Items
No. |
Item |
1. |
Apologies for Absence
Minutes:
No apologies for absence were
received.
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2. |
Declarations of Interest and Whipping Declarations
At this point Members must
declare whether they have an interest, whether personal or
prejudicial, in any of the items on the agenda. Members must also
declare if they are subject to their party group whip in relation
to any items under consideration.
Minutes:
There were no
declarations of interest or whipping declarations.
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3. |
Minutes of the Meeting Held on 7 June 2012 PDF 84 KB
Minutes:
The minutes of the
meeting held on 7 June 2012, were approved as an accurate and true
record.
The Committee was
advised by the Cabinet Member of Resources, that all Members had
been written to regarding their responsibility over auto forwarding
emails to private addresses and to ensure they carry out regular
password changes on their laptops.
Members were also advised within the correspondence that they would
be personally liable under the Data Protection Act if they caused
any data breaches.
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4. |
Compliance Team Annual Report 2011 / 2012 PDF 72 KB
To receive, consider and
endorse the annual report on the investigation of fraud and other
issues for the year ended 31 March 2012.
Additional documents:
Minutes:
The Committee received
the Annual Compliance Team 2011/12 report from the Compliance
Manager. Members were also advised that
the report was being received as a scheduled report on fraud and
irregularity in accordance with the established Work Programme for
2011/12.
Audit Committee was
asked to:
1. Receive, consider and
endorse the attached annual report on the investigation of fraud
and other issues for the year ended 31 March 2012.
The key points within the
report included:
·
The
Council’s approach to combating fraud, and its delivery over
2011/12;
·
Quantity of
fraud;
·
Types of
Investigation undertaken in 2011/12;
·
Benefit fraud
achievements 2011/12 compared with 2010/2011;
·
Value of
overpayments 2011/12 compared with 2010/2011;
·
National Fraud
Initiative;
·
Electoral
Integrity Initiative;
·
Publicity;
·
Disciplinary
cases;
·
Stage III
Complaint Investigations;
·
Standards
Investigations; and
·
Information
Management detailing the numbers of requests for Information such
as Freedom of Information Act, Data Protection Act and
Environmental Information Regulations.
Comments and responses to questions were as follows:
- The Executive Director of Strategic Resources advised the
Committee that there was a report detailing various complaints,
which was presented to the Sustainable Growth and Environment
Capital Scrutiny Committee.
ACTION
AGREED:
The Committee agreed to endorse the annual report on
the investigation of fraud and other issues for the year ended 31
March 2012.
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5. |
Annual Review of the Effectiveness of Internal Audit 2011 / 2012 PDF 73 KB
To receive, consider and
endorse the annual review of the effectiveness of Internal Audit
for the year ended 31 March 2012.
Additional documents:
Minutes:
The
Committee received a report on the Annual Review of the
Effectiveness of Internal Audit 2011/12 from the Chief Internal
Auditor. The Committee was also advised
that in accordance with the requirements of the Accounts and Audit
Regulations 2011, the Council conducted an annual review of the
system of internal audit, which was to be considered as part of its
governance assurance processes, including the production of the
Annual Governance Statement.
During consideration of the report, the Audit Committee was
asked to note the content and approve the annual review of the
effectiveness of Internal Audit 2011/2012.
The following key
points within the report included:
- Internal Audit
Effectiveness;
- Governance and
assurance requirements;
- Internal
controls;
- Comparison with
statement on the role of Head of Internal Audit;
- Integrated audit work
with risk management and governance arrangements;
- Performance
indicators;
- Compliance with code
of practice for internal audit and best practice;
- External Audit
Opinion; and
- Staffing levels
impacting on the work of the team; however, measures had been put
in place.
