Agenda and minutes

The Chair proposed that the order of the agenda was amended to allow the Internal Audit and External Audit reports to be considered together.

The Chair proposed that the External Audit report was dealt with after both Internal Audit reports.

Members suggested that the External Audit report was dealt with after the Implementation of the Global Internal Audit Standards report but before the Internal Audit: Progress Report. This was agreed.

The following order was therefore observed:

1 – Questions and Statements from the Public

2 – Declarations of Interest

3 – Minutes of the Previous Meeting

4 – Capital Budget Monitoring – Quarter 3

5 – Revenue Budget Monitoring – Quarter 3

6 – Annual Report Community Safety Partnership

7 – Equality and Diversity (inc. modern slavery) Annual Report 2024-25

8 – Performance and Risk Report – February 2025

9 – Work Programme – February 2025

10 – Implementation of the Global Internal Audit Standards

11 – External Audit Update

12 – Internal Audit: Progress Report – February 2025

13 – Exclusion of the Press and Public

To take any questions or statements from members of the Public.

No questions or statements were received from Members of the Public.

To receive declarations of any Disclosable Pecuniary Interests or other registrable or non-registrable interests from Members in respect of any item to be considered at the meeting.

The Chair declared that they sit on the Community Safety Partnership as a Surrey County Councillor. The Chair stated that this did not prejudice them in any way. This is relevant to agenda item 7, the Annual Report on the Community Safety Partnership.

No other declaration of any Disclosable Pecuniary Interest or other registrable or non-registrable interests were declared by Members with respect to any item to be considered at the meeting.

The Committee is asked to confirm as a true record the Minutes of the Meeting of the Committee held on the 14 November 2024 (attached) and to authorise the Chair to sign them.

The Committee confirmed as a true record the Public Minutes of the Meeting of the Committee held on 14 November 2024 and authorised the Chair to sign them.

This report presents the Capital Monitoring position at Quarter 3 for the current financial year 2024/25.

The Committee received a report presenting the Capital Monitoring position at Quarter 3 for the current financial year 2024/25.

The following matters were considered:

a)            Disabled Facilities Grant. A Member of the Committee asked why disabled facilities grants are put in with the capital programme, as it isn’t the most reflective way of showing how much money the Council has available. The Director of Corporate Services (S151) responded to explain that the table set out in paragraph 4.1 shows the financing of the capital programme, the total of £6.9m has the £1.7m disabled facilities grant in there, and the other sources are broken down in the table as well. The Director of Corporate Services (S151) offered to show the financing of the capital programme both with and without DFG in the future. The Director of Corporate Services (S151) explained that page 15 shows details of what we’ve got against and what we’ve spent of the DFG. There is £1.7m approved budget. The Council has spent, up to the end of quarter three, just over £1m, and is forecasting for the year end as a whole to spend £1.4m, meaning there is £300,000 to be carried forward to be spent on DFG expenditure in the next financial year.

b)            Deficit. A Member of the Committee raised that the five-year programme shows a rolling deficit when you take out DFG. The Member asked for clarification as to how that deficit will be funded. The Member highlighted that the capital programme has a running deficit that is propped up on the budget sheet by DFG. The Director of Corporate Services (S151) clarified that for the quarter three report, the finance team have split out the funding sources. The Director of Corporate Services (S151) noted that the 25/26 Budget will go to Full Council next week, and that the projects are fully funded.  The Director of Corporate Services (S151) explained that it isn’t just the capital budget where the Council will a forecast deficit for 26/27, and informed the Committee that this is partly due to the fact that we forecast for the worst case and then hope that additional income comes and then this will be considered during budget setting for 26/27.

Following consideration, the Committee unanimously resolved to:

(1)      Receive the Capital Monitoring position at Quarter 3, as set out in the report:

(2)      Note the progress of Capital projects as set out in Appendix 1.

This report presents the forecast revenue outturn position for the current financial year 2024/25, as at Quarter 3, covering the period 01/04/2024 to 31/12/2024.

The Committee received a report presenting the forecast revenue outturn position for the current financial year 2024/25, as at Quarter 3 (31 December).

