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The Audit Committee of Tower Hamlets Council met on Thursday, 23 May 2024, to review the Council's Annual Governance Statement for 2023/24 and discuss the audit committee's terms of reference and work plan. Key decisions included the appointment of Councillor Amina Rahman as Vice Chair and the agreement to note comments on the Annual Governance Statement, with a revised version to be presented at a future meeting.

Appointment of Vice Chair

Councillor Amina Rahman was appointed as the Vice Chair of the Audit Committee.

Audit Committee Terms of Reference, Membership, Quorum and Dates of Meetings 2024/2025

The committee reviewed and agreed its terms of reference, membership, quorum, and dates of meetings for the upcoming municipal year. The start time for scheduled meetings was set at 6:30 p.m., with the exception of the current meeting which began at 7:00 p.m. Some discussion took place regarding the membership, specifically the inclusion of a cabinet member, with reference made to guidance from the Local Government Association (LGA) peer review. While acknowledging the LGA's guidance, the committee noted that the current composition was a result of a previous committee vote.

EY Items for Consideration

Steven Reed, the council's newly appointed external auditor from EY, provided an update on the commencement of the external audit for the 2023/24 financial year. He confirmed that initial planning discussions with council officers had begun and that a provisional plan for the audit would be presented at the July meeting. Discussions also covered the handover process from the previous auditors, Deloitte, with assurances that no immediate concerns had arisen.

Tower Hamlets Items for Consideration: Annual Governance Statement 2023/24

The committee discussed the Council's Annual Governance Statement (AGS) for 2023/24, presented by David Dobbs, Head of Internal Audit, Anti-Fraud & Risk. The AGS is a key component of the annual accounts, outlining the council's corporate governance arrangements and any areas requiring improvement.

During the discussion, Councillor Mufeedah Bustin raised concerns about the AGS being unbalanced and feeling like a PR exercise, citing a lack of detail on criticisms from the LGA corporate peer challenge and the reasons behind the best value inspection. Councillor Mark Francis echoed these sentiments, stating he could not support the document as it stood, arguing it entirely cherry-picks elements of the LGA peer challenge and does not adequately reflect the tough criticisms of the authority. He also highlighted the significance of the best value inspection, noting it was an unusual step.

David Dobbs acknowledged that the document aimed to strike a balance and was anodyne by design, but committed to taking on board specific recommendations for improvement. Julie Lorraine, Corporate Director of Resources, emphasised that the committee's role was to be satisfied that effective systems of control were in place and that issues identified in audits were not repeated. She also highlighted the progress made in addressing previous issues, such as the late publication of accounts, and the ongoing work to review financial regulations and internal controls.

Following extensive debate, the committee agreed to note the comments made on the Annual Governance Statement, with officers committing to consider these comments when the statement is presented again, likely alongside the annual accounts.

Audit Committee Work Plan

The committee reviewed its work plan for 2024/25, noting that it appeared to be a full schedule. Suggestions were made to specifically include the CIPFA review and other external reviews on the work plan to ensure the committee had sight of relevant assessments of controls. The importance of the audit committee overseeing the framework of internal control was also emphasised.

Exclusion of Press and Public

The committee moved to exclude the press and public for the remainder of the meeting to discuss a serious issue related to an ongoing investigation, as advised by legal counsel. This decision was made under Section 100A of the Local Government Act 1972.

Attendees

Profile image for Councillor Harun Miah
Councillor Harun Miah Chair of Human Resources Committee • Aspire • Shadwell
Profile image for Councillor Kabir Ahmed
Councillor Kabir Ahmed Cabinet Member for Regeneration, Inclusive Development and Housebuilding • Aspire • Weavers
Profile image for Councillor Abdul Malik
Councillor Abdul Malik Aspire • Blackwall & Cubitt Town
Profile image for Councillor Amin Rahman
Councillor Amin Rahman Chair of Strategic Development Committee • Aspire • Bethnal Green West
Profile image for Councillor Asma Begum
Councillor Asma Begum Labour Party • Bow West
Profile image for Councillor Mufeedah Bustin
Councillor Mufeedah Bustin Labour Party • Island Gardens
Profile image for Councillor Marc Francis
Councillor Marc Francis Labour Party • Bow East
Charlotte Webster Independent Person

Topics

Annual Governance Statement 2023/24 Ernst & Young Deloitte Audit Committee Terms of Reference Corporate Governance best value inspection Audit Committee Work Plan 2024/25 internal control LGA

Meeting Documents

Agenda

SUPPLEMENTAARY AGENDA - ITEM 6.1 23rd-May-2024 19.00 Audit Committee.pdf
SUPPLEMENTARY AGENDA - ITEM 6.1 23rd-May-2024 19.00 Audit Committee.pdf
Agenda frontsheet 23rd-May-2024 19.00 Audit Committee.pdf
AGENDA - WITH MEMBERSHIP 23rd-May-2024 19.00 Audit Committee.pdf
SUPPLEMENTARY AGENDA - ITEM 9.1 PC 23rd-May-2024 19.00 Audit Committee.pdf

Additional Documents

Appendix. 2 for Annual Governance Statement 202324.pdf
Declarations of Interest Note.pdf
Appendix. 3 for Audit Committee Terms of Reference Membership Quorum and Dates of Meetings 2024- 2.pdf
AUDIT COMMITTEE -MEMBERSHIP Appendix 2 UPDATED.pdf
Audit Committee Terms of Reference Membership Quorum and Dates of Meetings 2024- 2025.pdf
Appendix. 1 for Audit Committee Terms of Reference Membership Quorum and Dates of Meetings 2024- 2.pdf
Appendix. 2 for Audit Committee Terms of Reference Membership Quorum and Dates of Meetings 2024- 2.pdf
Annual Governance Statement 202324.pdf
Audit Cttee work plan draft 2024-25v2 -May 24 Mtg.pdf
FINAL MINUTES 230424.pdf