Agenda and draft minutes

There were none

There were none

RESOLVED: That the minutes of the meeting held on 27 March 2025 were signed as a true and correct record.

(NOTE: The Board is required to receive a deputation(s) on a matter which is before the meeting of the Board provided that notice of the intended deputation and its object shall have been received by the Borough Solicitor by 12 noon on Tuesday 1 July 2025. The total time for deputations in favour and against a proposal shall not exceed 10 minutes)

There were none

(NOTE: The Board is required to allow a total of 15 minutes for questions from Members of the public on matters within the terms of reference of the Board provided that notice of such Question(s) shall have been submitted to the Borough Solicitor by 12 noon on Tuesday 1 July 2025)

There were none

This report brings the full 2024/25 External Audit Planning Report and the 2023/24 Auditors Annual Report to the forthcoming meeting of the Standards and Audit Sub Board. The purpose of this report is to provide the Standards & Audit Sub Board of Gosport Borough Council with a basis to review our proposed audit approach and scope for the 2024/25 audit.

Consideration was given to a report by Simon Mathers (SM) Partner Ernst Young External Auditors bringing the full 2024/25 External Planning Report and the 2023/24 Auditors Annual Report to the Sub Board, the purpose of both reports to provide the members with a basis to review our proposed audit approach and scope for the 2024/25 audit.

SM introduced the Auditor’s Annual Report by advising Members that the report doesn’t report anything new but summarises the findings from the work undertaken and includes a full narrative commentary on Value For Money (VFM). A very large proportion of the work usually undertaken on the financial statements was completed, but the audit report was disclaimed, meaning a lack of assurance over comparatives in the statements, in year movements and some closing balances.

In answer to a Member’s questions SM advised that he does have access to all Council Board reports including those that might be exempt and the concerns regarding capacity and capability in the finance department were in the process of being addressed. He also advised that he had no particular view as to whether the standards element of the Sub Board should be a separate board/committee.

Members advised that although the Council still supports the Citizens Advice Gosport and works closely with other volunteer groups, it no longer uses the Gosport Voluntary Association to distribute its grant funding.

In answer to a Member’s question, the Head of Finance agreed to provide an explanation regarding the HRA movement of funds and overspend.

Members were advised that the mention of the constitution in the reporting criteria considerations sets out the aim of the constitution, but not the performance against it.

Officers agreed to confer with the Borough Solicitor and Monitoring Officer on the matter of serious breaches of the Code of Conduct by Councillors, and whether it was appropriate to bring them to the Sub Board as part of the process. Subsequent to the meeting, an initial discussion has taken place.

SM introduced the Audit Plan by advising Members that the planning procedures for 2024/25 have now been completed, including Value For Money (VFM).

Members were advised that there was an increase in risk and focus on the previous year around the implementation of IFRS 16. Work is now underway in collecting the necessary information, and developing fit for purpose systems. This should result in a better position come the next audit.

SM brought Members attention to the three identified risks of significant weakness in the VFM report: the lack of in year reporting to Members, capacity and capability in the Finance team and limited assurance in the Internal Audit Opinion.

In answer to Members questions SM advised that the audit results were due in mid November, and that AI is starting to find a way into auditing, but the current checks of journals to identify odd or fraudulent moves between revenue and capital budgets are data driven. Transactions are extracted from the ledger and the analysis looks for  ...  view the full minutes text for item 6.

To update the sub board on the progress of the Audit Plan 2024/25, agreed (March 2024), to the Members with responsibility for governance.

Consideration was given to a report by the Chief Internal Auditor (CIA) updating the Sub Board on the progress of the Audit Plan 2024/25.

The CIA introduced his report by advising that this was the standard progress report which is brought every meeting. There was nothing to highlight, and anything of note has filtered into the Audit Opinion report.

RESOLVED: That the Standards and Audit Sub Board noted the progress of the Audit Plan 2024/25 from 1^st April 2024 to 29^th May 2025 as set ot in Appendix A.

