Agenda, decisions and minutes

There were no declarations of interest.

To confirm as correct records the Minutes of the meetings of the Committee held on 19 March 2025 and 21 May 2025 (to follow as meeting held after agenda publication).

The Minutes of the meetings of the Committee held on 19 March 2025 and 21 May 2025 were agreed as a correct record and signed by the Chairman.

To receive communications from the Chairman.

1)    The Chair updated the Committee on the process to recruit a new Independent Person. This was still ongoing with the current deadline for applications to be received by the 22 June.

2)    Members of the Committee were reminded that Treasury Management training would take place after the next meeting on the 16 July 2025.

The Chairman to report on any requests to address the meeting.

There were no petitions or requests to address the meeting.

There were no items of urgent business.

Report of Assistant Director of Finance (Section 151 Officer)  

Purpose of report

This report includes the Head of Internal Audit annual report (appendix 1), which summarises internal audit work undertaken in 2024/25 and provides an opinion on the overall adequacy and effectiveness of the council’s framework of governance, risk management and control.

It also includes an updated internal audit charter (appendix 2), for the committee to approve. The charter has been updated to ensure that it reflects the requirements of the Global Internal Audit Standards in the UK Public Sector, which came into effect on 1 April 2025.

Recommendations

The Accounts, Audit and Risk Committee resolves to:

1.1           Note the results of internal audit work undertaken, and the opinion of the Head of Internal Audit that Reasonable Assurance can be provided on the adequacy and effectiveness of the council’s framework of governance, risk management and internal control.

1.2           Note the outcome of Veritau’s quality assurance and development arrangements, including the confirmation that the internal audit service conforms to public sector internal auditing standards.

1.3           Note that two significant control weaknesses have been identified by internal audit during the year which are considered relevant to the preparation of the Annual Governance Statement, these being: the council’s health and safety management system and its handling of strategic site applications (pages 5-6, appendix 1).

1.4           Approve the draft internal audit charter.

Resolved

(1)            That the results of internal audit work undertaken, and the opinion of the Head of Internal Audit that Reasonable Assurance can be provided on the adequacy and effectiveness of the council’s framework of governance, risk management and internal control be noted.

(2)            That the outcome of Veritau’s quality assurance and development arrangements, including the confirmation that the internal audit service conforms to public sector internal auditing standards be noted.

(3)            That the two significant control weaknesses that had been identified by internal audit during the year which were considered relevant to the preparation of the Annual Governance Statement: the council’s health and safety management system and its handling of strategic site applications, be noted.

(4)            That the draft internal audit charter be approved.

The Assistant Director of Finance (Section 151 Officer) submitted a report which presented the Head of Internal Audit’s Annual Report for 2024/25. This summarised internal audit work undertaken in 2024/25 provided an opinion on the Council’s System of Internal Control. The report also included an update to the internal audit charter, which had been updated to ensure that it reflects the requirements of the Global Internal Audit Standards in the UK Public Sector, which came into effect on 1 April 2025

In introducing the report, Connor Munro, Assistant Director – Audit Assurances at Veritau advised the Committee that the paper reported on the outcomes of the internal audit work carried out and the strength of opinion on the Council’s arrangements for risk management, governance and internal controls. The Committee was advised that for the 2024-25 financial year the Head of Internal Audit’s opinion was that this framework provided “Reasonable Assurance” but that there were two areas which needed to be considered for inclusion in the Annual Governance Statement.: Health and Safety Management system; and the Management of strategic site applications.  

In response to a question regarding the possibility of including a timeline of overdue audit recommendations to show how quickly these had been actioned, the Assistant Director – Audit Assurance confirmed that this was something Veritau intended to include in future reports.

Resolved

(1)            That the results of internal audit work undertaken, and the opinion of the Head of Internal Audit that Reasonable Assurance can be provided on the adequacy and effectiveness of the council’s framework of governance, risk management and internal control be noted.

(2)            That the outcome of Veritau’s quality assurance and development arrangements, including the confirmation that the internal audit service conforms to public sector internal auditing standards be noted.

(3)            That the two significant control weaknesses that had been identified by internal audit during the year which were considered relevant to the preparation of the Annual Governance Statement: the council’s health and safety management system and its handling of strategic site applications, be noted.

(4)            That the draft internal audit charter be approved.

Report of Assistant Director of Finance (Section 151 Officer)  

Purpose of report

This report presents the counter fraud annual report for 2025/26.

Recommendations

The Accounts, Audit and Risk Committee resolves to:

1.1           Note the annual report.

Resolved

(1)      That the Counter Fraud Annual Report 2024/2025 be noted.

The Assistant Director of Finance (Section 151 Officer) submitted the Counter Fraud Annual Report for 2024/25.

