North Yorkshire Council
Audit Committee
Minutes of the meeting held on Monday 17 March 2025 commencing at 1.30pm in the Brierley Room, County Hall, Northallerton.
Committee Members present: Councillor Cliff Lunn in the Chair plus Councillors Philip Broadbank, David Chance, Felicity Cunliffe-Lister (remote), Richard Foster (substitute for Councillor Alyson Baker), George Jabbour, Mike Jordan, Neil Swannick, Peter Wilkinson and Co-opted Members Mr David Marsh and Mr David Portlock.
Officers present: Gary Fielding, Corporate Director of Resources; Karen Iveson, Assistant Director Resources; John Raine, Head of Finance Corporate and Technical; Chris Clark, Risk Manager; Will Boardman, Head of Strategy and Performance; Matt Robinson, Head of Resilience and Emergencies; Elizabeth Jackson, Principal Democratic Services Officer; and David Smith, Senior Democratic Services Officer.
Other Attendees: Max Thomas, Stuart Cutts and Daniel Clubb, Veritau; Nicola Wright, Deloitte (remote); and Mark Kirkham, Forvis Mazars.
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Copies of all documents considered are in the Minute Book
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172 |
Apologies for absence
Apologies were received from Councillor Alyson Baker (Councillor Richard Foster substituted) and Councillor Karin Sedgwick.
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173 |
Minutes of the meeting held on 24 February 2025
Resolved
That the minutes of the meeting held on 24 February 2025, having been printed and circulated, be confirmed and signed by the Chair as a correct record.
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174 |
Declarations of interest
Councillor David Chance declared that one of his relatives is employed by Deloitte.
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175 |
Public participation
There was none.
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176 |
Letter from Forvis Mazars on Changes to the Final Statement of Accounts 2023/24
Mark Kirkham reminded Members that there were outstanding actions following the February meeting and explained that the letter covers these. He informed Members that he was confident with the response received from Officers. He also informed Members that the Annual Auditors Report for 2023/24 had been published on the North Yorkshire Council website.
Karen Iveson confirmed that the relevant Officers are aware of the recommendations.
Members thanked Forvis Mazars for their work and for providing updates so promptly.
Resolved
a) That the letter from Forvis Mazars on Changes to the Final Statement of Accounts 2023/24 is noted.
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177 |
Draft Auditors Annual Report - Deloitte LLP
Nicola Wright introduced the report highlighting that there were no significant issues to raise.
There was a discussion surrounding the additional fees. Nicola Wright explained the process, in that a discussion with Officers will take place before the additional fees go to the Public Sector Audit Appointments (PSAA) for approval. Members showed concern regarding these fees and queried whether Officers will get the opportunity to raise these concerns to the PSAA. Nicola confirmed that Deloitte and Officers will attempt to find a compromise, and then both parties can raise any concerns with the PSAA.
Members queried whether ‘the Overview and Scrutiny Committee’ referred to on page 23 of the papers is in fact the Audit Committee. Nicola Wright will clarify this with Officers following the meeting.
Resolved
a) That the Draft Auditors Annual Report by Deloitte LLP is noted.
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178 |
2025/26 Internal Audit and Information Governance Work Programmes
Stuart Cutts introduced the report, highlighting additions that have been made following the 9 December 2024 Audit Committee meeting.
There was a discussion regarding special educational needs (SEN) which is marked as ‘Do next’ on page 49, despite receiving a risk score of 25, as seen on page 135 of the papers. Members queried whether this should be a ‘Do now’ task, but Max Thomas confirmed that it is high priority and will be started promptly. Gary Fielding added that internal audit may not be able to reduce the risk created by SEN as it is caused by an increased national demand.
It was highlighted that the Pension Board aims to finalise their internal audit plan at the 3 April 2025 meeting.
It was clarified that homelessness is regarded as a ‘Do next’ task.
Regarding the Freedom of Information row in the Information Governance Work Programme, Max Thomas highlighted Members that complex requests reduce performance results. Gary Fielding highlighted a potential spike due to requests for information on council tax, home to school transport and the second homes council tax.
Resolved
a) That the 2025/26 Internal Audit Work Programme is approved. b) That the Information Governance Work Programme is noted.
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179 |
Counter Fraud Framework Report
Daniel Clubb introduced the report and Members raised the following queries.
· There was a discussion on the prosecution of fraud and alternative punishments. Some suggested that more could be done to publicise successful prosecutions as a form of deterrence. · It was confirmed that the target date for Failure to Prevent Fraud legislation is September 2025. This legislation would be more likely to impact North Yorkshire Council owned subsidiaries, not the Council itself. Discussions with Officers will take place to highlight the potential risks.
Resolved
a) That the results of the Annual Fraud Risk Assessment actions in the Counter Fraud Development Plan are noted. b) That the 2025/26 Counter Fraud Work Plan is approved. c) That the updated Counter Fraud and Corruption Policy is approved.
