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APOLOGIES FOR ABSENCE. Additional documents: Minutes: An apology for absence was received from Councillor J. Williams. |
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DECLARATIONS OF PERSONAL INTERESTS. Additional documents: Minutes:
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TO CONSIDER THE FOLLOWING DOCUMENTS PREPARED BY AUDIT WALES:- Additional documents: |
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AUDIT WALES WORK PROGRAMME UPDATE PDF 79 KB Additional documents: Minutes: The Committee considered the Audit Wales Work Programme and Timetable quarterly report, as at 30 June 2024 which provided a synopsis of the regulatory programme of work for local government, together with an update on the inspectorate work, inclusive of the financial and performance audits relevant to Carmarthenshire County Council.
RESOLVED that the Audit Wales Work Programme Update be noted. |
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AUDIT WALES REPORT: CRACKS IN THE FOUNDATION - BUILDING SAFETY IN WALES PDF 107 KB Additional documents: Minutes: [Note: Cllr A. Evans, having earlier declared an interest in this item remained in the meeting during its consideration and voting thereof. Cllrs K. V. Broom and D.E. Williams declared an interest during consideration of this item and remained in the meeting during its consideration and voting thereof].
The Committee considered the Audit Wales national report which reviewed the progress made by the Welsh Government, local authorities and their key partners in implementing the requirements of the Building Safety Act 2022.
The focus of the Audit Wales review was on assessing the preparedness of bodies to take on their new and enhanced responsibilities, the resilience of existing services, and the robustness of building safety assurance systems. The Committee considered the findings of the report, which was set out in 3 parts as follows:
· Part 1 reviewed the priorities set by the Welsh Government in respect of the Act and found the Welsh Government prioritised responding to the Grenfell disaster, working with the UK Government.
· Part 2 reviewed the strength of local authority building control and enforcement services, the effectiveness of the fee-setting regime and how services are changing to strengthen resilience. Audit Wales concluded that as a profession, building control and building safety face significant staffing challenges.
· Part 3 examined building safety assurance arrangements. Audit Wales found that the absence of a national framework for monitoring and evaluating building control and building safety means that local authorities and their partners are not working to agreed appropriate outcome measures, targets, or benchmarks.
The Committee duly considered the Council’s response appended to the report which aimed to address the 4 key recommendations emanating from the audit findings relevant to Local Government. It was noted that 1 recommendation had been completed to date, and the remaining 3 aimed to be completed by April 2025. The Audit Wales Representative concluded that Audit Wales was satisfied that the council had properly considered the findings and recommendations.
The observations raised by the Committee were addressed as follows:-
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AUDIT WALES REPORT: NATIONAL PARK AUTHORITIES PDF 121 KB Additional documents: Minutes: [Note: Mrs J. James, having earlier declared an interest in this item remained in the meeting during its consideration and voting thereof].
The Committee considered the Audit Wales report which reviewed the governance arrangements across the National Park Authorities (NPAs) in Wales. The review considered five key elements: governance model and structures; key functions and responsibilities within these structures; governance culture; infrastructure to support effective governance; and arrangements to monitor and evaluate the effectiveness of governance.
The review concluded that the governance model for National Park Authorities provided a clear framework to discharge their key functions, but its implementation presented a risk to good governance.
The Committee duly considered the Council’s response appended to the report which aimed to address the recommendation emanating from the audit findings which required Welsh Government, National Park Authorities and the Council to address in a partnership approach.
The observations raised by the Committee were addressed as follows:-
RESOLVED:
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THE COUNCIL'S DRAFT ANNUAL REPORT FOR 2023/24 PDF 134 KB Additional documents: Minutes: The Committee considered the Council’s draft Annual Report for the period 2023/24 which had been produced to meet the relevant provisions within the Well-being of Future Generations (Wales) Act 2015 and the Local Government and Elections Act (Wales) 2021.
It was noted that this was the first draft of the report and therefore some sections were incomplete and would be updated as information become available. The Annual Report was scheduled to be presented to Full Council at its meeting in December 2024.
