Apologies for absence were received from Councillor Danny Brookes and Walter Leschenko, Independent Co-Opted Member.

Those present were noted as in attendance.

It was proposed and seconded that Councillor Will Grover be elected Chairman.

It was further proposed and seconded that Councillor David Andrews be elected Chairman.

Upon being put to the vote, the result was as follows:

In favour of Councillor Will Grover being elected to Chairman – 4 votes

In favour of Councillor David Andrews being elected to Chairman – 3 votes.

The Democratic Services Manager and Deputy Monitoring Officer confirmed to Members that the appointment of Vice-Chairman would be brought to the next meeting of the Committee.

RESOLVED:

That Councillor Will Grover be elected Chairman of the Audit and Governance Committee for the remainder of the Council year 2021/22.

At this point in the meeting, Members were invited to declare any relevant interests.  None were received.

To confirm the Minutes of the Meeting held on 15 September 2021.

The Minutes of the Meeting held on 15 September 2021 were agreed as a correct record.

A Member referred to Minute No. 24 on the Action Sheet, page 3 of the Agenda refers and in light of the low assurance awarded for the Internal Audit Procurement Review asked for clarification on future procurement processes and confirmation on where this advice would be sourced.

The Section 151 Officer advised Members that the procurement referred in the minute was for procurement advice and highlighted the distinction between the advice to arrive at a procurement methodology and procurement strategy versus the procurement itself which should address the issue of local businesses bidding for that work.  It was highlighted that it was extremely difficult to recruit to a procurement role locally, therefore a variety of routes to access procurement advice were considered and a hybrid was currently being used, for example East Lindsey and Boston used Kings Lynn and Norfolk Council and South Holland sought advice through their shared agreement with Breckland Council along with other procurement expertise available across Lincolnshire.  It was confirmed that this did not come at a high cost to the Council as officers working in this field were directly employed rather than paying for external consultants.

In relation to the minute on Action No. 12 (d) for a scrutiny to be undertaken on Kingfisher Caravan Park, a Member highlighted that since the last Committee Meeting an announcement had been released stating that the legal case between ELDC and the caravan owners was proceeding to the High Court.  Members were advised that to date, £25k had been spent on legal fees and a query was raised as to what amount had been reserved to cover further legal costs and also where this currently sat on the Council’s Risk Register.  The Section 151 Officer advised Members that she would have to take this away, following which a response would be provided to Committee Members.

There was no update from the Chairman.

Actions from the previous meeting.

The actions from the Meeting held on 15 September 2021 were confirmed as in hand or completed.

Action No. 23 – Chairman’s Update – Future Training Programme, page 23 of the Agenda refers.

The Section 151 Officer informed Members that she would be looking at a training programme across the Partnership which would include matters around those that had been highlighted including treasury management, property funds and pension training.  This would also include generic audit and governance training and consideration was underway on how this would be delivered across the three authorities.

With regards to the Skills and Knowledge Questionnaire referred, this would be brought to Committee in February 2022.

Action No. 24 – Action Sheet – Programme and Project Management Consultancy Report (Actions No. 8 (e) and 12 (f), page 23 of the Agenda refers.

The Section 151 Officer advised Members that she had met with the Member concerned regarding the queries raised at the last meeting and was in the process of preparing a note to be circulated in terms of the questions and responses provided.

Action No. 26 – Action Plan following Internal Audit Annual Report 2021/22, page 24 of the Agenda refers.

The Section 151 Officer advised Members that in terms of the risk registers, due to the transfer of Assistant Directors this was now being picked up as a joint piece of work across all three authorities. A report would be submitted to the next Committee meeting in February 2022 on how this work was progressing.

Action No. 10 – Undertake a governance health check, page 24 of the Agenda refers.

The Section 151 Officer informed Members that this was underway using the CIPFA Best Governance Practice from 2016 as a methodology for doing so.  The Internal Auditors were assisting with the process and once completed this would be an excellent working document moving forward to be used across the partnership.

Members were advised that the contact booklet referred to was circulated electronically to all Members but was happy to provide a paper copy where requested.

Action No. 31 – Monitoring Officer Update – Legislation relating to the review of the Code of Conduct, page 26 of the Agenda refers.

The Deputy Data Protection Officer advised Members that with regards to powers for Monitoring Officers on matters of conduct, no changes were coming forward to the legislation.  The Section 151 Officer advised Members that the guidance notes for the revised Code of Conduct were very helpful around this point and there was also good guidance in the Local Government Association training.  It was agreed that the guidance notes would be circulated to Members.

A Member commented that East Lindsey District, Boston Borough and South Holland District Councils had different Constitutions and queried whether this would present problems going forward, in particular for training requirements.  The Section 151 Officer informed Members that there were three distinct sovereign councils each with its own local features, however these issues were being reviewed with a view to align them  ...  view the full minutes text for item 38.

