| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| AU 11/012 |
Declarations of interest. |
There were no declarations of interest made. |
| AU 11/013 |
Minutes |
RESOLVED: That the Minutes of the meeting of the Audit Committee held on 24 January 2011 be approved as a correct record and signed by the Chairman. |
| DECISIONS TAKEN UNDER DELEGATED POWERS IN ACCORDANCE WITH PARAGRAPH 3 (OR 2), PART 3 OF THE CONSTITUTION | ||
| AU 11/014 |
Annual Governance Statement 2010/11 |
The Director of Finance presented the Annual Governance Statement for the year ended 31 March 2011 which was required to be certified by both the Leader of the Council and the Chief Executive for inclusion in the Council's 2010/11 Statement of Accounts. Consideration was given to the Statement, prepared by way of a self-assessment questionnaire and supporting evidence, which was annexed to the report. RESOLVED: That (1) the Annual Governance Statement, as set out at Annex 1 to the report, be endorsed; and (2) the Annual Governance Statement be recommended for adoption to the General Purposes Committee to accompany the Statement of Accounts 2010/11. |
| AU 11/015 |
Compliance with International Standards on Auditing |
The report summarised the means by which the Audit Committee exercised oversight of the processes for identifying and reporting on the risk of fraud in order to comply with International Standards on Auditing. It was noted that the responsibilities for corporate governance at Tonbridge and Malling were divided between the Audit Committee and General Purposes Committee. Consequently the suggested response to assurances sought by the District Auditor would need to be endorsed by both Committees. In view of the cancellation of the April meeting of the Committee and the timescale involved, a letter (a copy of which was circulated at the meeting) had been sent by the former Chairman to the Chairman of the General Purposes Committee confirming the assurances required. Members considered the responses prepared with input from the Chairmen of the respective Committees in order to satisfy themselves that the Council was compliant with the International Auditing Standards. It was noted that the Management Team was also required to provide assurance in this regard (see Minute AU 11/021). RESOLVED: That (1) the responses set out in Annex 2 to the report be endorsed and the assurance provided be agreed; (2) the General Purposes Committee be requested to consider and agree this assurance at its next meeting on 27 June 2011; and (3) the letter from the former Chairman of the Committee be noted and endorsed. |
| AU 11/016 |
Treasury Management Update |
The report of the Director of Finance provided an update of Treasury Management activity undertaken during the 2010/11 financial year in the context of the national economy. Attention was drawn to a number of technical breaches of the 2010/11 requirements, however it was noted that there was no undue risk to the Council's funds and none of the issues referred to would have arisen had the requirements of the Council's new strategy been in place during 2010/11. It was noted that a further update and full year outturn position were included on the agenda of the second meeting of the evening. RESOLVED: That (1) the action taken by officers in respect of treasury management activity be endorsed; (2) the technical breaches referred to at paragraph 1.4.11 of the report be noted; and (3) the Cabinet be recommended to endorse the action taken. |
| AU 11/017 |
Annual Internal Audit Plan 2011-12 |
The Chief Internal Auditor presented the proposed Internal Audit Plan for 2011/12 together with details of factors influencing its construction. Consideration was given to the coverage of the plan which was based on a risk assessment of the Council's internal audit needs. RESOLVED: That the Internal Audit Plan for 2011/12, as set out at Annex 1 to the report, be adopted. |
| AU 11/018 |
Revision of Audit Charter |
The Chief Internal Auditor presented a revised Audit Charter which set out the aims and objectives of the Internal Audit Section together with its terms of reference. It was noted that the updated Charter took into account the partnership agreement with Gravesham Borough Council for the provision of the Audit function. Members were assured that benefits of innovation were obtained from participation in the Kent Audit Group and adoption of national best practice. RESOLVED: That the revised Internal Audit Charter as set out at Annex 1 to the report be endorsed. |
| AU 11/019 |
Audit Commission - Audit Plan 2010/11 |
The report of the Director of Finance set out for consideration the Audit Plan 2010/11 received from the Audit Commission. The Plan gave details of the work that the District Auditor proposed to undertake in respect of the audit of the financial statements and the value for money conclusion 2010/11. It was noted that the District Audit team had recently started work on the 2010/11 audit of accounts. RESOLVED: That the Audit Plan for 2010/11 be noted and endorsed. |
