Consideration was given to the External Auditor’s Annual Audit Report 2021/22.  Grant Thornton were required under the National Audit Office Code of Audit Practice to satisfy themselves that the Council had made proper arrangements for securing economy, efficiency and effectiveness in its use of resources.  The report gave details of the Council’s overall arrangements, as well as improvement recommendations. There were three categories covered, namely Financial Sustainability; Governance; and Improving Economy, Efficiency and Effectiveness.

No significant weaknesses in all arrangements had been identified, with the majority or all recommendations from 2020/21 addressed, however some additional recommendations had been made.

An unqualified opinion on the financial statements had been given on 20 March 2023.

Members were given the opportunity to ask questions and the following points were noted during the discussions:

•     Members were concerned that savings recommendations had still not been adopted as recommended, although work on the Financial Stability programme had addressed some.  Grant Thornton accepted that the budget setting process for 2023/24 had already taken place and it was confirmed that the newly created Corporate Programme and Improvement team would be focussing on the Service Planning process to identify savings during 2023/24;

•     it was vital to deliver the savings to ensure the level of reserves did not fall below the £5m threshold;

•     the transfer of discretionary services to parish and town councils was to protect the provision of those services, as the Council could no longer continue to provide them at previous levels.  Discussions were ongoing and alternatives were being considered in order to protect those services;

•     costings of statutory and non-statutory services were being worked on as the Council had a cap on the amount by which council tax could be increased.  As the parish and town councils were not subject to capping, there would be more flexibility to take over provision of discretionary services;

•     a People Strategy aligned to the Corporate Plan was progressing to be in place by 2023/24 and would be taken forward by the new Corporate Policy and Projects team;

•     Members may need to consider in the future which services were a priority and which required protection;

•     Heads of Service and Service Managers, as part of the Corporate Management Team, were involved in the Service Planning programme;

•     Cabinet should ensure that budget monitoring reports contained sufficient, relevant information to allow Members to hold services to account, including actions being taken in relation to negative variances;

•     the outstanding Internal Audit recommendation concerning the absence of a Service Level Agreement with the Procurement service was being progressed by the Interim Chief Finance Officer; and

•     a self-assessment of the Audit and Standards Committee was recommended to take place before the elections in May, with a report to the first meeting of the new Committee.  This report would provide a benchmark for future reviews and inform training for the new Committee.  The self-assessment would take place via an informal meeting and provide the basis for an annual self-assessment report to be brought to the Committee’s final meeting each year.

RESOLVED: That:

1)   the report be noted; and

2)   a self-assessment of the Audit and Standards Committee take place before the elections in May and a report brought to the first meeting of the new Committee.