Agenda and minutes

Members are asked to declare any interests in the items under consideration and in doing so state:

(1) the type of interest concerned either a

(a)   personal interest

(b)   prejudicial interest

(c)    disclosable pecuniary interest (DPI)

and

(2) the nature of the interest concerned

If any member requires advice on declarations of interests, they are advised to contact the Head of Democratic Governance in advance of the meeting.

There were no declarations of interest made on this occasion.

To agree the minutes of the last meeting of the Audit Committee held on 14 September 2023 as a true and correct record.

Resolved: That the minutes of the meeting held on 14 September 2023 be signed by the Chair as a true and correct record.

To consider a progress report on the recommendations made in the internal audit report relating to Energy Management issued on the 4 October 2022.

Ms Cath Bagley, Head of Procurement, Energy and Exchequer Services, presented a report on progress against the recommendations made in the internal audit report Energy Management issued on 4 October 2022. She reported that the audit had made seven recommendations of which six had been completed, including both Priority One recommendations, and that one remained outstanding.

The outstanding recommendation was R1 a Priority Two recommendation relating to issues with Water Plus. Ms Bagley informed the Committee that a formal agreement with Water Plus needed to be agreed and that a revised target date for the recommendation had been agreed for March 2024.

The Committee queried the ongoing integration of the new finance system, with Ms Bagley explaining that the process had proceeded well and that it would enable closer working with the Council’s Wholly-Owned Companies. She added that the integration work would be completed by the end of 2023.

Resolved: That the report on progress against the recommendations made in the Internal Audit of Energy Management be noted.

To consider a progress report on individual risks identified in the Council’s Strategic Risk Register in relation to Project/Programme Management.

The Committee considered a deep dive into the Strategic Risk “Project/Programme Management” which included the sub-risks (a) The Council fails to reduce carbon emissions across its operations and the town, (b) Climate breakdown causes an increase in sea levels and severe adverse weather events, and (c) Failure to modernise transport network.

(a)        The Council fails to reduce carbon emissions across its operations and the town

Mr Alan Cavill, Director of Regeneration and Communication, provided an update in relation to sub-risk (a). He informed the Committee that good progress had been made in carbon emissions work undertaken by the Council, but that carbon emissions and climate change more widely presented an ongoing challenge.

The Committee noted that the risk had a red rating and that although the Council had worked hard to achieve the targets it had set itself, that climate issues had causes and consequences wider than Blackpool and beyond the Council’s control. Mr Cavill added that this had been recognised but that the Council could seek to improve the situation locally through its own carbon targets and assisting businesses and residents to reduce their emissions.

Mr Cavill also explained that the risk scores were realistic based on what the Council could achieve. In addition to work to prevent the negative consequences of climate change the work being undertaken also involved protective actions, such as sea water defences. These would help protect Blackpool from consequences such as sea level rises that were out of the Council’s control.

Members also discussed if and how the Council could offset the impact of the substantial regeneration work underway within Blackpool. Mr John Blackledge, Director of Community and Environmental Services, advised that the carbon impact of a project was considered as part of its planning. Contractors were also asked to ensure that they took carbon emissions into account when undertaking work.

(b)        Climate breakdown causes an increase in sea levels and severe adverse weather events

Mr John Blackledge, Director of Community and Environmental Services, provided an update in relation to sub-risk (b), he reported that the Council was well placed strategically to mitigate the consequences of sea level rises and increased severe weather. This included £150m in investment over the next five years from the Environment Agency (EA) into sea defences and beach management projects that would ensure protection for the next one-hundred years. In addition to this Mr Blackledge also reported that the Council continued to work with partners and neighbouring authorities on climate change work that would benefit Blackpool.

Mr Neil Jack, Chief Executive, reported that the Council had also invested in projects such as Beach Nutrition, which sought to allow nature itself to provide part of the solution. He added that such projects were generational in nature and would provide part of the long term solution to climate challenges faced in Blackpool.