In introducing the report, Sarah Butler, Corporate Fraud Manager at Veritau advised the Committee that the report updated the Committee on the Fraud Team’s work in 2024/25. Veritau had established a good working relationship with various departments within the Council and that twelve fraud investigations had taken place.

In response to a question regarding how the figure of 66% of successful outcomes of fraud investigations compared to previous years and other Councils, the Corporate Fraud Manager explained that the industry standard was around 50% but it was difficult to provide comparative data due to the nature of the work undertaken. Comparisons with previous years were not available as this was the first year Veritau had been engaged as the Council’s counter-fraud provider.

Resolved

(1)      That the Counter Fraud Annual Report 2024/2025 be noted.

Report of Assistant Director of Human Resources

Purpose of report

To provide the Accounts, Audit and Risk Committee with the Council’s Health and Safety performance over the 2023-24 year and its plan for the current year.

Recommendations

The Accounts, Audit and Risk Committee resolves:

1.1     To review the content of the report.

1.2     To provide feedback if any further detail or additional information is required in future reports which will be submitted quarterly.  

Resolved 

(1)      That the Annual Health and Safety Report 2024/2025 be noted.

(2)      That it be noted that Health and Safety performance reports would be submitted quarterly to the Committee and officers be requested to incorporate the following in future reports as far as practicable: update on vehicle accident rates and impact of the action plan; update on near misses and systems in place to address these; and, days lost for incidents that are non-RIDDOR accidents. 

The Assistant Director of Human Resources submitted a report that provided the Committee with the Council’s Health and Safety performance over the 2024/25 financial year and its plan for the current year.

In introducing the report, the Portfolio Holder for Corporate Services explained that the majority of incidents and accidents that had been recorded involved Environmental Services. Due to the nature of the work undertaken, this was the highest area of risk for the Council Each incident was investigated thoroughly with appropriate corrective actions taken as necessary including training, supervision and monitoring.

In response to a question regarding the availability of comparative data from other local District Councils, the Committee was advised that this was reported monthly to the Core Leadership Team and that Cherwell’s data was similar to other Councils.

In response to a question regarding the increase in the amount of vehicle accidents in 2024/2025, the Health and Safety Manager explained that the Environmental Services management team was working on an action plan to reduce the number of accidents.

The Committee requested that, as far as practicable, additional information on vehicle accident rates and the impact of the associated action plan; updated information on near misses and systems in place to address these; and, days lost for incidents that were non-RIDDOR accidents be included in future reports. 

Resolved 

(1)      That the Annual Health and Safety Report 2024/2025 be noted.

(2)      That it be noted that Health and Safety performance reports would be submitted quarterly to the Committee and officers be requested to incorporate the following in future reports as far as practicable: update on vehicle accident rates and impact of the action plan; update on near misses and systems in place to address these; and, days lost for incidents that are non-RIDDOR accidents. 

Report of Assistant Director of Finance (Section 151 Officer)

Purpose of report

To provide information on treasury management performance and compliance with treasury management policy for 2024-25 as required by the Treasury Management Code of Practice.

To demonstrate that all treasury management activities undertaken during the reporting period complied with the CIPFA Code of Practice and the council’s approved Treasury Management Strategy.

Recommendations

The Accounts, Audit and Risk Committee resolves:

1.1           To note the contents of this Treasury Management Annual Performance Report.

1.2           To recommend the report to Council

Resolved

(1)            That the Treasury Management Annual Performance Report 2024/2025 be noted.

(2)            That the Treasury Management Annual Performance Report 2024/2025 be recommended to Council.

The Assistant Director Finance (S151 Officer) submitted a report which provided information on treasury management performance and compliance with treasury management policy for the end of the financial year 2024-25 as required by the Treasury Management Code of Practice. The report also  demonstrated that all treasury management activities undertaken during the reporting period complied with the CIPFA Code of Practice and the council’s approved Treasury Management Strategy.

In introducing the report, the Portfolio Holder for Finance, Property and Regeneration advised that as at 31 March 2025 the Council had borrowings of £165M, with an arranged overdraft of £15M and investments of £5M, which resulted in a net borrowing of £160M. This was similar to the 31 March 2024 year end net borrowing figure of £159M. The Treasury Management budget outturn position 2024/25 was a surplus of £1.571M. 

In response to a question regarding the increase in the estimated ratio of financing costs to 36.8% in 2026/27, the Committee was advised that this was due to the anticipated business rates reset that was being implemented by Central Government.

In response to questions from the Committee regarding comparative data for the non-treasury investments position and the assumptions that had been made relating to the forecasted increase on financial investments, the Assistant Director of Finance agreed to provide this data after the meeting.

Resolved

(1)            That the Treasury Management Annual Performance Report 2024/2025 be noted.

(2)            That the Treasury Management Annual Performance Report 2024/2025 be recommended to Council.

