Agenda, decisions and draft minutes

Governance and Audit Committee - Tuesday, 20th May, 2025 10.00 am

Venue: Multi-Location Meeting - Council Chamber, Port Talbot & Microsoft Teams. View directions

Contact: Naidine Jones  Email: n.s.jones@npt.gov.uk

Items
No. Item

1.

Appointment of Chair and Vice Chair for the Civic Year 2025/2026

Minutes:

That Lay Member, Joanna Jenkins, be appointed Chairperson of the Committee for the 2025/26 Civic Year.

 

That Lay Member, Andrew Bagley, be appointed Vice Chairperson of the Committee for the 2025/26 Civic Year.

 

 

2.

Chairperson's Announcement/s

Minutes:

The Chairperson welcomed all to the meeting.

 

3.

Minutes of Previous Meeting pdf icon PDF 223 KB

Minutes:

The minutes of the previous meeting held on the 21st February, 2025, were approved as a true and accurate account.

4.

Forward Work Programme pdf icon PDF 419 KB

Minutes:

The Democratic Services Officer mentioned that the Forward Work Programme will be sent out to Officers immediately after the meeting to populate items for the year ahead.

Members expressed they would like the committee to have a training session and to be added to the Forward Work Programme.

 

 

 

5.

Audit Wales NPT Financial Sustainability and Local Government Sustainability Reports pdf icon PDF 361 KB

Additional documents:

Decision:

That the report be noted.

Minutes:

Members received an overview of the circulated reports.

 

Members mentioned that under the heading Exhibit 2, Common themes of Section 114 reports, there are four points, the third one states a common theme of the Section 114 reports inadequate governance processes and highlights a significant lack of oversight by Councillors.

Members stated it's so important that as a Governance and Audit Committee, members understood their role and fulfil their brief.

In relation to the timing of the report, Members highlighted it was issued in September 24 and asked was there a reason why it hadn’t come to the Committee earlier. Officers explained they wanted to wait for the national report to be published before the local report was brought back, as that provided some context.

Members mentioned they note the commonality of findings with the national report and asked were Audit Wales planning to do anything further in this space as there’s an issue that a lot of authorities are struggling with.

Audit Wales explained that this work has led to two further pieces of work being included in the Local Government studies programme for 25/26. One is looking at the issue around how local government is funded, Audit Wales explained they heard some consistent messages around the struggle that Councils have around the lack of multi-year settlements, the lateness of the settlement figures coming to local government and some of those challenges around additional duties, and powers being put on local government without the funding to go with it. Audit Wales highlighted they would looking at this into further detail.

Audit Wales highlighted the other piece of additional work in this area is around the school's balances, there is an emerging picture around those school balances going in a negative direction, they are the two identified pieces of work. In terms of the local context, Audit Wales explained they have an ongoing assurance and risk assessment work and keep a brief on what the Council's doing in response to the recommendations that have been issued. Audit Wales highlighted that part of the duty of the Governance and Audit Committee is that they are satisfied that the Council is taking due regard to external auditors’ recommendations and the recommendations of its own internal audit.

Officers mentioned they would bring an update on Medium Term Financial Plan to Governance and Audit Committee in September.

 

Resolved:

That the report be noted.

 

 



 

 

 

 



 

 

 

 

6.

Audit Wales - Programme & Timetable - Quarter 4 Update January to March 2025 pdf icon PDF 296 KB

Additional documents:

Decision:

That the report be noted.

 

Minutes:

Members received an overview of the circulated report and added that the review of commissioning arrangements has been completed. The report is published and will be coming to the Governance and Audit Committee in July.

Audit Wales explained they are finalising the report on the review of the Council's cyber arrangements and have recently concluded the field work stage of the review of risk management arrangements, both of those reports will be coming to Governance and Audit Committee in due course.

 

Members asked what the timeline was for the risk management arrangements.

Audit Wales explained it is their intention to issue a draft report to the Council in June. Officers explained they would try and get the report to the Committee by September/October 2025. Members asked how long they give management to respond to the draft report when it is issued. Audit Wales explained they have two weeks to respond.

Members asked in terms of the grants, is there anything that the committee should be concerned about in terms of the time span between a grant finishing and the claim and liability.

Audit Wales explained that the bulk of the delays fell on Audit Wales side. There was a delay with a number of areas of work post COVID and some resourcing issues which have now been addressed and have caught up. Audit Wales expressed its a longer delay than they should have been given but are now in a better position and there is no impact on terms of the funding for the grants.

 

RESOLVED:

That the report be noted.

 

 

 

 

 

7.

Audit Wales Audit Plan 2025 pdf icon PDF 370 KB

Additional documents:

Decision:

That the report be noted.

 

Minutes:

Members received an overview of the circulated report.

 

In relation to Cyber Security, members asked does the review cover extended enterprise risk.

Audit Wales explained there is a project brief for the work which will set out the questions and the criteria, Council Officers are able to share the project brief with the Committee.

Audit Wales highlighted they would invite an Officer to Governance and Audit Committee in the future to talk about Cyber Security.

 

Resolved:

That the report be noted.









 

8.

Audit Wales Annual Summary 2024 pdf icon PDF 377 KB

Additional documents:

Decision:

That the report be noted.

Minutes:

Members received an overview of the circulated report.

 

Resolved:

 

That the report be noted.

9.

Register of Regulators Reports & Recommendations pdf icon PDF 394 KB

Additional documents:

Decision:

That the report be noted.

 

Minutes:

Members received an overview of the circulated report.

 

Members highlighted the first page the column headings and would be merit in replicating the column headings on each page. Members asked for more clarity in relation to the target dates and the phrases TBC and TBA.

