| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| AU 12/013 |
Declarations of interest. |
There were no declarations of interest made. |
| AU 12/014 |
Minutes |
RESOLVED: That the Minutes of the meeting of the Audit Committee held on 23 January 2012 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 12/015 |
Annual Governance Statement 2011/12 |
The Director of Finance presented the Annual Governance Statement for the year ended 31 March 2012 which was required to be certified by both the Leader of the Council and the Chief Executive and to accompany the Council's 2011/12 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. Attention was drawn to a number of minor amendments together with a proposed addition to paragraph 13 of the Statement. RESOLVED: That (1) the Annual Governance Statement 2011/12, as set out at Annex 1 to the report, be endorsed subject to the following amendments: (i) inclusion within paragraph 8 (Financial Management) of reference to the role of the Chief Finance Officer in local government and its conformity with the CIPFA code; (ii) addition of the following to paragraph 13 (Governance Issues Arising): "One issue was drawn to management's attention under the Confidential Reporting Code concerning the 2010/11 Benefits Subsidy Claim. This was investigated and the outcome discussed with the District Auditor, following which a set of actions was agreed. These included the commissioning of specialist assistance to prepare adjustments to the 2011/12 claim in respect of prior years. Internal audit coverage of benefits will be widened in scope and resources allocated." (iii) the re-wording of the first sentence of paragraph 13 to indicate that "At the time of preparing this statement, of the 50 Audit Reports issued in 2011/12 none had been given a Minimal Assurance (the lowest level) of adequate controls"; and (2) the Annual Governance Statement as amended be recommended for adoption to the General Purposes Committee to accompany the Statement of Accounts 2011/12. |
| AU 12/016 |
Treasury Management Update |
The report of the Director of Finance provided an update of treasury management activity undertaken during the 2011/12 financial year within the context of the national economy. Members were invited to endorse the action taken by officers and to note the treasury management position at 2 March 2012. An update was also given on the position regarding the recovery of the deposit with Landsbanki. RESOLVED: That (1) the action taken by officers in respect of treasury management activity be endorsed; (2) the treasury management position as at 2 March 2012 be noted; and (3) the Cabinet be recommended to endorse the action taken. |
| AU 12/017 |
Compliance with International Standards on Auditing |
The report of the Chairman of the Audit Committee summarised the means by which the Committee exercised oversight of the processes for identifying and reporting on the risk of fraud in order to comply with International Standards on Auditing. Members considered the responses to assurances sought by the District Auditor which had been prepared with input from the Chairmen of the Audit and General Purposes 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 12/020). RESOLVED: That (1) the responses set out in Annex 2 to the report be endorsed and the assurance provided be agreed; and (2) the General Purposes Committee be requested to consider and agree this assurance at its next meeting on 25 June 2012. |
| AU 12/018 |
Internal Audit Plan 2012/13 |
The Chief Internal Auditor presented the proposed Internal Audit Plan for 2012/13 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. Reference was made to the decision at Minute AU 12/006 that some of the resources of the Internal Audit Team would focus on identifying potential efficiency savings. RESOLVED: That the Internal Audit Plan for 2012/13, as set out at Annex 1 to the report, be approved. |
| AU 12/019 |
Audit Commission - Audit Plan 2011/12 |
The report of the Director of Finance set out for consideration the Audit Plan 2011/12 received from the Audit Commission. Mr Andy Mack, District Auditor, gave details of the work proposed to be undertaken in respect of the audit of the financial statements and the value for money conclusion 2011/12. He introduced Anna Tollefson, the new Audit Team Leader, to the Committee. RESOLVED: That the Audit Plan for 2011/12 be noted and endorsed. |
| MATTERS SUBMITTED FOR INFORMATION | ||
| AU 12/020 |
Management Team Assurance on Compliance with 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 provided supporting evidence (Minute AU 12/017 refers). RESOLVED: That the report be received and noted. |
| AU 12/021 |
Interim Chief Internal Auditor's Report 2011/12 |
