Agenda and decisions

Apologies for absence were received from Councillor Stephen Booth.

There were no declarations of interest.

To approve as a correct record the Minutes of the meeting of the Audit Committee held on 10 November 2021.

It was RESOLVED that the Minutes of the meeting of the Audit Committee held on 10 November 2021 be approved as a correct record and signed by the Chair.

To consider a progress report on the 2021/22 SIAS Internal Audit Plan.

The SIAS Client Audit Manager presented a progress report with regard to the SIAS Internal Audit Plan 2021/22 (up to 21 January 2022).

It was RESOLVED:

1.          That the SIAS Internal Audit Plan 2021/22 progress report be noted.

2.          That the status of Critical and High Priority Recommendations be noted.

3.          That the Revised Audit Charter for 2021/22, as set out at Appendix E to the report, be approved.

To consider the Annual Treasury Management Strategy including Prudential Code Indicators 2022/23.

The Strategic Director (CF) presented a report in respect of the Annual Treasury Management Strategy including Prudential Code Indicators for 2022/23.

In response to a series of Member’s questions, the Strategic Director (CF) advised:

·        like most local authorities, SBC carried out most of its borrowing with the Public Works Loan Board (PWLB), which was one of the cheapest forms of borrowing;

·        the Government consultation on Minimum Revenue Provision (MRP) had arisen due to its concern that a number of local authorities had borrowed in order to invest in commercial property.  The Government was tightening up this process, as it felt that a number of Councils were avoiding MRP processes due to them establishing wholly owned companies (for example, for the building of housing);

·        much of the Council’s borrowing was at fixed rate, as certainty was required regarding the level of repayment. In terms of Council investments, these were deposited with a variety of counterparties, some at fixed and others at variable interest rates.  Prudently, the Council did not rely on investment income to prop up its balances; and

·        there was very little internal borrowing at SBC.  Generally, this would only be considered if there was a pressing short-term need.

It was RESOLVED that the Executive be requested to recommend to Council:

1.          That the Annual Treasury Management Strategy 2022/23, as set out at Appendix A to the report, be approved.

2.          That the Prudential Indicators for 2022/23, as set out at Appendix C to the report, be approved.

3.          That the Minimum Revenue Provision (MRP) policy, as set out at Appendix B to the report, be approved.

To consider any Part I business accepted by the Chair as urgent.

Progress on External Audit of Statement of Accounts

The Chair invited the Strategic Director (CF) to update the Committee regarding progress on the Statement of Accounts.

In respect of the 2019/20 Accounts, the Strategic Director (CF) advised that it was still intended for the scheduled 28 February 2022 meeting to take place.  The Ernst & Young Client lead was currently reviewing the papers and carrying out various checks, following which it was hoped that the final report would be issued.

The Strategic Director (CF) stated that Ernst & Young had commenced work on the 2020/21 Accounts.

To consider the following motions –

1.       That under Section 100A of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as described in Paragraphs 1 – 7 of Part 1 of Schedule 12A of the Act as amended by Local Government (Access to Information) (Variation) Order 2006.

2.       That Members consider the reasons for the following reports being in Part II and determine whether or not maintaining the exemption from disclosure of the information contained therein outweighs the public interest in disclosure.

It was RESOLVED:

1.          That under Section 100A of the Local Government Act 1972, the press and public be excluded from the meeting for the following items of business on the grounds that they involved the likely disclosure of exempt information as described in Paragraphs 1 - 7 of Part 1 of Schedule 12A of the Act as amended by Local Government (Access to information) (Variation) Order 2006.

2.          That Members considered the reasons for the following reports being in Part II and determined that the exemption from disclosure of the information contained therein outweighed the public interest in disclosure.

To approve as a correct record the Part II Minutes of the meeting of the Audit Committee held on 10 November 2021.

It was RESOLVED that the Part II Minutes of the meeting of the Audit Committee held on 10 November 2021 be approved as a correct record and signed by the Chair.

To consider any Part II business accepted by the Chair as urgent.

None.