Comments and responses
to questions were as follows:
- Clarification was
sought over which Members other than Audit Committee Members would
hold established clear lines of responsibility in
governance. The Chief Internal Auditor
advised that the responsibility would also be held with Cabinet
Members;
- Members sought
clarification over the responsibilities of considering the Audit
Strategy report. The Chief Internal
Auditor advised Members that the Audit Strategy was considered and
agreed by Audit Committee in March each year; however, all Members
would be able to view the document;
- Members sought
clarification over why the Council had not adopted a Leadership
Team. The Chief Internal Auditor
advised Members that although a Leadership Team had not been
adopted there was a Cabinet Policy Forum in place, which was made
up of Members and Directors;
- The Chief Internal
Auditor advised Members that the term “Audit Plan” in
the document, referred to the Audit Strategy and Audit Plan;
and
- The Executive
Director of Strategic Resources advised Members that the role of
Head of Internal Audit reported directly to the Head of Corporate
Services but also had direct access to Senior Officers of the
Management Team and Members.
ACTION AGREED:
The
Committee agreed to approve the annual review of the effectiveness
of Internal Audit 2011 / 2012.
The Committee further
agreed that the Chief Internal Auditor would include clearer
explanations within audit reports if an item had not been complied
with and would provide explanations on what measures were in place
to rectify any non compliance issues.
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6. |
Internal Audit: Annual Audit Opinion 2011 / 2012 PDF 63 KB
To receive, consider and
endorse the annual report on Internal Audit activities for the year
ended 31 March 2012.
Additional documents:
Minutes:
The Committee received
a report from the Chief Internal Auditor on the Annual Audit
Opinion 2011/12, which outlined the performance of Internal Audit
during 2011/12 and the areas of work undertaken, together with an
opinion on the soundness of the control environment in place to
minimise risk to the Council. The
Committee was also advised that recommendations from the report
were included in the Annual Governance Statement later on the
agenda.
During consideration of the report, the Audit Committee was
asked to:
- Receive, consider and endorse the Chief Internal Auditor's
annual report for the year ended 31 March 2012; and
- Note
the report of Internal Audit's performance
The following key
points within the report included:
- Progress reported on
the opinion of the Audit;
- Number of
recommendations made;
- Include an opinion on
the overall adequacy and effectiveness of the organisation’s
internal control environment;
- Disclose any
qualifications to that opinion, together with the reasons for the
qualification;
- Summarise the audit
work undertaken to formulate that opinion, including reliance
placed on work by other assurance bodies;
- Draw attention to any
issues the Head of Internal Audit (or equivalent) judges
particularly relevant to the preparation of the Annual Governance
Statement;
- Compare the work
actually undertaken with the work that was planned and summarise
the performance of the Internal Audit function against its
performance measures and criteria;
- Comment on compliance
within the standards and communicate the results of the Internal
Audit quality assurance programme;
- The authority for
internal audit;
- Local government act
1972 section 151;
- Accounts and audit
regulations 2011 section 4 – responsibility for financial
management;
- Accounts and audit
regulations 2011 section 6 – internal audit;
- The scope of internal
audit;
- How internal control
was reviewed;
- Basis of head of
internal annual opinion;
- Corporate governance
and the annual governance statement;
- Risk
management;
- Key financial
systems; and
- Assurance levels and
recommendations 2011/2012 reports.
Comments and responses
to questions were as follows:
- Members sought
clarification over the use of credit cards by schools. The Chief Internal Auditor advised Members that a
number of schools had been allocated with a credit card for small
items of expenditure and that the sole responsibility for its use
was held by a Head Teacher; and
- The Chief Internal
Auditor advised Members that the eight issues raised within the
Annual Audit Opinion report, would be discussed during the Annual
Governance Statement agenda item.
ACTION AGREED:
The Committee Agreed to:
- Receive, consider and
endorse the Chief Internal Auditor's annual report for the year
ended 31 March 2012; and
- Note the report of
Internal Audit's performance
The Committee further
agreed that the Chief Internal Auditor would provide Members with
information on the outcome of follow up audits conducted on schools
that used credit cards, where the control measures were deemed to
be of a poor standard.