Officers explained this is a piece of work that will be looked at prior to July's meeting and would like to update the regulator's reports to give a bit more meaning and adding a bit of value to the reports. Officers mentioned they would be able to close off some of the recommendations that have been dealt with and will be reflecting on the open recommendations for further progress.

 

Resolved:

 

That the report be noted.

 

10.

Draft Internal Audit Annual Plan 25/26 pdf icon PDF 596 KB

Additional documents:

Decision:

That the report be noted.

 

Minutes:

Members received an overview of the circulated report. A  typing error was highlighted on page 171 - it should read ‘24/25 carry forward activities’ and ‘completion of 24/25’ activities, as opposed to 23/24.

 

Members asked in relation to the sickness estimate on page 179, whether it is based on current sickness levels.

 

The Audit Manager confirmed a 10-day sickness estimate had been applied per FTE, in line with the prior year approach. The Internal Audit team have 7.86 FTE. The approach is robust and part of Plan contingency. Wider contingency is held within the plan, for example for vacancy management. If there is significant sick leave or turnover within the team, there is the option to commission days (ICT or operational audit) where needed and appropriate.

 

Members mentioned it would be helpful to have understood some of the mapping which ended up in the plans.

 

The Audit Manager thanked Members for their feedback. Officers highlighted that for the 25/26 risk-based planning exercise, a meeting was offered and held with chair and vice chair to discuss risk themes, audit needs and wider assurance streams. Officers explained that the approach will be updated for 26/27 and include a risk-based audit planning workshop offer with Committee. This will include information on risk-based audit planning method and assurance mapping, and get committees views on key risks for consideration.

 

Members highlighted a timing gap between SLT endorsement of the plan and Governance and Audit committee approval. Members asked does that cause a delivery issue and is the time of the meeting not optimum.

 

The Audit Manager confirmed that the timing of endorsement and approval has not impacted audit delivery or prioritisation in the first two months of 25/26. Officers explained that audit and investigation work doesn't all fully align to the audit year start/end dates and that some activities will straddle year end. The Internal Audit team have prioritised the 2024/25 carry forward work to enable conclusion at the earliest opportunity in 2025/26. Alongside carry forward activities, officers explained that service level agreements are in place for a number of work streams. For example, a three-year audit cycle is in place for local authority maintained schools. SLAs and carry forward audits & investigations have been prioritised to date in 2025/26.

 

The Audit Manager confirmed that the 26/27 Plan will be targeted for Committee approval in March 2026.

 

Members asked for information on the monthly creditor testing. Officers explained the historic position. The creditors review occurred on a monthly basis up to 24/25 and was in the plan due to a risk area highlighted by the previous Audit Manager. For 25/26, creditors review is significantly reducing and will target the Council creditors pilot scheme controls only. From 26/27, the activity theme should then come off the plan.

 

Members asked are Officers developing an audit universe.

 

Officers mentioned they currently have an audit universe and would bring the updated version to the risk-based audit planning 26/27 workshop. Officers explained that an Audit Universe is the range of potential  ...  view the full minutes text for item 10.

11.

Draft Internal Audit Charter (including Mandate) 25/26 and Internal Audit Strategy 25/26 pdf icon PDF 591 KB

Additional documents:

Decision:

That the Governance and Audit Committee Draft Internal Audit Plan 2025/26 at Appendix 1, be approved.

Minutes:

Members received an overview of the circulated report.

 

Members asked how Officers will measure and demonstrate delivery against the objectives.

 

The Audit Manager confirmed that the objectives and initiatives will be a golden thread through strategic audit documents. Including the Quality Assurance and Improvement Programme targets for 25/26 and future Annual Report outcomes.

 

RESOLVED:

 

That the Draft Internal Audit Charter 2025/26 at Appendix 1, be approved.

That the Draft Internal Audit Strategy 2025/26 at Appendix 2, be approved.

 

 

 

 

12.

Internal Audit Update Report 2024/25 pdf icon PDF 598 KB

Additional documents:

Decision:

That the Draft Internal Audit Charter 2025/26 at Appendix 1, be approved.

That the Draft Internal Audit Strategy 2025/26 at Appendix 2, be approved.

 

Minutes:

Members received an overview of the circulated report.

 

In relation to the payroll administrative audit, members asked Officers to confirm whether the scope noting its substantial assurance considered access, authorisation and segregation of duties. Officers confirmed that yes it did.

 

Members highlighted the performance data audit which was deferred into the current year plan and previously discussed model governance or end user computing application risk. Members asked if there was a plan to start weaving that into the audits.

 

Officers expressed the reason the performance data audit deferral, in line with the narrative on pack page 214. There will be opportunity to review and update the specific audit scope within 25/26 and consider the relevance of model governance.

 

Members mentioned that whilst the level of mandatory training achieved post audit review was 63.8%, the completion rate now is above 75% for five of the mandatory courses, which is an improvement.

 

RESOLVED:

 

That the report be noted.

 

13.

Access to Meetings

That pursuant to Section 100A(4) and (5) of the Local Government Act 1972, the public be excluded for the following items of business which involved the likely disclosure of exempt information as defined in Paragraph 12 and 15 of Part 4 of Schedule 12A of the above Act.

 

Minutes:

RESOLVED:        that pursuant to Section 100A(4) and (5) of the Local Government Act 1972, the public be excluded for the following items of business which involved the likely disclosure of exempt information as defined in Paragraphs 12, 13 and 14 of Part 4 of Schedule 12A to the above Act.

Private Report of the Head of Legal Services.

Report of the Head of Legal Services.

- Committee Resolved into Open Session -

14.

Special investigations Update report

Decision:

That the report be noted.

Minutes:

Members received an overview of the private circulated report.

 

RESOLVED:

 

That the report be noted.