| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| AU 09/018 |
Declarations of interest. |
There were no declarations of interest made. |
| AU 09/019 |
Minutes |
RESOLVED: That the Minutes of the meeting of the Audit Committee held on 7 April 2009 be approved as a correct record and signed by the Chairman subject to the substitution of reference to "CAA" for "CCA" in the preamble of Minute AU 09/015. |
| MATTERS FOR RECOMMENDATION TO THE CABINET | ||
| AU 09/020 |
Risk Management Strategy |
Consideration was given to the joint report of the Chief Executive and Director of Finance regarding the annual review of the Risk Management Strategy. It was noted that a number of changes had been made to the Strategy in June 2008 following a major revision of the risk management process and the introduction of a new format for risk registers. A number of amendments had accordingly been made to the Strategy to embed the new process. Members suggested that reference to the Council's aims in the introduction to the Strategy be expanded to include the seeking of opportunities for further improvements. RECOMMENDED: That the revised Risk Management Strategy set out at Annex 1 to the report be commended for endorsement subject to expansion of the aims in the introduction to the document to include reference to the Council seeking further improvements where opportunities arise. |
| DECISIONS TAKEN UNDER DELEGATED POWERS IN ACCORDANCE WITH PARAGRAPH 3 (OR 2), PART 3 OF THE CONSTITUTION | ||
| AU 09/021 |
Annual Report on the Work of the Audit Committee 2008/09 |
The joint report of the Chief Internal Auditor and Chairman of the Audit Committee gave details of work carried out by the Committee during 2008/09 as part of the overall corporate governance process of the Council. A number of questions were raised on the appropriate level of training for Members of the Audit Committee and the Director of Finance outlined the plans for the future. It was noted that the Committee had satisfied the objective of providing an additional independent level of assurance, formed a focal point for all matters of corporate governance to be discussed and raised the profile of Risk Management within the organisation. RESOLVED: That the contents of the annual report be noted and endorsed. |
| AU 09/022 |
Confidential Reporting Code |
The joint report of the Chief Executive and Director of Finance gave details of a review of the Confidential Reporting Code. It highlighted an amendment which had been made to take account of the appointment of the Central Services Director as Monitoring Officer. RESOLVED: That the revised Confidential Reporting Code set out at the Annex to the report be commended to the General Purposes Committee for endorsement. |
| AU 09/023 |
Statement of Accounts 2008/09 |
The Director of Finance presented the Statement of Accounts for 2008/09 in the format specified by the Code of Practice on Local Authority Accounting in the United Kingdom. The Committee was advised that the Accounts included the proposals considered by the Cabinet on 17 June 2009. The role of the Audit Committee was to consider and peruse the Statement of Accounts and make recommendations as deemed appropriate to the General Purposes Committee to which responsibility for approval was delegated under the Council's constitutional arrangements. The Director of Finance reported on an adjustment to the Accounts following publication to reflect the receipt of a sum in excess of £1.1m in respect of a claim for overpayment of VAT to H M Revenue and Customs. The Committee was advised that following consultation with the Audit Commission, the situation was being treated as an adjusting post-balance sheet event requiring amendment of the Statement of Accounts. Copies of the updated pages showing the amended tables and text in the Statement were circulated at the meeting. Members asked a range of questions on the Income and Expenditure Account, notes to the Core Finance Statements and Collection Fund together with the destination of the VAT repayment, which were answered by the officers. RESOLVED: That (1) the Statement provided by the Director of Finance in support of assertions made in the Statement of Responsibilities for the Statement of Accounts, as set out at Annex 2 to the report, be noted and endorsed; (2) the recommendation following a review of specific earmarked reserves that no adjustments are made at this time be noted and endorsed; and (3) the Statement of Accounts 2008/09, as amended by the pages circulated at the meeting, be commended to the General Purposes Committee at its meeting on 29 June 2009. |
| AU 09/024 |
Internal Audit Charter |
The report of the Chief Internal Auditor introduced a revised Internal Audit Charter setting out the terms of reference of the Internal Audit Section. It was noted that as a result of the Peer Review undertaken by Gravesham Borough Council a definition of consultancy work had been added at the end of section 4 of the draft. Members suggested a change to the wording in section 6 regarding reporting lines and relationships of Internal Audit. RESOLVED: That the revised Internal Audit Charter set out at Annex 1 to the report be approved subject to the substitution of "will" for "should" in paragraph 6.1 of the Charter. |
| AU 09/025 |
Treasury Management - Strengthening of Corporate Governance in Response to the Banking Crisis |
