| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| AU 12/045 |
Declarations of interest. |
There were no declarations of interest made. |
| AU 12/046 |
Minutes |
RESOLVED: That the Minutes of the meeting of the Audit Committee held on 18 June 2012 be approved as a correct record and signed by the Chairman. |
| MATTERS FOR RECOMMENDATION TO THE CABINET | ||
| AU 12/047 |
Treasury Management Mid-Year Review |
The report of the Director of Finance provided an update on treasury management activity undertaken during the period April to August 2012/13 and reviewed the risk parameters contained within the current Treasury Management Strategy Statement and Annual Investment Strategy. Members were invited to endorse the action taken by officers in respect of treasury management activity and, in particular, two changes in approach to risk supported by Sector, the Council's external treasury advisor. In considering whether to exempt investment in UK institutions from the 'AAA' sovereign requirement, the Committee recommended that a limit of 'AA -' (using the Fitch rating scale) be imposed pending the review at the January 2013 meeting. RECOMMENDED: That (1) the action taken by officers in respect of treasury management activity for the period April to August 2012 be endorsed; (2) the current 'AAA' sovereign requirement for investment in the UK be replaced with a minimum rating of Fitch 'AA -' or equivalent ; and (3) the counterparty/group exposure limit be increased from the current 20% to 25% for the UK nationalised and semi-nationalised banks. |
| DECISIONS TAKEN UNDER DELEGATED POWERS IN ACCORDANCE WITH PARAGRAPH 3 (OR 2), PART 3 OF THE CONSTITUTION | ||
| AU 12/048 |
Draft Local Audit Bill |
The report of the Director of Finance referred to the draft Local Audit Bill published for consultation by the Department for Communities and Local Government. Details were given of the key elements of the Bill and a response to the questions asked in the consultation which had been submitted in liaison with the Chairman and the Cabinet Member for Finance to meet the consultation deadline of 31 August 2012. RESOLVED: That the response to the consultation set out at Annex 1 to the report, as previously agreed with the Chairman of the Committee and Cabinet Member for Finance, be endorsed. |
| MATTERS SUBMITTED FOR INFORMATION | ||
| AU 12/049 |
Annual Audit Letter 2011/12 |
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 2011/12 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 again commented on the high standard of the accounts and working papers and the Council's history of effective financial management. Mr Greenlee introduced the report, indicating that the Council had performed well during another challenging year for local government. He thanked the Director of Finance and her staff for their assistance during the audit. Members expressed appreciation of the work of the officers and the District Auditor and his team. RESOLVED: That the report be received and noted. |
| AU 12/050 |
Update Report on the Work of Internal Audit |
The report of the Chief Internal Auditor provided details of the work carried out by Internal Audit relating to 2011/12 which had not yet been reported together with all work completed to date in 2012/13 against the current audit plan. Members asked whether recommended action in respect of the reports given an opinion of Limited had been implemented. It was explained that recommendations would be followed up when the implementation date agreed with client management had passed and any issues would be reported back to the Committee. Members were advised that future reports would include the audit opinion definitions to aid understanding. However, new professional standards were due to be published before the end of the financial year and the Internal Audit teams at Tonbridge and Malling and Gravesham would be working together to prepare a new set of audit opinions, a revised charter and audit manual in the coming year to reflect the new guidance. RESOLVED: That the report be received and noted. |
| AU 12/051 |
Appointment of External Auditor |
The Director of Finance reported that Grant Thornton UK LLP had been appointed as the Council's external auditor for five years from 2012/13 following the outsourcing by the Audit Commission of the work of its in-house audit practice. It was noted that there would be a TUPE transfer of staff from the Audit Commission and Mr Greenlee would continue as the Council's Audit Manager for at least one year. RESOLVED: That the report be received and noted. |
| AU 12/052 |
Annual Governance Report and Statement of Accounts 2011/12 |
The Director of Finance reported on the outcome of the audit of the Council's accounts for the year ending 31 March 2012. A copy of the District Auditor's Annual Governance Report for 2011/12 was also received. It was noted that there had been no material issues to be brought to the attention of the General Purposes Committee following the audit. Reference was made to a matter that the District Auditor viewed as an uncorrected misstatement together with the Director of Finance's reason for not correcting it which was set out in the schedule attached to the Letter of Representation. Members were advised that the General Purposes Committee at its meeting on 25 September 2012 had authorised the Chairman to re-sign the accounts following which the District Auditor had issued an unqualified opinion. RESOLVED: That the report be received and noted. |
| AU 12/053 |
Update on National Fraud Initiative 2010 (NFI) |
The report provided an update on the work carried out to analyse the latest national fraud initiative results with details of outcomes to date. The Committee was advised that consideration was being given to the imposition of a penalty on tax payers who failed to notify the Council that they were no longer entitled to a single person discount. RESOLVED: That the report be received and noted. |
| MATTERS FOR CONSIDERATION IN PRIVATE | ||
| AU 12/054 |
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 12/055 |
Insurance Claims History: April 2012 - September 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 to September 2012. RESOLVED: That the report be received and noted. |