Agenda and minutes

All Members who believe they have a Disclosable Pecuniary or other Interest in any matter to be considered at the meeting must declare that interest and, having regard to the circumstances described in Section 9 and Appendix B of the Councillors’ Code of Conduct, leave the meeting while the matter is discussed.

Councillor O’Kelly declared that he was Chair of Governors at St Mary’s Church of England Primary School. He stayed and participated in the meeting.

Co-Opted Member Rupa Sidpara declared that she was Vice-Chair of Governors at St Mary’s Church of England Primary School. She stayed and participated in the meeting.

Resolved  - That the minutes of the meetings held on 17^th January 2024 and 29^th February 2024 be approved as a correct record.

Resolved  - That details of the Action Progress Report be noted.

The Chair welcomed Simon Baker, Chair of Slough Children First (SCF), to the meeting.

The Assistant Director, Legal and Governanceset out a summary of the progress made on actions recommended following a governance review of SCF.  As of January 2024, two areas remained rated red and related to external and internal audit. Several areas had moved from Amber to Green, whilst others remained Amber but progress had been made. 

Regular contract monitoring meetings were in place and there was good evidence of SCF officers having a better understanding of the contractual requirements and some high quality reports showing performance against the new contractual indicators.  It was critical that a continued focus and resource was provided to report appropriately to meetings to avoid governance progress slipping back and that future reporting provided outcomes based evidence to demonstrate impact.  Whilst there was still progress to be made in specific areas, the system of regular meetings and the existence of a formal framework to test progress against had resulted in a recommendation that ongoing review moves to business as usual as opposed to requiring stand-alone reporting.  This was testament to the work of SCF executive leadership team, the Council and independent Non-Executive Directors and the Chair of the Board. 

In response to how progress would continue to be monitored, the Director for People (Children) explained that a Business Improvement Plan was in place and monitored on a monthly basis. Areas where improvements could be made and value for money provided were continuously being monitored. A reduction in the number of external (out of borough) residential placements for young people was cited as an example of this. Plans were also in place for the Board to work more closely with the Council’s Corporate Leadership Team and Cabinet members to continue the shared focus on improvement in children’s services and a wider focus on children’s welfare and outcomes.

The Chair welcomed progress made, stating that he was confident in the leadership at SCF in both maintaining and continuing improvements in service delivery. 

Resolved -  a) That progress made as set out in Appendix 1 to the report be noted.

b)  That quarterly reporting to the Committee cease in 2024/25 and review of progress to be conducted within contract monitoring meetings.

The Committee received details of the report which provided an update on progress against the Action Plan in the Annual Governance Statement 2022/23 (AGS), the process for preparing the Annual Governance Statement for 2023/24 and an update on preparation of a new Code for Corporate Governance. 

It was recommended that the Council’s current policy statement be updatedinto a Code of Corporate Governance, which would contain positive commitments for officers and members against each of the principles and sub-principles in the Framework. To ensure ownership and input from a wide range of stakeholders, a consultation on the draft code would be undertaken, following which it would be reviewed by the Member Panel on the Constitution and recommended to Council for approval at its Annual meeting in May 2024.

The process for preparing the 2023/24 AGS was summarised and Members were informed that the draft had been discussed at the Corporate Leadership Team, with an expectation that each Executive Director would conduct a review against the CIPFA / SOLACE framework.  External reviews and reports would be reported alongside significant internal audit reports to inform the assessment. 

An update on progress against the 2022/23 AGS was provided. The 2022/23 AGS contained a list of issues identified for specific action and progress against those, together with a comment on whether the issue should remain an action for the AGS 2023/24 were highlighted for the Committee, as set out in the report.

Following the recent resignations of the Chief Executive and the Section 151 Officer, a Member commented that further details and clarity was required in the AGS which specifically addressed issues relating to the culture of the organisation, leadership and succession planning, as well as developing staff and creating opportunities in order to retain them. The Chief Executive acknowledged this was an area that required improvement and measures were being taken to promote a culture change, including regular staff appraisals. Management training was critical in order to achieve a change in the cultural environment and funds had been allocated to address this key area. The Monitoring Officer stated that concerns in relation to whistleblowing had been expressed at a recent meeting of the Standards Committee and that this would be addressed by the new Director of HR.

Responding to what impact recent resignations had had on the Council’s recovery programme, the Chief Executive informed the meeting that a Transformation Unit within the Chief Executive’s Office had been created to accelerate transformation delivery.

Resolved –

(a)  That details of progress made against the actions contained in the Annual Governance Statement 2022/23 be noted.

(b)  That the process for preparing the Annual Governance Statement for 2023/24 be noted.

(c)  That details of the draft Code for Corporate Governance at Appendix 1 to the report be noted.

The Head of Internal Audit outlined details of progress on the implementation of internal audit reports and actions for 2021/22, 2022/23 and 2023/24.

