| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| AU 12/030 |
Declarations of interest. |
There were no declarations of interest made. |
| AU 12/031 |
Minutes |
RESOLVED: That the Minutes of the meeting of the Audit Committee held on 10 April 2012 be approved as a correct record and signed by the Chairman. |
| MATTERS FOR RECOMMENDATION TO THE COUNCIL | ||
| AU 12/032 |
Annual Report on the Work of the Audit Committee |
The joint report of the Chairman of the Audit Committee and the Chief Internal Auditor summarised the work carried out by the Committee during 2011/12 in providing an independent overview of the corporate governance processes in place within 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 had 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 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. *Referred to Council |
| AU 12/033 |
Risk Management Strategy |
The joint report of the Chief Executive and Director of Finance reviewed the current Risk Management Strategy which was considered to be fit for purpose without any changes being required. RECOMMENDED: That the Risk Management Strategy set out at the Annex to the report be adopted by the Council. *Referred to Council |
| MATTERS FOR RECOMMENDATION TO THE CABINET | ||
| AU 12/034 |
Local Code of Corporate Governance |
The report of the Director of Finance gave details of the outcome of a review of the Local Code of Corporate Governance which had last been updated in 2008. In view of changing circumstances including the abolition of the Use of Resources inspection regime, a revised and simplified version of the code was presented for consideration. RECOMMENDED: That the revised draft Local Code of Corporate Governance, as set out at Annex 2 to the report, be commended to the Council for adoption. |
| AU 12/035 |
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 within the context of the national economy. The treasury management outturn position for 2011/12, due to be reported to the meeting of the Cabinet on 20 June 2012, was also presented. It was noted that all elements of the Council's portfolio had outperformed the benchmark. The Committee was advised that the Council's external advisers, Sector, had recently expanded the services provided and introduced a benchmarking facility and Tonbridge and Malling had joined the Kent benchmarking group in April 2012. Scatter graphs were presented which demonstrated a favourable indication of the Council's return and associated credit/duration risk relative to other authorities. An update was given on the position in respect of recovery of the investment with Landsbanki including payment of the first distribution of funds following approval of the Council's settlement by the Icelandic District Court. RECOMMENDED: That the following be commended to the Council: (1) the action taken by officers in respect of treasury management activity for the period April to May 2012 be endorsed; (2) officers' decision not to call for the disposal of investments held by the external fund manager with Nationwide and Rabobank be endorsed; and (3) the 2011/12 outturn position be noted. |
| DECISIONS TAKEN UNDER DELEGATED POWERS IN ACCORDANCE WITH PARAGRAPH 3 (OR 2), PART 3 OF THE CONSTITUTION | ||
| AU 12/036 |
Internal Audit Effectiveness 2011/12 |
The report of the Management Team gave details of the outcome of a review of the effectiveness of the Council's Internal Audit function as required by the Accounts and Audit Regulations 2011. It was noted that since the Internal Audit function was in partnership with Gravesham Borough Council, a standardised approach based upon best practice from both authorities had been adopted. This assessed the effectiveness of the arrangements put in place by the Council to provide assurance of the adequacy of the control environment as a contribution to the achievement of its objectives. Members were advised that the Management Team was of the opinion that the effectiveness of the Internal Audit function during 2011/12 was Good. RESOLVED: That on the basis of the evidence provided by the report together with the Audit Committee reports of the previous year, the Management Team conclusion that the effectiveness of Internal Audit for 2011/12 was Good be endorsed. |
| AU 12/037 |
Confidential Reporting Code "Whistleblowing" |
The report of the Director of Finance presented a review of the Confidential Reporting Code for consideration prior to endorsement by the General Purposes Committee. It was noted that no amendments to the current version of the code approved in June 2011 had been identified as necessary. RESOLVED: That the Confidential Reporting Code set out at the Annex to the report be commended to the General Purposes Committee for endorsement. |
| AU 12/038 |
Statement of Accounts 2011/12 |
The Director of Finance presented an unaudited set of Accounts for 2011/12 in the format specified by the Code of Practice on Local Authority Accounting in the United Kingdom 2011/12. It was noted that the accounts included the proposals recommended to the Cabinet meeting on 20 June 2012. The role of the Audit Committee was to consider and peruse the unaudited set of Accounts and to make recommendations as deemed appropriate to the General Purposes Committee to which responsibility for approval was delegated under the Council's constitutional arrangements. Members were advised that this was the second year that the Accounts were required to be prepared in accordance with International Financial Reporting Standards. Attention was drawn to the more significant changes applying to the 2011/12 financial year including the increase in pension deficit arising from a change in the valuation of the liabilities and the introduction of a category of heritage assets. 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 unaudited set of Accounts for 2011/12 be commended to the General Purposes Committee at its meeting on 2 July 2012. |
| AU 12/039 |
Review of Audit Charter 2012 |
The Chief Internal Auditor presented a revised Audit Charter which summarised the roles and responsibilities of Internal Audit and contained its terms of reference. Members were advised that the Charter had been amended to show the revised reporting procedures introduced following the audit partnership with Gravesham Borough Council and also reflected the consultancy work to be undertaken by the section under the guidance of the Management Team. RESOLVED: That the Internal Audit Charter 2012, as set out at the Annex to the report, be endorsed. |
| AU 12/040 |
National Fraud Initiative - Members Briefing |
The report of the Director of Finance introduced the latest National Fraud Initiative Members Briefing issued by the Audit Commission. Consideration was given to a completed checklist of questions for Members to put to the Director of Finance in order to understand how the NFI was being used by the Council. RESOLVED: That the responses given to the questions contained in the checklist, as set out at Annex 2 to the report, be endorsed. |
| AU 12/041 |
Audit Commission Work Programme and Scales of Fees 2012/13 |
The Director of Finance reported receipt of the Audit Commission's Work Programme and Scale of Fees for 2012/13. It was noted that as a result of the outsourcing of the work of the in-house audit practice and the Commission's own internal efficiency savings, reductions of up to 40% were being made in the audit fees for local government bodies. Members welcomed the lower fees of £60,135 compared with a budget provision for 2012/13 of £90,200 which were fixed for five years. RESOLVED: That the contents of the Audit Commission's report be noted and endorsed. |
| MATTERS SUBMITTED FOR INFORMATION | ||
| AU 12/042 |
Update Report on the Work of Internal Audit |
The Chief Internal Auditor informed the Committee of the work carried out by Internal Audit in relation to the 2011/12 audit plan which had not yet been reported together with an update on work completed in the first quarter of 2012/13. RESOLVED: That the report be received and noted. |
| AU 12/043 |
External Audit Progress Report and Briefing |
The Committee received a report introducing a paper from the District Auditor which updated the position on current issues. Mr Greenlee introduced the report and drew attention to the update on externalisation of the audit practice and the wish to maintain the relationship with the Council. He indicated that work on the annual audit of Accounts would be starting that week. RESOLVED: That the report be received and noted. |
| MATTERS FOR CONSIDERATION IN PRIVATE | ||
| AU 12/044 |
Exclusion of Press and Public |
There were no matters considered in private. |