Venue: Council Chamber - Monkton Park Offices, Chippenham
Contact: Anna Thurman
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Apologies Minutes: Apologies were received from Cllrs Jane Scott OBE, Peter Doyle, Richard Britton and Nigel Carter. |
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Chairman's Announcements To receive announcements from the Audit Committee Chairman Minutes: The Chairman had two announcements.
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Minutes of the Previous Meeting To confirm and sign the minutes of the Audit Committee meeting held on 13 May 2011 (copy attached). Supporting documents: Minutes: The Chairman of the Audit Committee welcomed Cllr Jeff Osborn, Chairman of the Scrutiny Committee to update members on a meeting between Scrutiny and Audit representatives, where the roles and responsibilities regarding SAP were discussed.
The outcome of this meeting was that Scrutiny, through the ICT Task Group would assume the lead role in reviewing the development of SAP as part of its responsibility for monitoring the implementation of the ICT plan. It was recognised that SAP was not simply an ICT application and therefore other Business Plan priorities about transformation and shaping the future were interlinked. It was also noted that there was common membership across Audit and Scrutiny function which would help facilitate wider discussions.
The Chairman of the Audit Committee explained that financial implications related to SAP would be brought to the Audit Committee.
In response (para 27, page 6 of the agenda refers) Michael Hudson, Interim Chief Finance Office explained that Option 2 was now in formal process, he was able to add that there was a timetable and that targets were being made.
The minutes of the previous minutes were deferred for signing until the next meeting. |
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Members' Interests To receive any declarations of personal or prejudicial interests or dispensations granted by the Standards Committee.
Minutes: There were no declarations of interest. |
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Public Participation and Committee Members' Questions The Council welcomes contributions from members of the public.
Statements
If you would like to make a statement at this meeting on any item on this agenda, please register to do so at least 10 minutes prior to the meeting. Up to 3 speakers are permitted to speak for up to 3 minutes each on any agenda item. Please contact the officer named on the front of the agenda for any further clarification.
Questions
To receive any questions from members of the public or members of the Council received in accordance with the constitution. Those wishing to ask questions are required to give notice of any such questions in writing to the officer named on the front of the agenda (acting on behalf of the Director of Resources) no later than 5pm on 22 June 2011. Please contact the officer named on the front of this agenda for further advice. Questions may be asked without notice if the Chairman decides that the matter is urgent.
Details of any questions received will be circulated to Committee members prior to the meeting and made available at the meeting and on the Council’s website.
Minutes: There was no public participation. |
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Interim Audit Report 2010-11 To receive the Interim Audit Report from KPMG. Supporting documents:
Minutes: The Interim Chief Finance Officer, Michael Hudson gave an overview of the interim audit findings, he explained that KPMG have carried out interim audit testing of processes and controls to inform the 2010/11 audit opinions in relation to the Council’s statement of accounts and value for money conclusions. As part of that audit KPMG have sought to place reliance on internal audit’s findings.
Rachael Tonkin, Manager, KPMG updated the Committee on the key findings of the report. The review of the Council’s general control environment was completed in March 2011. The review of IT control environment is on-going and due to finish shortly.
Members of the Committee sought clarification on a number of points including;
Accounts production ‘significant challenges’ - Rachael Tonkin explained that there was a lot more work to be undertaken when producing IFRS accounts. Michael Hudson made clear that this was the first time that the accounts had been produced in this way. The interpretation of CIPFA guidance would perhaps not be the same as that of KPMG and clarification would be sought.
‘Alter our audit strategy’ - Rachael Tonkin explained that significant additional testing would take place during the audit of the financial accounts. This would have implications on the amount of work KPMG would need to undertake and have an effect on the fee. Options have been discussed with Finance staff and KPMG would work closely with them to minimise costs.
User Access, SAP - Members questioned whether there were still issues. It was reported that the number of access users had significantly reduced but not enough for KPMG to issue a full assurance. Michael Hudson accepted that there was need for improvement. The advice given will be taken and the recommendations made will be a top priority for the finance team.
Assurance was sought that ‘bolt ons’ and ‘add ons ... view the full minutes text for item 33. |
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Annual Audit Fee 2011/12 To receive the Annual Audit Fee 2011/12 from KPMG. Supporting documents:
Minutes: The proposed indicative external audit fee for 2011/12 is £370,260 excluding external grant audit fees that are proposed at £80,000. This represents a 15% or £65,340 reduction from the 2010/11 audit fees of £435,600.
