| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| AU 12/001 |
Declarations of interest. |
There were no declarations of interest made. |
| AU 12/002 |
Minutes |
RESOLVED: That the Minutes of the meeting of the Audit Committee held on 11 October 2011 be approved as a correct record and signed by the Chairman. |
| MATTERS FOR RECOMMENDATION TO THE CABINET | ||
| AU 12/003 |
Treasury Management Strategy Statement and Annual Investment Strategy for 2012/13 |
The report of the Director of Finance provided details of the current investment position and it was noted that a number of downgrades by the credit rating agencies had led to increasingly limited access to both UK and non-UK financial institutions. The Committee was advised that a review of the approach to assessment of credit risk had been undertaken with assistance from the external fund manager and Sector, the Council's treasury advisors. As a result the report invited the Committee to consider adopting a lower credit requirement and to use Sector's creditworthiness methodology to guide future updates to the Council's internal lending list. Such changes had been incorporated into the Treasury Management Strategy Statement and Annual Investment Strategy for 2012/13 which was also reviewed and recommended for adoption. Members were updated on the position regarding repayment of the deposit with Landsbanki together with interest. RECOMMENDED: That (1) the treasury management position as at 6 January 2012 be noted; (2) the officers' decision not to call for the premature repayment of investments held with Barclays and the Nationwide be endorsed; (3) Sector's creditworthiness methodology be adopted for use in the selection and deselection of counterparties to be included on or removed from the Council's internal lending list; (4) the minimum credit criteria of Fitch long term A, short term F1, individual (viability) C (bbb-) and support 1 be adopted for use by the Council's external fund manager; (5) a 20% exposure limit to counterparties, groups of related counterparty and non-UK sovereigns be adopted; and (6) the Treasury Management Strategy Statement and Annual Investment Strategy for 2012/13, as set out at Annex 4 to the report, be adopted subject to the deletion of the words "as if that were not enough" from the third paragraph of Appendix 5 on Economic Background. |
| DECISIONS TAKEN UNDER DELEGATED POWERS IN ACCORDANCE WITH PARAGRAPH 3 (OR 2), PART 3 OF THE CONSTITUTION | ||
| AU 12/004 |
Review of Anti-Fraud Policies |
The Director of Finance referred to the Council's Anti Fraud Policy and Benefits Anti Fraud Policy which were reviewed annually and updated where necessary. The Committee was advised that no changes had been identified at this stage although a number of emerging issues would warrant a further review later in the year. These included the issue of a paper by the National Fraud Authority entitled "Fighting Fraud Locally" and the introduction of the Universal Credit. RESOLVED: That the current anti fraud policies be maintained and a further review be carried out later in the year when some emerging issues have been resolved. |
| AU 12/005 |
Protecting the Public Purse 2011 |
The report of the Director of Finance provided information on the content of the Protecting the Public Purse 2011 document published by the Audit Commission and highlighted ten recommendations for local authorities to adopt in order to prevent and detect fraud. Reference was made to a review of counter fraud arrangements, particularly regarding tenancy fraud and single person discount fraud, to be carried out in the context of the National Fraud Authority strategy for local government, "Fighting Fraud Locally", which would be reported to the Committee when published. Consideration was given to responses to a check list for those responsible for governance. RESOLVED: That the responses given in the check list set out at Annex 3 to the report be endorsed. |
| AU 12/006 |
CIPFA Paper: ‘Auditing in an Economic Downturn' and Review of Allocation of Audit Resources in 2012/13 |
The Director of Finance presented a document published by CIPFA evaluating the impact of the current financial situation on the work of internal audit. Members were advised that the Management Team considered that some of the audit resources should be redirected in the forthcoming year to assist with the review of processes and operations in order to identify potential efficiency savings. The Chief Internal Auditor was of the view that the plan for 2012/13 would still allow for sufficient risk based work to be undertaken in order to provide an adequate level of testing on which to provide an assurance statement. The report identified the areas for consideration in the audit planning process and it was noted that the Audit Plan, reflecting the redirection of resources, would be presented to the Committee in April. RESOLVED: That the Management Team's view that some audit resources should be used in the forthcoming year to review processes and operations in order to identify potential efficiency savings be agreed. |
| AU 12/007 |
Update on the Work of Internal Audit 2011/12 |
The Chief Internal Auditor's report gave details of progress of the Internal Audit Team against the agreed 2011/12 Annual Audit Plan. Since the team no longer had sufficient resources to complete all the audits in the original plan, consideration was given to a number of amendments to the plan. These included deferral of two audits in respect of Bulky Waste Collections and the Leisure Services catering units until 2012/13 and removal from the plan of two further audits of the lowest risk items remaining (recruitment procedures and mobile telephones). RESOLVED: That the progress of the Internal Audit Team against the 2011/12 Annual Audit Plan be noted and the proposed amendment to remove four audits be agreed. |
| MATTERS SUBMITTED FOR INFORMATION | ||
| AU 12/008 |
Annual Audit Letter |
The joint report of the Chief Executive and Director of Finance advised the Committee of the receipt of the Audit Commission's Annual Audit Letter summarising the findings following the audit of the 2010/11 financial statements and the assessment of the arrangements in place to secure economy, efficiency and effectiveness. It was noted that the District Auditor had issued an unqualified opinion on the Statement of Accounts and had commented on the high standards of the statement and working papers. In terms of value for money the District Auditor had acknowledged that the Council continued to have a strong and effective framework for financial planning and budgetary control. Mr A Mack introduced the report and indicated that the Council had performed well again in difficult financial circumstances. Members expressed appreciation of the work and advice of the District Auditor and his team. RESOLVED: That the report be received and noted. |
| AU 12/009 |
Future of Local Public Audit |
Further to Minute AU 11/033, the report gave details of progress of the Government's plans to replace the current centralised audit systems managed by the Audit Commission with a new decentralised regime. A press release issued by the Commission following publication of the Government's response to the consultation was attached at the annex to the report. Mr Mack gave an update on the short term position in which the existing district audit staff would be transferred to the successful contractor for Kent, Surrey and part of London. A further 10 per cent reduction in fees was anticipated for 2012/13. The Committee welcomed the continuity of retaining the local knowledge within the current district audit team. RESOLVED: That the report be received and noted. |
| AU 12/010 |
External Audit Progress Report and Briefing |
The Committee received a paper from the District Auditor providing an update on current issues including openness and accountability in local pay and the externalisation of the Audit Practice. Mr Greenlee introduced the paper and stated that work on the 2011/12 audit plan was being progressed with Internal Audit. The Director of Finance indicated the intention of reporting back on various items in the briefing including "Tough Times" and invited Members to suggest other matters of interest. RESOLVED: That the report be received and noted. |
| AU 12/011 |
Certification of Claims and Returns - Annual Report |
The report summarised the findings from the certification by the Audit Commission of the 2010/11 housing benefit and council tax benefit subsidy claim, the disabled facilities grant claim and national non domestic rates return. A copy of the Audit Commission's report was set out at the annex to the report. RESOLVED: That the report be received and noted. |
| MATTERS FOR CONSIDERATION IN PRIVATE | ||
| AU 12/012 |
Exclusion of Press and Public |
There were no matters considered in private. |