| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| AU 13/001 |
Declarations of interest. |
There were no declarations of interest made. |
| AU 13/002 |
Minutes |
RESOLVED: That the Minutes of the meeting of the Audit Committee held on 9 October 2012 be approved as a correct record and signed by the Chairman. |
| MATTERS FOR RECOMMENDATION TO THE COUNCIL | ||
| AU 13/003 |
Public Sector Internal Audit Standards (PSIAS) |
The report of the Chief Internal Auditor gave details of the introduction of the Public Sector Internal Audit Standards (PSIAS), with effect from 1 April 2013. The PSIAS arose from the collaboration of CIPFA (Chartered Institute of Public Finance) and CIIA (Chartered Institute of Internal Auditors) on a set of unified public sector internal audit standards to replace the Local Code of Practice for Internal Audit. It was considered that the processes in place for conducting and reporting internal audit activity at Tonbridge and Malling would meet the new standards. RECOMMENDED: That the Council adopt the standards contained within the PSIAS for the provision of Internal Audit. *Referred to Council |
| MATTERS FOR RECOMMENDATION TO THE CABINET | ||
| AU 13/004 |
Treasury Management Strategy Statement and Annual Investment Strategy for 2013/14 |
The report of the Director of Finance provided details of investments undertaken and returns achieved in the first nine months of the current financial year. Members were invited to consider amending the current non-UK AAA sovereign requirement and to confirm the current split of investment responsibilities for in-house and externally managed funds. The report highlighted the key issues for the forthcoming year and concluded with a recommendation to adopt the Treasury Management Strategy Statement and Annual Investment Strategy for 2013/14. RECOMMENDED: That (1) the treasury management position as at 28 December 2012 be noted; (2) a non-UK sovereign credit requirement of Fitch AA- or equivalent be adopted; (3) recognition of the minimum sovereign credit requirement be amended to that expressed by all three credit rating agencies (Fitch, Moody's and Standard & Poor's); (4) the current split of investment responsibilities requiring all core funds to be managed exclusively by the Council's external fund manager be maintained; (5) a 10% exposure limit to each enhanced cash or similar AAA rated fund be adopted (no more than 20% exposure to such funds at any one time) and; (6) the Treasury Management Strategy Statement and Annual Investment Strategy for 2013/14, as set out at Annex 4 to the report, be adopted. |
| AU 13/005 |
Anti-Fraud and Corruption Policy |
The Committee was invited to review the current Anti-Fraud and Corruption Policy to which there were no suggested amendments at present. Reference was made to a number of major changes taking place in local government, including the establishment of the Single Fraud Investigation Service (SFIS). It was anticipated that new legislation in respect of the powers of local government investigators would require significant changes to the Anti-Fraud Policy in due course. Members were requested to recommend that the policy be endorsed by the Council via the Overview and Scrutiny Committee and the Cabinet. RECOMMENDED: That the Anti-Fraud Policy set out at Annex 1 to the report be commended to the Council for endorsement via the Overview and Scrutiny Committee and the Cabinet. |
| AU 13/006 |
Housing and Council Tax Benefits Anti-Fraud Policy |
The report of the Director of Finance invited Members to review the Housing and Council Tax Benefits Anti-Fraud Policy, to consider proposed amendments and recommend to the Overview and Scrutiny Committee and Cabinet that the Council adopt the revised policy. Whilst housing and council tax benefits were being replaced by Universal Credit and Council Tax Reduction Schemes, it was noted that the older benefits would continue to be investigated for a period after their introduction. Attention was drawn to the main amendments to the policy which appeared in the prosecution section and reflected revised Department for Work and Pensions regulations regarding sanctions. RECOMMENDED: That the updated Benefits Anti-Fraud Policy, including the revised Prosecution Policy, as set out at Annex 1 to the report, be commended to the Council for adoption via the Overview and Scrutiny Committee and Cabinet. |
| DECISIONS TAKEN UNDER DELEGATED POWERS IN ACCORDANCE WITH PARAGRAPH 3 (OR 2), PART 3 OF THE CONSTITUTION | ||
| AU 13/007 |
Audit Commission - Proposed Work Programme and Scales of Fees 2013/14 |
The report of the Director of Finance introduced the Audit Commission's Proposed Work Programme and Scales of Fees for 2013/14. Members were advised that the Commission planned no changes to the work programme and scales of audit fees set in 2012/13. RESOLVED: That the Audit Commission's proposed Work Programme and Scales of Fees for 2013/14 be noted and endorsed. |
| AU 13/008 |
Audit Fee for 2012/13 |
The Director of Finance informed the Committee of the receipt of the Audit Fee Letter for 2012/13 which set out the details of the audit fee for the Council together with the scope and timing of audit work and the audit team. Mr Darren Wells, the new external auditor from Grant Thornton, introduced the letter and gave an assurance that the Council would receive the same high quality of service notwithstanding the 40% reduction in fee over the previous year. RESOLVED: That the Fee Letter for 2012/13 be noted and endorsed. |
| AU 13/009 |
Update on the Work of Internal Audit During 2012-13 |
The report of the Chief Internal Auditor provided an update on the progress of the Internal Audit Team against the agreed 2012-13 Annual Internal Audit Plan. Details were given of two audit reviews removed from the plan and it was suggested that appropriate areas of replacement work be identified. RESOLVED: That the progress to date of the Internal Audit Team against the 2012/13 Annual Audit Plan be noted and the Chief Internal Auditor consult the Director of Finance to identify areas where the remaining balance of resources could be used. |
| AU 13/010 |
Protecting the Public Purse |
The report of the Chief Internal Auditor informed Members of the latest Audit Commission annual report on fraud issues "Protecting the Public Purse". The publication included a checklist for those charged with governance to review their Counter Fraud arrangements. It was suggested that appropriate refresher training for Members on fraud awareness be arranged in consultation with the Chairman of the Standards and Training Committee and the Personnel and Development Manager. RESOLVED: That the responses set out in the checklist at Annex 1 to the report be noted and endorsed. |
| MATTERS SUBMITTED FOR INFORMATION | ||
| AU 13/011 |
Audit Commission Publication - Striking a Balance - Improving Councils' Decision Making on Reserves |
The report gave details of an Audit Commission paper published in December 2012 entitled ‘Striking a balance - improving councils' decision making on reserves'. It was noted that reserves were an essential part of financial management and the general revenue reserve was an integral part of the Medium Term Financial Strategy, covering revenue and capital budgets over a rolling ten year period. RESOLVED: That the report be received and noted. |
| AU 13/012 |
Certification Work Report 2011/12 - Grant Thornton |
The report of the Director of Finance summarised the findings from the certification by Grant Thornton of the 2011/12 housing benefit and council tax benefit subsidy claim and the national non-domestic rates return. A copy of Grant Thornton's report was reproduced as an annex and Mr Greenlee confirmed that whilst a number of minor errors had been identified and corrected, there was nothing requiring further action. RESOLVED: That the report be received and noted. |
| AU 13/013 |
Grant Thornton Publication - Towards a Tipping Point? |
The Committee received a copy of a report published by Grant Thornton, the Council's External Auditors, entitled "Towards a Tipping Point?" which assessed whether local authorities nationally had arrangements in place to ensure their sustainable financial future. The Director of Finance referred to the challenges facing the Council and the ways in which the "funding gap" was being addressed in order to avoid the tipping point described by Grant Thornton. RESOLVED: That the report be received and noted. |
| MATTERS FOR CONSIDERATION IN PRIVATE | ||
| AU 13/014 |
Exclusion of Press and Public |
There were no items considered in private. |