Resolved:
That the proposed fee is noted. |
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Internal Audit Report 2010/11 To receive, the Internal Audit Report from the Interim Chief Finance Officer, Michael Hudson. Supporting documents:
Minutes: Estelle Sherry, one of the three Principal Auditors presented the Internal Audit Annual Report 2010/11. She explained that the report had been drawn up differently than in previous years drawing attention in the report onto internal audit work and its outcomes. Internal audit opinion, work completed and key risks arising have been brought to the front of the report.
Key areas of note were;
The Council has improved its overall control environment, the opinion given is substantial assurance in spite of;
Internal audit finalised reports on a total of 44 planned audits and completed 30 follow up reviews. None of the planned audits received a no assurance statement.
In addition to the audit work undertaken internal audit staff have provided help and advice across the directorates. National Fraud Initiative (NFI) work has also been ongoing as has Financial Management Standard in Schools (FMSiS). The requirement to undertake FMSiS ceased in December 2010; final assessments were still completed as a service to schools. From Sept 2011 it is likely that Schools Financial Value Standard (SFVS) will start. Guidance from the Department of Education is awaited.
Despite a challenging year for the internal audit team, where there has been reduced capacity, and the proposal of an alternative ... view the full minutes text for item 35. |
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Consultation on the Future of Local Public Audit (DCLG) To receive Wiltshire Councils proposed response to the consultation document issued by the Department for Communities and Local Government (DCLG), entitled Future of Local Public Audit. Supporting documents: Minutes: Michael Hudson, Interim Chief Finance Officer, introduced a report which set out Wiltshire Council’s proposed response to the consultation document issued by the Department for Communities and Local Government (DCLG), entitled the Future of Local Public Audit. Committee members thanked him for the report. They agreed that a commissioning process was a healthy way forward. He explained that the appointment of auditors must come from the register of local public statutory auditors which would possibly consist of 4 – 5 external auditors. To ensure that the relationship between the Council and the auditor does not become too close a system of rotation is proposed. Members concurred that a system of rotation was appropriate and that it was in the public interest to see the process of rotation. There was strong support for the inclusion of independent members, including that of the Chair and Vice Chair which would create more transparency. On balance members felt that Option One of the consultation paper (para 23, page 97 of the agenda refers) was the appropriate way forward, with accounts produced resembling those in the private sector with increasing transparency and improving reporting to the Public . The Interim Chief Finance Office thanked the Audit Committee for their comments and that these would be used to shape the final response to the proposals out for consultation.
Resolved:
That the report be noted and a response is sent to the DCLG based on the draft responses and taking account of the comments from members. |
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Annual Governance Statement 2010-11 Draft To receive the draft Annual Governance Statement, from Ian Gibbons, Monitoring Officer. Supporting documents:
Minutes: The Monitoring Officer, Ian Gibbons, presented the Draft Annual Governance Statement (AGS) for 2010-11 for the Committee’s preliminary comments.
It was noted that the Council was required to prepare and publish an AGS as part of its annual review of the effectiveness of its governance arrangements (para 4, page 115 of the agenda refers), meeting the six principles of good governance adopted in its Code of Corporate Governance.
The draft AGS would be revised in the light of any comments this Committee, or any other body consulted, wished to make and the ongoing review work by the Assurance Group.
The draft AGS would be presented to Cabinet, the Standards Committee and KPMG, External Auditors, with any comments being presented to this Committee at its meeting on 28 September 2011 when the AGS would be presented for final approval.
Members noted that significant progress had been in the Housing Landlord Service Improvement Plan and questioned whether this needed to remain a significant governance issue. The Committee asked the Assurance Group to keep this under review and to: refer in the AGS to the new requirement to send internal audit reports to Cabinet Members; review the governance arrangements for section 106 agreements; include outstanding harmonisation issues arising from LGR as part of the significance governance issue relating to the Transformation Programme.
Resolved:
To ask the Assurance Group to review and amend the AGS in light of the above comments.
To note that the draft AGS will be revised further in the light of ongoing work by the Assurance Group and any comments of the Standards Committee and Cabinet, before being brought back to the Committee for final approval on 28 September 2011.
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Forward Work Programme To note the Forward Work Programme. Supporting documents: Minutes: Resolved:
The plan was noted. |
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Date of next meeting To note that, the next regular meeting of the Committee will be held on 28 September 2011, commencing at 2pm in the Council Chamber, Monkton Park Offices, Chippenham. Minutes: The next meeting will take place on the 28 September 2011, in the Council Chamber, Monkton Park starting at 10.30am with a working lunch. Members should note that this is likely to be a lengthy meeting continuing into the afternoon. |