The report of the Interim Section 151 Officer is attached.

Contact: Duncan Whitfield (01743) 254928

The Committee received the report of the Section 151 Officer who introduced the item and advised that the Terms of Reference were broadly sufficient to support the Committee’s role, particularly in relation to governance, audit, and risk oversight. However, it was noted that, given the wider discussions during the meeting on audit, external reporting, and governance arrangements, Members may wish to consider whether any amendments were required, and Officers confirmed they were content to take any proposed amendments away for incorporation.

A point of clarification was raised regarding the CIPFA definition of an Audit Committee’s purpose, noting that it referred to providing those charged with governance with independent and high-level focus. It was queried whether “those charged with governance” should be interpreted as the Council as a whole or the leadership and executive function, particularly given that the Council’s constitution places governance responsibilities within the Cabinet structure. In response, it was stated that the Committee reported to full Council and not to Cabinet, and that governance arrangements and definitions were expected to be clarified further through the ongoing constitutional review.

Further clarification was requested regarding the appointment of independent co-opted members and whether the Committee itself appoints such members or whether this responsibility rested elsewhere within the Council, and how the process operated where more than one suitable candidate was identified. It was confirmed that delegated responsibility for the appointment process existed within the Section 151 function, but it was also clarified that, in practice, interviews and appointments had previously involved the Chair of the Committee alongside Officers, and that any appointment would ultimately be subject to Council agreement.

Concern was raised that the wording in the Terms of Reference relating to independent members required clarification, particularly in light of potential future changes indicating that more than one independent member may be required. It was suggested that the relevant paragraph should be reviewed and revised to reflect both current practice and anticipated developments.

Further concerns were raised that the constitutional review process had progressed without formal consultation with the Audit and Governance Committee. It was stated that governance matters of this nature should ordinarily be presented to the Committee prior to wider Council consideration, particularly where they relate directly to the Committee’s remit. In response, it was confirmed that the intention was for any new draft constitution to be brought to the Committee for consideration, and that this would include opportunities for comment.

Following discussion, it was proposed that, rather than approving the Terms of Reference in their current form, the item be deferred to the next meeting to allow clarification and refinement of the issues raised, including the CIPFA definition wording, independent member appointment arrangements, and reference to the constitutional review process. The Committee agreed that these matters required further clarification before formal approval.

RESOLVED:

that the Annual Review of the Audit and Governance Committee Terms of Reference be deferred for further review, with an updated version to be presented to the next meeting incorporating the clarifications requested by Members.