

·             In response to a query relating to the status of activity within the Performance workstream, confirmation was provided that notwithstanding the further areas of potential improvement identified, the initial activity identified had been completed.

·             In recognising the benefits identified from the work undertaken in relation to the FM Code, further details were sought on the specific outcomes delivered as a result that impacted on the Council’s financial planning process.  Specific outcomes identified in response included amendments to the Council’s main financial reports designed to reflect the enhanced longer term financial planning framework and focus around the revised MTFS and Prudential Indicators; the introduction of a new cycle for the financial year linking the budget setting, monitoring and outturn process  ...  view the full minutes text for item 7.

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

The Chair welcomed Sophia Brown (Key Audit Partner, Grant Thornton) to the meeting and invited her to introduce the External Audit Plan providing an overview on the planned scope and timing for the 2023-24 audit process.

In presenting the report the following key areas were highlighted:

·             The key matters identified in terms of both the national and local context relating to the Council’s current financial position in terms of the General Fund, Capital Programme, Housing Revenue Account (HRA) and Dedicated School Grant (DSG) and impact of the ongoing economic pressures being experienced.

·             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 revenue recognition (rebutted), management of override controls, valuation of land and buildings, valuation of council dwellings and valuation of net pension fund liability.

·             The approach identified towards materiality, which at the planning stage of the audit had been set at £16.1m for the group and £16m for the Council equating to 1.5% 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 £0.8m.  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 approach adopted in relation to the Group Audit scope and risk assessment, which had not identified any changes from the previous year.

·             The additional audit responsibilities identified including review of the narrative report and Annual Governance Statement to ensure they met CIPFA requirements along with outline of the IT audit strategy.

·             The response and progress identified against prior year audit findings and recommendations, as detailed within pages 20 – 24 of the report.

·             The approach towards assessment of the arrangements to secure Value for Money as detailed on page 26 of the report with the risk assessment not having identified (at this stage) any significant weaknesses.

·             The background to the audit fees which, whilst having increased to £503,089 (with an additional £12,550 for the ISA 315 work) for the 2023-24 audit, it was noted had been determined in accordance with the scale of fees specified within the current PSAA contract.

·             The planned approach outlined towards assessing the work being undertaken in preparation for implementation of IFRS 16 (Leases & related disclosures), as detailed on page 31 of the report.

·             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:

·             Whist noting the scope of the audit, the opportunity was also taken to remind the Committee of the importance of its role and responsibilities in relation to ensuring the proper arrangements remained in place for the conduct of the Council’s business and the safeguarding  ...  view the full minutes text for item 8.

This report provides an annual review of the complaints received pursuant to, and a review of the Members’ Code of Conduct Complaints procedure.

Biancia Robinson, Senior Constitutional & Governance Lawyer,introduced a report providing an annual review of the complaints received pursuant to the Complaints Procedure and a review of the Members’ Code of Conduct.

In considering the report the Committee noted:

·                 The summary of complaints received in the last 12 months, as detailed in section 3.2.4 and Appendix A of the report.

·                 During this period, the Corporate Director Governance, as Monitoring Officer, had received and made determinations regarding six councillors allegedly in breach of the Members Code of Conduct.  Of these complaints three had been resolved at Initial Assessment stage and three had been resolved at the Assessment Criteria stage with the main finding at Initial Assessment stage detailed in section 3.2.9 of the report and main recurring factor in escalation to Assessment Criteria stage outlined within section 3.2.10 of the report.  None had been upheld as a breach of the Code of Conduct.  Three had been subject to a review request which had not been upheld and none had been escalated to hearing/formal investigation stage.

·                 The overview of the complaints procedure provided within section 3 of the report and consistency produced as a result of the detailed procedure and assessment criteria.

·                 Whilst no substantive changes had been recommended as a result of the review of the Member Code of Conduct Complaints Procedure, three clarification amendments had been proposed (as detailed within section 3.2.14 and Appendix B of the report) which related to:

Ø   the addition of an indicative time frame of six months for the submission of complaints to the Initial Assessment Criteria which it was noted was already being used in practice;

Ø   further clarity regarding the applicability of the confidential request provisions; and

Ø   amendments to reflect changes in post titles within the Council’s organisational structure.

It was noted that the proposed changes would not alter the procedure being followed from current practice and would not require formal approval by the Audit & Standards Committee.

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

·             In response to a query about the level of training provided for members in relation to the Member Code of Conduct Complaints Procedure, confirmation was provided that this formed part of the mandatory element of the Members Learning & Development Programme with further assurance on member attendance and completion of all mandatory training elements within the programme also being provided for the Committee as part of the regular Standards Update report.

·             Having sought further clarification on the reason for the proposed addition of the six-month time frame within the Initial Assessment Criteria, the Committee was advised that this had been designed to encourage the submission of complaints within what was felt to be a reasonable timescale and one that was also in line with the LGA Guidance on the LGA modelcode and would, it was felt, also support the investigation process.  In response to comments raised, the Committee was assured that inclusion of the indicative time frame within the  ...  view the full minutes text for item 9.

This report continues the cycle of annual updates that the Emergency Planning team has shared with the Audit and Standards Advisory Committee since 2018. The report provides the Committee with an update on the work and priorities of the team since the last report in September 2022, focusing on the continuous improvement within the Council’s Emergency Planning and Resilience service.

