The meeting will receive reports on the status of the Suffolk County Council Pension Fund, the audit of the 2022-23 accounts and the Council's corporate risk register. Attendees will also receive reports on the performance of the internal audit team, the corporate fraud team, and the standards team, as well as an update on Treasury Management. Finally, the committee will review seven reports that have recently been issued by the Internal Audit team.

Suffolk County Council Pension Fund

The Suffolk County Council Pension Fund currently has assets of £4bn. It saw a return of 12.9% in 2023-24. The meeting will discuss its funding level, investments, commitment to Net Zero, and the Pensions Investment Review.

Audit Results for the year ending 31 March 2023

The 2022-23 accounts have now been audited. Ernst & Young, Ipswich Borough Council's external auditor, has issued a disclaimer of opinion on the accounts.

The backstop date and the wider requirements of the local audit system reset meant we did not have the required resources available to complete the detailed audit procedures that would be needed to obtain sufficient appropriate audit evidence to issue an unmodified audit report on the 2022/23 financial statements. Therefore, we are disclaiming our opinion on the financial statements The report notes that the audit backlog is a national issue and was caused by new accounting regulations, the impact of the pandemic on the accounting profession, and capacity issues in accountancy firms. The Local Audit and Accountability Act 2014 requires local authorities in England to have their accounts audited each year.

Review of IBC Corporate Risk Register 2024/25

The Council's corporate risk register has recently been updated. Some of the most significant risks faced by the council include:

• Climate Emergency: The report pack notes that there is a risk that the Council will not meet its pledge to become carbon neutral by 2030. The planned control measures include a commitment to spend £50,000 per year on climate change initiatives, a target for all Council houses to achieve an Energy Performance Certificate (EPC) rating of C by 2030, and participation in the Suffolk Climate Change Partnership.¹
• Finance: The report pack notes that there is a risk that the Council will not be able to deliver a financially balanced budget in the medium term. The Medium-Term Financial Plan (MTFP) sets out the council's financial strategy for the next four years and the current forecast suggests a budget gap of £23m over the four-year period. The report pack states that the Council will continue to lobby central government for more funding and to monitor its own spending and income carefully.
• Cybersecurity: The report pack notes that there is a risk that the Council will be subject to a cyber attack. The planned control measures include compliance with the National Cyber Security Centre (NCSC) guidance, ongoing user training, and compliance with cybersecurity audits. The meeting will also discuss risks relating to Housing, the provision of Affordable Housing, the Economy, Emergency Planning, Partnerships, Recruitment, Transformation, Companies, Health & Safety, Commercial Contracts and Suppliers, Programme and Project Governance, Strategic Asset Management and Strategic Leadership.

Internal Audit Progress Report 2024/25

The internal audit team has issued 15 audit assurance reports in the period since 1 April 2024, resulting in 39 recommendations for improvements to the Council's systems and processes. The meeting will receive a progress report on the Internal Audit Plan for 2024/25. The report notes that the internal audit team is under-resourced, with three vacancies in its established posts. The meeting will also discuss upcoming changes to the Public Sector Internal Audit Standards.

Corporate Fraud Progress Report 2024/25

The Corporate Fraud Team has received 182 referrals in the period since 1 April 2024. The report claims that the team has helped to stop nine Right to Buy sales of council homes since April, prevented one fraudulent housing application, and secured a reduction in council tax banding for one household. It also states that the team has recovered four properties for the Council and processed 153 requests for data under the Data Protection Act 2018. The meeting will receive a progress report on the work of the Corporate Fraud Team.

Standards Update

The meeting will receive an update on matters relating to the Suffolk Model Code of Conduct for Councillors adopted by the Council in 2022. The report states that there have been nine complaints against Councillors in 2024, none of which have been deemed to be a breach of the Code of Conduct. The meeting will also discuss the recruitment of new members to the pool of Independent Persons² used by the Council.

Treasury Management Performance Mid-Year 2024/25

The report pack notes that the Council's borrowing increased by £26.7m in the first half of 2024/25 and its total investments increased by £9.9m in the same period. The report states that the Bank of England base rate is expected to fall over the next three years and that this will have an impact on the Council's borrowing costs and its investment returns. The Council has no long term investments, relying instead on Money Market Funds to manage its day-to-day cashflow requirements.

Internal Audit Recently Issued Reports

The meeting will review seven Internal Audit reports, each of which evaluates the adequacy and effectiveness of a specific Council service. These reports cover the following service areas:

• Council Tax and NNDR
• Housing Benefits
• Treasury Management
• Debtors
• Cash & Bank Reconciliations
• Payroll
• Housing Rents

The reports include recommendations for improvement where appropriate and are graded as Effective or Reasonable, with Effective being the higher grade. The committee will consider whether to endorse these recommendations.

It is important to note that this information is taken from the meeting's report pack, and it is therefore not certain that these topics will be discussed or decided at the meeting.