To receive a report from the External Audit Director, KPMG.

James Boyle, External Audit Director was in attendance on behalf of KPMG, External Auditors, to present the Year End Report to the Audit and Governance Committee for the year-ended 31 March 2024, (pages 157 to 196 of the Agenda refer). 

Members were advised that the report had been prepared for the Audit and Governance Committee in order to communicate matters that were significant to the responsibility of those charged with oversight of the financial reporting process and other matters considered of interest and that the report summarised the key issues identified during the audit for the year ended 31 March 2024.

The External Audit Director advised Members that the audit process was now complete, and that signoff would occur in advance of the statutory deadline of 28^th February 2025.

Members were invited to put their comments and questions forward.

• The Chairman queried the absence of an officer response and due date in relation to the Value for Money (VFM) recommendations for Invest East Lindsey Limited, page 145 of the Agenda refers.  In response, the External Audit Director advised Members that the missing information was related to the timing of the report and that when the document was finalised it would be updated with the officer responses.

• A Member expressed strong disappointment that lessons had not been learned and put into practice in relation to Invest East Lindsey Limited and that a significant weakness had been identified in the Council’s governance structure.

• A Member commented that findings in relation to Invest East Lindsey Limited had been detrimental to an otherwise outstanding financial report and that similar failings should not be allowed to reoccur.

The Chairman clarified that the decision to establish Invest East Lindsey Limited had been agreed by Full Council and that Members had not been aware of specific details such as only one signatory on the bank account. 

• A Member commented on best practice recommended by the Local Government Association (LGA) and stressed the need to ensure that companies such as Invest East Lindsey Limited had qualified company secretaries in place that were fully trained and had full understanding of the issues. 

In response, the Section 151 Officer provided assurance that the Council had carried out an exercise of reviewing Chartered Institute of Public Finance and Accountancy (CIPFA) best practice and that the Policy and Scrutiny Officer had reviewed the information and created a plan of actions that needed addressing. 

Members were further advised that there had been a number of audit reports since 2021/22 to address Members’ concerns and that a clear understanding of arrangements in place was expected for the next Meeting of the Committee.

• A Member queried whether a report on Invest East Lindsey Limited report was being presented to Executive Board or Full Council.  In response, the Section 151 Officer explained to Members that a Scrutiny Panel Report was presented to the Audit and Governance Committee and to Full Council in 2024.

There were no further questions or comments.

Following which it was,

RESOLVED

That the Year End Report be noted.