The Annual Report was based on the Council’s four Well-being Objectives as outlined in the Corporate Strategy for 2022-27. The Committee was advised that the reporting structure had been refined to ensure a seamless alignment between the Corporate Strategy and how the Council reported on its progress, thereby placing greater emphasis on an outcome-focussed approach to performance management.
The Committee considered the information detailed within the Annual Report in respect of the well-being objectives and thematic and service priorities. Reference was made to Appendix 3 of the report which provided a corporate overview of the self-assessment undertaken by each division within the council and was a key component of the Authority’s business planning processes.
The observations raised by the Committee were addressed as follows:-
UNANIMOUSLY RESOLVED that the draft Council Annual Report for the period 2023/24 be received. |
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INTERNAL AUDIT PLAN UPDATE 2024/25 PDF 100 KB Additional documents: Minutes: The Committee considered a report which provided an update on the progress made on the implementation of the Internal Audit Plan for 2024/25.
The Committee reviewed the progress made in respect of the delivery of the audit programme which summarised the status of each review and showed a completion rate of 33% against a target of 35% as at 20 September 2024. In respect of the follow up review of Freedom of Information, an assurance was provided to the Committee that whilst a limited assurance rating had been given overall, no fundamental weaknesses had been identified. The Committee was advised that an update on progress of the recommendations would be provided to the Chair and Vice Chair of the Committee in due course.
The Committee then considered the review on Payroll which was appended to the report as Part B. The Committee’s attention was drawn to the key issues stated within the report, together with the action plan which aimed to address the 8 key recommendations emanating from the audit findings. The Committee was assured that all recommendations were being addressed by the Council.
In response to a query regarding recommendation 4 pertaining to overtime, the Principal Auditor reported that a date was awaited for discussion at the Corporate Management Team and an update would be circulated to the Committee once further information had been received.
UNANIMOUSLY RESOLVED that the 2024/25 Internal Audit Plan update report be received. |
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ANNUAL ANTI-FRAUD AND ANTI-CORRUPTION REPORT 2023/24 PDF 100 KB Additional documents: Minutes: The Committee received for consideration the Annual Anti-Fraud and Anti-Corruption Report 2023/24 which provided a summary of the activities of the Council’s Anti-Fraud functions for the reporting period in terms of Strategic Governance, Proactive Work, Prevention and Deterrence, Investigations and Case Information.
The Committee commended the report and welcomed the actions planned to further enhance the controls in place, including further proactive work in the form of staff training and fraud awareness.
The observations raised by the Committee were addressed as follows:-
· The Committee highlighted the sterling work undertaken by the Trading standards team for securing several convictions and expressed its gratitude in protecting communities and safeguarding £14.3m of public monies, as reflected within the report. · In response to a query raised in respect of the case information, the Principal Auditor provided an assurance that lessons had been learnt, with additional controls implemented to strengthen processes in an endeavour to prevent a recurrence of the incident.
UNANIMOUSLY RESOLVED that the Annual Anti-Fraud and Anti-Corruption Report 2023/24 report be noted. |
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CARMARTHENSHIRE COUNTY COUNCIL STATEMENT OF ACCOUNTS: Additional documents: |
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CARMARTHENSHIRE COUNTY COUNCIL AUDIT OF FINANCIAL STATEMENTS REPORT PDF 91 KB Additional documents: Minutes: The Committee considered the Audit Wales Audit of Financial Statements Report. The report summarised the main findings arising from the audit undertaken by Audit Wales of the Authority’s accounts for 2023/24.
The Auditor General was responsible for providing an opinion as to whether the financial statements gave a true and fair view of the position of Carmarthenshire County Council as at 31st March 2024.
Mr D. Owen, Audit Wales Representative reported that the audit was substantially complete, however further information had been requested in respect of a contingent liability disclosure. The Committee was informed that the final supporting working papers had now been received by Audit Wales and it was anticipated that the audit would be concluded imminently.
