The Chairman will advise the meeting of the evacuation procedures to follow in the event of an emergency. This is particularly important for visitors and members of the public who will be unfamiliar with the building and procedures.

The Chairman will inform the meeting whether there is a planned evacuation drill due to take place, what the alarm sounds like (i.e. ringing bells), where the closest emergency exit route is, and where the second closest emergency exit route is, in the event that the closest exit or route is blocked.

The Chairman will inform the meeting that:

(a) in the event of the alarm sounding, everybody must leave the building via the nearest safe available exit and gather at the Assembly points at the far side of the Car Park.  Nobody must leave the assembly point until everybody can be accounted for and nobody must return to the building until the Chairman has informed them that it is safe to do so; and

(b) the lifts must not be used in the event of an evacuation.

Any officers present at the meeting will aid with the evacuation.

It is important that the Chairman is informed of any person attending who is disabled or unable to use the stairs, so that suitable arrangements may be made in the event of an emergency.

The Chairman outlined the emergency evacuation procedure.

Councillors should not act or take decisions in order to gain financial or other material benefits for themselves or their spouse, civil partner or person with whom they are living with as a spouse or civil partner.  They must declare and resolve any interests and relationships.

The Chairman will ask Members if they have any interests to declare in respect of items on this agenda, under the following headings:

(a)          Disclosable Pecuniary Interests (DPI) under the Localism Act 2011.  The nature as well as the existence of any such interest must be declared.  After declaring a DPI, the Member must leave the meeting and not take part in the discussion or vote.  This applies even if there is provision for public speaking.

(b)          Disclosable Non Pecuniary (DNPI) under the Code of Conduct adopted by the Council in May 2012.  The nature as well as the existence of any such interest must be declared.  After declaring a DNPI interest, the Member may stay, speak and vote on the matter.

(c)          Where it is possible that a fair-minded and informed observer, having considered the facts would conclude that there was a real possibility that a Member might be predetermined or biased the Member should declare their predetermination or bias and then leave the room while that item is considered.

Advice to Members:  If any Councillor has any doubt about the existence or nature of any DPI or DNPI which he/she may have in any item on this agenda, he/she should seek advice from the Director of Corporate Services as Monitoring Officer, the Head of Legal or from other Solicitors in Legal Services as early as possible, and in advance of the Meeting.

No interests were declared.

To approve the Minutes of the Meeting held on 8 June 2016 (Minute Nos. 717 - 726) as a correct record.

The Minutes of the Meeting held on 8 June 2016 (Minute Nos. 717 – 726) were taken as read, approved and signed by the Chairman as a correct record.

The Head of Finance introduced the report which set out the Council’s financing and investment activity for 2015/16, drawing attention to the extra income that had been generated as a result of a higher level of balances and investment in the CCLA Property Fund. 

In response to a question concerning the Council’s attitude to risk, given the diminishing returns and likely cuts to funding, the Head of Finance confirmed that, post-Brexit, an additional £1.5m had been invested in the CCLA property fund.  It was appropriate to look at other options, with a suitable level of risk to generate more funds, and he would be discussing this with the Director of Corporate Services and the Cabinet Member for Finance and Performance in the coming months. 

In response to a question regarding the authorisation to borrow up to £30m, the Head of Finance advised that no funds had been borrowed and should this be required then a report would be considered by the Cabinet.  Traditionally, councils borrowed on a fixed rate. 

The Head of Finance undertook to provide information to a Member about Arlingclose and confirmed that the Council did not invest in corporate bonds.

Recommended:

(1) That the Treasury Management stewardship report for 2015/16 be approved.

(2) That the prudential and treasury management indicators within the report be approved.

The Committee considered the report of the Head of Finance which sought the Audit Committee’s approval of the Council’s financial statements for 2015/16 and asked the Committee to consider the external auditor’s Audit Findings Report.

The Chief Accountant introduced the report, taking Members through the Movement in Reserves Statement, the Comprehensive Income and Expenditure Statement, the Balance Sheet and the Cash Flow Statement.  The Chief Accountant and Head of Finance answered Members questions concerning the carrying amount of non-current assets and current assets held for sale, sold or derecognised; pension liabilities; and impairment and downward valuations.  The Head of Finance undertook to discuss pension liabilities further with a Member.

The Chairman thanked the Chief Accountant and his team for their work on the accounts, and invited Mr Iain Murray and Mr Trevor Greenlee of Grant Thornton to present the Audit Findings report.

In introducing the report, Mr Iain Murray drew attention to the fact that Grant Thornton would be issuing an Unqualified Opinion on both the Financial Statements and Value For Money.  He praised the way in which the financial reports had been presented; the support in working to bring the timetable forward; and the quality of the working papers and support given by the Chief Accountant and his team.  He referred to changes in the accounting standards and that they were satisfied with how assets had been re-categorised. 

In respect of Value for Money, Mr Murray drew attention to page 36 of the report, and considered that the Council’s 10-year financial plan was a positive step at a time of financial uncertainty. He was encouraged by a number of initiatives that the Council was progressing, such as the transformation programme, partnership working and joint ventures.  He was satisfied that the Council had sound financial management.

The Chairman thanked the team at Grant Thornton for their work and such a positive report, and congratulated the Finance team.  The Head of Finance also thanked the team at Grant Thornton for their high quality audit.

In response to a question, Mr Trevor Greenlee clarified that they were satisfied with the classification of assets and that robust discussions had taken place regarding the evidence to support those changes.  The Head of Finance agreed to provide additional information to a Member about this.

The Cabinet Member for Finance and Performance congratulated the Finance Team and the Auditors for their work, the sentiments of which were endorsed by the Cabinet Member for Families and Safer Communities, other Members of the Audit Committee, and the Director of Corporate Services.

Resolved:

(1) That the external auditor’s Audit Findings Report, as attached at Appendix I to the report, be noted.

(2) That the letter of representation, as attached at Appendix II to the report, be approved on behalf of the Council.

(3) That the Statement of Accounts for the year ended 31 March 2016, as attached at Appendix III to the report, be approved.

The Committee considered the report which gave an update on the latest position on the procurement of the external auditor, since the last Audit Committee meeting on 8 June 2016.

The Director of Corporate Services advised that the delegation would only be used if the timing did not allow for the Audit Committee to consider it, before being submitted to full Council.

The Head of Audit Partnership gave an update in that frequently asked questions had been published on the sector-led website which would be forwarded to Members.  It was likely that a decision would be required mid-October.

Resolved:

(1) That the final decision on a recommendation to Council on the preferred option be delegated to the Director of Corporate Services in consultation with the Chairman of the Audit Committee and the Cabinet Member for Finance and Performance.

Members considered the Audit Committee Work Programme. The Chairman suggested that there should be a fifteen minute briefing prior to the next Committee meeting on the strategic risk register, and an update on the external auditor appointment.  The next meeting would start at 7.15pm.

Resolved:

(1) That the Work Programme be noted.