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180 |
Internal Audit and Counter Fraud Progress Report
Stuart Cutts introduced the report and Members raised the following queries.
· At the 9 December 2024 meeting, the Scarborough Waterpark audit report was requested by Members. Max Thomas informed Members that this was with Officers, and he expected that it would be published. · The write down for long term debt for Alpamare was discussed. Gary Fielding confirmed that this had been written off in the books, but that the debt would still be pursued. Members raised concerns that this debt would be forgotten. · Members queried the timeline for completing outstanding work from the legacy district, borough and county councils. Max Thomas explained that work is prioritised based on risk, and Gary Fielding highlighted that work is ongoing to find a unified approach within departments. It was noted that Veritau will be involved in identifying potential risks. Members suggested that an update on the work to standardise processes would be useful. · Internal Audit confirmed that any consultative engagements had been conducted in a way that would not compromise their impartiality. · Members asked for an investigation into cash handling at outdoor attractions to be included in the Leisure Centres audit. Officers assured Members that cash handling procedures were being overseen.
Resolved
a) That the progress made in delivering the 2024/25 Internal Audit Programme of Work and other assurance related services provided by Veritau are noted.
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181 |
Accounting Policies
John Raine introduced the report and the following comments were made.
· The Committee was supportive of the changes. · Officers confirmed that they expected no delays and informed Members that lessons have been learnt from last year. Mark Kirkham reminded the Committee that it is North Yorkshire Council’s responsibility to submit the accounts with enough time. · Officers confirmed that the Council does not envisage difficulties in terms of prudential borrowing implications and estimates provide an adequate buffer. · Members were informed that materiality of small value assets is considered with respect to leases.
Resolved
a) That the changes to the accounting policies for 2024/25 are noted. b) That potential changes to the SOFA and accounting policies which are in the pipeline for future years (2025/26 onwards) are noted. c) That the Statement of Accounts Timetable for 2024/25 is noted.
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182 |
Risk Management Progress Report
Chris Clark introduced the report, highlighting the additions and updates to previous reports.
Members queried whether SEND would always be a high risk, and Officers confirmed that it would be in the short to medium term at least.
Resolved
a) That the updated Corporate Risk Register and the links between Directorate Risk Registers and the Corporate Risk Register are noted. b) That the positive outcome of the audit of risk management within the Council is noted.
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183 |
Risk Register for Central Services
Karen Iveson introduced the report, highlighting the key points.
Members queried whether the benefits of Local Government Reorganisation (LGR) could be quantified yet. Officers confirmed that there had been £60 million of LGR related savings. Information on these savings are presented to various committees that hold a scrutiny function.
Members inquired if the option for staff to work from home has aided in recruitment. Officers confirmed that it has been beneficial, and noted that the Council operates a hybrid model, with no staff working exclusively from home.
Resolved
a) That the Risk Register and issues for Central Services are noted.
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184 |
Annual Partnership Governance Report
Will Boardman introduced the report and updated Members on changes to Appendix A.
Members hoped that North Yorkshire Council was being suitably represented on the York and North Yorkshire Prevent Partnership.
Resolved
a) That the contents of the report and Register of Significant Partnerships are noted.
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185 |
Business Continuity Annual Report
Matt Robinson highlighted the key points made in the report and discussed some of the challenging incidents.
Members asked that a list of challenging incidents be circulated following the meeting and in any future annual reports. The threat to IT was discussed and Officers assured Members that work was being done to mitigate these threats.
Resolved
a) That the report is noted.
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186 |
Treasury Management and Capital Strategies
Karen Iveson introduced the report and highlighted that the report had been agreed by the Executive and Full Council. If amendments are suggested by the Audit Committee, the Strategies would return to Executive and Full Council.
The following points arose in the discussion.
· Regarding North Yorkshire Council loans to other local authorities, it was clarified that all local authorities take on the credit rating of central government and therefore are underpinned by central government. Officers do complete due diligence checks before loaning money. · It was confirmed that North Yorkshire Council took on any financial situation held by the legacy councils. · Officers confirmed that they were reviewing the Council’s external borrowing position to identify opportunities to repay loans and make savings.
Resolved
a) That the strategy is noted, and the above comments be taken into account.
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Progress on issues raised by the Committee
Karen Iveson introduced the report.
A training session on the Council’s Teckal companies was discussed and Officers indicated that this may take place before the June meeting.
Resolved
a) That the report is noted.
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188 |
Work programme
Karen Iveson introduced the report and informed Members that the Commercial Governance and Forvis Mazars Audit Plan reports had been deferred to the June meeting.
Resolved
a) That the work programme is noted.
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189 |
Any other Items
An update on the judgement of the Whitby Harbour court case was provided by Officers.
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190 |
Date of next meeting
Monday, 23 June 2025 at 1.30pm
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The meeting concluded at 3.20 pm.