The report of the Director of Finance identified measures designed to strengthen the robustness and adequacy of the treasury management process in response to the banking crisis. Reference was made to the report to the Finance and Property Advisory Board on 20 May 2009 and subsequent decision of the Cabinet (D090090CAB), particularly in relation to the intention to invite the Audit Committee to review routine treasury management activities and the annual Treasury Management Strategy Statement and Investment Strategy. Members were accordingly requested to consider the content, style and frequency of information to be reported and to provide feedback on the extent of any training needs to assist in developing a greater understanding of treasury management. Considerable discussion ensued on the change in attitude to risk and reward, the balance between internally and externally managed funds, the latest position in respect of the Council's investment with Landsbanki and the role of Members in treasury management. RESOLVED: That (1) the measures taken in response to the banking crisis be endorsed; (2) the proposals for the reporting of treasury management activities to the Audit Committee, as outlined at paragraphs 1.3.1 and 1.3.2 of the report, be endorsed; (3) the Committee be kept abreast of economic forecasts and significant movements in the money market by regular reports; and (4) further appropriate training be investigated for Members of the Audit and General Purposes Committees, the Finance and Property Advisory Board and Cabinet. |
| AU 09/026 |
Audit and Inspection Plan 2009/10 |
The Chairman agreed to accept this matter as an urgent item of late business as it was necessary for the information from the Audit Commission to be considered before the next meeting of the Committee. The joint report of the Chief Executive and Director of Finance informed Members of the receipt of the Audit and Inspection Plan for 2009/10. Details were given of the Annual Audit and Inspection fees for 2009/10 which represented increases of 4.3% and 39.3% respectively over the fees charged for 2008/09. Whilst noting that the fees could be met from existing budgets, Members expressed concern about the level of increase in the context of Government grant and the Council's overall financial situation. Trevor Greenlee (Audit Manager) explained the components of the fees with particular reference to the new Comprehensive Area Assessment regime and answered questions raised by Members. The Chairman referred to a letter received from the District Auditor seeking assurance from the Audit Committee in respect of various elements of the international standards of auditing. Since a response was required by 3 July 2009, Mr Greenlee indicated that he would agree with officers the level of response required of Members. The matter would be reported back to a future meeting of the Committee for information. RESOLVED: That the Annual Inspection fees and Annual Audit fees for 2009/10 be noted. |
| MATTERS SUBMITTED FOR INFORMATION | ||
| AU 09/027 |
Audit Work to Date 2008/09 |
The report of the Chief Internal Auditor provided a summary of work completed in 2008/09 that had not yet been reported to the Committee. Particular attention was drawn to an investigation within the Housing Service where a minimal opinion had been given and where a number of actions had been implemented to improve the internal controls. It was noted that a report on Homelessness Prevention - Deposit in Advance and Bond Scheme had been presented to the Strategic Housing Advisory Board on 18 May 2009 and updates would be submitted to future meetings. It was agreed that the position also be monitored by follow-up reports to the Audit Committee. RESOLVED: That the report be received and noted. |
| AU 09/028 |
Peer Review of Internal Audit by Gravesham Borough Council |
The Chief Internal Auditor gave details of the outcome of a Peer Review of the Internal Audit Section undertaken by Gravesham Borough Council. It was noted that whilst it had been certified that the Section was compliant with the CIPFA Code of Practice for Internal Audit, a number of suggestions for improvements had been made. One of these related to conducting a review of the effectiveness of the Audit Committee, further details of which would be reported to the next meeting. RESOLVED: That the report be received and noted. |
| AU 09/029 |
Accounts and Audit Regulations |
The Director of Finance reported on a Department for Communities and Local Government consultation paper on amending the Accounts and Audit Regulations 2003 to improve transparency of reporting of remuneration of senior officers in public bodies. It was noted that the Council had responded to an earlier consultation on this matter. Disappointment was expressed that the comments had not been taken into account and the Director of Finance undertook to write to the DCLG accordingly. RESOLVED: That the report be received and noted. |
| MATTERS FOR CONSIDERATION IN PRIVATE | ||
| AU 09/030 |
Exclusion of Press and Public |
The Chairman moved, it was seconded and RESOLVED: That as public discussion would disclose exempt information, the following matters be considered in private. |
| PART 2 - PRIVATE | ||
| MATTERS SUBMITTED FOR INFORMATION | ||
| AU 09/031 |
Insurance Claims History 2008/09 and April - June 2009 (Reason: LGA 1972 Sch 12A Para 3 - Financial or business affairs of any particular person) |
The Director of Finance reported on the nature and volume of liability and property damage insurance claims submitted during the financial year 2008/09 and for the period April - June 2009. At Members' request it was agreed that consistent units of measurement be used in future reports. RESOLVED: The the report be received and noted. |