The Committee was pleased to note that Audit Wales intended to issue an unqualified audit opinion on the accounts, which would be issued upon receipt of the Letter of Representation. The Committee was also pleased to note that there were no misstatements identified in the financial statements which remained uncorrected.
The issues/observations raised by the Committee were addressed as follows:-
Attention was drawn to a typographical error in respect of the figures presented within Note 6.35 of Appendix 3 and it was noted that these would be corrected by Audit Wales.
UNANIMOUSLY RESOLVED that the Audit Wales Audit of Accounts report for Carmarthenshire County Council for 2023/24 be received. |
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STATEMENT OF ACCOUNTS 2023/24 PDF 109 KB Additional documents: Minutes: [Note: Cllrs K. V. Broom and A. Evans declared an interest during consideration of this item and remained in the meeting during its consideration and voting thereof].
The Committee considered the Statement of Accounts 2023/24 for Carmarthenshire County Council, which had been prepared in accordance with the Accounts and Audit (Wales) Regulations 2014 (as amended 2018).
In line with current Welsh Government guidance the Council was required to publish its audited accounts by 30 November 2024.
The Committee was provided with an overview of the salient points contained within the Statement of Accounts which summarised the financial position of the Authority for the year ended 31 March 2024, and which included the amendments agreed with Audit Wales as part of their audit.
In respect of the Council Fund, it was confirmed that no changes had been made to the General Fund reserve or the Housing Revenue Account balance at year end.
The report advised that despite the backdrop of the current macro-economic climate, the Authority’s overall financial standing had been maintained at a steady level.
In closing, the Director of Corporate Services conveyed his gratitude to the Head of Financial Services and his team for their sterling efforts in the production of the Statement of Accounts.
The issues/observations raised by the Committee were addressed as follows:-
· In response to a query regarding the unfunded teacher pay awards announced in 2023 and the situation going forward, the Head of Financial Services confirmed that the higher than anticipated awards had resulted in a shortfall which had been accommodated within the baseline schools budget from April 2024. It was confirmed that the council was awaiting clarification from Welsh Government in respect of funding regarding the 5.5% teacher pay award announced in September 2024.
· In an update to the Committee, the Head of Financial Services advised that the increase in employer pension contribution rates emanating from Teacher and Firefighter pensions had resulted in a significant funding shortfall to the council since April 2024. It was reported that discussions were ongoing between Welsh Government and UK Government.
· In light of the significant overspending reported within the financial statements (for schools and at departmental level), together with the likely severity of the financial situation going forward, the Committee emphasised the need for the Council to be vigilant of the underlying reasons for overspending, to identify underlying trends and determined that it be informed further of the ongoing pressure areas. Accordingly, it was expressed that an arrangement was required, which could include the consideration of quarterly budget monitoring reports, to enable the Committee to discharge its responsibilities in monitoring financial performance and receive an assurance in respect of the actions taken by the council to control overspending. It was agreed that the matter would be further discussed at the workshop scheduled for the autumn which would consider an in-depth review of the current year’s budgetary situation and the financial implications facing Council services and schools.
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LETTER OF REPRESENTATION TO AUDIT WALES CARMARTHENSHIRE COUNTY COUNCIL PDF 90 KB Additional documents: Minutes: The Committee considered the Letter of Representation to Audit Wales which had been prepared by the Director of Corporate Services and the Chair of the Governance and Audit Committee in accordance with the requirements of the Statement on Auditing Standards (SAS440 - Management Representations).
The Committee's formal acknowledgement of the response of the Director of Corporate Services and the Chair of the Governance and Audit Committee was also required by Audit Wales.
