Location: COUNCIL CHAMBER, Daneshill House, Danestrete
Present: Members: Councillors, J.R. Raynor (Chair), J. Gardner (Vice-Chair, until 7.15pm), G. Clark and A.T. Turner
Others: Mr. B. Mitchell
Duration:
Start Time: 6.00pm
End Time: 8.25pm
Status: Noted
Business: Apologies for absence were submitted on behalf of Councillor A.T. Turner.
There were no declarations of interest.
Decision:
Status: Agreed
Business:
Decision: The Minutes of the meeting of the Audit Committee held on Tuesday, 30th May 2006 having been circulated, were taken as read, and it was RESOLVED that they be signed as a correct record.
Status: Noted
Business:
Decision: A presentation was received from Mark Barnes, from Jardine Lloyd Thompson, on Stevenage Borough Council's Risk Management Strategy.
It was noted that the responsibility for Risk Management was now with this Committee, having taken over from the Performance Priorities and Improvement Group.
The presentation centred around:-
* What is Risk Management
* The benefits of Risk Management
* The role of the Audit Committee
* The risk management cycle
Mark Barnes concluded the presentation by advising:-
* Not all risks would be known to the organisation at any one time;
* Risk Management is the responsibility of everyone in the organisation and is part of good business practice;
* The benefits are huge, however, it is a gradual process with no quick fix.
The Chair thanked Mark for his presentation.
Status: Noted
Business: The Finance Project Manager submitted a report updating Members on the Council's submission for the 2006/07 'Use of Resources' assessment that is carried out annually as part of the Audit Commission's CPA.
The completed self assessments would be submitted to the Audit Commission on the 29th September 2006. The 2 assessments completed were:-
* Key lines of enquiry for 'Use of Resources' - covering financial reporting, financial management, financial standing, internal control and value for money.
* Value for money self assessment - covering how well does the Council currently achieve good value for money and how well does the Council manage and improve value for money.
It was noted that last year the Council was awarded a Level 2 overall score.
Officers advised that the self assessment score for 2006/07 would be amended to produce a Level 3 score across all of the 5 categories.
Members noted that a detailed improvement plan was now in the process of being developed and would form the basis of Finance's Service Plan and would ultimately be delivered through the 'Improving Financial Management' project.
The final scores for the assessment will be published on the 29th March, 2007 as part of the annual audit and inspection letter.
Decision:
Status: Noted
Business: A presentation was received from Zoe Harriss, Corporate Procurement Manager.
Zoe advised that the Corporate Procurement Function was established in 2003 with the key objectives being to:-
* Deliver savings
* Establish procurement strategies and processes
* Contact for procurement advice
* Manage stores function
Members were advised of the key achievements and the work programme for the Section for 2006/07.
The Chair thanked Zoe for her presentation.
Decision:
Status: Noted
Business: A presentation was received from Simon Martin, Audit Partnership Manager on the role of Internal Audit. The presentation covered:-
* How internal audit was regulated
* General perceptions of internal audit
* Details of the Stevenage and Uttlesford Audit Partnership
* The work programme for Internal Audit
* The link between internal Audit and the Audit Committee.
The Chair thanked Simon for his presentation.
Decision:
Status: Noted
Business: Officers submitted a report providing Members of the Audit Committee with internal audit assurance in relation to car park revenue and cemetery management.
In relation to Car Park revenue, officers identified that improvements were needed to the control framework. Issues relating to the recording, receipting, reconciling and accounting for revenue were identified and would need to be addressed to ensure adequate internal control.
Members were advised that in relation to cemeteries, the main aims of the service were being achieved. Officers had identified some areas of risk that could be reduced by implementing the recommendations contained in the report. The recommendations covered a range of issues including staff training, health and safety risk assessments and fees charged.
The Committee noted the internal audit reports and completed management action plans for the car park service and cemeteries service.
Decision:
Status: Noted
Business: Officers updated Members on progress in implementing the action plan developed in response to the Benefit Fraud Inspectorate (BFI) report on Stevenage Borough Council.
The on-site inspection took place during March 2006. The final report was published on the 19th July 2006. The report included eleven recommendations for implementation and officers had developed an action plan to ensure that these were completed within the current calendar year.
Members noted the progress made in implementing the plan and the timetable for completion.
Decision:
Status: Agreed
Business: Neil Harris from the Audit Commission submitted a report which had been issued summarising the conclusions from the Audit Commission's work on Stevenage Borough Council.
The principal purposes of the report were:-
* To reach a mutual understanding of the scope for the audit and the respective responsibilities of the auditor and the Audit Committee;
* To share information to assist both the auditor and those charged with governance to fulfil their respective responsibilities; and
* To provide the Audit Committee with recommendations for improvement arising from the audit process.
Neil Harris advised Members that the outstanding issue relating to the accounting treatment of a £2.6 million repayment to English Partnerships had now been resolved and would be capitalised. The Department of Communities and Local Government had approved a Capitalisation Direction.
Neil reported the following matters for the Committee's attention:-
* Expected modifications to the auditors report
* Uncorrected misstatements
* Adjusted misstatements
* Qualitative aspects of accounting practices and financial reporting
* Material weaknesses in internal control identified during the audit
* Matters specifically required by other auditing standards
* Any other matters of governance interest
Neil advised that the above matters were drawn to the Committee's attention so that:-
* Consideration could be given to them before the financial statements were approved and certified.
* Arrangements could be made for the representations letter to be signed on behalf of the Council and those charged with governance before the Audit Commission issues its opinion on the financial statements.
* The Committee had the opportunity to amend the financial statements for the unadjusted misstatements/significant qualitative aspects of financial reproting issues identified above. Should the Council choose not to amend the financial statements, the Audit Commission requested that the representation letter be extended to include an explanation why.
* The Committee could agree that any further matters arising from the conclusion of the Audit Commission's work, including any further amendments to the accounts or modification to the auditor's report are agreed with the Chair of this Committee before they issue their opinion on the financial statements.
Neil concluded by thanking the Council for its positive and constructive approach to their audit and expressed his appreciation for the Council's assistance and co-operation.
Decision:
Status: Agreed
Business: Neil Harris from the Audit Commission submitted a report providing Members with an overview of external audit reports and to introduce the Annual Governance report for 2005/06.
Members noted a leaflet produced by the Audit Commission providing background on the nature and scope of external audit reports issued to local government bodies.
Members were advised that as the financial statements were unlikely to be issued by 30th September, any further matters arising would need to be reported before the audit commission issues its opinion. It was therefore proposed that the Chair of the Audit Committee was given delegated responsibility to consider any further matters arising on behalf of those charged with governance.
It was RESOLVED that the Chair of the Committee be given delegated authority to consider any further matters arising on behalf of those charged with governance.
Decision:
Status: Noted
Business: Neil Harris from the Audit Commission submitted a report providing Members with an outline proposal to undertake a development workshop for the Audit Committee.
The workshops aim to provide Members and Officers with an increased awareness on roles and responsibilities, with the aim of increasing the effectiveness of the Audit Committee.
Members noted the project specification for the workshop and were happy with the next steps for the setting up and running of the workshops.
Decision:
Status: Noted
Business: None.
Decision:
Status: Noted
Business: None.
Decision:
Status: Noted
Business: None.
Decision: