The Audit and Governance Committee of Woking Council met on Thursday, 20 June 2024. Key discussions included the resignation of the independent chair, updates on external and internal audits, and the work programme for the upcoming year.

Resignation of Independent Chair

The independent chair, Claire, announced her intention to step down from her role before the end of the calendar year, citing the need for continuity during a period of management change and the delay in recruiting a new independent member. Claire emphasized the importance of the role in the council's governance structure and urged the council to expedite the recruitment process. Councillor Barker thanked Claire for her dedication and hard work over the years.

Update on External Audit

Representatives from BDO and Grant Thornton provided an update on the external audit. They discussed the delays in the local government external audit sector and the impact of the recent general election on the statutory backstop dates for audits. The 2019/20 audit is expected to be completed over the summer, with significant issues identified in transactions and balances relating to subsidiary undertakings, minimum revenue provision, and impairment of long-term debtors. The council's governance arrangements and financial sustainability were also highlighted as areas of concern.

Internal Audit Progress Report

The internal audit progress report was presented, covering the 2023/24 plan and the completion of outstanding work from the 2022/23 plan. Nine reports were issued, with significant findings in housing and payroll. The committee discussed the importance of timely implementation of high-priority recommendations and the need for a robust follow-up process.

Internal Audit Annual Report

The internal audit annual report provided a limited assurance opinion over the control environment, reflecting the council's ongoing financial challenges and the focus on financial controls in the audit plan. The report highlighted the need for continued improvement in governance and internal controls.

External Audit Plan 2023/24

The external audit plan for 2023/24 was discussed, outlining significant risk areas such as management override of controls, fraud in revenue and expenditure recognition, valuation of land and buildings, and the council's pension liability. The plan also addressed the council's capacity and skills in the finance team and the challenges posed by the complex group structure.

Registration of Interests

The committee noted the registration of interests for members elected in May 2024, with a reminder to update the register as necessary.

Work Programme

The committee reviewed the work programme for 2024/25, suggesting several enhancements, including standing items on the annual governance statement, audit trackers, and risk management. The committee agreed to bring a revised version of the work programme to the next meeting.

For more details, you can refer to the public reports pack and the minutes of the previous meeting.