| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| AU 10/043 |
Declarations of interest. |
There were no declarations of interest made. |
| AU 10/044 |
Minutes |
RESOLVED: That the Minutes of the meeting of the Audit Committee held on 21 June 2010 be approved as a correct record and signed by the Chairman. |
| MATTERS FOR RECOMMENDATION TO THE CABINET | ||
| AU 10/045 |
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 in respect of risk management initiatives. These related to a review and update of the Council's Written Schemes of Examination in respect of pressure vessels and a review/audit of the Council's client role and responsibilities for managing the Grounds Maintenance Contract with Kent County Council. It was noted that the total cost of the two proposals was £3,950 leaving a balance of £3,108 to be allocated by June 2011. It was therefore suggested that the balance be earmarked for Member training after the elections in 2011. RECOMMENDED: That (1) the two proposals set out in the report be approved and the necessary funding be met from the risk management consultancy allowance; and (2) the balance of the allowance be allocated to further training for Members following the elections in 2011. |
| DECISIONS TAKEN UNDER DELEGATED POWERS IN ACCORDANCE WITH PARAGRAPH 3 (OR 2), PART 3 OF THE CONSTITUTION | ||
| AU 10/046 |
International Financial Reporting Standards |
The Director of Finance referred to the requirement for the Council to prepare the Statement of Accounts in accordance with International Financial Reporting Standards (IFRS) from 1 April 2010. Details were given of the changes to the format of the core financial statements which were presented for the 2009/10 accounts in both old and new formats for comparative purposes. The Committee was also advised that as part of the move to IFRS, the Accounting Policies needed to be reviewed and updated as appropriate. Members received a copy of the Audit Commission report on progress of the transition to IFRS in local government. This was presented by Mr Mack, District Auditor, who indicated that Tonbridge and Malling had been assessed as 'green' indicating that it was well placed for preparing IFRS compliant accounts. Members asked a number of questions on the merits of the new system and paid tribute to the Accountancy Section in accommodating the considerable amount of work involved and to the District Audit Team for providing the necessary confidence in the Council's progress towards transition. The Committee asked both officers and District Audit representatives to use the offices of their professional bodies to encourage simplification of the new system in order to control corporate costs. RESOLVED: That (1) the contents of Annexes 1, 2, 3 and 4 to the report be noted; and (2) the draft Accounting Policies set out at Annex 5 to the report be endorsed and approved. |
| AU 10/047 |
Scrutiny of Treasury Management Activity |
The Director of Finance invited the Committee to scrutinise and endorse the treasury management activity for the first five months of the 2010 financial year which had previously been reported to the Finance and Property Advisory Board on 29 September 2010. It was noted that whilst each of the investment categories had outperformed the benchmark, there was a shortfall in estimated investment income which would need to be brought forward for consideration at the revised estimate stage. Attention was drawn to a temporary breach in duration limit following the purchase of 10 year gilts by the external fund manager and the fact that the system error had now been corrected. RESOLVED: That (1) the action taken by officers in respect of treasury management activity undertaken in April to September 2010 be endorsed; and (2) the temporary breach in duration limit following the purchase of 10 year gilts by the external fund manager be noted. |
| MATTERS SUBMITTED FOR INFORMATION | ||
| AU 10/048 |
Statement of Accounts 2009/10 |
The Director of Finance reported on the outcome of the audit of the Council's Accounts for 2009/10. It was noted that the General Purposes Committee at its meeting on 6 September 2010 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 2009/10 was also received and attention drawn to three recommendations which had been endorsed by the General Purposes Committee. The Director of Finance took the opportunity to update the Committee on the Council's response to the Government's 'transparency' agenda including the publication on the website of lists of payment to suppliers over £500 for the first quarter of 2010/11. It was noted that the Council was the first in Kent to publish such information although the Secretary of State's guidance had now been received requiring the information on a monthly basis. Reference was also made to the Council's contribution of data to 'Spotlight on Spend' supported by Improvement and Efficiency South East. RESOLVED: That the report be received and noted. |
| AU 10/049 |
Update on Work Carried Out to Date. |
The report of the Chief Internal Auditor provided a summary of the outcome of work to date in the current year and highlighted any recommendations made. Members raised a number of questions in connection with individual reports. In particular, with respect to the Housing Investigation follow-up report, the Chief Internal Auditor was invited to hold further discussions with the Housing Service to agree a realistic time-frame for improving the level of assurance. It was requested that a further report be made to the Committee in due course on whether such improvements had been achieved with an explanation by the appropriate service manager as necessary. RESOLVED: That the report be received and noted. |
| AU 10/050 |
Internal Audit Outturn Report 2009/10 |
Members received a report summarising the outcome of the work of the Internal Audit Section during 2009/10. RESOLVED: That the report be received and noted. |
| AU 10/051 |
Review of Audit Plan 2010/11 |
The Chief Internal Auditor reported that following the resignation of the Audit Manager, the Audit Plan had been reviewed and opportunities explored for a partnership arrangement with Gravesham Borough Council. Further details would be reported to Members when the details of the partnership had been finalised. RESOLVED: That the report be received and noted. |
| MATTERS FOR CONSIDERATION IN PRIVATE | ||
| AU 10/052 |
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 10/053 |
Insurance Claims History: April - September 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 - September 2010. RESOLVED: That the report be received and noted. |