Agenda and minutes

To confirm as a correct record the Minutes of the meeting of the Committee held on 5 December 2012.

The Minutes of the meeting of the Committee held on 5 December 2012 were agreed as a correct record and signed by the Chairman.

There were no petitions or requests at the meeting.

There were no declarations of interest.

There was no urgent business.

Report of Head of Finance and Procurement.

Summary

This report allows Members to consider the External Auditors’ annual audit fee letter for 2012/13.

Recommendations

The Accounts, Audit and Risk Committee is recommended to:

(1)          note the contents of the fee letter.

The Committee considered a report of the Head of Finance and Procurement on the External Auditors’ annual audit fee letter for 2012/13.

Resolved

(1)          That the contents of the fee letter be noted.

Ernst & Young will provide a verbal update to the Committee, including understanding how the Committee gains assurance from management. Letter from Councillor Stevens to be circulated at the meeting.

The Committee considered a letter from the Chairman of the Committee to the External Audit Manager explaining how the Committee gained assurance from management about matters within its remit.

Resolved

(1)          That the content of the letter signed by Councillor Stevens as Chairman of the Committee be noted.

Report of Ernst & Young.

Summary

The purpose of this report is to provide the Accounts, Audit and Risk Committee with a basis to review the proposed audit approach and scope for the 2012/13 audit in accordance with the requirements of the Audit Commission Act 1998, the Code of Audit Practice, the Standing Guidance, auditing standards and other professional requirements, and also to ensure that the audit is in line with the Committee’s expectations.

This report summarises the assessment of the key risks driving the development of an effective audit for the Council, and outlines the planned audit strategy in response.

Recommendations

The Accounts, Audit and Risk Committee is recommended to:

(1)          note the Plan.

The Committee considered a report of the External Audit Manager on the proposed audit approach and scope for the 2012/13 audit.

Resolved

(1)          That the External Annual Audit Plan be noted.

Report of Chief Internal Auditor.

Summary

This report provides the Committee with an update of the work of Internal Audit since the last meeting.

Recommendations

The Accounts, Audit and Risk Committee is recommended:

(1)       to consider and approve the report.

The Committee considered a report by the Chief Internal Auditor on the work undertaken by Internal Audit since its last meeting and the Internal Audit Draft Annual Report 2012/13.

Following the identification of a high risk issue in relation to purchase orders, the Head of Finance and Procurement confirmed that the Committee would receive a report every six months on progress in relation to the management of purchase orders. The first report would be submitted in September 2013.

After the identification of a medium risk issue in relation to the general ledger, the Head of Finance and Procurement confirmed that the Committee would receive a report on planned improvements to the ledger in September 2013.

Following a recent case of a major planning application being granted permission without appropriate authority, the Committee requested the Head of Public Protection and Development Management submit a report to the next meeting to assure the Committee that there were no other cases of this kind.

Resolved

(1)          That the Internal Audit Progress Report be approved.

(2)          That the Internal Audit Draft Annual Report 2012/13 be noted.

Report of the Corporate Performance Manager.

Summary

To update the Committee on the management of Strategic, Corporate and Partnership Risks during the third quarter of 2012/13 and highlight any emerging issues for consideration.

To agree the risk management strategy for 2013/14.

Recommendations

The Accounts, Audit and Risk Committee is recommended to:

(1)          To review the quarter 3 Strategic, Corporate and Partnership Risk Register.

(2)          To agree the updated risk management strategy for 2013/14.

The Committee considered a report of the Corporate Performance Manager on the revised Risk Management Strategy for 2013/14 and the management of Strategic, Corporate and Partnership Risk during the third quarter of 2012/13.

The Committee heard that a new risk management group chaired by the S151 Officer was to be established by April 2013.

Resolved

(1)          That the quarter 3 Strategic, Corporate and Partnership Risk Register be noted.

(2)          That the updated Risk Management Strategy for 2013/14 be agreed.

Report of the Head of Finance and Procurement.

Summary

To receive information on treasury management performance and compliance with treasury management policy for 2012/13 for the period to 28 February 2013 as required by the Treasury Management Code of Practice and to note the contents of the Treasury Management Strategy for 2013/14

Recommendations

The Accounts, Audit and Risk Committee is recommended to:

(1)          Note the contents of the report.

The Committee considered a report of the Head of Finance and Procurement on the Council’s treasury management performance and compliance with the treasury management policy for 2012/13, and the contents of the Treasury Management Strategy for 2013/14.

Resolved

(1)          That the contents of the report be noted.

Report of the Head of Finance and Procurement.

Summary

The purpose of this report is to inform members of the draft 2012/13 accounting policies to allow members to consider and endorse the accounting policies under which we prepare our annual Statement of Accounts together with the summary timetable for production.

Recommendations

The Accounts, Audit and Risk Committee is recommended:

(1)          To approve the accounting policies as set out in Appendix 1.

(2)          To agree that delegated authority be granted to Head of Finance and   Procurement to make any further changes to the Accounting Policies in preparation for the forthcoming accounts closure for 2012-13

(3)          To note the closedown timetable summary as set out in Appendix 2.

The Committee considered a report of the Corporate Accountant on the review of Draft Accounting Policies 2012/13 and closedown update.

Resolved

(1)          That the Accounting Policies be approved.

(2)          That authority be delegated to the Head of Finance and Procurement to make any further changes to the Accounting Policies in preparation for the forthcoming accounts closure for 2012-13.

(3)          That the closedown timetable summary be noted.

To review and note the Committee work programme.

The Committee considered its Work Programme 2012/13.

Resolved

(1)          That the work programme 2012/13 be noted.

(2)          That a report be presented to the next meeting on 26 June 2013 by the Head of Public Protection and Development Management to give assurance to the Committee that no major planning applications had been granted without appropriate authority.

(3)          That the following additional items be considered at the Committees’ meeting on 18 September 2013:

(a)          progress report on the management of purchase orders, to be scheduled every six months thereafter;

(b)          progress report on planned improvements to the ledger.

The following item contains exempt information as defined in the following paragraphs of Part 1, Schedule 12A of the Local Government Act 1972.

3 – Information relating to the financial or business affairs of any particular person (including the authority holding that information).

Members are reminded that whilst the following item has been marked as exempt, it is for the meeting to decide whether or not to consider each of them in private or in public. In making the decision, members should balance the interests of individuals or the Council itself in having access to the information. In considering their discretion members should also be mindful of the advice of Council Officers. Should Members decide not to make a decision in public, they are recommended to pass the following recommendation:

“That, in accordance with Section 100A(4) of Local Government Act 1972, the press and public be excluded form the meeting for the following items of business, on the grounds that they could involve the likely disclosure of exempt information as defined in paragraph 3 of Part 1, Schedule 12A of that Act.”

Resolved

That, in accordance with Section 100(4) of Local Government Act 1972, the press and public be excluded from the meeting for the following item of business, on the grounds that they could involve the likely disclosure of exempt information as defined in paragraph 3 of Part 1, Schedule 12A of that Act.

The Committee considered the exempt appendix to the report of the Head of Finance and Procurement which updated Members on the Council’s investments at 28 February 2013.

Resolved

(1)          That the exempt appendix be noted.