Agenda and minutes

Members are asked to declare any interest and the nature of that interest which they may have in any of the items under consideration at this meeting.

There were no declarations of interest.

The Chairman to report on any requests to submit petitions or to address the meeting.

There were no petitions or requests to address the meeting.

The Chairman to advise whether they have agreed to any item of urgent business being admitted to the agenda.

There was no urgent business.

To confirm as a correct record the Minutes of the meeting of the Committee held on 13 December 2010.

The Minutes of the meeting held on 13 December 2010 were agreed as a correct record and signed by the Chairman.

Report of Head of Finance

Summary

The purpose of this report is to provide a brief update to Councillors on the Councils progress towards IFRS and completing the 2010/11 Statement of Accounts under these new standards.

Recommendations

The Accounts, Audit and Risk Committee is recommended to:

(1)               Note the contents of this report and the officers’ proposed actions to deal with the implementation of IFRS.

The Committee considered a report of the Head of Finance which provided a brief update to Members on the Councils progress towards International Financial Reporting Standards (IRFS) and completing the 20101/11 Statement of Accounts under these new standards.

The Head of Finance advised the Committee that the Chartered Institute of Public Finance and Accountancy (CIPFA) had issued its guidance notes for the Code of Practice on Local Authority Accounting (The Code) which would be used to confirm the detail of the accounting processes and transactions which need to  be undertaken for the 2010/11 Statement of Accounts.

The Committee was advised that the IFRS Steering Group had met on 19 January 2011 to review progress and further meetings were scheduled in March and April. The Steering Group would subsequently submit a brief report to the June meeting of the Accounts, Audit and Risk Committee alongside the Statement of Accounts 2010/11.

The Committee considered the first draft of the closedown timetable 2010/11 and commented that it was very comprehensive and were confident that the process would run smoothly.

Resolved

(1)               That the contents of the report and the officers’ proposed actions to deal with the implementation of International Financial Reporting Standards (IFRS) 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 to:

(1)               Consider and approve this report.

The Committee considered a report of the Chief Internal Auditor which summarised the progress made against the internal audit plan for 2010/11 for the period from December 2010 to January 2011. The Committee was advised that 61% of the plan had been completed and the remainder would be completed by the end of the financial year.

The Audit Team Leader reported that since the Committee’s September meeting four final reports had been issued and draft reports had been issued and/or fieldwork commenced in five areas.

In response to Members’ questions regarding the final report on debtors, the Chief Internal Auditor and Head of Finance agreed to supply Members with further information on the debtors whose debt was over one year old and how it was intended this would be rectified. Members noted that the internal audit team had given moderate assurance in this area as they had been confident in the systems the council had in place.

The Head of Finance advised the Committee that with regard to the moderate assurance opinion on creditors, the high risk identified related to inconsistency in raising purchase orders before invoices were paid. The Chief Internal Auditor reported that whilst he was confident a good system was in place, including training for users, it was not being used efficiently and individuals were not following the processes. Members were advised that in response to this matter, a policy was being developed.  The Committee requested Officers bring this policy to the Committee’s March meeting and requested the Finance Scrutiny Working Group add the issue to the performance matrix they consider quarterly.

Resolved

(1)               That the Internal Audit progress report be approved.

(2)               That Officers be requested to bring the policy on purchase order procedures and an update on this issue to the March meeting of the Committee.

Report of Head of Finance

Summary

This report sets out the work that the Audit Commission will undertake in order to form an opinion on the financial statements for 2010/11 taking into account risk which satisfies their responsibilities under the Audit Commission’s Code of Audit Practice.

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 which set out the work that the Audit Commission would undertake in order to form an opinion on the financial statements for 2010/11 taking into account risk which satisfies their responsibilities under the Audit Commission’s Code of Audit Practice.

The Audit Manager reported on the changes in the approach the External Auditor would apply when auditing the council’s 2010/11 financial statements and the new arrangements in place for auditing the councils value for money arrangements in light of the Government’s decision to abolish the scored assessment (Use of Resources).

The Audit Manager reported on the Audit Commission fee for the Council. She explained that the Commission Board would meet in February to set the work programme and fees and would report this to the March meeting of the Committee.   

Resolved

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

a)         Corporate Risk Register

The Head of Finance will update Members on the addition of shared management arrangements with South Northamptonshire Council to the corporate risk register.

b)         Accounts, Audit and Risk Committee Work Programme 2011/12

The Head of Finance will update Members on proposals for the Accounts, Audit and Risk Committee Work Programme 2011/12.

a)         Corporate Risk Register

The Head of Finance advised the Committee that shared management arrangements with South Northamptonshire Council had been added to the corporate risk register which would be reviewed regularly by the Committee.

b)        Accounts, Audit and Risk Committee Work Programme 2011/12

The Head of Finance reported that she had met with the Chairman of the Accounts, Audit and Risk Committee to discuss the Committee’s Work Programme for 2011/12 and would bring a draft to the March meeting for Members to consider.