Agenda and minutes

Membership change - Cllr Jeff Osborn had been appointed as a full committee member in place of Cllr Helen Osborn who had become a substitute.

Apologies were received from Corporate Director Carlton Brand.

Apologies were received from Cllr Jeff Osborn who was substituted by Cllr Helen Osborn.

The Chairman announced a training session that would take place in April 2015 which would be discussed later in the meeting. The Chairman also announced that significant work was being done on risk. Jason Teal (Head of Risk) would present to the Committee in June 2015.

To confirm and sign the minutes of the Audit Committee meeting held on 27 January 2015.

Resolved:

The minutes of the previous meeting held on 27 January 2015 were approved with one amendment to the SWAP figures (item 57, second paragraph, there were 97 recommendations and 38 had been completed. There were 59 recommendations outstanding).

To receive any declarations of disclosable interests or dispensations granted by the Standards Committee.

There were no declarations.

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 Corporate Director) no later than 5pm on 03 March 2015. 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.

There was no members of the public present.

The Internal Audit presentation was given by the Associate Director for Finance and the Executive Director (SWAP). It was noted by Members that there was a need to reduce the internal audit fee and future audits would be focussing on adding value. The Audit process would change and detailed training process would be provided. The new approach could be seen at other Local Authorities such as Lincolnshire. There was a need for the audit plan to be more risk focussed.

The presentation discussed how internal audit had changed. The need to ensure value for money was discussed. It was noted that managers must work with Audit to identify additional risks. 

Changes to local authorities were raised, including fewer staff, less money and a greater reliance on IT. There was also an increased public demand and expectation of their local authority. The role of greater partnership working and external monitoring was also discussed.

The need to ask if Internal Audit was adding value was previously raised. Audit’s focus was seen as being too broad and it was necessary to look at a different approach. There would be shared risk and a control assurance map for each functional area. Internal Audit would meet with managers to find issues and create assurances. Suggested key risks and projects were raised as a point of focus. The role of benchmarking in risk was also highlighted. It was heard that this should not be seen as a short-term audit plan.

The three lines of defence were explained: firstly, management controls, secondly, functions that oversee risk and finally, internal audit. Internal Audit would work outside of the first two lines of defence. It would focus on areas where there was the greatest need. The new approach would see a reduction in the number of audits and eliminate silos. This process would promote the efficient use of assurance resources and decrease the overall costs. It was explained to Members as a ‘health check rather than heart check’ as it looked at the organisation overall rather than a specific process in isolation. Gaps in service area risk profiles would be raised with the relevant manager.

Combined Assurance Planning was explained by the Executive Director (SWAP) and would be piloted in Children’s Safeguarding and Public Health. It would be mapped across other SWAP Local Authorities. The model of Lincolnshire County Council would be used but this model would be new to Wiltshire Council. The Lincolnshire County Council public audit reports pack would be circulated to Members. Training sessions would supplement additional reading materials to explain the changes that were to be made. The Associate Director for Finance explained that this approach would be stopped should it not be successful.

It was noted that this approach would be reviewed with the Audit Committee before being taken to Cabinet. The Associate Director for Finance explained that this approach had been presented to the Corporate Directors and the need to add value was emphasised. 

The Chairman invited Members to give their input on  ...  view the full minutes text for item 17.

The External Audit Plan was presented by Darren Gilbert (KPMG) , which summarised key aspects for the year ahead. Responsibilities remained unchanged. The pension fund was discussed with focus on the regulatory reform process. The estates strategy was also discussed.

Members had the opportunity to ask questions. It was asked whether KPMG had been involved in discussions with internal audit and the finance team in regards to the change of approach in internal audit.

Members discussed the proposed audit in regards to the potential £70M of proposed funding for Wiltshire Council Hubs. It was stated that the audit team would through the planning process, to consider any focused scope of audit to address risk that could include how value for money was assessed. The Associate Director, Finance noted that further reports would continue to be brought to Cabinet, noting the value and cost of the project.

The BBLP audit was raised but not discussed as it was now a scrutiny matter.  The Associate Director, Finance, would update Members on where this particular audit would be discussed.

Resolved:

To adopt the External Audit Plan.

The forward plan was noted by the Committee.

To note that the next regular meeting of the Committee will be held on  23 June 2015.

The next meeting would take place on 23 June 2015 in the Council Chamber, County Hall, Trowbridge.

There were no urgent items.