This meeting was scheduled to review the Council's treasury management activity for the first six months of the year, and review a number of internal and external audits that had taken place or were in progress. It also included an update on the Council's progress on actions recommended by the Centre For Governance and Scrutiny (CfGS), and an update on progress in implementing the recommendations from last year's Annual Governance Statement.

Treasury Management

The report pack included a report on the Council's treasury management activity for the first six months of the 2024/25 financial year. This included a summary of the Council's borrowing and investment activity, the performance of its treasury management activities, and details of the treasury management indicators. The report pack noted that the Council's average daily level of investments was £67m, compared to £68m for the same period the previous year. It also noted that the Council was forecasting a balanced position in relation to interest payable.

Complaints

The report pack included a summary and analysis of complaints received during the period 1 April 2024 to 30 September 2024. The report pack noted that the volume of complaints received in the first six months had decreased compared to the same period in the last two years, and that 26% of complaints raised so far in 2024/25 had escalated to Stage Two. The report pack identified that the top themes for complaints about the Education service were missed provision and delays in Annual Reviews for Education, Health and Care Plans (EHCPs). The report pack also identified that the top themes for complaints for corporate (all other services) were about Highways issues.

External Audit

The report pack included a progress report on the external audit of both the County Council's and the Surrey Pension Fund's Statement of Accounts for 2023/24. The progress report for Surrey County Council identified data migration as an area of audit focus, because the Council migrated to a new accounting system, from SAP to Unit 4, during the year. The auditors also identified a prior period adjustment for the 2022/23 accounts, because the General Fund and Capital Receipts Reserve had not been correctly disclosed.

Centre for Governance and Scrutiny Review of Council Governance

The report pack included a progress update on the actions taken in response to the CfGS review of Council governance that took place in 2022. The review had recommended that the Council take a stronger approach to the management of risk. The report pack noted that the Council had responded to this recommendation by making the Risk Management Strategy a standing agenda item for the Audit and Governance Committee, and that training on how members and officers can best work together had been delivered to a number of groups and individuals.

Annual Governance Statement

The report pack included a progress report on the implementation of the recommendations from the 2023/24 Annual Governance Statement. The report pack listed a number of issues that had been identified during 2023/24, including issues with the implementation of MySurrey. The report pack outlined the actions that had been taken during 2023/24 in response to these issues.

Internal Audit

The report pack included a report on the Internal Audit work that had taken place between 1 July 2024 and 30 September 2024. The report pack noted that the auditors had provided a 'minimal assurance' opinion for Corporate Payroll. The audit of payroll in MySurrey had found weaknesses in control over access to employee standing data, and no regular reconciliation of staff employed to monthly payroll payments. The auditors also found that a number of key functionalities in the system were not working as designed. The report pack also noted that the auditors had provided a minimal assurance opinion for Pensions Enrolment. The audit had identified a number of issues, including delays in enrolling eligible employees into the pension scheme, and issues with collecting contributions. In addition, the report pack noted that the auditors had provided a 'minimal assurance' opinion for the MySurrey User Access and Security Review. The audit identified a number of control weaknesses, including the lack of a defined process for monitoring assets that had been issued to staff, and the fact that the Asset Management Database Policy had not been updated since 2014. The auditors also reported on a number of other completed audits, including a follow-up audit of Planning and a review of SFRS Safe and Well Visits.

The report pack also included a summary of completed Counter Fraud Investigations. This included one case of multiple employment, where a member of staff had been working for the Council through a temporary agency contact and had not sought approval for secondary employment. The member of staff resigned pending disciplinary action. It also included an allegation of nepotism, where an allegation was received that a member of staff had employed their spouse under a bank contract and was awarding work unfairly. The auditors found no case to answer.