The following matters were considered:

a)            Nightly paid accommodation. A Member of the Committee raised their concern with the rise in spend on nightly paid accommodation and implored the Council to get a grip on the situation quickly. The Member raised that the borough does not have enough long-term affordable housing. The Member invited the Director of Corporate Services (S151) to comment. The Chair informed the Committee that the Community and Wellbeing Committee are progressing their Homelessness Strategy and suggested that an update or assurance could be requested of the Chair of C&W to provide further information on the situation.  The Director of Corporate Services (S151) explained that the forecast overspend for the year, of £475,000, was flagged in quarter two and remains the same in quarter three. The Director of Corporate Services (S151) noted the pressure, and informed the Committee that it is carrying on at the same level as before, not increasing. The Director of Corporate Services (S151) raised that provision of housing is a matter for the capital programme and the available resources within that.

Following consideration, the Committee unanimously resolved to:

(1)      Receive the revenue budget monitoring report, which sets-out a projected deficit of £230,000 for 2024/25;

(2)      Note that the forecast includes an adverse variance of £475,000 within Homelessness and that regular reports will continue to be prepared for Community & Wellbeing Committee to update members on progress against the Homelessness Strategy and Action Plan;

(3)      Note that the final outturn position will be reported to Strategy & Resources Committee in July 2025, then to this committee alongside the Statement of Accounts in autumn.

This report updates the Committee on the work of the Epsom and Ewell Community Safety Partnership.

The Committee received a report providing an update on the work of the Epsom and Ewell Community Safety Partnership.

The Chair declared that they sit on the Community Safety Partnership as a Surrey County Councillor. The Chair stated that this did not prejudice them in any way.

The following matters were considered:

a)            Domestic Homicide Review. A Member of the Committee asked if there have been any more domestic homicide reviews since the Epsom College incident and if so when the outcome would be available and what impact this would have on the finances of the CSP.  The Public Protection Manager explained that there is a further domestic homicide review in the system, that is at a fairly advanced stage, and the outcome is expected at the next CSP executive meeting, and a decision will be made whether to send that on to the Home Office for evaluation. The Public Protection Manager informed the Committee that they are now called domestic abuse related death reviews, to reflect the fact that we are dealing with domestic abuse in these cases. The Public Protection Manager explained that the funding comes from the Community Safety reserve. The Council, on behalf of the CSP, pay into a pooled countywide budget, and from that gets a coordination resource and independent chairs to carry out the domestic homicide reviews.

Following consideration, the Committee unanimously resolved to:

(1)      Note and comment on the work of the Epsom and Ewell Community Safety Partnership (CSP).

The report summarises the activities undertaken in 2024-2025 by the Council to progress its Diversity, Equity and Inclusion Framework. The Framework includes three thematic objectives that demonstrate how the Council is meeting its responsibilities under the public sector equality duty.  

The Committee received a report summarising the activities undertaken in 2024-2025 by the Council to progress its Diversity, Equity and Inclusion Framework. The Framework includes three thematic objectives that demonstrate how the Council is meeting its responsibilities under the public sector equality duty.  

The following matters were considered:

a)            Epsom and Ewell Refugee Network. A Member of the Committee raised that they provided a question in advance of the meeting, in respect to the funding of the Epsom and Ewell Refugee Network. The Chair noted that the question has been received and passed to the relevant officer and a written response would be provided and shared with all Committee Members. The Member asked what confidence EERN can have that their funding will be secure going forwards. The Assistant Director of Corporate Services explained that in the past the Council has had grant funding, however given changing circumstances in both Ukraine and Afghanistan, there is uncertainty as to whether that grant funding is going to continue. The Assistant Director of Corporate Services agreed that a written response could be provided after the meeting.

b)            Website Accessibility. A Member of the Committee noted the work of EEBC to ensure the website is accessibility compliant and highlighted the commitment and achievement for a smaller Council to accomplish this, over much bigger Councils who are not compliant.

c)            Housing and Homelessness. A Member of the Committee commended Council staff who have achieved 41 successful preventions from homelessness over the last quarter. The Member highlighted two bullet points in paragraph E on page 135, the first being that only one new property has been taken on last April, and the second being a landlord forum set up in September, was well attended to promote the private sector leasing scheme and rent deposit scheme. The Member asked if we are moving quickly enough to develop private sector leasing, and what was the further outcome from the landlord forum in September. The Assistant Director of Corporate Services stated the question does not relate to the DEI report. The Assistant Director of Corporate Services explained that one of the reasons why the report is taking about private sector leasing and homelessness is because one of the things that the Council is trying to do, is to tackle health inequalities and socioeconomic deprivation in the borough, so an important step is trying to get more stable housing for people who are at risk of homelessness. Therefore, it is mentioned in the report to reflect the progress in that area. The Chair informed the Member that the questions could be asked of the Community & Wellbeing Committee and a response shared with Members.

