The meeting began with the appointment of the chair and vice-chair, followed by routine items such as apologies for absence and declarations of interest. The main discussions centered around finance team capacity, the annual audit plan, and the capital program management review.

Finance Team Capacity

John Davis, Head of Finance, discussed the capacity of the finance team in light of upcoming deadlines set by Audit Wales. He expressed confidence in the new structure's ability to meet these deadlines, despite acknowledging the challenges posed by conflicting priorities around year-end. Discussions also touched on internal audit structures and recruitment processes, with a commitment to conclude recruitment by the end of July.

Annual Audit Plan

Julie Owens and Carmen Rees from Audit Wales presented the annual audit plan. Key points included the application of materiality in accounts audit work, identification of significant risks, and the timetable for the audit of accounts. The plan aims to certify the accounts by November 30, contingent on receiving good quality draft accounts by June 30. The audit fee has increased by 6.4% due to inflation and a commitment to maintaining quality standards.

Capital Program Management Review

Carmen Rees highlighted the strengths and areas for improvement in the Council's capital program management. The report noted good examples of individual project management but emphasized the need for a stronger focus on measuring the impact of investments. Two recommendations were made: setting up intended outcomes for capital projects and reporting on progress. Richard Jones and John Davis outlined the actions being taken to address these recommendations, including updating the capital strategy and asset management plan by February 2025.

Internal Audit Annual Report

Yan Fertuk, Chief Internal Auditor, presented the internal audit annual report. The team issued 37 audit opinions, with 27 being positive and 9 unfavorable. The report highlighted the team's performance, including a 100% acceptance rate for recommendations and a completion rate of 82% against a target of 80%. The overall opinion was that internal controls provide reasonable assurance to the Council.

Treasury Management Annual Outturn Report

John Davis provided an overview of the Council's treasury management activities. The report confirmed compliance with the approved strategy and noted a slight reduction in gross borrowing levels. Investment balances also decreased, and the credit rating of investments deteriorated due to a higher proportion of non-government investments. The report also covered non-treasury investments, including Newport Leisure Park and Castle Gate, which are expected to show improved returns in the coming year.

People Strategy

Matt Gatehouse presented the people strategy, emphasizing the importance of supporting and developing the Council's workforce. The strategy includes six objectives aimed at aligning culture, capacity, and capability with the Council's goals. Key actions include the rollout of a new e-learning platform, an e-recruitment system, and a new performance appraisal system. The strategy will be overseen by the Performance and Overview Scrutiny Committee.

Other Items

• Contract Procedure Rules Exemptions: Yan Fertuk reported on the exemptions requested during the previous six months. Four were correctly authorized, one was missing commentary, and three were not returned. Measures have been put in place to address these issues.
• Forward Work Plan: The forward work plan will be rebalanced and resequenced for the next meeting on July 10.

The meeting concluded with a review of the minutes and confirmation of the next meeting date.