Agenda, decisions 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 4 December 2013.

The Minutes of the meeting of the Committee held on 4 December 2013 were agreed as a correct record and signed by the Chairman.

To receive communications from the Chairman.

The Chairman advised the Committee that he had to leave the meeting at around 7.15pm and the Vice-Chairman would take the Chair.

Report of Head of Transformation

Purpose or Report

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

Recommendations

The meeting is recommended:

 1.1        To review the quarter 3 Strategic, Corporate and Partnership Risk Register and identify any issues for further consideration.

Resolved

(1)          That the quarter 3 Strategic, Corporate and Partnership Risk Register be noted and no issues for further consideration be identified.

The Committee considered a report of the Head of Transformation on the management of Strategic, Corporate and Partnership Risks during the third quarter of 2013/14 and highlight any emerging issues for consideration.

Resolved

 (1)      That the quarter 3 Strategic, Corporate and Partnership Risk Register be noted and no issues for further consideration have been identified.

Verbal Update of Interim Head of Finance and Procurement and Fraud Manager

Resolved

(1)           That the Verbal Update be noted.

The Committee considered the verbal update from the Investigations Manager on Anti-Fraud and Corruption plus Whistle Blowing.

The Investigations Manager reported that there had been no new cases of Whistle Blowing since the start of the Financial Year and provided a detailed overview of work undertaken by the Fraud Investigation team.

In response to Members’ questions, the Investigations Manager explained that if an individual suspected someone of fraud, they could report via telephone, the council’s website or email.

In the course of the discussion Members queried if the council’s systems were adequate and requested that a report on fraud control be submitted to a future meeting.

Resolved

(1)             That the Verbal Update be noted.

(Councillor Stevens left the meeting at the conclusion of the item and Councillor Kerford-Byrnes took the Chair).

Report of Interim Head of Finance and Procurement

Purpose of Report

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 meeting is recommended:

1.1      To note the contents of the report on the progress the Council is making to improve the use of purchase orders.

Resolved

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

The Committee considered a report of the Interim Head of Finance and Procurement on the use of purchase orders.

In introducing the report the Corporate Accountant advised the Committee that there had been improvement in the use of purchase orders. More staff had been trained to create Purchase Orders, service areas were instructed not to raise a purchase order before committing money and a “no purchase order no payment policy” had been implemented. There was nonetheless room for further improvement, 

The Committee requested a further report be submitted providing a month’s analysis of purchase orders detailing department, supplier and amount.

Resolved

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

Report of Interim Head of Finance and Procurement

Purpose of Report

The purpose of this report is to provide information to the Accounts, Audit and Risk Committee on the external auditor’s work around the IT controls within Agresso.

Recommendations

The meeting is recommended

1.1       To note the contents of the report.

Resolved

(1)               That the report be noted.

The Committee considered a report of the Interim Head of Finance and Procurement on the Design and Operation of the IT General Controls within Agresso.

Resolved

(1)               That the report be noted.

Report of Interim Head of Finance and Procurement

Purpose of report

To receive Ernst Young’s reports: setting out external audit’s Annual Audit Plan 2013-14; and summarising external audit’s certification work on grants claims for 2012-13.

Recommendations

The meeting is recommended

1.1       To note the contents of Ernst Young’s reports.

Resolved

(1)          That the Ernst Young Fee Letter 2013-14, Annual Audit Plan 2013-14, Grants Certification Annual Report 2012-13 be noted.

The Committee considered a report of the Interim Head of Finance and Procurement which sought consideration of the Ernst and Young LLP Report setting out the Annual Audit Plan 2013-14, and summarised external audit’s certification work on grants claims for 2012-13.

In introducing the Annual Audit Plan 2013-14, the Audit Director reported that as part of the planning work two risks to the audit of the financial statements. Work in this area would therefore focus on misstatement due to fraud or error and implementation of a new payroll system.

One significant risk and two other risks had been identified for the value for money conclusion on the Council’s use of resources.  Work in this area would focus on management of capital projects, financial resilience and delivering services.

The Audit Manager confirmed that one claim, Housing and council tax benefits subsidy claim and National non-domestic rates return had been certified in 2012/13. In 2013/14 only benefits would be certified and consequently there would be a reduction in the certification fees going forward.

Resolved

(1)          That the Ernst Young Fee Letter 2013-14, Annual Audit Plan 2013-14, Grants Certification Annual Report 2012-13 be noted.

Report of Chief Internal Auditor

Purpose of report

To receive PriceWaterhouseCooper’s progress report summarising their internal audit work to date.

Recommendations

The meeting is recommended:

1.1       To note the contents of the progress report.

Resolved

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

The Committee considered a report of the Chief Internal Auditor which summarised their Internal Audit work since the Committee’s meeting in December.

Resolved

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

Report of Chief Internal Auditer

Purpose of Report

To provide members with details of the new Public Sector Internal Audit Standards.

Recommendations

The meeting is recommended:

1.1         To note the content of this report and Appendix 1.

Resolved

(1)          That the Public Sector Internal Audit Standards be noted.

The Committee considered a report of the Chief Internal Auditor which detailed the new Public Sector Internal Audit Standards (PSIAS). Since 1 April 2013, internal audit services in local government, central government and health were required to be delivered in accordance with PSIAS.

Resolved

(1)            That the Public Sector Internal Audit Standards be noted.

Report of Interim Head of Finance and Procurement

Purpose of report

To receive information on treasury management performance and compliance with treasury management policy for 2013-14 for Quarter 3 as required by the Treasury Management Code of Practice.

Recommendations

The meeting is recommended:

 1.1        To note the contents of the Quarter 3 (Q3) Treasury Management Report

Resolved

(1)          That the Quarter 3 (Q3) Treasury Management Report be noted.

The Committee considered a report of the Interim which set out  treasury management performance and compliance with treasury management policy for 2013-14 for Quarter 3 as required by the Treasury Management Code of Practice.

In introducing the report the Corporate Finance Manager reported that having taken advice form the Council’s treasury advisors, monies held in the Investec funds would be brought in house upon maturity.

Resolved

(1)            That the Quarter 3 (Q3) Treasury Management Report be noted.

Report of Interim Head of Finance and Procurement

Purpose of report

To receive an updated Treasury Management Strategy for 2014-15 and note the actions and proposals in respect of the funds held by fund managers Investec.

Recommendations

The meeting is recommended:

1.1      To note the updated Treasury Strategy for 2014-15.

1.2         To note the action and proposals in respect of funds held with Fund   Managers Investec.

Resolved

(1)          That the updated Treasury Strategy for 2014-15 be noted.

(2)          That the action and proposals in respect of funds held with Fund Managers Investec be noted.

The Committee considered a report of the Interim Head of Finance and Procurement on the updated Treasury Management Strategy for 2014-2015 and actions and proposals in respect of the funds held by fund managers Investec.

In introducing the report, the Corporate Finance Manager explained that there were two significant changes to the Strategy since it had been presented to the Committee in December relating to the return of funds in-house and the method for reinvesting and the addition of the principle of borrowing.

Resolved

(1)            That the updated Treasury Strategy for 2014-15 be noted.

(2)            That the action and proposals in respect of funds held with Fund Managers Investec be noted.

To review the Committee Work Programme

Resolved

(1)          That the Work Programme be noted subject to the following additions.

·         Purchase Order Analysis

·         Fraud Control

The Committee considered its work programme 2013/14.

Resolved

(1)            That the Work Programme be noted subject to the following additions.

·       Purchase Order Analysis

·       Fraud Control