Agenda item

The Chairman asked Stephen Fitzgerald, the Interim Head of Finance and Corporate Resources to report on a few matters that were mentioned in the previous minutes of the meeting given he had not been in attendance.

The Interim S151 Officer updated Members on Item 5: Internal Annual Report in which covered issues relating to Revenues and Benefits. He was accompanied by Simon Hughes, Director of People & Commercial Services who was invited to cover the matter in further detail.

The Director of People & Commercial Services outlined two key priorities. The first priority is to work through the High Risk Strategy contained in the Business Rates Audit Report. Subject to Member approval, the Council will use data analytics of payment of Covid-19 grants to identify rate payers. When that work is finished it will be discussed with the cabinet member and an action plan developed. The second priority is to ensure that all covid and energy rebate grants are paid, reconciled and audit assurance work is completed.

A Member asked for a further explanation of wider issues of cyber security.

The Director of People & Commercial Services confirmed he had recently received a draft report from the Cyber 360 review. Additionally, the Council receives and implements guidance from the National Cyber Security Centre (NCSC). The Cyber 360 report, internal audit and NCSC report review risks including software and hardware suppliers, where information is hosted and where there may be a risk of cyber-attacks. Supplier business continuity arrangements are reviewed and the Council plans for how it may need to respond in the event of a cyber-attack. Once the Cyber 360 report is finalised a strategy and action plan will be developed which includes recommendations from these sources of cyber security intelligence in order to mitigate risks. When this report is finalised it will be brought to the Committee.

A Member thanked officers for sharing the Corporate Risk Register and asked to what extend is financial impacts considered in cyber security.

The Director of People & Commercial Services replied that the Council does consider financial impact which can vary dramatically in terms of loss of data, loss of system or loss of access. He added that it informs decisions about what the Council purchases and business continuity arrangements. It was also stated that it is revisited as new types of cyber treats arise.

The Interim Head of Finance and Corporate Resources discussed matters under Review of Treasury Management Activity 2021/22 relating to phrases mentioned as being incorrect and the Service Level Agreement (SLA) with Adur & Worthing Councils. He stated that the SLA is concluding, and the Council must decide whether to continue with the arrangement or choose another arrangement. He proposed a report being brought to the November meeting of the Committee to discuss the options and the respective financial implications.

            On other matters, he confirmed he had circulated Q & A brief that referred to over under borrowing and whilst the terminology is generally used in the field which is relatively opaque however it reflects a position of capital financing requirements. He also referred to an apparent discrepancy in the report which wasn’t a discrepancy but two different things being described in the similar way that may have given a view of this. The reconciliation, however, explains the differences and shows that the report is indeed correct.

The Chairman moved to discuss the objection to the 2020/21 Accounts

The Interim Head of Finance and Corporate Resources noted the objection made to the External Auditor who asked for further comments and information which has now been provided. He stated that the Auditor will reflect on the evidence and issue his final decision as to whether to accept the objection or reject it.

The Chairman enquired about the implications if the delay continues.

The Interim Head of Finance and Corporate Resources replied that the main implication is the frustration of not having closure. However, the external auditor had to be allowed to go through due process and ultimately the council had to wait and allow him to complete his deliberations

The Minutes of the meeting of the Committee were then held on 26 July 2022 were agreed as a correct record and signed by the Chairman.