(c)        Failure to modernise transport network

Mr Alan Cavill, Director of Regeneration and Communication, provided an update in relation to sub-risk (c). He reported that the Council had worked  ...  view the full minutes text for item 4.

To consider the External Audit Plan 2021-2022.

Ms Nicola Wright, External Auditor, Deloitte, presented the External Audit Plan 2021/2022. She reported that the external audit work for 2021/2022 was expected to be completed by March 2024. It was further advised that the approach to materiality taken by Deloitte was based on the benchmarking standard within the industry and the approach previously used at the Council.

The Plan also highlighted the significant risks identified by Deloitte, which the Committee noted as;

·         Completeness of Accrued Expenditure

·         Management Override of Controls

·         Property Valuations.

The Committee queried if any issues had been identified in respect of property values, pensions or grants. Ms Wright explained that property valuations presented an ongoing challenge and Deloitte would continue to monitor how these were presented in accounts. In respect of grants these had been highlighted in the Plan and would show the impact of those received during the Covid-19 pandemic.

Resolved: That the External Audit Plan 2021/2022 be agreed.

[Ms Bagley, Mr Blackledge, Mr Cavill, Mr Duckett and Ms Wright left the meeting at this juncture].

To consider updates to the Council’s Covert Surveillance Policy (formally known as the RIPA Policy) for approval.

Mr Mark Towers, Director of Governance and Partnerships, presented the Covert Surveillance Policy for approval. He explained that the policy had been updated since it had last been considered by the Committee in 2019. The scope of the policy covered the use of powers under the Regulation of Investigatory Powers Act 2000 (RIPA) and other legislation relating to covert surveillance. He added that the review had been delayed to ensure that officers received the mandatory training on the best practice areas of covert surveillance and any learning from that was then factored into the review.The policy had been updated to ensure greater consistency in securing approvals for surveillance and to future proof the policy. Mr Towers added that overall the number of RIPA investigations remained low and that the Committee would continue to be advised of the exercise of powers under the policy.

The use of covert surveillance by the Council was overseen by the Corporate RIPA Group and Mr Towers informed members that he was the responsible officer in respect of covert surveillance.

Members noted that the Council’s compliance with the Policy would be subject to an inspection during November 2023 and Mr Towers explained the policy had been shared with inspectors in advance and that the outcome of the inspection would be shared with the Committee.

Ms Tracy Greenhalgh, Head of Audit and Risk, advised that the Policy was only be used as a last resort and a review of its use was be conducted at the end of an investigation to identify any areas of learning for future application. She also confirmed that no investigations under RIPA powers had been conducted since the beginning of 2023. However, some investigations under lesser powers had been conducted in relation to other areas such as trading standards by an authorised officer in the Public Protection team and these had been carried out under the current Covert Surveillance policy.

Resolved: That;

1. The updated Covert Surveillance Policy be approved;

2. That the Director of Governance and Partnerships be authorised to make any minor amendments as required; and

3. That details of the outcome of the inspection of compliance with the Covert Surveillance Policy, due to be conducted in November 2023, be shared with the Committee, once the official outcome was received.

To consider the CIPFA Position Statement, which sets out the purpose, model, core functions and membership of the Audit Committee.

Mr Mark Towers, Director of Governance and Partnerships, presented the Chartered Institute of Public Finance and Accountancy (CIPFA) Position Statement setting out the purpose, model, core functions and membership of the Audit Committee. The Statement brought together the CIPFA guidance on Audit Committees and included information gained from the consultation with Members of the Committee in September 2023. Mr Towers added that a report on compliance with the Statement would be presented to a future meeting of full Council by the Chair of the Committee.

Resolved: That the CIPFA Position Statement on the Audit Committee be approved.

To note that the Committee’s Action Tracker.

Resolved: That the Committee Action Tracker be noted.

To note the date and time of the next meeting of the Committee as Thursday 23 November 2023, commencing at 6.00pm.

The date and time of the next meeting was noted as Thursday, 23 November 2023 at 6pm