The Committee received the opinion of the Chief Internal Auditor on the overall adequacy and effectiveness of the Council's control environment as required by the Accounts and Audit Regulations 2011. This was part of the evidence to assist in consideration of the Annual Governance Statement and it was noted that a full annual report would be presented at the June meeting of the Committee. Members were advised that in the opinion of the Chief Internal Auditor the Council had maintained an adequate and effective internal control environment. RESOLVED: That the report be received and noted. |
| AU 12/022 |
National Fraud Initiative 2010/11 (NFI) |
The report of the Director of Finance gave details of the outcomes to date of the first tranche of the national data matching exercise for 2010/11 carried out by the Audit Commission. Members were advised that the second tranche of data had just been received and work would commence on it shortly. RESOLVED: That the report be received and noted. |
| AU 12/023 |
Review of Operational Risk Registers - December 2011 |
The report of the Director of Finance updated the Committee on the results of a review of the Council's Operational Risk Registers carried out by Services in December 2011. It was noted that the levels of risk had remained static and details of the high risks were noted at the Annex to the report. Members were advised that any risks identified in the high category would be considered as part of the Internal Audit Plan to ensure that action had been taken to minimise the risk to an acceptable level. RESOLVED: That the report be received and noted. |
| AU 12/024 |
Audit Commission Publication: Tough Times - Councils' Responses to a Challenging Financial Climate |
The Director of Finance reported that the Audit Commission had published a paper entitled "Tough Times - Councils' Responses to a Challenging Financial Climate." The report set out for information the main findings from the study and subsequent recommendations. It was noted that the District Auditor in the recent Annual Audit Letter had concluded that the Council continued to have a strong and effective framework for financial planning and budgetary control. Whilst the financial difficulties facing the public sector were unprecedented, it was considered that the Medium Term Financial Strategy enabled the financial pressures to be addressed in a measured and controlled way. RESOLVED: That the report be received and noted. |
| AU 12/025 |
Audit Commission Briefing: Let's Be Clear - Making Local Authority IFRS Accounts More Accessible and Understandable |
The report of the Director of Finance gave details of the issues discussed in the Audit Commission briefing entitled "Let's be clear - Making local authority IFRS accounts more accessible and understandable". Members were advised that over a number of years work had been undertaken to produce shorter and more focussed accounts whilst at the same time complying with statutory requirements and regulations. RESOLVED: That the report be received and noted. |
| AU 12/026 |
External Audit Progress Report and Briefing |
Ms A Tollefson introduced a paper from the District Auditor updating the Committee on current issues including progress against the 2011/12 plan, recent Audit Commission publications and emerging national issues. Mr A Mack also provided an update on the future of the Audit Commission, the externalisation of the Audit Practice and the impact on future fees. RESOLVED: That the report be received and noted. |
| MATTERS FOR CONSIDERATION IN PRIVATE | ||
| AU 12/027 |
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 | ||
| DECISIONS TAKEN UNDER DELEGATED POWERS IN ACCORDANCE WITH PARAGRAPH 3 (OR 2), PART 3 OF THE CONSTITUTION | ||
| AU 12/028 |
Confidential Reporting Code - Benefits Subsidy Claim Irregularity (Reason: LGA 1972 Sch 12A Para 1 - Information relating to an individual and Para 3 - Financial or business affairs of any particular person) |
The Chief Executive reported on an irregularity in the Benefits Subsidy Claim for 2010/11 that was revealed following information provided under the Council's Confidential Reporting Code. RESOLVED: That (1) the contents of the report be noted; and (2) the Director of Finance be requested to provide a report to a future meeting of the Committee giving details of the action taken to prevent a recurrence of the problem and of the financial consequences as a result of adjustments to the subsidy claim for 2010/11 and prior years. |
| MATTERS SUBMITTED FOR INFORMATION | ||
| AU 12/029 |
Insurance Claims History: April 2011 - March 2012 (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 2011 to March 2012. RESOLVED: That the report be received and noted. |