Agenda and minutes

Apologies were received from Cllrs John Brady, Mark Griffiths and Helen Osborn.

There were no Chairman’s announcements.

To confirm and sign the minutes of the Audit Committee meetings held on 7 and 19 September 2012. (copies attached)                                             

The minutes of the meetings held on 7 September 2012 and 19 September 2012 were presented, and it was,

Resolved:

To approve the minutes as a true and correct record.

To receive any declarations of pecuniary or non-pecuniary interests or dispensations granted by the Standards Committee.

There were no declarations of interest.

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 no later than 5pm on Wednesday 12 December.  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.

The Committee noted the rules on public participation.  There were no submitted questions or statements.

A report by the Service Director of Finance and a letter from KPMG is attached.

The Committee considered the Annual Audit Letter issued by the Council’s external auditor – KPMG, for 2011/12. 

Darren Gilbert, Senior Manager KPMG, explained that the report summarised the key findings from the 2011/12 audit of the Council and that all the findings had been discussed in previous Audit Committee meetings. He added that the reports reflected another significant improvement in the Council’s control environment.

Michael Hudson, Service Director of Finance explained that officers were in the process of actioning recommendations and the Committee would receive an update on progress in the final quarter of 2011/12.

Headlines from the report were;

·         VFM conclusion – Unqualified value for money (VFM) conclusion was issued in September 2012.

·         Audit opinion – Unqualified opinion on financial statements issued in September 2012.

·         Financial statements audit – The Council has sound financial reporting arrangements and the financial statements audit progressed smoothly. The Council has implemented all of the recommendations in the KPMG ISA 260 Report 2010/11 relating to financial statements

·         Annual Governance Statement – Consistent with KPMG’s understanding.

·         Pension fund audit – No significant issues and an unqualified opinion was issued.

·         Certificate – Issued on 7 September 2012.

·         Audit Fee – £402,760 excluding VAT.

The Chairman thanked Darren for his report.

Resolved

To note the content of the report.

A report by the Service Director of Finance is attached along with an appendix from the South West Audit Partnership.

The Committee considered the report of Michael Hudson, Service Director of Finance, and Internal Audit (IA) on the most recent quarterly update for 2011/12.

The report summarised (i) the outcomes of audits completed during the period, (ii) the results and outcomes of follow-up reviews carried out during the period, and (iii) an update on the delivery of the 2012/13 Internal Audit Plan.

Dave Hill, Group Audit Manager led the committee through the main points of the report.  The Service has started 96 audits – 63 had been completed, 8 were in draft and 35 were in progress.  Of the 35 audits 17 related to audits carried forward from 2011/12 of which 14 were complete, 2 deferred and 1 at draft stage.  He also explained that based on the work completed to date in the current financial year, that risks were generally well managed and the systems on internal control were working effectively. Management responded positively to IA suggestions for improvements and corrective action was often taken quickly wherever it was possible or practical.

Dave explained that IA were working on improving the number of final reports being issued within 10 working days of a discussion of the draft report.  It was noted that final reports were produced on average within 17 days.  Members were also informed that only 82% of customer satisfaction questionnaires were returned and David highlighted the importance to IA of the comments and feedback received from clients. Members suggested that in future all questionnaires must be returned to IA. 

Barrie Pirie, Service Director, HR and Organisational Development welcomed the report from IA on Sickness Absence.  He explained that it was encouraging to be engaged with the audit process to identify current and future risks. The outcomes of the IA report did not raise any unknown issues and the information contained in the report would be used to improve processes of reporting and that the action plan would deliver improvements to the service.

Paul Loach, Head of Service, HR Operations highlighted how HR provided help for Managers including practical guides, up-to-date policies, training- including training on the SAP system, running manual handling and stress management courses and case reviews.  He explained that appropriate resources were to be reallocated with HR to tackle sickness absence.

 Members in considering the report in detail raised the following points:

•      the need for table column headers for each page of Appendix B of the report

•      Questions about Contract Management and Category Management and assurances that the recommendations and controls suggested by IA had been accepted and integrated within a long term plan for the service. It was suggested that Category Management could be linked with System’s Thinking, Property Management and Campus provision

•      A Partial opinion received for the audit on IT Infrastructure.  Additional work was currently being undertaken and a further update on this issue would be available at the Committee’s next meeting in March 2013

•      Officers confirmed that the proposed start dates for audits due to  ...  view the full minutes text for item 19.

To note the Forward Work Programme

Resolved:

That the Committee’s Forward Work Programme for December 2012 to March 2013 be noted.

To note that the next regular meeting of the Committee will be held on 20 March 2013. 

The next meeting will take place on 20 March 2013, in the Council Chamber, Monkton, Chippenham starting at 10:30am.

Any other items of business, which the Chairman agrees to consider as a matter of urgency.