83% of actions for 21/22 were completed with 17% overdue the agreed date of implementation (55 actions) of which 1 of was rated high, 34 medium and 20 low rated. Work was ongoing with Department Leadership Teams to reduce these numbers with the expectation that actions would be closed off by the end of the financial year.Although a target had been set to have no high-rated actions from the financial year 2021/22 outstanding by March 2024, this target would not be achieved as there was one action outstanding from the GDPR Governance audit which was dependent upon the current senior management restructure being completed before action to close could be taken.

For the financial year 22/23 33% (74 actions) were overdue of the agreed date of implementation - 16 rated high, 42 are medium and 16 low rated. 36% (25 actions) were overdue for 2023/24 - 2 of which were rated high, 14 medium and 9 low rated.

An update was given on progress on recruitment to the Internal Audit Team and the Risk and Insurance Team, given that theHead of Financial Governance, Internal Audit, Counter Fraud, Risk and Insurance role and the Internal Audit Manager role would become vacant in April 2024.  It was noted that the lack of stability in the team posed a risk in delivery of the Internal Audit plan and ensuring that there was the right level of skills to contribute to the overall internal control environment.

The Chair asked whether the Internal Audit function was compliant with the UKPublic Sector Internal Audit Standards (PSIAS) which required a Head of Financial Governance, Internal Audit, Counter Fraud, Risk and Insurance with an effective team focused on objectively assessing the adequacy and effectiveness of governance and management of risks. The Head of Internal Audit responded that due to current vacancies this was a risk but the planned recruitment would mitigate these risks. The Chair placed on record that in his view, current internal audit arrangements were not complying with PSIAS requirements. The Executive Director, Finance and Commercial reiterated that active discussions were taking place to ensure the internal audit function was compliant, which included bringing in additional resources and internal audit specialists for specific audits.

Speaking under Rule 30, Councillor Mohindra asked why HRA and transformation programme were not included in the Internal Audit Plan 2024/25. It was explained that current capacity and capability of the internal audit team meant that this was not currently feasible.  Other issues, based on the Corporate Risk Register and DLUHC directions, were prioritised in the Plan. 

The Head of Internal Audit was thanked for progress made to date and a Member asked what the consequences of not delivering the plan would be and sought assurance that there would be proper accountability. The Chief Executive stated that proper measures were in place for succession planning and internal audit actions were reviewed by the senior management team on a regular basis.

A Member asked what measures were in place to ensure the internal audit function was independent and was informed that although officers could submit additional evidence in regard to audits, the opinion of internal audit could not be changed. The Chief Internal Auditor also had direct access to the Chair of the Audit and Corporate Governance Committee and the Chief Executive. 

Referring to Appendix A - actions outstanding for IT - a Member asked why a significant number of these were either outstanding or had no date assigned for when they would be completed. The Head of Technology (Customer & Information) explained that factors such as the pandemic and Our Futures Transformation Programme had resulted in significant instability in the workforce. This would be addressed in the coming months with engagement taking place with departmental leadership teams to assign owners to actions – which would include end dates for outstanding actions -  and it was anticipated that this would be completed by May 2024.  It was suggested that a date be provided by when actions would be completed and if these were not met, commentary be provided outlining the reason for this. 

It was queried when the Public Sector Independent Review of Internal Audit was last conducted and date for when the next scheduled review would take place. The Executive Director, Finance and Commercial stated that details would be provided to the Committee.

Councillor Mohindra, speaking under Rule 30, asked a number of questions regarding the Travel and Expenses Audit and it was noted that the detailed action plan would be circulated.

A Member noted that the Customer Service Questionnaire (CSQ), following the issuance of finalised audit reports, would provide useful feedback in shaping the internal audit function. The Internal Audit Manager informed the Committee that to date, from the eight reports that had been finalised, no CSQ feedback form has been returned and therefore, it is not possible to present any feedback to the Audit and Corporate Governance Committee about the effectiveness of the Internal Audit function from a consumer’s perspective. The Committee recommended that Executive Directors be informed that completion of Internal Audit Customer Service Questionnaires was mandatory.

Resolved -

a)  That the progress update in relation to outstanding internal audit actions be noted.

b)  That progress to recruit staff and other resources to the Internal Audit service be noted.

c)   That the Internal Audit Plan for 2024/25 be approved.

d)  That Executive Directors be informed that completion of Internal Audit Customer Service Questionnaires was mandatory.

The Executive Director, Finance & Commercial introduced a report that updated Members on the corporate risk scores and risk register for the third quarter.  It was noted that future reports would include initials of colours in relation to any colour coded information.

Members raised various issues in relation to the key risks, including risk 6 on recruitment and retention.  Slough Children First was commended for the positive progress it had made in reducing it’s use of agency workers and achieving the lowest level of workforce turnover since the company was established.  Members asked CLT to consider the actions the Council was taking to address this risk in its workforce and suggested adding actions to the report to provide the committee with assurance about future steps being taken.