To receive a report from the Internal Audit Manager, Assurance Lincolnshire.

The Chairman referred Members to an updated report which had been circulated to Members on 23 November 2021.  Mathew Waller, Internal Audit Manager, Assurance Lincolnshire, Lincolnshire County Council advised Members that the errors identified since the report was published were minor and would be highlighted where appropriate.

The Internal Audit Manager presented Members with the Internal Audit Progress Report Quarter 2 2021/22 which covered the period July 2021 to November 2021.

The purpose of the report was to provide Members with:

·         Details of the audit work completed during the period;

·         To advise on progress with the 2021/22 plan;

·         To raise any other matters that may be relevant to the Audit Committee role.

Members noted that one assurance report had been issued since the last progress report in June 2021 (this had been reported as two reports on the progress report published) as follows:

• Procurement – Low Assurance, pages 31 to 32 of the Agenda refer.  The Assurance definitions were detailed at Appendix 1, page 35 of the Agenda refers.

Members were advised that when a low or limited assurance opinion was issued, the full details of the report would be published.  The Final Internal Audit Report – Procurement Review 2020/21 was attached at Item 8 for full consideration by Committee.

2021/22 Audit Plan

Members were assured that work was progressing and that there were currently eight audits as work in progress as follows:

·         Payroll – Draft Report

·         Magna Vitae Health and Safety – Draft Report now complete, to be reported to the next Committee Meeting.

·         Development Company - Fieldwork Stage

·         New Finance System Support – Draft Report now complete, to be reported to the next Committee Meeting.

·         Brexit – Fieldwork Stage

·         Towns Fund – Draft Report

·         Housing Benefit Subsidy Testing – Draft Report now complete. Members were advised that this audit represented a significant amount of the audit plan.  It was highlighted that a large amount of money was paid out in housing benefit and was claimed back though subsidy.  The work for the Department of Work and Pensions (DWP) undertaken by Internal Audit provided an overview on the accuracy of this and that the correct amounts were being reclaimed.  Members were advised that this audit had a positive level of assurance and would be reported to the next Committee Meeting.

·         Flood Management – Planning Stage

·         Carbon Reduction – Fieldwork Stage

Members were advised that the 2021/22 audit work commenced on 21 July 2021 and performance on Key Indicators as at 31 October 2021 was highlighted as follows:

• Percentage of revised audit plan completed – 44%
• Percentage of recommendations agreed – 100%
• Percentage of agreed actions implemented – An update was provided following the publication of the report that highlighted 47% of agreed actions had now been completed.  Details of these overdue actions were detailed at Appendix 3, pages 41 to 45 of the Agenda refer.

A summary of the number of outstanding agreed actions and details for all audits as at 31 October 2021 was highlighted to Members at  ...  view the full minutes text for item 39.

To receive a report from the Internal Audit Manager, Assurance Lincolnshire.

Matthew Waller, Internal Audit Manager, Assurance Lincolnshire, LCC presented Members with the Final Internal Audit Report – Procurement Review 2020/21, pages 49 to 60 of the Agenda refer.

The purpose of the review sought to provide assurance that the arrangements in place for procurement were operating effectively and achieving value for money.  Following the audit work undertaken being completed, a final report was issued with a low assurance.  This was highlighted to Members in the Quarter 2 Progress Report, Minute No 39 refers.

Members were advised that due to the low assurance opinion Internal Audit would undertake a follow-up audit on procurement in nine to twelve months.

Members were invited to put their comments and questions forward.

·         A Member queried when the Committee could expect to see the action plan proposals and more importantly target dates so it could be given some assurance that actions were completed within a reasonable timescale, to support the Council’s plans for the larger imminent capital projects including programme management and value for money.  The Assistant Director for Finance advised Members that an action plan was in place and would be presented to the next Committee Meeting in February 2022, together with a progress update since the low assurance report had been submitted.  With regards to the capacity and support on the capital programme and the Towns Fund, advice and guidance was being sought from specialist procurement firms to help with the technical nature of those activities and schemes.  This was being dealt with by the Deputy Chief Executive for Growth supported by the Assistant Director of Finance and a meeting had been arranged to discuss this with a particular specialist firm.  With regards to value for money, the link to procurement as part of the tendering process would see a social value for money process.  Further information would be reported back to Members.

·         A Member highlighted that the scope of the audit covered capability and process aspects of procurement but not resources and capacity to support the Council’s Procurement plans.  It was highlighted that the minutes from the last meeting referred to a verbal assurance provided that this was being looked at in the round, however it was not concluded exactly what was planned to secure procurement resources and capacity going forward for Committee to receive assurance that it was being addressed and resolved, Minute No 24 from Audit and Governance Committee held on 15 September 2021 refers.  It was acknowledged that a Procurement Officer had now been recruited but it was queried whether one FTE was sufficient and also what plans were in place to utilise the partnership effectively in terms of procurement.  The Assistant Director for Finance highlighted that capacity would always be an issue and was mindful of that and met regularly with the Procurement Officer to understand workloads and caseloads and get an understanding of what the requirements were for East Lindsey.  This was an ongoing process and would be monitored and reported back as and when required.