To table the Annual Audit Opinion for 2024/25 for noting to the Members with responsibility for governance, as set out in Appendix A.

Consideration was given to a report by the Chief Internal Auditor (CIA) tabling the Annual Audit Opinion for 2024/25 for noting to the Members with responsibility for Governance.

The CIA introduced his report by advising that it reflected all the completed audit work in 2024/25, and showed a decrease in assurance level from Reasonable to Limited.

Members were disappointed that the electronic tracker had not proved as effective as hoped. Noting that this is the third year in which they had seen things go down they felt they had a role to play in supporting senior management by mandating officers to attend the Sub Board and report to Members on their progress.

RESOLVED: That the Members noted the Annual Audit Opinion 2024/25.

This report sets out the management response to the Internal Audit Opinion 2024/25

Consideration was given to a report by the Chief Executive (CEX) setting out the management response to the Internal Audit Opinion 2024/25.

The CEX introduced her report by advising that by producing this report she acknowledged the seriousness of the results in the Annual Audit Opinion, and set out the ways in which the issues were already being tackled.

The CEX advised that a cultural shift needed to happen as well as more widespread use of the technical tools available. The inclusion of the issue on the Corporate Governance agenda, and more frequent meetings between the CEX and CIA raised the profile and should embed in the management team and be ingrained in BAU.

The tracker is being developed to make it easier to use and to identify at a glance those out of date or nearing completion date.

Members were advised that there were a number of reasons why the addressing of these issues had been delayed: long term sickness, problems with recruitment into senior positions and lack of prioritising within IT, but officers were able to assure that all these issues were now being addressed and the positions in IT have been filled. It was hoped that new people with new ideas and drive would ensure that the work needed to move this forward would happen quickly.

In answer to Member’s questions, officers updated the Sub Board on the work that had taken place to address the limited assurance given previously to the fuel and purchase cards and explained that the PDR system looks at performance annually, and along with business service reports should ensure the issues picked up on  audit and put through the tracker become embedded in BAU.

It was suggested that Gavin Muncaster attends the next Standards and Audit Sub Board to meet Members.

RESOLVED: That the Sub Board noted the response.

To seek approval from Members in regards to the draft Annual Governance Statement (AGS) 2024/25 which will subsequently be passed onto the Policy and Organisation Board for final approval with the Statement of Accounts

Consideration was given to a report by the Chief Internal Auditor (CIA) seeking approvalfrom members in regards to the draft Annual Governance Statement (AGS) 2024/25 which will subsequently be passed onto the Policy & Organisation for final approval with the Statement of Accounts.

The CIA introduced his report by advising that this is quite a static document, which needs to have the Annual Audit Opinion added once resolved at the Sub Board.

Members were advised that the report includes two new governance issues identified as a result of the review of arrangements and by the work of the external and internal audit in 2023/24 and 2024/25

In answer to a Member’s question officers advised that due to changes that took place in the legislation, a draft Contract Procedure Rules (CPR) is now with the Borough Solicitor and will be taken to P&O Board and Council to approve.

The officer advised that all procurement follows a structure, and that finance work closely with procurement to produce a monthly report enabling officers to ensure that no invoice is raised without a purchase order. Every direct award must be backed by a business case and have been approved by chief officers, or in the case of high value or contentious business, through P&O Board.

The CIA advised that suggestions can be made to investigate certain issues if it was felt they presented a significant risk.

In answer to a Member’s question the Head of Finance advised that the reserve figure will be published in the medium term strategy. To have no set reserve figure is quite often the case. Senior officers are aware of the targets that need to be met in the coming year and conversations will start the run in to achieving the savings. Automation and structural changes will all be considered.

RESOLVED: That the Sub Board approved the Annual Governance Statement 2024/25.

To advise the Sub-Board of the Gifts and Hospitality declared by Council Staff for the period April 2024 – March 2025.

Consideration was given to a report by the Borough Solicitor and Monitoring Officer advising the Sub Board of the Gifts and Hospitality declared by Council staff for the period April 2024 – March 2025

RESOLVED: That the Sub Board noted the report