This meeting was scheduled to include the consideration of a range of reports, including the Internal Audit Progress report for quarter 2 of 2024/25, the draft Annual Governance Statement for 2023/24 and the final accounts for 2023/24. A report on improving the Audit Committee, by co-opting non-elected independent members, was also included on the agenda.

Co-Opting Non-Elected Independent Members

This report was scheduled to propose a change to the constitution of the Audit Committee.

The report pack says that this was prompted by new guidance from CIPFA on Audit Committees in Local Government¹.

CIPFA is the Chartered Institute of Public Finance and Accountancy. It produces a lot of guidance on accounting and auditing standards, codes of practice, ethical standards and best practice for people working in public finance.

The report pack says that, although it is not currently a legal requirement, there is an expectation that councils will adopt CIPFA’s recommendations on how audit committees are formed and operate.

The report pack includes the following quote from the Department for Levelling Up, Housing and Communities²:

We will be making Audit Committees, with at least one independent member, a mandatory requirement once Parliamentary time allows. We will continue to consult with partners on how this should be implemented. In the intervening period, the government would encourage local bodies to establish their arrangements in line with CIPFA’s guidance, including appointing independent members.

The report was scheduled to recommend that the committee increase its number of members from 5 to 7, with the 2 new members being non-elected independent members, who would not be able to vote.

The report pack says that the new members would be appointed for a four-year term, and they would be able to serve for a maximum of two terms.

The report pack says that the council is allowed to pay an allowance to co-opted members, and suggests that the council's Independent Remuneration Panel³ should be asked to decide what that allowance should be.

The Independent Remuneration Panel is a group of independent people who advise the council on how much to pay its councillors.

Internal Audit Progress Report – Quarter 2 (July 2024 – September 2024)

This report was scheduled to provide an update on the work completed by the Internal Audit and Counter Fraud team during quarter 2 of the 2024/25 financial year. The report pack says that this covers work completed between July 2024 and September 2024.

The report pack says that the report was also scheduled to include a proposal to change the 2024/25 Internal Audit Plan.

This report was scheduled to describe the audits completed during quarter 2.

Treasury Management Audit

This audit was scheduled to review the arrangements that the council has in place to manage its investments and borrowings⁴.

The report pack says that the audit was to provide 'Reasonable Assurance⁵' over the council's treasury management controls, saying that:

Sufficient fidelity insurance cover is in place which covers employee dishonesty, computer fraud and fund transfers, and forgery and counterfeiting.

The report pack says that the audit was also scheduled to identify areas where the council could improve its treasury management controls, making the following recommendations:

Ensuring that Treasury Management Strategy, which was taken to the Audit Committee in March 2024, is formally approved by Full Council.

Developing guidance notes on the activities completed by the treasury management team in the event of regular officers being absent.

Ensuring that, the authorisation process for investments, includes Money Markey Fund transactions, to ensure completeness and consistency.

Grant Claim Certification - LAD 3 Housing Grant Project Closure

This audit was scheduled to review the council's compliance with the conditions attached to the Home Upgrade Grant Phase 1 (LAD3)⁶, which the council was awarded in November 2021.

The Home Upgrade Grant (HUG) is a government grant that funds energy efficiency improvements to homes that are not connected to the gas grid. LAD3 is the third phase of the Local Authority Delivery element of the scheme, which is administered by local councils.

The report pack says that the audit was scheduled to confirm that:

in all significant respects, the conditions attached to Home Upgrade Grant Phase 1 (LAD3) have been complied with

Proposed changes to the 2024/25 Internal Audit Plan

This section was scheduled to propose that a planned audit of the council's Shared Services Programme⁷ be deferred until 2025/26.

Shared services are where councils collaborate to provide services jointly, in order to reduce costs and improve efficiency.

This was to be replaced by a follow up to the previous audit of Corporate Risk Management.

Draft Annual Governance Statement 2023/24

This report was scheduled to present a draft Annual Governance Statement⁸ for 2023/24 to the Committee.

The report pack says that this Statement is a legal requirement, set out in the Accounts and Audit Regulations 2015, and that it has been prepared by members of the council’s Senior Leadership Team⁹, in accordance with guidance from CIPFA.

The report pack says that the Statement explains:

how the Council has complied with the terms of the CIPFA/SOLACE Framework (2016) for the year ended 31st March 2024.

The report pack says that the draft Statement has been informed by a review of the council's governance arrangements, saying that:

In terms of overall corporate governance, it is the Chief Legal Officer’s opinion that with the information she has received to date the overall governance arrangements of the Council are sound.

The report pack says that the Statement includes the following quote from the Chief Internal Auditor¹⁰, who [can provide] partial assurance that the council has in place an adequate and effective framework of governance, risk management and internal control for 2023/24.

The report pack says that the Statement includes sections on the council’s financial strategy, which includes its Corporate Plan¹¹ and Medium-Term Financial Strategy¹², and its internal audit, risk and performance management arrangements.

The report pack says that the Statement also covers the council’s structure and governance arrangements, including:

Hastings Housing Company Limited

Hastings and St Leonards Foreshore Charitable Trust

Final Accounts 2023/24

This report was scheduled to present the Council’s draft financial statements, also known as its Statement of Accounts, for 2023/24 to the Committee for approval.

The report pack says that the Statement of Accounts was to be prepared in accordance with the Accounts and Audit Regulations 2015 and the CIPFA Code of Practice on Local Authority Accounting in the United Kingdom 2023-24.

The report pack says that the accounts were to show the total amount that the council spent in 2023/24, and how it was funded, and that the accounts were to include a separate section on the financial position of the Hastings Housing Company Limited, which is wholly owned by the council.