The Governance and Audit Committee of Swansea Council met on Wednesday 05 March 2025, noting various reports and approving the minutes of the previous meeting. Key discussions included the draft Audit of Accounts Report from Audit Wales and the Council's own draft Statement of Accounts for 2023/2024.

Audit Wales - Audit of Accounts Report - City & County of Swansea - Draft

The committee received and noted the draft Audit of Accounts Report from Audit Wales for the City and County of Swansea for the 2023/2024 financial year. The report indicated that Audit Wales proposed to issue an unqualified opinion on the accounts, meaning they were considered to give a true and fair view of the financial position and performance. However, the report did highlight an uncorrected misstatement of £1.6 million in the Group accounts concerning the valuation of the National Waterfront Museum. The Council has estimated this valuation to be understated and has committed to reviewing it within the 2024-25 financial statements.

Draft Statement of Accounts 2023/2024

The committee received the draft Statement of Accounts for 2023/2024 for information. This statement is a statutory requirement and provides a true and fair view of the Authority's financial position and its income and expenditure for the year. The accounts had been audited by Audit Wales, who proposed to issue an unqualified opinion. The statement was due for approval by the Council on 20 March 2025.

Audit Wales Work Programme and Timetable - City and County of Swansea Council

The committee noted the Audit Wales Work Programme and Timetable for the City and County of Swansea Council. This programme outlines the planned financial and performance audit work for the upcoming period, including the audit of the Council's 2023-24 statement of accounts and thematic reviews on areas such as commissioning and cyber security.

Internal Audit Monitoring Report - Quarter 3 - 2024-2025

The committee received and noted the Internal Audit Monitoring Report for Quarter 3 of the 2024-2025 financial year. The report detailed the audits finalised during the period, the assurance levels awarded, and the recommendations made. Of the 14 audits finalised, all received a High or Substantial assurance level, and 100% of the 85 recommendations made were agreed by management for implementation. The report also highlighted the ongoing efforts to manage risks and improve internal controls.

Internal Audit Annual Plan Methodology Report

The committee received a briefing on the methodology used to prepare the Internal Audit Annual Plan. This report explained the adherence to the Global Internal Audit Standards (GIAS) and the UK Public Sector Application Note, as well as the CIPFA Code of Practice for the Governance of Internal Audit. The planning process is risk-based, considering various inputs such as risk registers, management requests, and previous audit results to determine audit frequency. The report also noted that due to resource constraints, some audits planned for 2024/25 may be carried forward to 2025/26.

Corporate Risk Overview - Quarter 3 2024/25

The committee noted the Corporate Risk Overview for Quarter 3 of 2024/25. This report presented the status of the Council's Strategic Risks and Strategic Issues, indicating that all had been reviewed during the quarter. While most risk scores remained static, there were minor score increases for Sustainable Communities for Learning / QEd - Resourcing delivery of the Strategic Outline Programme and Workforce Sustainability and Capability Gaps, and decreases for Net Zero 2030 target and Development of New Waste Strategy – Transformation programme. The report detailed the RAG status of these risks and issues, with a majority falling into the Amber or Red categories, highlighting areas requiring ongoing management.

Revenue and Capital Budget Monitoring - 3rd Quarter 2024/25

The committee received the Revenue and Capital Budget Monitoring report for the third quarter of 2024/25 for information. The report indicated a projected net service overspend of £13.794 million, with significant pressures in Social Services (£11.328m) and Place (£5.808m), particularly in homelessness. Mitigating actions, including the use of the Contingency Fund and Inflation Provision, were detailed. The report also noted that the Directorate of Education was forecasting an underspend of £2.757 million, largely due to grant funding and savings in maternity/paternity and pension costs. Capital expenditure to 31 December 2024 stood at £96.862 million, representing 50.2% of the total budget.

Audit Wales Recommendations Tracker

The committee received and noted the Audit Wales Recommendations Tracker, which provides progress updates on implementing recommendations from Audit Wales reports. The tracker indicated that while some actions were complete, others were still open. Specific open recommendations related to A missed opportunity – Social Enterprises, Together we can – Community resilience and self-reliance, Time for change – Poverty in Wales, Cracks in the Foundations – Building Safety in Wales, Sustainable development? – making best use of brownfield land and empty buildings, and City and County of Swansea – Springing Forward – Assets. Swansea Council has implemented recommendations regarding equality impact assessments, leadership on poverty, community resilience, and has ongoing work on digital strategy and asset management.

Governance & Audit Committee Action Tracker Report

The committee received and noted the Governance & Audit Committee Action Tracker Report, which details actions agreed upon in previous meetings and their current status. Actions related to the Annual Review of Performance, the Management of Absence Policy, the Inphase Risk Management Application, and the Directorate risk register were noted as ongoing.

Governance & Audit Committee Work Plan

The committee received the Governance & Audit Committee Work Plan for 2024/25, including the additional work programme stemming from the Local Government and Elections Act, the Scrutiny Programme Committee Work Plan, and the Governance & Audit Committee Terms of Reference. These documents outline the committee's planned activities and responsibilities for the upcoming year.

Exclusion of the Public

The committee approved the exclusion of the public from the meeting during the consideration of Item 15, Corporate Risk Overview - Quarter 3 2024/25, on the grounds that it involved the likely disclosure of exempt information relating to financial and business affairs, as defined in Schedule 12A of the Local Government Act 1972. The public interest in maintaining the exemption was deemed to outweigh the public interest in disclosure.