UNANIMOUSLY RESOLVED that the Letter of Representation from the Director of Corporate Services and the Chair of the Governance and Audit Committee to Audit Wales be formally acknowledged. |
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AUDIT ENQUIRIES TO THOSE CHARGED WITH GOVERNANCE AND MANAGEMENT PDF 91 KB Additional documents: Minutes: The Committee received the Authority’s responses to Audit Wales on a number of governance areas that impacted on the audit of the financial statements. Those considerations were relevant to both the Council’s management and ‘those charged with governance’, namely the Governance and Audit Committee. The information provided Audit Wales with an understanding of the Council and its business processes in order to assist Audit Wales provide an audit opinion on the 2023/24 financial statements.
The issues/observations raised by the Committee were addressed as follows:-
In response to a query, the Director of Corporate Services confirmed that upon completion of the surveys, RAAC had been identified in one of the council’s investment properties. Immediate interim safety measures had been implemented to ensure the property's continued safe use but there were no further financial implications anticipated in respect of the RAAC.
UNANIMOUSLY RESOLVED that subject to the updating of a typographical error, the responses to the requests made of both management and the Governance and Audit Committee, as detailed in the report be approved. |
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BURRY PORT HARBOUR FINANCIAL STATEMENT 2023-24 PDF 96 KB Additional documents:
Minutes: The Committee, in accordance with the Accounts and Audit (Wales) Regulations 2014, and the delegated powers enshrined within the Local Government Measure, considered the 2023-24 Audited Accounting Statement for the Burry Port Harbour Authority.
Carmarthenshire County Council had a range of statutory powers and duties for the purposes of improving, maintaining and managing the Burry Port harbour through the Burry Port Harbour Revision Order 2000.
The report referred to the Harbours Act 1964 which stipulated the requirement for Harbour Authorities to prepare an annual statement of accounts relating to harbour activities. In compliance with the Accounts and Audit (Wales) Regulations 2014, the accounts were presented in the form of a separate annual income and expenditure account and statement of balances.
UNANIMOUSLY RESOLVED that the audited Accounting Statement for the Burry Port Harbour Authority for 2023-24 be approved. |
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DYFED PENSION FUND STATEMENT OF ACCOUNTS: Additional documents: Minutes: [Cllr K.V. Broom, Cllr K. Davies, Mrs K. Jones, Mr M. MacDonald, Cllr. P. T. Warlow and Cllr. D. E. Williams had earlier declared an interest in agenda items 9.1 – 9.4. and remained in the meeting during its consideration]. |
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DYFED PENSION FUND AUDIT OF FINANCIAL STATEMENTS REPORT PDF 93 KB Additional documents: Minutes: The Committee received for consideration the report of Audit Wales on their audit of the Dyfed Pension Fund Accounts. The report considered whether the financial statement gave a true and fair view of the financial position of the Dyfed Pension Fund as at 31st March, 2024 and its income and expenditure during that year.
The Committee was pleased to note that Audit Wales intended to issue an unqualified audit opinion on the accounts, which would be issued upon receipt of the Fund’s Letter of Representation. The Committee was also pleased to note that there were no misstatements identified in the financial statements which remained uncorrected, or which required adjusting.
UNANIMOUSLY RESOLVED that the Audit Wales Audit of Financial Statements report for the Dyfed Pension Fund Accounts 2023-24 be received. |
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DYFED PENSION FUND ANNUAL REPORT AND ACCOUNTS 2023-2024 PDF 95 KB Additional documents: Minutes: In accordance with the provisions of the Accounts and Audit (Wales) Regulations 2014, the Committee received for approval the Annual Report and post-audit Statement of Accounts 2023-24 in respect of the Dyfed Pension Fund. The annual report provided information about the financial position, performance and financial stability of the Fund for the year 2023-24.
The Committee was pleased to note that Audit Wales were proposing to give an unqualified opinion on the accounts, and had no misstatements or significant issues to report.
The Committee was advised that the net assets of the scheme as at 31 March 2024 amounted to £3.475 bn. The increase in net asset value of £332m from 2022-23 was, in the main, attributable to the value of the Fund’s investments increasing during the year.
