The Audit, Governance and Appointments Committee was scheduled to receive updates on a range of topics, including Brentwood Council’s progress on an action plan to improve corporate governance, the status of internal audit recommendations, and changes to financial controls and regulations. It was also scheduled to review the Council's treasury management performance during the first half of the year.

2024/25 Treasury Management Quarter 2 Report

The Council’s net debt as of 30 September 2024 was £223.611 million. The 2024/25 Treasury Management Quarter 2 Report indicates that this debt is forecast to remain below the level needed to finance capital projects, and that the Council is not projected to incur unnecessary borrowing costs. The Committee was scheduled to review the treasury management activity during the first six months of the year, including new borrowing undertaken by the Council, and investments made.

During the period covered by the report, the Council obtained a new market loan of £20 million from Pheonix Group Holdings. It also repaid a £10 million temporary loan, resulting in a net increase in debt of £9.8 million. The Council invested a total of £23.0 million during the six months, primarily through the Debt Management Office, which is a part of HM Treasury.

Internal Audit Progress Report

The Audit, Governance and Appointments Committee was scheduled to receive the Internal Audit Progress Report on progress made against the internal audit plan for 2024/25. The report included summaries of recent internal audit findings and recommendations, as well as the status of outstanding recommendations from previous audits.

Audits of the Council’s insurance practices and the procurement of leisure services were both completed since the Committee's last meeting. The Council’s auditors, BDO LLP, concluded that internal controls for insurance were generally effective, with opportunities for improvement. The leisure services procurement was given an “advisory” rating, with BDO noting opportunities for improvement in relation to strategic documentation and the consideration of options for in-house provision of leisure services.

Annual Governance Statement Action Plan - Update

The Annual Governance Statement Action Plan - Update was scheduled to provide the Committee with a progress report on Brentwood Council’s efforts to improve corporate governance. The Council is required by the Local Government Act 1999 to continuously improve its functions, having regard to best practice, economy, efficiency and effectiveness. In discharging this duty, the Council acknowledges its responsibility for appropriately governing its affairs, the effective exercise of its functions and the management of its risks.

The report provided an update on the Council’s progress in addressing seven key areas for improvement that were identified in the Annual Governance Statement for 2023/24. Actions ranged from approving a new corporate plan, to reviewing the Council’s relationship with Seven Arches Investments Limited, which is a wholly owned company of the Council.

Financial Regulations and Contract Procedure Rules Update

The Committee was scheduled to consider updates to Brentwood Council’s Financial Regulations and Contract Procedure Rules, and to recommend to Full Council their approval and adoption. The changes were prompted by Brentwood Council's Annual Governance Statement as well as the Procurement Act 2023, which comes into effect in February 2025. The changes are intended to ensure that the Council’s financial controls are robust, and that the Council follows best practice when entering into contracts.

Several key changes are included in the updated Financial Regulations:

• Requirements for officers with budget responsibility to demonstrate financial competence.
• A clarification of which officers or bodies can approve the use of reserve funds.
• A new requirement for all contracts with a value exceeding £249,999 to be approved by Committee.
• New provisions to protect the Council from money laundering.

Key changes in the Contract Procedure Rules include:

• Updates to reflect the new £249,999 limit for contracts to be approved by Committee.
• Updates to reflect the new requirements of the Procurement Act 2023.