Minutes for Audit and Governance Committee meeting, Sep 30 2009, 3.00PM official page

Apologies for absence were received from Councillors P. Dowd and Parry.

Members and Officers are requested to give notice of any personal or prejudicial interest and the nature of that interest, relating to any item on the agenda in accordance with the relevant Code of Conduct.

There were no declarations of interest.

Minutes of the meeting held on 24 June 2009

RESOLVED:

That the Minutes of the meeting of the Committee held on 24 June 2009 be confirmed as a correct record.

Report of the Finance and Information Services Director

Further to Minute No. 4 of the meeting held on 24 June 2009, the Committee considered the report of the Finance and Information Services Director on the discussions held with the Council’s External Auditors, Pricewaterhouse Coopers on proposals for improving the financial literacy of Senior Members and the provision of financial training for Members.

RESOLVED:            That

(1)       the Officers’ definition of Senior Members for the Purposes of the Council’s Use of Resources Assessment set out in Paragraph 2.1a of the report be noted;

(2)            Members should receive specific finance training on becoming Members of the Audit and Governance Committee; and

(3)       the intention to run a DVD based financial training session be noted.

Report of the Finance and Information Services Director

The Committee considered the report of the Finance and Information Services Director on the Internal Audit Annual Plan for the second six months of 2009/10 which had been drawn up in accordance with the CIPFA Code of Practice for Internal Audit.  The auditable areas in the Annual Plan had been identified for Departments/Services and an Audit Risk Assessment had been applied which assists in prioritising audit work relative to risk.

The report indicated that the structure and operation of the Internal Audit Section was currently under review and it was originally intended that this exercise be completed by May 2009.  The review had been held in abeyance, pending completion of the overall Strategic Budget Review which is being undertaken, as it is essential that any changes in audit are compatible with the outcome of this wider exercise.  The Audit Plan was based on existing structures and procedures, for the second six months of the financial year and it was envisaged that the Plan for 2010/11 will reflect the outcome of the Audit Review.

RESOLVED:

That the Internal Audit Plan for the second six months of 2009/10 be approved.

Report of the Finance and Information Services Director

Following the completion of the audit by the External Auditors, PricewaterhouseCoopers, a report by the Finance and Information Services Director identified proposed amendments to the 2008/09 Statement of Accounts for consideration and approval.  The report included the “Letter of Representation” from the Council to the External Auditors for approval.

The Council, or nominated Committee charged with the responsibility for governance must approve amendments to the Statement of Accounts following the completion of the annual audit.  The Audit and Governance Committee had been delegated with this responsibility and consequently must approve the adjustments to the accounts for 2008/09 by 30 September 2009.

The Council was also required to provide a Letter of Representation to the External Auditor at the conclusion of the audit.  This letter acknowledged the Council’s responsibilities in preparing the Accounts and provided the assurance to the External Auditor that no new information or decisions had been taken that would materially affect the Statement of Accounts for the year.  The letter had to be signed by the Finance and Information Services Director once approved.

The report also included the External Auditor’s Annual Governance Report which covered, not only the audit of the Statement of Accounts, but the Use of Resources Value for Money conclusion.  Mr. P. Chambers and Mr. K. Cheung from PWC were present and provided Members with a brief summary of the issues contained in the report and answered their questions as appropriate.

The Committee noted that the External Auditor had given an unqualified audit opinion and the Council’s Value for Money conclusion score under the new Comprehensive Area Assessment arrangements was 2 out of 4 for the three themes of Managing Finances, Governing the Business and Managing Resources.

RESOLVED:            That

(1)       the amendments to the Statement of Accounts for 2008/2009, be approved;

(2)       the comments of PricewaterhouseCoopers, be noted;

(3)       the Letter of Representation be approved and the Finance and Information Services Director be authorised to sign it on the Council’s behalf, and

(4)       the Value for Money conclusion be noted.

Report of the Finance and Information Services Director

Further to Minute No. 117 of the Cabinet Meeting held on 3 September 2009,. the Committee considered the report of the Finance and Information Services Director on the proposed changes to be made to the Chartered Institute of Public Finance and Accountancy (CIPFA) Treasury Management Code of Practice and the Council’s draft response to the revised code.

RESOLVED: That the report be noted.

To consider passing the following resolution:

That, under Section 100A(4) of the Local Government Act, 1972, the press and public be excluded from the meeting for the following item(s) of business on the grounds that it involves the likely disclosure of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A to the Act.  The Public Interest Test has been applied and favours exclusion of the information from the Press and Public.

RESOLVED:

That, under Section 100A(4) of the Local Government Act 1972, the press and public be excluded from the meeting for the following item of business on the grounds that it would involve the likely disclosure of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12A to the Act.  The Public Interest Test has been applied and favoured exclusion of the information from the press and public.

Report of the Finance and Information Services Director

The Committee considered the report of the Finance and Information Services Director which provided a summary of internal audit work undertaken during the period April to August 2009.  The Committee was required to be appraised of the Internal Audit and Benefit Fraud Investigation Team work as part of its review of the internal control environment and formulation and overall governance arrangements.

RESOLVED:

That the report be noted.

Report of the Finance and Information Services Director

The Committee considered the report of the Finance and Information Services Director which provided an update of the Corporate Risk Register.

RESOLVED:

That the updated Corporate Risk Register be approved.