Following consideration, the Committee unanimously resolved to:

(1)      Note and comment on the activities undertaken in 2024-2025 by the Council to progress our Diversity, Equity and Inclusion Framework (Appendix 1).

The appendix to this report provides an overview of the council’s performance with respect to its 2024-25 annual plan objectives, key performance indicators, corporate risks, committee risks, and annual governance statement actions.

The appendix to this report provided an overview of the council’s performance with respect to its 2024-25 annual plan objectives, key performance indicators, corporate risks, committee risks, and annual governance statement actions.

The following matters were considered:

a)            Future of Town Hall Site. A Member of the Committee raised that on page 154 the commentary stated that slippage is due to consideration of Member Briefing feedback, and it’s been incorporated into the stage two works. The Member asked what specific feedback or general concern was raised that was severe enough to cause a slippage. The Assistant Director of Corporate Services informed the Committee that alternative options, that hadn’t been fully explored, were raised by Members and involved going back to consultants to ask for an additional piece of work which caused a slippage in the timescales.

b)            Property Strategy. A Member of the Committee asked if we don’t have a property strategy, because it is covered by other existing documents, but then the other documents that are referenced in the current version of the Strategy are out of date or can’t be relied upon, when is the work going to be done to produce a property strategy or to update existing documents. The Chair noted the questions and agreed to raise them with the relevant officers outside of the meeting and provide a response to all Committee Members. The Member flagged the auditors’ comments on transparency issues within the Council and expressed their discontent with not getting a response to their question at the Committee Meeting. The Chair noted the comments.

c)            Recycling Rates. A Member of the Committee raised that on page 166, the recycling rate does not have a target and queried why that is. The Business Assurance Manager confirmed that this is being followed up with the relevant team and a response will be provided to Committee Members.

d)            Planning Enforcement. A Member of the Committee asked why there has been such a severe reduction from the inherent risk to the residual risk on planning enforcement. The Member raised that from their experience there has been no change to the reputation of the Council when it comes to planning enforcement, and they flagged that just because there is a gradual reduction in outstanding enforcement numbers, does not mean that enforcement is happening, it just means there are fewer case numbers. The Chair informed Members that internal audit provided a no assurance opinion for planning enforcement, and all the subsequent management actions have since been completed, and another internal audit review of planning enforcement is in progress currently. The Chair assured the Member that the question can be asked to the relevant officer and a response provided to all Committee Members.

e)            Retired risks. A Member of the Committee raised that the spatial strategy and SCC transport assessment risks are both being retired. The Member stated that there is now the risk of the inspector rejecting the local plan, which would lead to delays in adopting it. The  ...  view the full minutes text for item 43.

This report presents the Committee with its annual Work Programme.

The Committee received a report presenting its annual Work Programme.

The following matters were considered:

a)            Governance and Scrutiny. A Member of the Committee asked if there is any update from officers, regarding the role of the Committee in conducting scrutiny work and investigating services and performance, that had been raised at the previous meeting.  The Chair informed the Member that this would be followed up on and a response provided to all Committee Members.

b)            Time and Resource. A Member raised that if the Committee is to deal with both Audit and Scrutiny, then there must be time and resource made available to do so. The Chair noted the comments.

c)            LGO and ICO updates. A Member of the Committee asked why the LGO and ICO update report was crossed out on the work programme for the February 6^th Meeting. The Assistant Director of Corporate Services explained that the Committee agreed that the report would only come to the meeting when there were updates to share, as there are no updates to share, it has not been brought to the February 6^th meeting.

Following consideration, the Committee unanimously resolved to:

(1)      Note and agree the ongoing Work Programme as presented in Section 2.

This report provides an overview of the new Global Internal Audit Standards, to which public sector internal audit functions will have to comply from 1 April 2025.

The Committee received a report providing an overview of the new Global Internal Audit Standards, to which public sector internal audit functions will have to comply from 1 April 2025.

Following consideration, the Committee unanimously resolved to:

(1)      Note the pending implementation of the Global Internal Audit Standards.

(2)      Note the engagement required by Members of the committee with SIAP to contribute to the development of key requirements of the GIAS including the Internal Audit Strategy and key performance measures.

This report presents the 2023/24 Statement of Accounts, Grant Thornton’s Audit Findings Report, letter of representation and the Auditor’s Annual Report following the external audit.

The Committee received a report presenting the 2023/24 Statement of Accounts, Grant Thornton’s Audit Findings Report, letter of representation and the Auditor’s Annual Report following the External Audit.

