| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| AU 10/001 |
Declarations of interest. |
There were no declarations of interest made. |
| AU 10/002 |
Minutes |
RESOLVED: That the Minutes of the meeting of the Audit Committee held on 13 October 2009 be approved as a correct record and signed by the Chairman. |
| MATTERS FOR RECOMMENDATION TO THE CABINET | ||
| AU 10/003 |
Treasury Management |
The report of the Director of Finance invited the Committee to review an update to the CIPFA Code of Practice, the consequent revisions to the Treasury Policy Statement and the Treasury Management Strategy Statement and Investment Strategy for 2010/11. It was noted that in response to the difficulties caused by the banking crisis CIPFA had undertaken a review of the Treasury Management Code of Practice and Cross Sectoral Guidance Notes. Attention was drawn to the primary changes to the Code including a specific reference to "investments", the assessment and spread of counter party risk, enhancement of the scrutiny process and the strengthening of internal processes. RECOMMENDED: That (1) the CIPFA Treasury Management Code of Practice 2009 and Cross Sectoral Guidance Notes together with the four clauses at Appendix 1 of the Annex to the report be adopted by the Council; (2) the revised Treasury Management Policy Statement set out at Appendix 2 of the Annex to the report be adopted; and (3) the Treasury Management Strategy Statement and Annual Investment Strategy for 2010/11, as set out at the Annex to the report, be adopted. |
| AU 10/004 |
Anti-Money Laundering Policy Update |
The Director of Finance presented an updated Anti-Money Laundering Policy and supporting Guidance Notes which reflected the provisions of the Money Laundering Regulations 2007 and guidance issued by CIPFA in July 2009. It was noted that the main change related to the standing of public authorities which were no longer legally obliged to apply the main provisions of the regulations. However it was acknowledged that public authorities should employ policies and procedures which reflected the essence of the UK's anti-terrorist financing and anti-money laundering legislation. The updated documentation therefore took account of the legislative changes and incorporated a change in the designated Money Laundering Reporting Officer. RECOMMENDED: That the updated Anti-Money Laundering Policy and Guidance Notes, as set out at Annexes 1-3 of the report, be endorsed and commended for adoption by the Council. |
| DECISIONS TAKEN UNDER DELEGATED POWERS IN ACCORDANCE WITH PARAGRAPH 3 (OR 2), PART 3 OF THE CONSTITUTION | ||
| AU 10/005 |
Review of the Effectiveness of the Audit Committee |
The joint report of the Chairman and Chief Internal Auditor gave details of the outcome of the self assessment against the checklist included in the CIPFA publication "Audit Committees - Practical Guidance For Local Authorities". The self assessment had been completed at an informal meeting between members of the Audit Committee and the Chief Internal Auditor on 8 December 2009. Whilst there was already full compliance with the majority of the matters in the checklist, consideration was given to a number of action points which had been identified. With regard to the question of whether the Committee should consider 'write-offs' prior to reporting to the Executive, it was noted that there was no merit in this as this was Executive business. In response to concerns about the necessity for periodic private meetings with the external auditors it was suggested that, if required, this could be incorporated into the training offered to members of the Audit Committee at the commencement of each municipal year. RESOLVED: That, with the exception of action point 4 relating to write-offs, the action points identified in the report be endorsed and the final result of the self assessment be reported to the Council in due course. |
| AU 10/006 |
Review of CIPFA Managing the Risk of Fraud |
The joint report of the Chairman and Chief Internal Auditor recorded the outcome of the self assessment against the principles set out in the CIPFA publication "Managing the Risk of Fraud" which had been completed at an informal meeting between members of the Audit Committee and the Chief Internal Auditor on 8 December 2009. It was considered that the responses to the checklist set out in the Annex to the report demonstrated that the Council was compliant with all the principles within the Managing the Risk of Fraud - Red Book 2 and that there were no action points identified as a result of reviewing the publication. RESOLVED: That the principles for managing the risk of fraud, as set out in the CIPFA Managing the Risk of Fraud - Red Book 2, be adopted. |
| AU 10/007 |
Protecting the Public Purse |
