| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| AU 10/028 |
Declarations of interest. |
There were no declarations of interest made. |
| AU 10/029 |
Minutes |
RESOLVED: That the minutes of the meeting of the Audit Committee held on 13 April 2010 be approved as a correct record and signed by the Chairman. |
| MATTERS FOR RECOMMENDATION TO THE COUNCIL | ||
| AU 10/030 |
Annual Report on the Work of the Audit Committee 2009/10 |
The joint report of the Chief Internal Auditor and the Chairman of the Audit Committee informed Members of the work carried out by the Committee during 2009/10 as part of the overall corporate governance process of the Council. The report concluded that the Audit Committee had met the requirements of the aims and objectives set out in the Constitution and continued to provide an independent review of the Council's overall corporate governance process. In accordance with best practice identified by CIPFA it was recommended that the report be presented to the Council. In introducing the report the Chairman thanked the Chief Internal Auditor and his team for their work during the year. RECOMMENDED: That the Annual Report be received and noted and be presented to full Council as a record of the independent review of the Council's overall corporate governance process. *Referred to Council |
| MATTERS FOR RECOMMENDATION TO THE CABINET | ||
| AU 10/031 |
Risk Management Strategy |
The joint report of the Chief Executive and Director of Finance presented a revised Risk Management Strategy for endorsement. One minor change from the existing strategy was highlighted reflecting the reduction in frequency of risk register reviews. It was noted that the draft strategy had already been considered by the Cabinet on 16 June 2010 which had recommended endorsement by the Council subject to any subsequent changes identified by the Audit Committee. Members identified a number of typographical corrections which would be incorporated in the final document. RECOMMENDED: That the revised Risk Management Strategy set out at Annex 1 to the report be adopted by the Council. |
| AU 10/032 |
Risk Management Consultancy Allowance |
The Director of Finance reported on two further proposals for the allocation of funding from the allowance granted by the Council's insurers which had been agreed in consultation with the Chairman and Vice-Chairman, Cabinet Member for Finance and the Leader. These related to Leisure Risk Management training for managers and supervisors at the Council's indoor leisure facilities and an Open Spaces Report on the Council's country parks and sports grounds. The total cost of both proposals was £7,000 leaving a balance to be allocated by June 2011 of £7,058. RECOMMENDED: That (1) the action taken in consultation with the Chairman and Vice-Chairman to progress the two initiatives be approved; and (2) both initiatives be funded from the risk management consultancy allowance. |
| AU 10/033 |
Treasury Management Practices |
The Director of Finance invited the Committee to comment upon the latest version of the Council's Treasury Management Practices (TMPs) which were created and maintained in accordance with the CIPFA Code of Practice for Treasury Management in the Public Services. It was noted that the TMPs were required to set out the manner in which the Council would seek to achieve its policies and objectives and to prescribe how those activities would be managed and controlled. Members raised a number of questions on the TMPs which were answered by officers. RECOMMENDED: That the Treasury Management Practices set out at Annexes 1 to 3 of the report be adopted. |
| DECISIONS TAKEN UNDER DELEGATED POWERS IN ACCORDANCE WITH PARAGRAPH 3 (OR 2), PART 3 OF THE CONSTITUTION | ||
| AU 10/034 |
Review of Internal Audit Charter |
The Chief Internal Auditor presented a revised Internal Audit Charter prepared in accordance with the CIPFA Code of Practice for Internal Audit. It was noted that minor changes had been made to the Charter including removal of reference to Key Lines of Enquiry following the Government's announcement that the Comprehensive Area Assessment process had been terminated. RESOLVED: That the revised Internal Audit Charter set out at the annex to the report be adopted. |
| AU 10/035 |
Confidential Reporting Code |
The joint report of the Chief Executive and Director of Finance presented a revision to the Confidential Reporting Code for consideration prior to endorsement by the General Purposes Committee. It was noted that the only revision to the Code was the addition of a form on which users would raise any concerns. 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 10/036 |
Statement of Accounts 2009/10 |
