| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| AU 09/032 |
Declarations of interest. |
There were no declarations of interest made. |
| AU 09/033 |
Minutes |
RESOLVED: That the Minutes of the meeting of the Audit Committee held on 22 June 2009 be approved as a correct record and signed by the Chairman. |
| MATTERS FOR RECOMMENDATION TO THE CABINET | ||
| AU 09/034 |
Treasury Management - Further Strengthening of Corporate Governance through Amendment of the Treasury Management Strategy Statement and Annual Investment Strategy for 2009/10 |
The report of the Director of Finance provided an update on treasury management activities together with an opportunity for the Audit Committee to endorse the changes to the Treasury Management Strategy Statement and Annual Investment Strategy for 2009/10 which were recommended for approval by the Cabinet and Council following consideration by the Finance and Property Advisory Board on 30 September 2009. Prior to the meeting a treasury seminar undertaken by Sector Treasury Services Limited had taken place, the training being designed to provide Members with a wider understanding of treasury activities and thereby to assist them in addressing the key strategic issues. The Committee recorded its appreciation to the Exchequer Services Manager for the consistently high quality of work over the years and especially during the unprecedented recent circumstances when the longer term strategy adopted for core investment had provided a substantial cushion against the current low interest environment. RECOMMENDED: That (1) the action taken by officers in respect of recent treasury management activities be endorsed; and (2) the proposed amendments to the Treasury Management Strategy Statement and Annual Investment Strategy for 2009/10 be commended to the Council for approval. |
| AU 09/035 |
Review of Anti-Fraud and Corruption Policies |
The Chief Internal Auditor presented updated Anti-Fraud and Corruption Policy and Housing and Council Tax Benefit Anti-Fraud Policy documents which had been reviewed in line with the policies of Gravesham Borough Council as part of the partnership arrangement for the provision of fraud management. It was noted that the policies had been considered by the Policy Overview Committee and recommended for endorsement as part of the Council's budget and policy framework. RECOMMENDED: That the Anti-Fraud and Corruption Policy and the Housing and Council Tax Benefit Anti-Fraud Policy, as set out at Annexes 1 and 2 to the report, be endorsed and commended to the Council for adoption. |
| AU 09/036 |
Risk Management Consultancy Allowance |
Consideration was given to two proposals for the further partial allocation of an allowance provided by the Council's insurers in respect of risk management initiatives. One proposal related to a review of the Council's client role and approach to its legal responsibilities for managing contracts and contractors from a health and safety perspective at an estimated cost of £3,500 plus VAT. The second related to risk management refresher training for members of the Audit Committee with an invitation extended to members of the Cabinet, Finance and Property Advisory Board, General Purposes Committee and any other interested Members at a cost of £1,300 plus VAT. It was noted that such use of the allowance would leave a balance of £14,000 to be spent by June 2010. RECOMMENDED: That (1) the proposal for a review of the Council's role in managing contracts and contractors be approved, funded from the risk management consultancy allowance; and (2) the proposal for Risk Management refresher training for members of the Audit Committee and other interested Members be approved, funded from the risk management consultancy allowance. |
| DECISIONS TAKEN UNDER DELEGATED POWERS IN ACCORDANCE WITH PARAGRAPH 3 (OR 2), PART 3 OF THE CONSTITUTION | ||
| AU 09/037 |
Risk Management Update |
The report of the Director of Finance updated the Committee on recent risk management related activities including improvements in the monitoring and reporting of movements of risk in response to the last Use of Resources assessment. Details were given of the current areas of high risk and it was noted that staffing issues within Financial Services (Revenues and Benefits) had resulted in the majority of scores being increased within those areas. In addition a separate strategic risk register relating to the key objectives of the Council had been established. The improved reporting measures were well received by Mr A Mack, the District Auditor. RESOLVED: That (1) the improvements made to the Risk Management process be noted; and (2) the items assessed as High Risk at the present time and the existing controls to minimise the impact of such risks be acknowledged. |
| AU 09/038 |
Use of Resources Audit 2008/09 |
The joint report of the Chief Executive and Director of Finance gave details of the Use of Resources scores for 2008/09 and it was noted that the assessment had changed significantly from previous years. Mr Mack, the District Auditor, explained the various elements of the assessment leading to the Council's overall level 3 performance which indicated that it "exceeded minimum requirements and performed well". Whilst acknowledging the positive relationship with the District Audit service, Members questioned the value of the new CAA regime to the public against the costs of providing the information required, especially in view of the current financial situation faced by the Council. RESOLVED: That the satisfactory outcome of an overall 'level 3' assessment from the Use of Resources Assessment 2008/09 be noted. |
| AU 09/039 |
Protecting the Public Purse |
The Chief Internal Auditor reported on an Audit Commission publication "Protecting the Public Purse" which highlighted the key fraud risks and pressures facing councils and identified good practice in combating fraud. It was noted that a checklist to be used as a template for best practice and to identify potential areas of improvement would be completed and reported to the next meeting of the Committee. RESOLVED: That a review be undertaken of fraud prevention measures in line with the publications mentioned in the report with a view to reporting the outcome at the next meeting of the Committee. |
| MATTERS SUBMITTED FOR INFORMATION | ||
| AU 09/040 |
Statement of Accounts 2008/09 |
The Director of Finance reported on the outcome of the Audit of the Council's Accounts for 2008/09. It was noted that the General Purposes Committee at its meeting on 7 September 2009 had authorised the Chairman to re-sign the Accounts following which the District Auditor had issued an unqualified opinion. A copy of the District Auditor's Annual Governance Report for 2008/09 was also received and attention drawn to three recommendations made in the report which had been endorsed by the General Purposes Committee. RESOLVED: That the report be received and noted. |
| AU 09/041 |
Request from District Auditor for Assurances regarding the 2008/09 Accounts |
Further to Minute AU 09/026, the Committee received a copy of the letter sent by the Chairman on its behalf to the District Auditor in response to a request for assurances about various elements of the international standards of auditing. RESOLVED: That the report be received and noted. |
| AU 09/042 |
International Financial Reporting Standards (IFRS) |
The Director of Finance reported on the requirement to prepare the Statement of Accounts in accordance with International Financial Reporting Standards from 1 April 2010. Reference was made to the changing format of the financial statements and additional information to be provided by way of notes. It was planned to make the transition to IFRS within existing resources but a further assessment would be made and reported to the Committee when Government guidance had been received. RESOLVED: That the report be received and noted. |
| AU 09/043 |
Update on Audits Undertaken During 2009/10 |
The report of the Chief Internal Auditor provided a summary of work to date during the current financial year and highlighted any recommendations made. Members raised a number of questions in connection with individual reports. RESOLVED: That the report be received and noted. |
| AU 09/044 |
Internal Audit Outturn 2008/09 |
Members received a report summarising the outcome of the work of the Internal Audit Section during 2008/09. RESOLVED: That the report be received and noted. |
| AU 09/045 |
Audit Commission - Proposed Work Programme and Scales of Fees 2010/2011 |
The report of the Director of Finance informed the Committee of the Audit Commission's proposed work programme and scales of fees for 2010/11 together with indicative fee proposals for 2011/12 and 2012/13. It was noted that Tonbridge and Malling had benefited from a scaling back of the fees. Mr Mack explained the approach and assured Members that the District Audit service would be seeking efficiency savings in its own work. RESOLVED: That the report be received and noted. |
| MATTERS FOR CONSIDERATION IN PRIVATE | ||
| AU 09/046 |
Exclusion of Press and Public |
No items were considered in private. |