The report of the Engagement Lead is attached.

Contact: Grant Patterson (0121) 232 5296

The Committee received the reports of the Engagement Lead – copies attached to the signed Minutes – which set out External Audits’ commentary on whether the Council has put in place proper arrangements to secure economy, efficiency and effectiveness in its use of resources.

The Engagement Lead explained that the reports covered the value for money over 2020/21, 2021/22 and 2022/23.  This was the first time that the Council had seen the extended reporting now required by the Code of Audit Practice which looked at the three areas of sustainability, governance and improving economy, efficiency and effectiveness. 

In 2020/21, one area of weakness that had been identified was around governance and in particular a specific negotiation settlement with the senior officers where arrangements were not being followed nor done in a clear and transparent manner (details of which were set out in the report).   This led to a number of recommendations being raised and on 29 February 2024 the full Council approved a senior officer employment procedure which addressed those recommendations.

Turning to 2021/22 and 2022/23 the Engagement Lead informed the meeting that a significant weakness had been raised around finances, medium-term financial planning and the low levels of reserves.  Although they did appreciate the financial challenges being faced by the Council and that they had partnered with PriceWaterhouseCooper to undertake a large and complex transformation programme to identify savings etc to ensure that operations were sustained and could deliver a balanced budget each year.

In response to a query, the Engagement Lead confirmed that there was one outstanding objection on the accounts from 2020/21 and they were awaiting confirmation that the objector was satisfied with the response.  Some matters of concern had been brought to their attention for 2023/24 however one of these was still being investigated as to whether it was a valid objection, the other was not really an objection but had led to them doing some focused work around which would be covered in the 2023/24 annual report.

A brief discussion ensued around the arrangements for the dismissal of senior officers and whether the Council exceeded its authority in agreeing the termination of the former Chief Executive Officer. A query was raised as to whether External Audit would have taken this matter further had the senior officer employment procedure not been taken to Full Council.  In response, the Engagement Lead explained that they would have looked into it further if it was felt that this weakness had not been addressed and more statutory reporting might have been undertaken which could lead to a statutory recommendation or a public interest report.  However, they were content at this point in time that it had been adequately addressed.  Any issues that they felt had not been adequately addressed would be reported in their 2023/24 report.

The Section 151 Officer clarified that the audit had concluded that there was a difference of opinion in terms of the following of procedures.  External Audit felt there were procedures that should have been followed whereas the interpretation followed by officers was slightly different and so to address the ambiguity, the Council ensured that there was a very clear process in place that has been approved by Council.

RESOLVED:

To accept the contents of the reports.