| MATTERS SUBMITTED FOR INFORMATION | ||
| AU 11/020 |
Accounts and Audit Regulations |
The report of the Director of Finance outlined the main changes proposed in the Department for Communities and Local Government consultation paper entitled 'Revision and Consolidation of the Accounts and Audit Regulations 2003 as amended'. RESOLVED: That the report be received and noted. |
| AU 11/021 |
Management Team Confirmation of Compliance with International Auditing Standards |
The Committee received the report of the Management Team confirming compliance with the International Auditing Standards relating to fraud. Reference was made to the similar assurance to be provided by the Audit and General Purposes Committees for which the Management Team report provided supporting evidence (Minute AU 11/015) refers. RESOLVED: That the report be received and noted. |
| AU 11/022 |
Chief Internal Auditor's Report 2010/11 |
The Committee received the annual report on work carried out by the Internal Audit Section during 2010/11 which was required as part of the evidence to assist in consideration of the Annual Governance Statement. An update was given on the outcome of completed Audits undertaken during 2010/11 and Members were advised that it was the opinion of the Chief Internal Auditor that the Council had maintained an adequate and effective internal control environment. RESOLVED: That the report be received and noted. |
| AU 11/023 |
National Fraud Initiative 2011/12 (NFI) |
The Chief Internal Auditor reported that the latest data sets had been received from the Audit Commission for the National Fraud Initiative 2011/12 data matching exercise. RESOLVED: That the report be received and noted. |
| AU 11/024 |
Audit Commission - Work Programme and Scale of Fees 2011/12 |
Further to Minute AU 11/010 the Director of Finance reported receipt of the Audit Commission's approved Work Programme and Scales of Fees for 2011/12. It was noted that as a result of the consultation, the Commission was proposing to make additional rebates of up to 10% in 2011/12 together with further reductions of up to 15% in 2012/13. A copy of a subsequent letter from the Audit Commission confirming the annual audit fee for 2011/12 was circulated at the meeting. It was noted that this represented an increase over the actual fee in 2010/11 and Members queried why the rebates had not been carried forward in the calculation of the 2011/12 fee. It was agreed that the officers obtain an explanation from the Audit Commission and report back as appropriate. RESOLVED: That the report be received and noted. |
| AU 11/025 |
Review of Operational Risk Registers - December 2010 |
The report of the Director of Finance updated the Committee on the results of a review of the Council's Operational Risk Registers which had been carried out in December 2010. It was noted that there had been a slight movement in the levels of risk reported in the medium and high categories, details of which were given in the Annex to the report. Members were advised that any risks identified in the high category were considered as part of the Internal Audit Plan to ensure that action had been taken to minimise the risk to an acceptable level. A further review was currently being undertaken and would be reported to the next meeting. At Members' request the future presentation of the report would be revised to clarify the nature of the risk and its likelihood. RESOLVED: That the report be received and noted. |
| AU 11/026 |
Certification of Claims and Returns - Annual Report |
The Director of Finance reported receipt of a report summarising the findings from the certification by the Audit Commission of the 2009/10 housing benefit and council tax benefit subsidy claim, the disabled facilities grant and the non-domestic rates return. A copy of the Audit Commission's report was provided as an Annex. It was noted that there were no issues requiring further action. RESOLVED: That the report be received and noted. |
| AU 11/027 |
External Audit Progress Report and Briefing |
The Committee received a report from the District Auditor providing an update on current issues including progress against the 2010/11 Audit Plan, early work on International Financial Reporting Standards restated accounts and a number of other matters of interest. RESOLVED: That the report be received and noted. |
| MATTERS FOR CONSIDERATION IN PRIVATE | ||
| AU 11/028 |
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 11/029 |
Insurance Claims History: April 2010 - March 2011 (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 2010 to March 2011. RESOLVED: That the report be received and noted. |