The Audit Committee of Mid Devon Council met on 25 June 2024 to discuss various financial and governance matters, including the soft closure plan for 3 Rivers Development Ltd, the interim annual report from Grant Thornton, and updates on the corporate risk register and risk management policy. Key decisions included the approval of the updated Risk Management Policy and the DAP Internal Audit Plan for 2024-2025.

3 Rivers Development Ltd - Soft Closure Plan

The committee received a report from the Deputy Chief Executive (S151) on the soft closure plan for 3 Rivers Development Ltd. The plan, which began in October 2023, is nearing completion with assets expected to be transferred by the end of the week. The company will enter a period of dormancy before being officially struck off.

Grant Thornton - Interim Annual Report for 2022/23

Grant Thornton presented their interim assessment of the Council’s Value for Money arrangements. They highlighted that the Council's financial health is generally good but noted insufficient oversight of 3 Rivers Development Ltd. They recommended that the Council should have asked more questions about the company's objectives and business plan. The final conclusion will be presented at a special meeting on 30 April 2024.

Corporate Risk Report

The committee reviewed a quarterly update on the Corporate Risk Register. Discussions included whether the risk rating for severe weather emergency recovery should be increased due to climate change volatility. The risk rating for the quality of planning decisions has been reduced due to committee actions. Concerns were also raised about the economic impact of Junction 27 on Mid Devon.

Risk Management Policy

The committee approved the updated Risk Management Policy for the 2024/25 financial year. The policy is reviewed annually to ensure accountability and effective risk management. The committee discussed the importance of considering risk appetite in relation to the local community.

DAP Internal Audit Plan 2024-25

The committee approved the DAP Internal Audit Plan for 2024-2025. The plan includes a 10% reduction in audit days and focuses on significant risk areas, including 30 days allocated to cyber security. The plan will be responsive to unfolding events and follow up on previous audits with 'Limited Assurance' opinions.

Public Questions

Several public questions were raised regarding the loans to 3 Rivers Development Ltd and the soft closure plan. Goff Welchman questioned the assessment and approval process of the loans, while Nick Quinn inquired about the intellectual property and asset transfers. Paul Elstone raised concerns about the investigation into allegations of misconduct related to 3 Rivers.

Other Reports and Updates

• The committee noted the DAP Internal Audit Progress Report 2023-2024, highlighting substantial assurance in housing benefits and limited assurance in building control.
• The DAP Internal Audit Charter and Strategy was approved, setting the framework for audit activity.
• The Bishop Fleming 2023/24 Audit Plan was noted, outlining their key roles and responsibilities and sector updates.

The meeting concluded with the identification of items for the next meeting, scheduled for 30 April 2024.