Agenda and draft minutes

Up to 15 minutes are allowed for public participation. Participants are restricted to 3 minutes each.

The Democratic and Civic Officer confirmed that there was no public participation in the meeting.

The Chairman then proceeded to welcome Debra Chamberlain, part of the External Audit Team, to the Governance and Audit Committee.

To confirm and sign as a correct record the Minutes of the Meeting of the Governance and Audit Committee held on 22 April 2025

RESOLVED that the Minutes of the Meeting of the Governance and Audit Committee held on 22 April 2025 be confirmed and signed as a correct record.

Members may make any declarations of interest at this point but may also make them at any point during the meeting.

There were no declarations of interest at this point in the meeting.

Matters Arising schedule setting out current position of previously agreed actions as at 2 June 2025.

The Chairman addressed a specific item on the Matters Arising Schedule pertaining to Procurement Lincolnshire. He proposed that the Committee invite the Assistant Director Commercial from Lincolnshire County Council in order to answer questions regarding the work of Procurement Lincolnshire. The Chairman emphasised the importance of understanding how their procurement policy and procedures impacted upon the Council.

Having been proposed and seconded, the Chairman took the vote, and it was unanimously

RESOLVED that the Governance and Audit Committee extend an invitation to Lincolnshire County Council’s Assistant Director Commercial.

With no further comments or questions, the Matters Arising Schedule, setting out the position of previously agreed actions as at 2 June 2025, was NOTED.

The Committee heard from the External Auditor, Debra Chamberlain, who introduced the report. The Committee was directed to the introduction which outlined the audit strategy in terms of materiality, significant risks, and other key elements. It was noted that the methodology for the value-for-money conclusion followed the approach detailed in the report, with a risk assessment scheduled for completion in the coming months. Confirmation of audit independence was provided, with reaffirmation of independence continuing throughout the audit process.

Badar Abbas, External Auditor, continued the presentation explaining that the materiality threshold was set at £1.2 million, with an audit misstatement threshold of £60,000. It was explained that any adjustments exceeding this amount would be reported in the year-end audit report. Four significant risks were highlighted; firstly, the valuation of land and buildings, valued at £30 million, was identified as a risk due to the complexity of the valuation process conducted by external valuers. Secondly, the valuation of investment properties, valued at £23 million remained a focus area, although no substantial changes in underlying risk factors were reported compared to the previous year. Thirdly, the valuation of the local government pension scheme was highlighted due to the complexity of actuarial assumptions, requiring the engagement of a specialist pension team and in-house actuaries to assess the reasonableness of estimates. Lastly, the Auditor stated that management override of controls was acknowledged as an inherent risk in any audit, and specific procedures were designed to detect potential material instances of fraud, though no fraud risk factors had been identified for the Council to date.

Another risk was highlighted by the Auditor, namely the adoption of International Financial Reporting Standards (IFRS 16) for the financial year 2024-25. This had been flagged as an additional audit risk, given the challenges of first-time adoption for councils. The assessment remained ongoing, with any changes to be communicated in the final audit report. Questions were invited from Members of the Committee.

Responding to a question from the Committee, the Auditor emphasised that the risk assessment had been based on the previous year’s financial statements, which recorded the value of land and building assets at £30 million. Due to the significant valuation and the complex process involved, it was confirmed that the risk would remain significant. The final audit report was expected to include a review of the valuations for the 2024-25 period, detailing the results of the audit procedures undertaken in response to this risk.

Questions were raised by a Committee Member regarding materiality, noting a considerable increase in the level set since the previous year. In response to the Committee’s concerns the Auditor explained that the previous year had marked the first audit of the Council which had required extensive planning and risk assessment. It was stated that no significant misstatements or concerning control recommendations had been identified, prompting a review and adjustment of materiality levels. The Committee was reassured that the threshold had not been raised to the maximum permissible level of three percent of expenditure, as a  ...  view the full minutes text for item 5.

Members of the Committee heard from the Internal Auditor who presented the report. A progress report was presented to update Committee Members on the completion of the 2024-25 plan, the status of the 2025-26 plan, and the finalised reports since the last Committee meeting in April 2025. It was confirmed that the 2024-25 plan had been fully completed, with two final reports included in the progress report, and specific questions regarding the wider document were invited.

It was reported that all audits for the 2025-26 plan had been scheduled with the relevant teams, except for the IT audit. It was explained that their IT team was liaising with the authority to secure a booking, and the plan remained on schedule. The Auditor confirmed that key performance indicators were on track, including the timely turnaround of draft and final reports.