·         A Member  ...  view the full minutes text for item 40.

To receive a report from the Interim Treasury Investment Manager, PSPS Limited.

The Chairman welcomed Jacqueline Mundy, Interim Treasury Investment Manager, PSPS Limited to the meeting to present Members with the Mid Year Treasury Report 2021/22 on the Council’s Treasury Management Strategy Statement and Annual Investment Strategy up to 30 September 2021, pages 61 to 84 of the Agenda refers.

Members were referred to Appendix A, pages 65 to 78 of the Agenda refer which covered the following areas:

•  The outlook for the remainder of the financial year along with interest rate forecasts;

•  A review of the Treasury Management Strategy Statement and Annual Investment Strategy;

•  A review of the Council’s investment portfolio for 2021/22;

•  A review of the Council’s borrowing strategy for 2021/22;

•  Debt rescheduling;

•  Compliance with Treasury and Prudential indicators.

The Interim Treasury Investment Manager advised Members that there were no proposed changes to the Treasury Management Strategy for 2021/22.

The Report referred to a key element of the Council’s Governance Framework and represented an important contribution to the evidence trail in support of the Annual Governance Statement 2021/22.

Members were further referred to the Economics and Interest Rates from Links Asset Services as at 6 October 2021 detailed at Appendix B, pages 79 to 84 of the Agenda refer.

The Interim Treasury Investment Manager referred Members to key highlights as follows:

·         With regards to capital expenditure, the tables at pages 68 and 69 of the Agenda referred to the original and revised estimates and the financing of the capital expenditure.  The position as at 30 September 2021 was £4.4m in capital expenditure and the forecast outturn was £26.7m financed by capital receipts, external grants of £5.7m and reserves of £18.2m and this resulted in a zero borrowing need.

·         In relation to the Council’s capital financing requirement, this was a measure of the Council’s underlying need to borrow for a capital purpose.  This was £22.55m as at 30 September 2021 with the actual borrowing of £20m, therefore the Council was under-borrowed by £2.55m.  The operational boundary for external debt remained at £38m and the authorised limit for debt remained at £44m.

·         Members were referred to the Annual Investment Strategy detailed at Section 5 of the report, pages 71 to 72 of the Agenda refer.  Members were advised that the Council’s investment priorities were security of capital followed by liquidity and finally yield, in that order.  Investment returns remained historically low with the Bank of England base rate at 0.1%.  Market forecasts were that the base rate increase was likely to increase by the end of the 2021/22 financial year, however current forecasts were showing that rates would be changing in December 2021.  Members were referred to the table on page 22 of the Agenda that provided a detailed breakdown of the treasury investments held.  The table on page 73 and in Appendix A2 on page 77 provided a detailed breakdown of the property fund investments held.   The Council’s property fund investments made an estimated net contribution to the Council’s revenue account of £503,697 during  ...  view the full minutes text for item 41.

To receive a report.

Rebecca James, Safeguarding Assistant presented Members with the Annual Safeguarding Report 2020/21, pages 85 to 100 of the Agenda refer.

The report provided an overview of the Council’s safeguarding activity from 1 April 2020 to 31 March 2021 and sought to provide assurance that the Council was vigilant in keeping people safe in responding to safeguarding concerns, that it was actively engaged in working with other agencies and fulfilledits statutory duties to challenge any areas which could further improve the Council’s current approach to guard against complacency.  Full details were provided at Paragraph 1 of the report.

Members were invited to put their comments and questions forward.

·         A Member commented that the list of activities around safeguarding looked good however, a query was raised whether statistics around the numbers and type of safeguarding incidents could be provided and how effectively these had been resolved.  A further query was raised in relation to trends identified and whether there were any hot spots.  The Safeguarding Officer informed Members that there had been 42 adult safeguarding concerns and 17 child safeguarding concerns.  In comparison to the previous year, the adult safeguarding concerns (a total of 11) were actually referrals to the Wellbeing Service but they were linked to COVID lockdown and shielding issues as the telephone number was provided if people were unsure of who to contact.  In 2020/21, 31 out of the 59 contacts were dealt with by East Lindsey in-house with 28 of those referred onto the relevant specialist teams at Lincolnshire County Council.