The meeting was
adjourned for ten minutes to allow Members of the Audit Committee
time to read the late report which had been received for the next
agenda item.
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7. |
Draft Annual Governance Statement 2011 / 2012 PDF 88 KB
To receive, consider and
endorse the draft Annual Governance Statement for the year ended 31
March 2012.
Additional documents:
Minutes:
The
Committee received a report on the Draft Annual Governance
Statement (AGS) 2011/12 from the Chief Internal
Auditor. The Committee were also
advised that the report was to be submitted as part of the annual
closure of accounts process and was included in the Audit Committee
Work Programme for 2012 / 2013.
During consideration, the Committee was asked to:
- Note the arrangements
for compiling, reporting on and signing the Annual Governance
Statement;
- Review and comment on
the Annual Governance Statement including any areas which should be
amended; and
- Subject to changes
identified above, agree and approve the draft statement for
inclusion in the audited statement of accounts, published by 30
September 2012.
The following key
points within the report included:
- Annual Statement of
Accounts;
- Looking at Risks
Registered and how these were managed;
- Key policies
procedures;
- How the Council
informed the public;
- Information
Governance;
- Annual Governance
Statement to Directors;
- Internal Control and
Governance Self Assessment;
- Assurance
Statement;
- Draft
AGS;
- Scope of the
AGS;
- Arrangements for
compiling the AGS;
- Supporting
evidence;
- Internal
Audit;
- External Audit
– PricewaterhouseCoopers;
- Executive Directors:
Internal Control and Governance Self Assessment;
- Performance
Management and Data Quality;
- Risk Management;
and
- Corporate
Governance.
Comments and responses
to questions were as follows:
- Members were advised
by the Executive Director of Strategic Resources that action for
the governance issues identified within the 2011/12 report, such as
the implementation of requirements for the Localism Act and the
establishment of a local scheme to administer welfare payments,
were reliant on the Government’s completion to introduce
regulations in order for Councils to implement the legislative
changes.
ACTION AGREED:
The
Committee:
- Noted the arrangements for compiling, reporting on and signing
the Annual Governance Statement;
- Reviewed and commented on the Annual Governance Statement
including any areas which should be amended; and
- Agreed and approve the draft statement for inclusion in the
audited statement of accounts to be published by 30 September
2012.
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8. |
Budget Monitoring Report Final Outturn 2011 / 2012 PDF 188 KB
To receive, consider and
endorse the final outturn position for 2011 / 2012.
Minutes:
The
Committee received a presentation of the report from the Executive
Director of Strategic Resources, on Budget Monitoring Report and
Final Outturn for 2011/12. The Committee was also informed that the
purpose of the report was to inform Audit Committee of the final
financial position for revenue and capital at 31 March 2012.
During consideration of the report, the Audit Committee was
asked to note:
- The
final outturn position on the Council’s revenue budget
2011/12 of £678k overspend, including the improvement of
£1,431k since the provisional outturn position;
- The
final outturn position on the Council’s capital budget
2011/12;
- The
reserves position for the Council, which would be approved by
Cabinet;
- The
performance against the prudential indicators; and
- The
performance on treasury management activities, payment of creditors
in services and collection performance for debtors, local taxation
and benefit overpayments.
The following key
points within the report included:
- Final Outturn 2011/12;
- Medium Term Financial Strategy;
- Financial Report – Revenue;
- Financial Report – Reserves;
- Financial Report – Capital;
- Financial Report – Treasury Management Activity for
2011/12; and
- Financial Report – Performance Monitoring.
Comments and responses
to questions were as follows:
- Members sought clarification over the treasury management
activities listed within the report and whether the Council had
leant money to Lloyds Bank as part of the Local Authority Mortgage
Scheme? The Head of Corporate Services
advised Members that the Council was participating in the Local
Authority Mortgage Scheme with Lloyds and had placed an indemnity
payment of 1 million pounds, with the bank. Members were also advised that the expenditure was
classed as capital spend, which was why details were not included
in the treasury part of the budget monitoring report.