In respect of Investment Performance, the Committee was advised that the report would be corrected to reflect that the total fund performance was below the Local Authority Universe average over the three and five year periods, and above the average over the one, ten, twenty and thirty year periods.
The issues/observations raised by the Committee were addressed as follows:-
· The Committee was encouraged to note the positive performance of the fund and appreciation was conveyed to the Treasury and Pensions Investments Manager and his team for their sterling efforts for the co-ordination of the Fund’s Annual Report and Statement of Accounts.
· The Committee noted the healthy and positive assessments on the Fund’s performance that had been provided from the Fund’s Independent Adviser and the Actuary.
· Attention was drawn to a typographical error within the report, whereby it was confirmed that the document would be updated to reflect that the value of the Fund had increased from 2022-23 to 2023-24; the overall return percentage value would also be verified and updated, as required.
UNANIMOUSLY RESOLVED that the Dyfed Pension Fund Annual Report and Accounts 2023-24 be approved. |
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DYFED PENSION FUND LETTER OF REPRESENTATION TO AUDIT WALES PDF 93 KB Additional documents: Minutes: The Committee considered the Letter of Representation to Audit Wales which had been prepared by the Director of Corporate Services and the Chair of the Governance and Audit Committee in accordance with the requirements of the Statement on Auditing Standards (SAS440 – Management Representations).
The Committee’s formal acknowledgement of the response of the Director of Corporate Services and the Chair of the Governance and Audit Committee was also required by Audit Wales.
UNANIMOUSLY RESOLVED that the Letter of Representation to Audit Wales from the Director of Corporate Services and the Chair of the Governance and Audit Committee in relation to the Dyfed Pension Fund be acknowledged. |
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AUDIT ENQUIRIES TO THOSE CHARGED WITH GOVERNANCE AND MANAGEMENT PDF 101 KB Additional documents: Minutes: The Committee received the Authority’s responses to Audit Wales on a number of governance areas that impacted on the audit of the Dyfed Pension Fund’s financial statements. Those considerations were relevant to both the Dyfed Pension Fund’s management and ‘those charged with governance’, namely the Governance and Audit Committee. The information provided Audit Wales with an understanding of the Dyfed Pension Fund and its business processes in order to assist it to provide an audit opinion on the 2023-24 financial statements.
UNANIMOUSLY RESOLVED that the responses to the requests made of both management and the Governance and Audit Committee, as detailed in the report be approved. |
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GOVERNANCE AND AUDIT COMMITTEE ACTION LOG PDF 93 KB Additional documents: Minutes: The Committee considered its Action Log which included progress information in regard to the actions arising from previous meetings.
It was confirmed that the internal audit reports on safeguarding and welfare cards had commenced and would be finalised for consideration by the Committee at its meeting scheduled for 20 December 2024.
In respect of the Care Inspectorate Wales report, the Committee was provided with an assurance that the management team within the Education and Children’s Services department had considered the report and the findings were being used within the division.
UNANIMOUSLY RESOLVED that the Governance and Audit Committee Action Log be received. |
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MINUTES OF RELEVANT GROUPS TO THE GOVERNANCE & AUDIT COMMITTEE:- PDF 101 KB Additional documents: |
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GRANTS PANEL MINUTES 3RD JUNE 2024 PDF 107 KB Additional documents: Minutes: UNANIMOUSLY RESOLVED that the minutes of the Grants Panel held on the 3rd June 2024 be received. |
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CORPORATE GOVERNANCE GROUP 4TH MARCH 2024 PDF 252 KB Additional documents: Minutes: UNANIMOUSLY RESOLVED that the minutes of the Corporate Governance Group held on the 4th March 2024 be received. |
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TO SIGN AS A CORRECT RECORD THE MINUTES OF THE AUDIT COMMITTEE HELD ON 12TH JULY 2024 PDF 119 KB Additional documents: Minutes: UNANIMOUSLY RESOLVED that the minutes of the meeting of the Governance and Audit Committee held on the 12th, July 2024 be signed as a correct record. |