Prior to consideration of the report, David Ewart (as Chair) advised members that Melissa Brackley (newly appointed Emergency Planning & Resilience Manager) had needed to pass on her apologies due to an incident currently ongoing with Tanveer Ghani (Director Property & Assets) and Russell Burnaby (Head of Facilities Management) therefore attending to present the report in her absence.

In presenting the report the Committee was advised that the report, as part of the annual update cycle, provided an outline of the work and priorities of the Emergency Planning Team following on from the last update provided in September 2022 as well as focussing on the programme of continuous improvement being delivered across the service.

In considering the report the Committee noted:

·             The staffing changes within the team since the last update with the recruitment of an interim Emergency Planning and Resilience Manager following the previous manager having moved to a new role within the Council.

·             The completion of an external review of the Council’s emergency planning function, which had been focussed on the extent and nature of compliance with the Civil Contingencies Act 2004, the Council’s existing command and control structures and plans in place to address know key risks.  Whilst the review had recognised that the existing arrangements provided a good foundation in relation to emergency preparedness activities across the Council it had also identified a number of key areas for focus designed to support further development of the service, which had been detailed in Appendix 1 of the report.  Key areas for focus identified during 2024 had included enhancing the capacity of the team, a greater focus on training and development, update of the Brent Recovery Plan and the use of simulated exercises involving multi-agency response(s) on which progress updates had been provided within section 3 of the report.

·             The outline of major emergency planning incidents since the previous update, as detailed within section 3.11 of the report which had included flooding in the Wembley Brook (August 2023), Kilburn Tower Block fire (September 2023) and a sink hole in Kilburn (January 2024).

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

·             In thanking officers for the update provided, the Committee sought further details on the measures being taken to address the recommendations within the external service review relating to team structure, recognising the ongoing challenges in recruitment being experienced within the field by many local authorities.  Whilst an ongoing challenge, members were advised of the benchmarking being undertaken with other boroughs in relation to staffing along with the success achieved in finding a replacement for the service manager which had addressed a key staffing issue.

·             The Committee were keen to explore the extent to which incidents relating to cyber security and use of Artificial Intelligence had been identified as risks in relation to the Council’s emergency planning and preparedness arrangements.  In response the Committee were advised this had been included as an element of the recent multi agency exercise undertaken in relation  ...  view the full minutes text for item 10.

This report sets out the suggested approach for measuring the effectiveness and activity of the Audit and Standards Advisory Committee for 2023-24.

Darren Armstrong, Head of Audit & Investigations, introduced a report outlining the suggested approach for measuring the effectiveness and activity of the Audit & Standards Advisory Committee for 2023-24.

In considering the report the Committee noted the following key points:

·             The requirement within CIPFAs Position Statement of Audit Committees in Local Authorities for each Committee to report annually on its compliance with the Position Statement and discharge of responsibilities along with an assessment of performance based on the key areas detailed within section 3.2.2 of the report.

·             The Committee had already completed a comprehensive self-assessment exercise at the end of 2022-23 involving all members from which the outcomes had been considered at the meeting in March 2023.  Given the positive outcome of the 2022-23 self-assessment process the Committee were being asked to consider an alternative approach in terms of reporting on its effectiveness for 2023-24 based on the evaluation being included as part of the Chair’s Annual Report rather than a further assessment process repeated.  The Annual Report would then be presented to Committee in June 2024 in support of the process for approving the Annual Governance Statement.

In seeking comments from the Committee on the recommended approach outlined, the following comments/issues were raised:

·             Whilst supportive of the approach outlined in relation to the 2023-24 self-assessment the Chair and Vice-Chair highlighted the importance in maintaining the continued learning and development programme for Committee members with additional training needs identified in relation to (a) Treasury Management Strategy; & (b) the focus on levels of internal control & defence mechanisms.

·             The Committee, as a further suggestion to support the assessment process, also felt it would be helpful to seek views from other stakeholders and to benchmark against other local authorities (as a means of sharing best practice) in relation to the performance, operation and function of the Committee with members also keen, based on a suggestion from Sophia Brown (External Auditor – Grant Thornton), to continue monitoring how audit findings and management responses were being implemented along with any outcomes achieved as a result.

·             Following on from the comments outlined, support was also expressed for the development of KPIs that could be used by the Committee in relation to monitoring actions/trends and implementation of audit findings along with the management responses provided, which it was noted had already been included on the Action Log for consideration within next the update on Internal Audit Plan.

·             The need identified to ensure that efforts continued to be made to clarify how the work being undertaken by the Committee aligned with the key priorities identified within the Borough Plan with the Committee also noting the efforts being made to maintain the Committees independence from the Executive whilst also seeking to co-ordinate its work programme with those of the Council’s two Scrutiny Committee’s in order to ensure as joined up an approach as possible.

With no further issues raised, the Chair thanked officers for the report and also work undertaken to continue the Committee’s process of continuous improvement and it was  ...  view the full minutes text for item 11.

To consider and review the Committee’s work programme for the 2023-24 Municipal Year.

It was RESOLVED to note the Committee’s current Forward Plan and Work Programme for the remainder of the 2023-24 Municipal Year.

In terms of the date for the next meeting in March 2024, the Committee were advised of a clash with an event taking place that same evening at the Stadium.  As a result, it was AGREED that members be consulted on a change in date for the next meeting with the provisional date identified as 6pm on Thursday 28 March 24.

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.