Consideration was given to the joint report of the Chairman and Chief Internal Auditor which recorded the outcome of a self assessment against the checklist included in the Audit Commission publication "Protecting the Public Purse". The self assessment had been completed at an informal meeting between members of the Audit Committee and the Chief Internal Auditor on 8 December 2009, the overall opinion being that the Council had satisfactory controls in place to minimise fraud and error. However a number of action points had been identified to provide additional assurance that the Council had the appropriate processes in place. In response to concerns about the remit of the Audit Committee the Chief Internal Auditor offered to submit a report to the next meeting on its governance role of ensuring that the correct processes were in place. RESOLVED: That the Chief Internal Auditor report on progress to the next meeting of the Audit Committee. |
| AU 10/008 |
International Financial Reporting Standards |
The Director of Finance provided an update on progress in moving towards the requirement to prepare the Statement of Accounts in accordance with International Financial Reporting Standards (IFRS) from 1 April 2010. It was noted that the transition to IFRS might require changes to systems, procedures and working practices and a number of areas identified at this stage were explained in the report. A detailed action plan which had been prepared using the draft code issued to local authorities, together with examples of the new core financial statements, were set out in the Annexes to the report. Concern was expressed that the guidance received from CIPFA varied from that contained in the international standards and that interpretation and application of the requirements was being considered with the external auditors. RESOLVED: That the contents of the report be noted and endorsed. |
| MATTERS SUBMITTED FOR INFORMATION | ||
| AU 10/009 |
Organisational Assessment |
The Chief Executive reported receipt of the Audit Commission's first Organisational Assessment of the Borough Council which formed one element of the Comprehensive Area Assessment (CAA). Whilst the conclusion of the Organisational Assessment was that the Borough Council performed well overall, provided excellent services for local people and had improved further over the past year, it was noted that the Council had scored three out of four on both managing performance and use of resources. A score of three was defined as "An organisation that exceeds minimum requirements. Performs well". The report advised that the Chief Executive would be meeting the Audit Commission's CAA lead for Kent to discuss the scores allocated and would be querying why the Council had not been awarded a four for managing performance. In the absence of the Chief Executive the Director of Finance provided a verbal update of the discussion with the Audit Commission and advised that a fuller assessment would be submitted to Cabinet on 2 February 2010. RESOLVED: That the report be received and noted. |
| AU 10/010 |
Annual Audit Letter |
The Chief Executive reported receipt of the Audit Commission's Annual Audit Letter summarising the findings following the audit of the 2008/09 financial statements and the assessment of the arrangements in place to secure economy, efficiency and effectiveness in the use of resources together with the outcome of the 2008/09 Use of Resources assessment. Members were pleased to note the positive report on the Council's performance and finances and its conclusion that the Council had strong arrangements in place to manage finances, govern the business and manage other resources. RESOLVED: That the report be received and noted. |
| AU 10/011 |
Update on the National Fraud Initiative 2008/09 |
The report of the Chief Internal Auditor gave details of the outcome of anomalies identified by the National Fraud Initiative 2008/09 which had been investigated to date. RESOLVED: That the report be received and noted. |
| AU 10/012 |
Update on Audits Undertaken During 2009/10 |
The Chief Internal Auditor reported on the outcome of work undertaken to date during the current financial year. The report highlighted any recommendations made during the audits and it was confirmed that the Chief Internal Auditor considered that there were no matters raised within the reports which would have a material effect on the accounts of the Council. RESOLVED: That the report be received and noted. |
| MATTERS FOR CONSIDERATION IN PRIVATE | ||
| AU 10/013 |
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 10/014 |
Insurance Claims History April - December 2009 (Reason: LGA 1972 Sch 12A Para 3 - Financial or business affairs of any particular person) |
The Director of Finance updated the Committee on the nature and volume of liability and property damage insurance claims submitted during the period April to December 2009. RESOLVED: That the report be received and noted. |