- In
clarification sought by Members, the Executive Director of
Strategic Recourses advised that the recovery of rates position for
Icelandic banks was improving.
ACTION AGREED:
The
Committee noted:
- The
final outturn position on the Council’s revenue budget
2011/12 of £678k overspend, including the improvement of
£1,431k since the provisional outturn position;
- The
final outturn position on the council’s capital budget
2011/12;
- The
reserves position for the Council, which was to be approved by
Cabinet;
- The
performance against the prudential indicators; and
- The
performance on treasury management activities, payment of creditors
in services and collection performance for debtors, local taxation
and benefit overpayments.
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9. |
Statement of Accounts For The Year Ended 31 March 2012 PDF 90 KB
To consider and comment on the
Statement of Accounts for the year ended 31 March 2012.
Additional documents:
Minutes:
The
Committee received a report on the Statement of Accounts for
2011/12. The Committee was also advised
that the report was to form part of the regular pattern of
reporting on the Council’s financial position.
The
Executive Director of Strategic Resources highlighted some
typographical errors, within the report, which would be corrected
in the final Statement of Accounts report to Auditors.
During consideration of the report, the Audit Committee was
asked to:
- Review and comment on the Statement of Accounts prior to the
Chief Finance Officer’s certification by 30 June
2012.
The following key points within the reports included:
- Format of the
Accounts 2011/12;
- Explanatory foreword, which provided an understandable guide to
the most significant matters reported in the accounts;
- Statement of responsibilities, which set out the
responsibilities of the Council and the Chief Financial Officer in
respect of the Statement of Accounts;
- Comprehensive Income and Expenditure Statement, which showed the
accounting cost in the year of providing services in accordance
with generally accepted accounting practices, rather than the
amount to be funded from taxation;
- Movement in Reserves Statement – the statement showed the
movement in the year on the different reserves held by the
Council;
- Balance Sheet, which showed the value of the assets and
liabilities recognised by the Council as at 31 March
2012;
- Cash Flow Statement, summarised the inflows and outflows of
cash, and cash equivalents, arising from transactions with third
parties for both revenue
and capital purposes in 2011/12;
- Notes to the Financial Statements - the various statements were
supported by
technical notes and by the Statement of Accounting
Policies;
- The Collection Fund & Notes, which showed the transactions
of the Council in
relation to Council Tax and National Non-Domestic Rates;
- Statement of Accounting Policies, which outlined the accounting
policies adopted by the Council;
- Annual Governance Statement
;
- Schools
Balances;
- Collection
Fund;
- Balance Sheet at 31
March 2012; and
- Reserves and
Balances.
Comments and responses
to questions were as follows:
- Members sought clarification over what measures the Council were
putting in place to monitor borrowing against the upper and
authorised limits. The Executive
Director of Strategic Resources advised Members that the Council
aimed to follow the prudential code, which had set the ceiling on
the maximum amount the Council was able to borrow for capitol
investment. Members were also advised
that the current borrowing rate was set at 4.2%; and
- Members sought clarification over whether the Council was
comfortable with the rate of borrowing limits that was currently
set? The Executive Director of
Strategic Resources advised that over the last few years the
borrowing limits had increased significantly. Members were also advised that the increase was
due to non PFI schemes, investment in energy for waste scheme,
invest to save for projects such as installing Photovoltaic panels
on schools.
- The
Head of Corporate Services advised Members that an updated report
on the Treasury Management Strategy was provided to Audit Committee
every six months, which would include an overview of the
Council’s borrowing activities. Members were also advised
...
view the full minutes text for item 9.
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10. |
Work Programme 2012 / 2013 PDF 63 KB
To review the work programme
for 2012 / 2013
Minutes:
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