minutes

The Minutes of the Meeting held on 20 June 2011 (Minute Nos. 90 - 94) were taken as read, approved and signed by the Chairman as a correct record.

declarations of interest

No interests were declared.

change to the order of business

The Chairman advised of a change to the order of business, as the Annual Governance Report and Statement of Accounts was a Part B report for the Audit Committee to decide, not Part A as listed on the agenda.

part a minutes for confirmation by council

annual treasury management report 2010/11

The Head of Finance introduced the report and advised that the Treasury Management Code required Local Authorities to formally report on their treasury activities and arrangements to Members mid-year and at year-end. He explained that this was an assurance report and there were no issues of concern.

part b minutes for information

annual governance report and statement of accounts

The District Auditor (Audit Commission) introduced the Annual Governance Report, which provided a formal opinion on the Council's Statement of Accounts and a conclusion as to whether the Council had proper arrangements for securing Value for Money.

He confirmed that the Annual Governance Report issued an unqualified opinion on the Statement of Accounts and Value for Money arrangements. He commended Officers on the improved quality of working papers and the high standards of the accounts, especially in view of the increased requirements following the introduction of International Financial Reporting Standards (IFRS). He thanked Officers and Members for their support during the year.

The Corporate Services Director considered that the report reflected the improvements in governance arrangements, the positive relationship the Council had with the District Auditors and the valuable role of the Audit Committee.

A Member referred to page 11 of the Annual Governance Report, in relation to Section 106 agreements. He considered that this should be included in the Annual Audit Plan for review. The Chief Accountant confirmed that Section 106 agreements had been included in Appendix Five - Action Plan as a recommended area for review. The Audit Manager also advised that the Head of Planning would attend the Audit Committee in November 2011 to discuss progress at the Committee's request.

The Head of Finance introduced the Statement of Accounts for year ended 31 March 2011. He advised that the Council's budget monitoring was more accurate and thanked Officers for their hard work during the year. He referred to the Annual Governance Report and advised Members that this should provide assurance to them when considering the Statement of Accounts.

The Chief Accountant advised that this was the first Statement of Accounts prepared under IFRS and this had resulted in changes to the presentation of the accounts and the accounting policies. He highlighted the income from VAT Fleming claims and the actuarial (gains)/losses on pension assets/liabilities. He explained the background to these items and how they were reflected in the total net worth, as set out in the balance sheet on page 25 of the accounts.

A Member referred to the list of earmarked reserves; he considered that it was difficult to understand what each of the items were earmarked for and queried whether the list should be reduced. The Head of Finance confirmed that that the list of reserves would be rationalised.

implementation of bribery act 2010

The Head of Finance introduced the report which outlined the main provisions of the Bribery Act 2010 and described the actions identified as necessary to ensure that the Council complied with the provisions of the legislation. He advised that the report would also be submitted to Cabinet on 5 October 2011.

internal audit strategic plan

The Audit Manager introduced the report which set out the three-year Internal Audit Plan and explained that the plan was flexible to reflect changing risks and priorities.

A Member welcomed the audit of Leisure Centre Management which was in the plan for 2011/12. He raised concerns regarding the contract arrangements and compliance, inadequate maintenance at the leisure centres, need for condition surveys and poor customer service. Members supported the comments made and raised concern that potential breaches of health and safety could have serious legal implications and the contract needed reviewing.

The Audit Manager advised that the audit was due to start in January 2012 and the scope of the audit would include a review of the adequacy of the contract and compliance and complaints received and how these were dealt with.

A Member referred to the risk assessments which ranked all potential audits according to a scoring matrix and helped to determine what projects should be included within the three-year audit plan. The Audit Manager agreed to circulate the risk assessments to all Committee Members.

Audit Manager

strategic risk register

The Audit Manager introduced the report which set out the refreshed risk register and asked Members to note its role in monitoring the effective development and operation of risk management in the Council.

internal audit assurance - direction of travel report

The Audit Manager introduced the report which recommended the introduction of an internal Audit Progress report to provide assurance to the Committee that internal control weaknesses identified during the audit process were being effectively monitored and improved in a timely manner.

A Member referred to Appendix I and the limited assurance for Development Control Enforcement. The Audit Manager advised that Internal Audit were satisfied that adequate action was being taken by the Head of Planning, which included introducing a Planning Enforcement Strategy and an upgraded IT system to monitor enforcement action.

audit committee work programme

The Audit Manager introduced the proposed template for the work programme. Members agreed the document should be included on future Audit Committee agenda.