Agenda and minutes

There were no Declarations of Interest

There were no petitions or requests to address the meeting.

There was no urgent business.

To confirm as a correct record the Minutes of the meeting of the Committee held on 26 June 2013.

The Minutes of the meeting of the Committee held on 26 June 2013 were agreed as a correct record and signed by the Chairman.

** Please note that Appendix 3 to this report will follow as it is currently being finalised **

Report of Interim Head of Finance and Procurement

Summary

The purpose of this report is to obtain official sign-off by the Chief Financial Officer and the Chairman of Accounts, Audit and Risk Committee the audited Statement of Accounts 2012/13.

Recommendations

The Accounts, Audit and Risk Committee is recommended:

(1)          To approve the amendments to the 2012/13 financial statements detailed in Appendix 1

(2)          Subject to reviewing the contents of the Audit Results Report (separate agenda item) approve the 2012/13 financial statements (Appendix 2).

(3)          To note that the 2012/13 Summary Accounts are currently being prepared and will be tabled at the meeting (Appendix 3 – to follow).

The Committee considered a report of the Interim Head of Finance and Procurement which sought agreement of the audited Statement of Accounts 2012 – 13.

In introducing the report, the Corporate Finance Officer explained that 2012/13 was the first year that the accounts had been prepared by a shared finance team. All statutory deadlines had been met and it was anticipated that an unqualified audit opinion would be received.

The Committee was advised that the majority of changes to the “subject to audit” version of the accounts were presentational with the only major change being the change of the asset date to 31 March 2013.

Resolved

(1)      That the amendments to the 2012/13 financial statement   be approved.

(2)      That the 2012/13 Financial Statements be approved. and the Statement of Accounts be duly signed by the Chairman and the Director of Resources.

(3)      That it be noted that the 2012/13 Summary Accounts were currently being prepared and, when finalised, would be circulated to Members in due course.

Report of Head of Finance and Procurement

Summary

To allow Members to consider the Ernst and Young LLP Results Report which includes comments on the audit of the 2012/13 Statement of Accounts.

Recommendations

The Accounts, Audit and Risk Committee is recommended: to:

(1)     Consider the matters raised in the report before approving the 2012/13

financial statements and recommending to Council.

(2)     Note of the adjustments to the financial statements set out in this report

(3)     Approve the letter of representation on behalf of the Council as set out in the appendix.

The Committee considered a report of the Interim Head of Finance and Procurement which sought consideration of the Ernst and Young LLP Results Report  which included comments on the audit of the 2012/13 Statement of Accounts.

In introducing the report, the External Auditors reported that the audit had been carried out over a number of areas with no irregularities to report.

The external auditors thanked the Finance team for the quality of work and assistance given informing the Committee that the same quality of work had been maintained throughout the successful first joint CDC & SNC year-end process.

The Committee was advised that all outstanding actions had now been completed and once the Letter of Representation had been received, an unqualified audit opinion would be issued. An unqualified value for money conclusion would be issued as the external auditor was satisfied the arrangements were adequate and the criteria met.

In response to Members’ requests for clarification on the External Auditor assessment of the Councils Managing Finances as adequate, the Corporate Finance Manager informed the Committee that recommendations had been given by the External Auditor which would assist the Council in improving the assessment. It  was agreed that these recommendations would be brought to the next meeting.

Resolved

(1)      That the matters raised in the External Audit Results Report be noted, prior to approval of 2012/13 financial statements.

(2)      That the adjustments to the financial statements be noted.

(3)      The letter of representation on behalf of the Council be approved.

Report of Corporate Performance Manager

Summary

To update the Committee on the management of Strategic, Corporate and Partnership Risks during the first quarter of 2013/14 and highlight any emerging issues for consideration.

Recommendations

The Accounts, Audit and Risk Committee is recommended to:

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

The Committee considered a report by the Corporate Performance Manager which updated the committee on the management of strategic, corporate and partnership risks during the first quarter of 2013/14 and highlighted any emerging issues.

The Corporate Performance Manager circulated a copy of a Risk Heat map and Full Risk log which covered both CDC and South Northamptonshire Council. The Committee was advised that a number of entries on the Heat Map had been assessed as joint risks therefore may not be a true indication of the severity level at each individual authority. It was agreed that future reports to the Committee would only highlight CDC risks and identify change within the risk.   

Resolved

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

Report of Interim Head of Finance and Procurement

Summary

To receive information on treasury management performance and compliance with treasury management policy for 2013/14 for Quarter 1 including an update for position as at 31 August 2013 as required by the Treasury Management Code of Practice.

Appendices 1 and 2 to the report are restricted.

Recommendations

The Accounts, Audit and Risk Committee is recommended to:

(1)          Note the contents of the Quarter 1 (Q1) Treasury Report.

(2)          Note the contents of the 2012/13 Annual Treasury Report which was presented to Council in July 2013 – Appendix 3.

The Committee considered a report of the Interim Head of Finance and Procurement on the Council’s treasury management performance and compliance with the treasury management policy for the first quarter of 2013 – 14 including an update for position as at 31 August 2013 as required by the Treasury Management Code of Practice.

Resolved

(1)      That the Quarter 1 (Q1) Treasury Report be noted.

(2)      That the 2012/13 Annual Treasury Report which was presented to Council in July 2013 be noted.

Report of Interim Head of Finance and Procurement

Summary

The purpose of this report is to provide information to the Accounts, Audit and Risk Committee on the Council’s use of Purchase Orders.

Recommendations

The Accounts, Audit and Risk Committee is recommended to:

(1)          Note the contents of the report on the progress the Council is making to improve the use of purchase orders.

The Committee considered a report of the Interim Head of Finance and Procurement on the Council’s use of Purchase Orders.

In introducing the report the Corporate Accountant reported that there had been improvement in the use of Purchase Orders but further improvement was still required. A service analysis would highlight sections that were proficient identify those areas where further training was required. The Corporate Accountant reported that the move to “no tolerance” no Purchase Order no payment, would impact on the speed of the payment of invoices.

The committee requested that a further report be submitted to the December meeting.

Resolved

(1)      That the report on the progress the Council is making to improve the use of purchase orders 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)          Note the contents of this report

The committee considered a report of the Chief Internal Auditor which provided an update of the work of Internal Audit since the last meeting.

The Chief Internal Auditor reported that the profiled work was on track with discussion with the areas in the Council that would be audited underway.

Resolved

(1)      That the report be noted

To review the Committee work programme (to be tabled).

The Committee considered its Work Programme 2013-14. The Corporate Finance Manager reported that Purchase Orders & IT access issues would be added to the agenda for the December meeting.

Resolved

(1)      That the work programme 2013-14 be noted

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 from 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 100A(4) of Local Government Act 1972, the press and public be excluded from 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.

The Committee considered the exempt annexes to the report of the Interim Head of Finance and Procurement on the Council’s Quarter 1 Treasury Management Report.

Resolved

(1)      That the exempt appendices be noted.

The Committee noted that Karen Curtin, former Head of Finance and Procurement, had been appointed to the new post of Director (Bicester) at Cherwell District Council.

Members thanked Karen Curtin for her hard work in the finance department and support to the Committee and wished her all the best in her new role.