| Item | Description | Resolution |
|---|---|---|
| PART 1 - PUBLIC | ||
| AU 13/028 |
Declarations of interest. |
There were no declarations of interest made. |
| AU 13/029 |
Minutes |
RESOLVED: That the Minutes of the meeting of the Audit Committee held on 8 April 2013 be approved as a correct record and signed by the Chairman. |
| MATTERS FOR RECOMMENDATION TO THE COUNCIL | ||
| AU 13/030 |
Annual Report on the Work of the Audit Committee |
The joint report of the former Chairman of the Audit Committee and Chief Internal Auditor summarised the work carried out by the Committee during 2012/13 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 presented to full Council as a record of the independent review of the Council's overall corporate governance process. *Referred to Council |
| MATTERS FOR RECOMMENDATION TO THE CABINET | ||
| AU 13/031 |
Risk Management Strategy |
The joint report of the Chief Executive and Director of Finance and Transformation reviewed the current Risk Management Strategy. It was noted that there had been no significant changes to the strategy over the last few years and it was considered to be fit for purpose, the only amendments relating to changes in responsibility brought about by the Management Team restructure. Reference was made to the statement in the strategy that all Members would receive risk management training during their four year term of office. The Committee considered that this should take place in the near future to accommodate new Members. RECOMMENDED: That the Risk Management Strategy set out at Annex 1 to the report be adopted by the Council and risk management training be arranged as soon as possible. |
| AU 13/032 |
Local Code of Corporate Governance |
The joint report of the Chief Executive and Director of Finance and Transformation introduced a revised draft of the Local Code of Corporate Governance which had been produced to comply with the updated framework released by CIPFA/SOLACE and matched the template for reporting in the Annual Governance Statement. Members considered that the Code should include reference to the Council's consultation with the community as exemplified by the development of an online Residents Panel. RECOMMENDED: That the revised draft Local Code of Corporate Governance set out at Annex 1 to the report be commended to the Council for adoption subject to inclusion in section 4.2 of reference to consultation with stakeholders. |
| AU 13/033 |
Treasury Management Update and Annual Report for 2012/13 |
The report of the Director of Finance and Transformation 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 2012/13, due to be reported to the meeting of the Cabinet on 19 June 2013, was also presented. It was noted that the summary of investment performance indicated that total investment income, whilst marginally below the 2012/13 revised estimate, generated a gross return for the year of 1.09% exceeding the 7 day LIBID benchmark by 63 basis points. An update was given on the position in respect of recovery of the investment with Landsbanki and the results of a peer comparison of investment activity. An explanation was provided of the effect on current investment returns of the "Funding for Lending" scheme introduced by the Bank of England and the potential impact on income expectations for 2013/14. In response to a question, assurance was given regarding the protection built into the Treasury Management Strategy to preclude exposure to banks from Sovereigns recognised as off-shore tax havens and confirmation given that each of the money market funds used by the Council were domiciled in either the UK, Ireland or Luxembourg. 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 2013 be endorsed; (2) the 2012/13 outturn position be noted; and (3) refresher training for Members be arranged in respect of treasury management. |
| DECISIONS TAKEN UNDER DELEGATED POWERS IN ACCORDANCE WITH PARAGRAPH 3 (OR 2), PART 3 OF THE CONSTITUTION | ||
| AU 13/034 |
Review of Effectiveness of Internal Audit |
The report of the Management Team informed the Committee of the annual review of the effectiveness of the Internal Audit function as required by the Accounts and Audit Regulations 2011. Members were advised that the Management Team had concluded that the opinion on the effectiveness of the internal audit function in place during 2012/13 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 2012/13 was Good be endorsed. |
| AU 13/035 |
Whistleblowing Charter |
The joint report of the Chief Executive and Director of Finance and Transformation presented a draft Whistleblowing Charter (Confidential Reporting Code) designed to comply with recognised best practice. It was noted that the review of the charter coincided with an update of the Council web pages dealing with fraud together with an e-learning fraud awareness package that would be distributed to staff in the near future. RESOLVED: That the draft Whistleblowing Code set out at Annex 1 to the report be commended to the General Purposes Committee for endorsement subject to the amendment of section 5.2 to read: "If you feel that you have an issue that you cannot raise with your manager, then you should contact one of the following:.....". |
| AU 13/036 |
Statement of Accounts 2012/13 |
The Director of Finance and Transformation presented an unaudited set of Accounts for 2012/13 in the format specified by the Code of Practice on Local Authority Accounting in the United Kingdom 2012/13. It was noted that the Accounts included the proposals recommended to the Cabinet meeting on 19 June 2013. 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. Further to Minute AU 13/018 (1), it was recommended that reference to an annual report for the Overview and Scrutiny Committee be reinstated in the Annual Governance Statement due to the enhanced profile of that committee in providing an independent and robust role. RESOLVED: That (1) the Statement provided by the Director of Finance and Transformation in support of assertions made in the statement of responsibility 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; (3) the unaudited set of Accounts for 2012/13 be commended to the General Purposes Committee at its meeting on 24 June 2013; and (4) the reference in the Annual Governance Statement to an annual report in respect of the Overview and Scrutiny Committee be not deleted for the reasons set out at paragraph 1.6.2 of the report. |
| AU 13/037 |
Audit Commission Work Programme and Scales of Fees 2013/14 |
The Director of Finance and Transformation reported receipt of the Audit Commission's Work Programme and Scale of Fees for 2013/14. It was noted that the scale of fees had been set at the same level as for 2012/13 when the Commission made fee reductions of 40%. RESOLVED: That the contents of the Audit Commission's report be noted and endorsed. |
| AU 13/038 |
Audit Fee for 2013/14 |
The Director of Finance and Transformation reported receipt of the Audit Fee Letter for 2013/14 from Grant Thornton which set out details of the audit fee for the Council (£60,135) together with the scope and timing of audit work and the audit team. RESOLVED: That the Fee Letter for 2013/14, as set out at Annex 1 to the report, be noted and endorsed. |
| MATTERS SUBMITTED FOR INFORMATION | ||
| AU 13/039 |
Annual Internal Audit Report 2012/13 |
The report of the Director of Finance and Transformation informed the Committee of the Internal Audit work completed during 2012/13, detailing how resources had been allocated and outturn against performance measures. Particular reference was made to the focus on assurance work but the team's involvement in consultancy work, anti-fraud activity and partnership working was also highlighted. Members were pleased to note the team's achievement of targets and were assured that if resources needed to be diverted elsewhere to more pressing investigations, the matter would be reported back to the Committee. RESOLVED: That the report be received and noted. |
| AU 13/040 |
Local Audit and Accountability Bill |
The report of the Director of Finance and Transformation provided an overview of the Local Audit and Accountability Bill which had been introduced to Parliament on 9 May 2013. It was noted that the Bill represented the final step in delivering the Government's commitment to close the Audit Commission and transfer its remaining functions. Attention was drawn to the provisions regarding appointment of independent members of auditor panels and the possible financial implications of the Bill. RESOLVED: The report be received and noted. |
| AU 13/041 |
Grant Thornton - Audit Plan |
The Committee received the annual report from Grant Thornton, the Council's external auditors, which provided details of the External Audit Plan for the Council. Mr Greenlee presented the Plan and answered Members' questions. Some concern was expressed about the different approach to obtaining assurance with emphasis on substantive testing rather than relying on Internal Audit. Members agreed to review the effect of the change in methodologies after a year's experience. RESOLVED: That the report be received and noted. |
| MATTERS FOR CONSIDERATION IN PRIVATE | ||
| AU 13/042 |
Exclusion of Press and Public |
There were no items considered in private. |