The Director of Finance presented the Statement of Accounts for 2009/10 in the format specified by the Code of Practice on Local Authority Accounting in the United Kingdom, Statement of Recommended Practice (SORP). The Committee was advised that the Accounts included the proposals considered by the Cabinet on 16 June 2010. It was noted that 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. Members were advised that this would be the last year for which a UK Generally Accepted Accounting Practice based SORP would be issued and in future the Statement of Accounts would be prepared in accordance with International Financial Reporting Standards (IFRS). Officers would be producing an IFRS based Statement of Accounts for the financial year 2009/10 as the comparator year in readiness for the 2010/11 closure of accounts and this would be presented to the Committee to highlight and explain the differences. The Director of Finance drew attention to the better than anticipated return on investment and updated the position on Landsbanki. It was noted that the most significant change in the balance sheet related to pensions arising from falling interest rates. Members asked questions on a range of topics which were answered by the officers, including the valuation of land and buildings, planning inquiries reserve, accounting for Landsbanki and future contribution rates on pensions. 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 contribution of £50,000 to the Planning Inquiries Reserve and £12,000 to the Leisure Services Business Unit Reserve be noted and endorsed; and (3) the Statement of Accounts 2009/10 be commended to the General Purposes Committee at its meeting on 28 June 2010. |
| AU 10/037 |
Scrutiny of Treasury Management Activities |
The Director of Finance invited the Committee to scrutinise and endorse the Treasury Management outturn report for 2009/10 and Treasury Management activities for the current year. Reference was made to the report previously considered by the Finance and Property Advisory Board on 26 May and Cabinet on 16 June when the position as at the end of April had been reported. It was noted that it had been decided not to take up the offer from Sector of a compliance audit at a cost of £2,500 and the decision of officers not to call for early repayment of the total of £5 million of core investments with Barclays and Nationwide had been endorsed. Members of the Audit Committee were invited to endorse the continuation of that stance and were provided with an update on Treasury Management activities to 28 May 2010 principally via the summary of investments and a copy of the internal lending list. It was noted that this was the last meeting of the Committee to be attended by John Pickup, Exchequer Services Manager, before retirement. Members expressed their appreciation of the expertise and experience of Mr Pickup and his team in the work undertaken on behalf of the Council, exemplified by the performance of the internally managed funds. RESOLVED: That (1) the treasury management outturn report for 2009/10 be endorsed; (2) the action taken by officers in respect of treasury management activities undertaken in April and May 2010 be endorsed; and (3) the Committee's appreciation be recorded of the contribution of John Pickup over the years together with its best wishes for the future. |
| AU 10/038 |
Audit Commission - Audit Opinion Plan 2009/10 |
The Director of Finance reported receipt from the District Auditor of the Audit Opinion Plan for 2009/10 setting out how the audit of accounts for that year would be carried out. Mr Greenlee (Audit Manager) presented the plan and introduced Hannah Lill, the new Team Leader. RESOLVED: That the Audit Opinion Plan for 2009/10 be noted. |
| AU 10/039 |
Audit Commission - Annual Audit and Inspection Fee 2010/11 |
The report of the Director of Finance informed Members of the receipt of the Annual Audit and Inspection Fee letter for 2010/11. Mr Greenlee explained the components of the fees and indicated that there was likely to be a significant reduction to take account of the decision to cease all work on assessments in the Comprehensive Area Assessment (CAA) process following the Government's announcement that it would be abolished. An update on the matter would be presented to a future meeting of the Audit Committee. Members expressed concern at the unprecedented financial restraint facing the Council and emphasised the need to focus on front line services and minimise other expenditure. It was considered that the Use of Resources/VFM Conclusion functions should be split and that a substantial reduction in fee was justified in reflecting the abolition of CAA. The Committee asked Mr Greenlee to convey this message to the Audit Commission. RESOLVED: That the position regarding audit fees for 2010/11 be noted and the Council's concern that there should be a substantial reduction in fees for audit activities in the current climate of financial restraint be conveyed to the Audit Commission. |
| MATTERS SUBMITTED FOR INFORMATION | ||
| AU 10/040 |
Update on Audits Undertaken During 2009/10 and 2010/11 to Date |
The report of the Chief Internal Auditor provided a summary of work completed to date which had not previously been reported to the Committee. It was noted that two audits carried out in 2009/10 were still in the draft stage, relating to Planning Obligations and a following report on the previous Housing investigation. RESOLVED: That the report be received and noted. |
| MATTERS FOR CONSIDERATION IN PRIVATE | ||
| AU 10/041 |
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 10/042 |
Insurance Claims History: April 2009 - March 2010 (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 period April 2009 - March 2010. RESOLVED: That the report be received and noted. |