The General Purposes and Audit Committee of Bexley Council met on Thursday 26 September 2024 to review the council's financial statements and audit reports. Key discussions included the approval of the 2022/23 and 2023/24 statements of accounts, the Bexley Pension Fund's 2023/24 accounts, and the proposed training programme for the committee. Decisions were made to approve the accounts, subject to final audit findings, and to recommend the adoption of the training programme and a revised Internal Audit Charter.

Update on the Approval of the London Borough of Bexley's 2022/23 Statement of Accounts

The committee considered a report requesting the delegation of authority to the Director of Finance and Corporate Services, in consultation with the Chairman of the General Purposes and Audit Committee, to authorise the council's 2022/23 Statement of Accounts for issue. It was noted that the accounts would not be audited but had reached a stage where Ernst & Young LLP (EY) could complete their work and sign them off. The committee resolved to delegate this authority, subject to no significant issues being identified in the remainder of the audit.

Audit Results Report for the London Borough of Bexley's 2023/24 Statement of Accounts

Ernst and Young LLP (EY) presented their Interim Audit Results Report for the audit of the council's accounts for the 2023/24 year. The audit is ongoing, with some areas still outstanding. EY reported that three misstatements had been identified and corrected by management, relating to a debtor/creditor reclassification, a PPE asset valuation, and pension assets. The committee resolved to approve the accounts and delegate the signing to the Director of Finance and Corporate Services in consultation with the Chairman, provided no significant issues arise from the remainder of the audit.

Audit Results Report for Bexley Pension Fund's 2023/24 Statement of Accounts

EY also presented their Interim Audit Results Report for the Bexley Pension Fund's 2023/24 Statement of Accounts. The audit is nearing completion, with only one item outstanding. EY reported that no areas of concern had been identified in the completed audit work. The committee resolved to approve the Pension Fund Accounts and delegate the signing to the Director of Finance and Corporate Services in consultation with the Chairman, subject to no significant issues being identified in the conclusion of the audit.

General Purposes and Audit Committee Training Programme

The committee reviewed a report outlining a proposed training programme for 2024/25 and 2025/26. The programme aims to enhance the committee members' effectiveness in their roles by covering core areas of knowledge recommended by the Chartered Institute of Public Finance and Accountancy (CIPFA). The training will be delivered through a mix of self-service options and dedicated sessions. The committee was recommended to review the report, propose revisions, and approve the plan.

Revised Internal Audit Charter

A report was presented regarding the revised Internal Audit Charter, which defines the purpose, authority, and responsibilities of the internal audit activity. The charter has been restructured and revised to improve reference to the Public Sector Internal Audit Standards (PSIAS). The committee was recommended to approve the revised Internal Audit Charter.

Internal Audit Progress Report Q2 2024/25

Members received an update on internal audit activity during the second quarter of 2024/25. Good progress was reported on both the 2023/24 and 2024/25 audit plans, with several reports finalised. The report also detailed the implementation status of internal audit recommendations, showing that out of 43 recommendations, 7 had been implemented, 22 were in progress, and 14 were not yet due. The committee was recommended to note the report.

Counter Fraud Progress Report Q2 2024/25

The committee received an update on counter fraud activity for the period mid-July to mid-September 2024. The report detailed activities undertaken to deliver the council's Counter Fraud Plan, focusing on the five pillars of Govern, Acknowledge, Prevent, Pursue, and Protect. The report highlighted actual and notional savings achieved through counter fraud activity, totalling £0.411m in proven cases for 2023/24. The committee was recommended to note the report and continue to support the team's work.

Debt and Debt Recovery as at 31 July 2024

A report was presented detailing the main types of debt owed to the council, the level of debt, and the recovery processes. At July 2024, the total outstanding debt was £75.420m, a decrease of £1.792m since May 2024. The report provided a breakdown of debt by age and type, including Council Tax, Business Rates, Parking, and Sundry debts. The bad debt provision forecast for the year-end was £34.772m. The committee was recommended to note the position in relation to debt and debt recovery.

The press and public were excluded from the meeting during the consideration of exempt information relating to Agenda Item 13, Debt and Debt Recovery as at 31 July 2024, due to the disclosure of information relating to the financial or business affairs of any particular person.