·         A Member commented that he was reassured and content that safeguarding work was being undertaken by East Lindsey.  However, it was highlighted that as the Council was now in partnership with two other councils and Boston Borough Council in particular, this may skew the figures due to the large reported numbers of violence and also homicide reviews from recently reported murders which would increase the workload over a number of organisations.  The Safeguarding Assistant informed Members that both councils had worked together to collate the evidence however, would have to seek clarity on how this would be reported going forward.  A Member highlighted that as there would be a Strategic Safeguarding policy across the Alliance it was important that a joint report should detail the figures for each individual council.

No further comments or questions were received.

Following which it was,

RESOLVED:

That the Annual Safeguarding Report 2020/21 be noted.

To receive a report from the Legal Advisor and Deputy Data Protection Officer.

Alison Sparks, Deputy Data Protection Officer presented Members with the Information Governance Annual Update, pages 101 to 106 of the Agenda refer.

Members noted that it was a requirement under the UK General Data Protection Regulation (GDPR) that an annual report was provided by the Data Protection Officer.

The report provided Members of the Audit and Governance Committee with an overview of activity in relation to information governance, including data protection for the Authority and highlighted any changes or risks for the forthcoming year.

Members were advised that in 2020 most of the focus on information governance and data protection work shifted away slightly from monitoring compliance for data protection onto assisting with data sharing with what was then the Alliance and wider Lincolnshire partnerships, particularly with Lincolnshire County Council and other voluntary groups to keep services running through the pandemic.

Key information was highlighted to Members as follows:

For the period 1 April 2021 to 31 October 2021 there had been a slight decrease in requests for information from customers, however requests were on the increase again and were expected to be equivalent to the previous year at year end.  The following data related to 1 April 2021 to 30th October 2021:

·         Non-disclosure exemptions e.g. Police requests

The Council received 83 requests for disclosure of personal data under the Data Protection Act, compared to 81 requests during the same timeframe in 2020.

·         Data Subject Access Requests

The Council received 12 valid requests for personal data under the Data Protection Act compared to 9 requests during the same timeframe in 2020.

·         Freedom of Information (FOI) Act and Environmental Information Regulations (EIR)

The Council received 358 requests for information under the FOI Act and EIR. At this point last year the number of requests stood at 393.

·         Local Government Ombudsman (LGO)

The Council was notified of 4 new complaints to the LGO, 1 of which had yet to be determined. 5 matters from last year had been determined since 1 April 2021.

·         Information Commissioner’s Office (ICO)

The Council had not been notified of any matters reported to the ICO.  One data breach was self-referred to the ICO which concerned misplacement of some data within the building, however was located within a short time and the matter was closed with no further action.  A further 29 matters had been reported to the Data Protection Officer and closed after internal investigation.

Members were advised that the Transparency Agenda was due for review in 2021/22, however informed Members that the ICO had confirmed that the Council continued to meet the minimum requirements.  Updated guidance on transparency had recently been provided and it was a requirement for this to be published on the Council’s website.

Members were further advised that there had been a slight delay with the review of the internal data protection compliance documents due to other work commitments, however it was anticipated that this work would be completed by mid-January 2022.

Members were invited to put their comments and questions forward.

·         A  ...  view the full minutes text for item 43.

To approve an appointment to the Constitutional Working Group.

John Medler, Democratic Services Manager and Deputy Monitoring Officer informed Members that a seat on the Constitutional Working Group had become vacant, therefore there was a requirement for the Audit and Governance Committee to appoint one of its Members to this Group.

The purpose of the Working Group was to work with the Monitoring Officer to assist with reviewing and monitoring the Council’s Constitution.  The Working Party met as required to review the Council’s Constitution to ensure it remained fit for purpose and reported any proposed changes to the Audit & Governance Committee (with a view to an appropriate report being made by the Audit & Governance Committee to the Council on any changes proposed).

Councillor David Andrews proposed that Councillor Will Grover be appointed to the Constitution Working Group.  This was seconded by Councillor Ros Jackson.

Following which it was,

RESOLVED:

That Councillor Will Grover be appointed to the Constitution Working Group in line with its terms of reference.

To receive a verbal update from the Deputy Monitoring Officer.

Alison Sparks, Deputy Monitoring Officer (DMO) advised Members that she had recently attending a training session facilitated by the Local Government Association in relation to the revised Members’ Code of Conduct which was very informative, in particular the accompanying guidance notes and was happy to circulate to Members.

A Member queried the timetable for the adoption of the Code of Conduct and considered that it was important that the rollout reached the town and parish, district and county councils at the same time rather than staggering it over a period of months which may cause problems.  The Deputy Monitoring Officer informed Members that she would seek clarity on the timeline for the next meeting.

Following a query from a Member it was confirmed that there was a particular reference to social media covered in the guidance for the Revised Code of Conduct.

The programmed date for the next Meeting of this Committee will be Wednesday 9 February 2022.

The date of the next Meeting was confirmed as Wednesday 9 February 2022.