Councillor Kate Chinn provided a verbal statement to the Committee.

The following matters were considered:

a)            Thanks. The Director of Corporate Services (S151) expressed their thanks to the finance team and congratulations on all their hard work.

b)            Governance and Transparency. A Member of the Committeeraised that the external audit report appears broadly favourable and that is a credit to the officers who contributed. The Member highlighted that the one area of concern regarding governance and transparency and explained that from their experience this pertains to culture and not performance of the Council. The Member invited officers to comment on the area and the future given impending Local Government Reorganisation. The Chair noted the comment and suggested a response could be provided to Committee Members following the meeting.

c)            Subsidiary Company. A Member of the Committee raised that item IR 6 on page 25, talks about the activities of the Council’s subsidiary company, and if it should ever expand, for example, through the acquisition of more properties, recruiting independent board members is something the Council should consider. The Member highlighted that the management action stated that there is no current intention to expand the activity of the Council’s subsidiary company, and if it were to happen, consideration would be given to review the current board and the appointment of independent members. The Member stated that the Council has declared its option to borrow further and expressed this might mean spending a lot more money on property, which would likely impact EEPIC, therefore, will the Council be appointing an independent member to the board as recommended in the report. The Director of Corporate Services (S151) informed the Committee that the recommendation has been taken on board and explained the 25/26 budget talks about agreeing the Council’s borrowing limits, as opposed to actually taking out the borrowing. The Member stated that by raising the borrowing limits, it is indicating that the Council intends to spend the additional borrowing the Council could be afforded. The Director of Corporate Services (S151) agreed that if the borrowing was to actually take place, there would be a move to put in the capacity described. The Chief Accountant explained that there was no change in the proposed borrowing limit compared with previous years, therefore limits were not being raise. If the Council were to borrow the money, it would have no impact on EEPIC as the potential borrowing is for the Council-owned property, not EEPIC-owned, therefore EEPIC would remain with the same assets as currently.

d)            Management Response. A Member of the Committee raised concerns regarding the management response on page 90 of the appendix 2 report. The Member expressed dissatisfaction with the response from the Strategic Leadership Team and explained that they did not have a positive experience with transparency at the Council. The Chair noted the  ...  view the full minutes text for item 46.

This report summarises progress against the Internal Audit Plan 2024-2025.

The Committee received a report summarising progress against the Internal Audit Plan 2024-2025.

The following matters were considered:

a)            Part II. A Member of the Committee asked if the meeting was now in Part II. The Chair explained that the meeting was not in Part II. The Member asked if the term Part II was being used consistently and queried if there was a collective understanding of what it meant. The Chair informed the Member that they would be aware if the meeting was in Part II as the Committee would have to vote to enter Part II and the meeting would no longer be public. The Deputy Monitoring Officer and Principal Solicitor explained what Part II meant and informed the Committee that the meeting did not need to go into Part II unless there were questions pertaining to Appendix 2.

b)            Access. A Member of the Committee raised that they had been unable to access the Part II document. The Chair asked Members to raise any issues with accessing documents prior to the Committee Meeting. The Chair requested that at future meetings, a hard copy of any Part II document was accessible to Members. Democratic Services confirmed this would be the case going forward.

c)            Planning Enforcement. A Member of the Committee asked for an internal audit item on planning enforcement to be prioritised. The Chair explained that there needed to be sufficient time for management actions to be enacted before a follow up review could commence. The Internal Auditor explained that the previous review of planning enforcement concluded in February 2024, and there were 15 management actions identified. The Internal Auditor informed the Committee that all 15 management actions have now been fully implemented by Officers. The Internal Auditor explained the review is taking place during quarter 4 and will be included in the 24/25 internal audit opinion which will come to the July A&S Committee Meeting. The Internal Auditor explained that if the report and review are finalised before March, then they will be included in the March internal audit progress report.

d)            Food Safety. A Member of the Committee asked if there are any immediate management actions that are scheduled to happen to address the no assurance opinion on food safety. The Public Protection Manager explained that there are management actions in place that are fairly well advanced and will come to A&S Committee for monitoring. The Public Protection Manager informed the Committee that the service was in a much better position than it had been back in the summer. The Public Protection Manager explained that the situation developed through competition with other statutory duties that the team deals with. The Public Protection Manager directed Members to a report that went to Environment Committee in October 2024 which addressed the topic.

Following consideration, the Committee unanimously resolved to:

(1)      Note the internal audit progress report 2024-2025 from Southern Internal Audit Partnership (SIAP) attached at Appendix 1.