| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| AU 11/030 |
Declarations of interest. |
There were no declarations of interest made. |
| MATTERS FOR RECOMMENDATION TO THE COUNCIL | ||
| AU 11/031 |
Annual Report on the Work of the Audit Committee |
The joint report of the Chief Internal Auditor and former Chairman of the Audit Committee summarised the work carried out by the Committee during 2010/11 as part of the overall corporate governance process of the Council. The report concluded that from the work undertaken and reported to the Audit Committee, Members had been informed of the evidence to support the Annual Governance Statement and been able to satisfy themselves that the Council had a sound system of internal control. In accordance with best practice identified by CIPFA it was recommended that the report be presented to the Council. RECOMMENDED: That (1) 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; and (2) arrangement of training on Treasury Management for the Audit Committee and other interested Members be commended to the new Training Committee. *Referred to Council |
| MATTERS FOR RECOMMENDATION TO THE CABINET | ||
| AU 11/032 |
Risk Management Strategy |
The joint report of the Chief Executive and Director of Finance presented a revised Risk Management Strategy for endorsement. It was noted that the revised strategy took into account the partnership agreement with Gravesham Borough Council for Internal Audit provision with the objective of standardising policies and strategies in order to achieve best practice and a consistent approach. RECOMMENDED: That the revised Risk Management Strategy set out at the Annex to the report be adopted by the Council subject to emphasis being placed on a sound risk management framework and its correct application and the amendment of the second sentence of the introduction to the Strategy to read: "This is intended to ensure that risks are reduced to an acceptable level or, where possible, eliminated ...". *Referred to Cabinet |
| DECISIONS TAKEN UNDER DELEGATED POWERS IN ACCORDANCE WITH PARAGRAPH 3 (OR 2), PART 3 OF THE CONSTITUTION | ||
| AU 11/033 |
Future of Local Public Audit Consultation Paper |
The report of the Director of Finance outlined the main proposals contained in the Department for Communities and Local Government's consultation paper entitled 'Future of local public audit' and set out a draft response to the questions posed in the consultation. It was noted that the deadline for responses was 30 June 2011. Members endorsed the observations in the report in relation to costs of the proposals, the view that any decision regarding independent membership of the Audit Committee should rest with each Council and concerns regarding the audit of parish councils. A number of minor amendments to the responses in the Annex to the report were noted by officers and the Committee considered that a covering letter should be sent to strengthen the response. The possibility of providing a co-ordinated response with other Kent authorities was also raised. RESOLVED: That (1) the draft response set out at Annex 1 to the report, together with the minor amendments noted by the officers, be approved for submission to the Department for Communities and Local Government by the deadline of 30 June 2011 together with a covering letter strengthening the response on the basis of the concerns set out in the report; and (2) efforts be made via the Kent Financial Officers Association to explore whether, in the limited time available, collective endorsement of the Council's approach by all Kent authorities could be co-ordinated. |
| AU 11/034 |
Review of the Effectiveness of Internal Audit 2010/11 |
The report of the Management Team advised the Committee of the outcome of a review of the effectiveness of the system of Internal Audit following a change in requirements contained in the Accounts and Audit Regulations 2011. Details were given of a completed check-list demonstrating compliance with the CIPFA Code of Practice and the Management Team's conclusion that the effectiveness of Internal Audit was good. Mr Greenlee was invited to comment on the review and he confirmed that reliance could be placed on the Council's Internal Audit service which contributed to the Council's strong control environment. RESOLVED: That the effectiveness of Internal Audit be rated as "Good". |
| AU 11/035 |
Confidential Reporting Code "Whistleblowing" |
The report of the Director of Finance presented a revised Confidential Reporting Code for consideration prior to endorsement by the General Purposes Committee. It was noted that the Code had been reformatted to provide a consistent approach with Gravesham Borough Council to reflect the partnership in respect of Internal Audit. RESOLVED: That the revised Confidential Reporting Code set out at the Annex to the report be commended to the General Purposes Committee for endorsement subject to the addition of the words "or staff" to the bullet point concerning Sexual or Physical Abuse of Clients in paragraph 3.2 of the Code. |
| AU 11/036 |
Statement of Accounts 2010/11 |
The Director of Finance presented the Statement of Accounts for 2010/11 in the format specified by the Code of Practice on Local Authority Accounting in the United Kingdom 2010: Based on International Financial Reporting Standards. The Committee was advised that the accounts included the proposals recommended to the Cabinet meeting on 22 June 2011. 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. The Director of Finance drew attention to the main changes arising from the publication of the Accounts and Audit Regulations (England) 2011 and indicated that this was the first year in which the Accounts had to be prepared in accordance with International Financial Reporting Standards. 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 recommendations detailed at paragraph 1.5.3 of the report following a review of the specific earmarked reserves held by the Council be noted and endorsed; and (3) the Statement of Accounts 2010/11 be commended to the General Purposes Committee at its meeting on 27 June 2011. |
| AU 11/037 |
Treasury Management Update |
The report of the Director of Finance provided details of Treasury Management activity undertaken during April and May of the current financial year together with the treasury management outturn position for 2010/11 due to be reported to the meeting of the Cabinet on 22 June 2011. It was noted that all elements of the Council's portfolio had outperformed the benchmark. An update was given on the position in respect of recovery of the investment with Landsbanki, such deposits having been given priority status. However the matter was subject to appeal and referral to the Icelandic Supreme Court and Members would be updated as new information became available. RESOLVED: That (1) the action taken by officers in respect of treasury management activity for the period April to May 2011 be endorsed; (2) the 2010/11 outturn position be noted; and (3) the Cabinet be recommended to endorse the action taken. |
| MATTERS SUBMITTED FOR INFORMATION | ||
| AU 11/038 |
Update on the Outcome of Work Completed in 2010/11 |
The Chief Internal Auditor reported on the outcome of work completed and not previously reported to the Committee. Members were advised of a proposed change in presentation of the outcome of internal audits to enable the Committee to focus on the key risks identified and the audit opinion issued. RESOLVED: That the report be received and noted. |
| MATTERS FOR CONSIDERATION IN PRIVATE | ||
| AU 11/039 |
Exclusion of Press and Public |
No items were considered in private. |