A Member asked why procurement and contract management was not in the risk register.  In response, it was noted that the register included 18 of the most significant current risks the Council faced.  Procurement was not on the register at the current time, although it was part of risk 10 on financial management and sustainability.  Good progress had been made in improving contract management over the past two years which had been recognised by Commissioners.  In relation to risk 5 on temporary accommodation Members asked about the use of out-of-borough provision and it was responded that a revised policy had recently been approved by Cabinet.  The Interim Director of Housing explained the challenges of temporary accommodation faced by most local authorities and stated that the major issue was the rising demand for support.  The approach being taken including seeking to prevent people becoming homeless in the first place.  Out-of-borough provision was an important option given the lack of supply in the town.

A question was also asked about when the last full test of the Council’s recovery and business continuity plans had taken place.  The Monitoring Officer agreed to circulate a response to this query outside of the meeting.

At the conclusion of the discussion the report was noted.

Resolved –

(a)  That details of the Council’s Corporate Risk Scores (Appendix A) and Corporate Risk Register (CRR) (Appendix B) be noted.

(b)  That efforts continue to explore the JCAD software solution available to the Council that may further enhance the management and control of risk management as well as facilitate the analysis, collation, and reporting of information be noted.

(c)  That efforts the Risk and Insurance team are making in obtaining all the necessary information to procure the best possible, relevant insurance cover for the Council for FY2024/25 be noted.

The Head of Treasuryset out the Council’s mid-year Treasury Management position for the period April to September 2023/24.

Treasury activities of the Council for this period, which included its borrowings, investments and cash balances were outlined.

It was noted that learnings from previous investment decision-making and from other local government failures had emphasised the importance of Member oversight to assess the performance of any investment programme and the associated risks. 

Issues around record keeping and changes in staffing had resulted in the report being delayed and the Committee was informed that in the future years it would receive mid-year reporting in a timelier manner.

Resolved – That details of the report be noted.

The Executive Director Finance and Commercial set out details advising the Committee  of the recently published Accounts and Audit (Amendment) Regulations 2024 which set out a timetable for audit of outstanding local authority Statements of Accounts to 2022/23 and for 2023/24. Members were informed that due to the backlog in the publication of audited accounts of local bodies in England, the Department for Levelling Up, Housing and Communities had issued a date in law (the “backstop date”) – 30 September 2024 – by which local authorities must publish audited accounts for all outstanding years up to and including 2022/23. Dialogue was ongoing with the Council’s external auditors, Grant Thornton to achieve this.

Julie Masci, the Council’s Lead External Auditor from Grant Thornton, reminded the Committee that the Council last published Statement of Accounts for 2018/19 and whilst these were yet to receive a formal audit opinion, the Committee was reminded that these would receive a disclaimed audit opinion. It was noted that although progress has been made on preparation of the 2019/20 and 2020/21 statements, further work was required before they were ready for publication. Significant work was required for 2021/22 and 2022/23 statements before those were ready for publication.

The Chair expressed concern, given that there were outstanding accounts relating to a number of years, and asked how realistic it was that these would be completed by the 30^th September 2024 deadline. It was acknowledged that this was a challenging timescale and additional resources would be required from the Council and its external auditors to deliver these objectives.  A dedicated project team, led by the Finance Director, Corporate and Strategy, had been set up and a detailed plan prepared, as set out in Appendix 1, summarised the timeline officers were proposing to meet the statutory deadlines. Additional resources would be brought in as and when required to facilitate the process.

It was noted that the situation in Slough was further complicated by the Berkshire Pension Fund being administered by the Royal Borough of Windsor and Maidenhead (RBWM) and until RBWM’s accounts for each year were signed off by its external auditor, Slough’s accounts were inevitably held up, due to the materiality of pensions transactions and the reliance placed on RBWM’s audit opinion by other audit firms.

A Member asked if financial penalties would be imposed if the deadline was missed and was informed that there would not be fines or penalties imposed. With regards to costs of external audit fees, including those for 2023/24 and years 2019/20 to 2022/23, these had been factored into the 2024/25 budget approved by Council in March 2024. In response to whether Slough would likely get an exemption in meeting the deadline, given that it was under intervention, the Committee were informed that there would be no exceptions to the backstop date of 30^th September 2024.

The Executive Director, Finance and Commercial, stated that training would be provided to committee members on responsibilities and interpretation of local authority accounts to enhance the corporate governance arrangements and provide effective scrutiny.

Resolved –

a)  That the requirements of the draft Backlog Audit Process as set out in paragraph 3 of the report be noted.

b)  That the current Slough BC position and implications of the Backlog Audit process as set out in paragraph 4 the report be noted.

c)  That the indicative timeline for presentation of backlog accounts to the Committee, their publication, and compliance with public inspection requirements for each of the financial years 2019/20, 2020/21, 2021/22 and 2022/23, as set out in para. 4.3 and Appendix 1 to the report be agreed.

Resolved  - That details of the Members Attendance record be noted.

The Chair, on behalf of the Committee, placed on record thanks to the Executive Director, Finance and Commercial and wished her well in her future endeavours.