The Auditor drew attention to the Combined Assurance report summarised in the report but also included as a standalone item on the agenda. It was clarified that this was not a conventional Internal Audit report but a facilitated discussion with management regarding the assurance map in place. It was highlighted that no high-risk areas had identified, reductions in amber-rated risks were observed, and green-rated risks had increased, indicating an overall improvement in the authority’s risk profile.

In response to a question from the Chairman, the Auditor stated that the IT audit was solely applicable to West Lindsey, and not a joint exercise with North Kesteven. The Chairman noted that a fully green assurance rating would be concerning, as continuous improvement was the objective.

A Member of the Committee enquired about the classification of complaints procedure risks. In response, the Monitoring Officer acknowledged the volume and complexity of external complaints and outlined the ongoing review of procedures. It was confirmed that adjustments to timescales were being considered to aid efficient complaint handling whilst maintaining fairness.

The Chairman discussed expectation of response times, particularly at the parish level. It was observed that many parish councils expected unrealistically fast response times and greater communication was suggested to clarify realistic response times. The Monitoring Officer responded noting that the Chairman’s suggestion would be considered. It was highlighted that the audit had been a valuable process, and it was confirmed that adaptations to the complaints policy were being made in line with audit recommendations.

A Member of the Committee enquired about the ownership of the Saxilby footbridge. The Chief Executive responded, stating that although the Council had undertaken substantial repair and renovation work, formal ownership had not been confirmed. It was explained that responsibility for the repair had been accepted by the Council, following extensive discussions involving the Rivers and Canals Trust, Lincolnshire County Council, the local parish council, and the railway authorities. It remained the Council’s view that future stewardship of the bridge would be best placed with the Rivers and Canals Trust, though it was anticipated that further major maintenance would not be required for several decades.

In response to the Chief Executive’s comments,  ...  view the full minutes text for item 6.

Members considered the Combined Assurance report, presented by the Internal Auditor. Discussion ensued as detailed in the minute above.

Having been proposed and seconded, the Chairman took the vote, and it was unanimously

RESOLVED that:

a)    the contents of the report be approved; and

b)    Members were assured that the findings illustrated the Council’s governance framework was operating effectively.

The Committee considered the Internal Audit Annual Report, presented by the Internal Auditor. Discussion ensued as detailed in the ‘Internal Audit Progress Report and Follow-Up Internal Audit Report’ item above.

Having been proposed and seconded, the Chairman took the vote, and it was unanimously

RESOLVED that the Internal Audit Annual Report be endorsed.

Members of the Committee heard from the Chief Executive who introduced the report. It was explained that a report that had been requested by the Committee to update members on progress at the former RAF Scampton, and to outline the manner in which the project had been managed. It was stated that considerable lessons had been learnt during the previous three years and that, in most respects, the chosen approach had proved sound. The Chief Executive confirmed that a clear and compelling vision for change had been formulated and widely communicated with local Members of Parliament, neighbouring districts, and parish councils. The process by which the Council had secured a well-connected private-sector partnership was subsequently outlined.

The Chief Executive continued, explaining that weekly multi-agency meetings had been convened and had drawn representatives from a wide variety of sources. Despite the differing national objectives imposed upon those agencies, it was confirmed that strong local collaboration had been sustained. The contributions made by colleagues in public health, Lincolnshire County Council, City of Lincoln Council, and the police were acknowledged with gratitude.

The presentation continued, with the Chief Executive explaining that governance processes were tested but had been upheld through the use of extraordinary or combined Committees where necessary. In terms of enforcement powers, these powers had been exercised, including resort to the courts, thereby demonstrating that action against Central Government was possible. It was stated that the response of the Government had been to issue a Special Development Order, the requirements of which continued to bind the Home Office even after its original plans had been withdrawn.

In terms of future plans for the site, it was stated that a site-specific policy had been inserted into the Local Plan, thereby obliging any future owner to agree a masterplan with the authority before undertaking works. It was highlighted that any transfer to the authority from the Home Office would be purely transitory, as the intention remained to pass the asset to the developer immediately. The Chief Executive concluded by inviting comments from the Committee.

The Chairman noted that, when the matter of the former RAF Scampton had first been raised, numerous questions had been asked. Over time, those questions had been answered, and progress had been made. It was stated that the most appropriate course of action was now to move forward, expressing hope that a resolution would be reached that served the best interests of the residents of West Lindsey.

The Vice-Chairman Cllr Dobbie commented on the importance of the Council's engagement with councils in the affected area, describing this aspect of the process as exemplary. The limited communication from central authorities was acknowledged, and it was emphasised that efforts had been made to ensure that local communities were kept informed to the greatest extent possible.

With no further comments or questions, the Regeneration of former RAF Scampton report was DULY NOTED.

With no comments or questions, the Committee Work Plan was DULY NOTED.