Agenda item

This report details the proposed scope of an Internal Audit led investigation into the arrangements in place for the creation, operational running and closure of BCP FuturePlaces Limited.

The scope takes into account what was resolved at the last A&G committee (20 March 2025). At the conclusion of this investigation there may still be gaps in understanding, and the committee may or may not decide that further investigation through other means is required.

The Chair introduced this item and drew attention to the use of language when referring to the independence of the committee and its investigations and the HAMA’s role in reporting to members objectively and independently.

The Head of Audit and Management Assurance (HAMA) presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'B' to these Minutes in the Minute Book. The report set out the proposed scope of an investigation into the arrangements in place for the creation, operational running and closure of BCP FuturePlaces Limited. The scope took into account what was resolved at the last meeting on 20 March 2025. It was noted that at the conclusion of the internal audit led investigation there could still be gaps in understanding and the Committee could decide that further investigation through other means was required.

The HAMA assured the committee that the more detailed ‘sub questions’ submitted by members in relation to the scope would be included in an appendix which would explain where they were referenced in the report. He confirmed that external sources of information would be considered if relevant to the agreed scope. The interim report would enable the committee to receive input from the Chief Executive before his retirement. The Committee was also reminded of the procedures in place should any attempt be made to influence the HAMA in carrying out his role.

In response to questions the HAMA signposted members to various sections of the scope where the points they raised were covered. It was noted that information provided in the March 2025 committee report could answer some of the detailed sub questions, however the HAMA’s report would be able to consolidate this information in one place. He confirmed that additional points could be considered throughout the reporting process.

A councillor not on the committee asked that Cabinet be requested to draw up costings for an external investigation. This was not intended to question the independence of Internal Audit but would appear more independent to the public. A committee member spoke in support of this and felt that it would allow members to make a more informed decision. Other members agreed that the committee should undertake its own investigation first, then, if necessary, refer any residual matters externally at a later date. It was noted that the committee had already discussed these issues at length at the last meeting and now needed to move on and agree the scope.

Members welcomed the opportunity for external evidence to be submitted. As two former FuturePlaces executive officers had submitted a public statement, it was considered appropriate to formally invite them to submit any evidence relevant to the scope of the investigation to the HAMA. It was suggested that clarity around non-disclosure agreements would be helpful and a closer look at governance and safeguards

Members considered the detailed points circulated in advance of the meeting and put forward by Cllr S Armstrong for inclusion in the scope. These related to whether any steering groups or advisory groups to FuturePlaces Ltd existed and its relationships with other bodies, initiatives and companies and council companies/delivery vehicles. It was agreed to include these points into the scope in a way the HAMA thought appropriate for public consumption, so that he could take the purpose behind the questions and put it into the same language as the rest of the scope.

Members considered the proposed reporting timescales. The Chair agreed to a suggestion to arrange an additional meeting in August 2025 to allow more time to prepare an interim report. Members were reminded of the need to factor in availability during August. Members asked to retain an item on the agenda for the July meeting but accepted that an interim report at that stage would need to be in whatever form the HAMA could achieve in that timescale.

RESOLVED that the Committee agrees

·       the scope of the Internal Audit investigation as shown at Appendix 1 as amended following the committee’s discussion;

·       to expect interim reports on 24 July 2025 and at an additional meeting to be arranged in August and a final report on 4 September 2025 or 16 October 2025;

·       any recommendations arising from the investigation will be assigned to a lead officer and have a target date for implementation. A&G will monitor implementation in line with High (priority) recommendations.

Voting: Unanimous

Cllr S Armstrong wished it to be recorded that she voted for the resolution but supported the request for costings of an external investigation.

A request to speak on this item from a councillor not on the committee (Cllr P Canavan) was omitted in error for which the Chair apologised.