To consider and review the Work Programme.

Resolved  

(1)      That the work programme update be noted. 

The Assistant Director of Finance provided an update on the Committee’s work programme.    

Resolved  

(1)      That the work programme update be noted. 

Report of Assistant Director – Planning and Development

Purpose of report

This report presents the outcomes from Veritau’s fact-finding review into the circumstances surrounding the handling of the Rutten Lane planning application and subsequent appeal.

It also provides the committee with information on the Development Management service’s draft action plan, which has been prepared in response to Veritau’s review and to a separate lessons learned exercise carried out by the service. 

While this report is public, the three appendices have been exempted. This is on the grounds that they contain information relating to the financial or business affairs of any particular person (including the authority holding that information). This information is classed as exempt under paragraph 3 of Schedule 12A to Section 100A of the Local Government Act 1972 (as revised by The Local Government (Access to Information) (Variation) Order 2006). In addition, both exempt appendices 2 and 3 are working drafts. This includes an action plan for the management of strategic planning applications which will be developed further with the Portfolio Holder for Planning and Development.

Recommendations

The Accounts, Audit and Risk Committee resolves to:

1.1           Note the findings and conclusions from Veritau’s fact-finding review, which have been summarised in this report and included in full in exempt appendix 1.

1.2           Note that a strategic planning applications action plan (exempt appendix 2) has been drafted by the council’s Development Management service to help manage delivery of the identified improvements, and that this will be finalised in consultation with the Portfolio Holder for Planning and Development Management.

Resolved

(1)            That the findings and conclusions from Veritau’s fact-finding review (summarised in the public report and included in full in exempt appendix 1) be noted.

(2)            That it be noted that a strategic planning applications action plan (exempt appendix 2) had been drafted by the council’s Development Management service to help manage delivery of the identified improvements and that this would  be finalised in consultation with the Portfolio Holder for Planning and Development Management.

The Assistant Director of Planning and Development submitted a report with exempt appendices which presented the outcomes of the Veritau fact finding report surrounding the handling of the Rutten Lane planning application and subsequent appeal.  The exempt appendices also provided the Committee with information on the Development Management service’s draft action plan, which had been prepared in response to Veritau’s review and to a separate lessons learned exercise carried out by the service.

It was proposed by Councillor Lytton and seconded by Councillor Rogers that the meeting move into private session to consider the exempt appendices to the report.

The following item contains exempt information as defined in the following paragraph of Part 1, Schedule 12A of Local Government Act 1972.

3– Information relating to the financial or business affairs of any particular person (including the authority holding that information).

Members are reminded that whilst the following item has been marked as exempt, it is for the meeting to decide whether or not to consider each of them in private or in public. In making the decision, Members should balance the interests of individuals or the Council itself in having access to the information. In considering their discretion members should also be mindful of the advice of Council Officers.

Should Members decide not to make a decision in public, they are recommended to resolve as follows:

“That under Section 100A of the Local Government Act 1972, the public and press be excluded from the meeting for the following item of business on the grounds that, if the public and press were present, it would be likely that exempt information falling under the provisions of Schedule 12A, Part I, Paragraph 3 would be disclosed to them, and that in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.”

Resolved

That under Section 100A of the Local Government Act 1972, the public and press be excluded from the meeting for the following items of business on the ground that, if the public and press were present, it would be likely that exempt information falling under the provisions of Schedule 12A, Part 1, Paragraph 3 would be disclosed to them, and that in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

As set out under item 12

The Portfolio Holder for Finance, Property and Regeneration introduced the exempt appendices, which included an action plan for the management of strategic planning applications which would be developed further with the Portfolio Holder for Planning and Development.

In response to a question regarding funding of the additional resources required to address the recommendations arising from the report, the Committee was advised that this was under ongoing consideration by the Corporate Leadership Team.

In response to a question enquiring the suitability of the current software used and if there could be improved use of technology  to assist with the process of managing large scale planning applications, the Assistant Director Planning and Development explained that the use and longer term suitability of the current software would be reviewed. 

Resolved

That the press and public be readmitted to the meeting.

The press and public having been readmitted to the meeting, the Portfolio Holder for Finance, Property and Regeneration gave an overview of the report highlighting the timeline of the events that led to the appeal and the rationale as to the subsequent award of costs against the Council.

The Committee was advised that the review had been undertaken to reduce the risk of a similar outcome in the future and to produce a draft action plan to improve the management of strategic planning applications.

Resolved

(1)            That the findings and conclusions from Veritau’s fact-finding review be noted.

(2)            That it be noted that a strategic planning applications action plan had been drafted by the council’s Development Management service to help manage delivery of the identified improvements and that this would be finalised in consultation with the Portfolio Holder for Planning and Development Management.