Agenda item

The MO introduced the report and reminded Members previous discussions had taken place regarding co-option of independent Members onto the Committee. She added that she had therefore prepared guidance for Members to decide how to respond to the CIPFA position statement and recommendations attached in appendix A. It was noted that the recommendations suggested that audit committees should co-opt at least two independent members onto committees, though this remained best practice rather than a statutory requirement, alongside annual public reporting of the position statement. The MO stated that the process had begun with the Redmond Review in 2019, which recommended at least one independent member to ensure that committees had the necessary expertise to undertake their role effectively. She added that independent members could not be an existing Member or employee of the Council, and that they should only sit on the Committee for a set period of time to avoid overfamiliarity with the Council. It was noted that enquiries had been made as to how other authorities had responded to the guidance, to which the HIA stated that she had prepared a similar report for other authorities and suggested that annual reporting of compliance with the recommendations could be fulfilled as part of the self-assessment exercise. The HIA stated that some Councils had chosen to co-opt one independent member which had worked well to provide additional expertise, and further statements could be added to the GRAC Annual Report on the role of the self-assessment exercise to provide assurance. She added that the Committee could start with one independent member, then co-opt an additional member in future if it became a statutory requirement. The MO noted that if Members did decide to co-opt a single independent member, there would be advantages to staggered recruitment, with possible consideration of pooling arrangements with other Councils in the future.

Questions and Discussion

       i.          The Chairman noted that in his experience independent members did add value, but suggested that it may be prudent to start with one independent member first.

      ii.          Cllr S Penfold noted that he was a Member of NCC’s Audit and Governance Committee which had two independent members, which worked very well to support the Committee. He added that it may be helpful to tie in term-limits with the Council’s election cycle, and stated that he would be happy to have one or two independent members, taking into account the preference of the Committee.

     iii.          Cllr C Cushing stated that it would be helpful to know the exact costs, and what skills were needed for the Committee. He added that it would also be helpful to know who would be involved in the recruitment process and where independent persons with the required skills could be found, given that they would be different to those used for the Standards Committee. The HIA replied that she would be happy to provide the skills and knowledge framework which included skills such as financial knowledge, governance, project and risk management. She added that she had a job description prepared, and noted that the recruitment process at other Councils had included both officers and Committee Members. Cllr C Cushing stated that he would prefer to start with a single independent member to see the benefits before co-opting a second, which the Chairman agreed was a sensible approach.

    iv.          The HIA noted that at present the Council’s Constitution did not allow for independent members on the Committee, and this would need to be amended as part of the recruitment process.

      v.          Cllr J Boyle stated that she would prefer to start with a single independent member to determine effectiveness before considering the co-option of an additional independent member as advised by CIPFA.

    vi.          Cllr C Cushing added that he was in favour of seeking to co-opt a single independent member for the term of the administration. The Chairman suggested that co-opting an independent member midway through the Council term could provide continuity on the Committee after elections.

   vii.          The DSGOS stated that the Committee had suggested that they wished to seek co-option of a single independent member for a four year period, with the rest of the recommendation remaining the same. The MO added that the second recommendation should include reference to how the Committee adheres to CIPFA best practice in its annual report, with reference to the self-assessment process.

  viii.          Cllr S Penfold suggested that it may be worthwhile linking independent members term to the election cycle, which would shorten the appointment to approximately three years. The Chairman suggested that allowing a four year term would create continuity for the Committee over an election period.

    ix.          The recommendations were proposed by Cllr J Toye and seconded by Cllr J Boyle.

RESOLVED

1.     To recommend to Full Council that one independent member be co-opted onto the Governance, Risk and Audit Committee for a four year period subject to further advice, with delegated authority to be given to the Monitoring Officer in consultation with the GRAC Chairman to undertake recruitment arrangements.

2.     That the Governance, Risk and Audit Committee reports annually on how the Committee has complied with the CIPFA position statement 2022, to include how the Committee has discharged its responsibilities, an assessment of its performance and that such a report is made available to the public and included the in the Committee’s annual self-assessment report.