Agenda and minutes

Audit Committee
Monday 21st August, 2017 2.00 pm

Venue: Council Chamber, Allerdale House. View directions

Contact: Dean Devine  01900 702556

Items
No. Item

111.

Minutes pdf icon PDF 51 KB

To sign as a correct record the minutes of the meeting held on 4 July 2017

Minutes:

The minutes of the meeting held on 4 July 2017 were signed as a correct record.

 

112.

Declaration of Interests

Councillors/Staff to give notice of any disclosable pecuniary interest, other registrable interest or any other interest and the nature of that interest relating to any item on the agenda in accordance with the adopted Code of Conduct.

Minutes:

Councillor D Fairbairn – Cumbria County Council

113.

Questions

To answer questions from members of the public – submitted in writing or by electronic mail no later than 5.00 pm, 2 working days before the meeting.

Minutes:

None received.

114.

Assurance Risk and Audit Quarter One Report 2017/18 pdf icon PDF 94 KB

Additional documents:

Minutes:

The Assurance, Risk and Audit Manager presented the first quarterly Assurance, Risk and Audit report for the financial year 2017/18. The report set out the work performed by the Assurance, Risk and Audit Section and compared the work undertaken against the approved annual plan.

 

The chargeable time for the section for quarter one was 83.8%, which was above the target of 81.77%.

 

Members noted the assurance activities for the quarter, which focused mainly on the completion of the planned Assurance Audit Reviews and the work carried forward from the 16/17 plan. The following reports were submitted and were attached to the report as Appendix A:

 

·  Creditors 16/17

·  Debtors 16/17

·  Payroll 16/17

·  Main Accounting 16/17

·  ICT 16/17

·  People Resources 17/18

 

Members noted the following reviews which were in progress at 30 June 2017:

 

·  Treasury Management 2016/17 (review complete)

·  Capital Accounting 2016/17 (review complete)

·  Development Services 2017/18 (testing in progress)

·  Economic Growth 2017/18 (testing in progress)

·  Ethics and Culture 2017/18 (planning)

 

There is a performance measure that 100% of recommendations made by Assurance, Risk and Audit were accepted by management, one low graded recommendation was not accepted during the quarter.

 

It was noted that 7 agreed actions due were in progress, 6 of these actions were over 60% complete. It was also noted that agreed actions are being continually monitored by the Senior Management Team and discussed in detail on a monthly basis. All actions outstanding had been updated in quarter one.

 

Members noted the Corporate Risk and Issues Log.

 

Members accepted the report.

 

N Banks, Business Development Manager and D Sewell, Operations Manager entered the meeting

N Banks, Business Development Manager and D Sewell, Operations Manager attended the meeting to give members an update on the progress of the agreed actions resulting from the Car Parks Audit Review 2016/17.

N Banks, Business Development Manager and D Sewell, Operations Manager left the meeting

115.

Treasury Management Annual Review 2016/17 pdf icon PDF 39 KB

To inform members of the performance of the Council’s treasury management (TM) activities during 2016/17, the effects of TM decisions and transactions executed in the past year and of compliance with its Treasury Management Policy.

Additional documents:

Minutes:

The Financial Services Manager submitted a report which sought to inform Members of the performance of the Council’s treasury management activities during 2016/17, the effects of treasury management decisions and transactions executed in the past year and of compliance with its Treasury Management Policy.

 

The report summarised the following:

 

·  The economy and interest rates

·  Overall treasury position at 31 March 2017

·  The strategy for 2016/17

·  Borrowing requirement

·  Borrowing rates

·  Borrowing activity during 2016/17

·  Investment rates

·  Investment outturn for 2016/17

·  Prudential and Treasury Indicators

 

Members noted the contents of the report.

 

Recommended

 

That Council be requested to agree that the contents of the report be noted.

 

116.

Annual Governance Statement pdf icon PDF 69 KB

Additional documents:

Minutes:

The Head of Governance and Monitoring Officer submitted a report that set out the Council’s Annual Governance Statement for 2016/17, which was required to meet the requirements of the Accounts and Audit (England) Regulations 2015.

 

The Annual Governance Statement was prepared in accordance with relevant professional guidance. It demonstrated that the Council had sound governance arrangements in place during the municipal year 2016/17 and in the period up to the approval of the Council’s 2016/17 Statement of Accounts.

 

The significant governance issues identified in the Annual Governance Statement were drawn together in an action plan, which would be implemented over the forthcoming year.

 

The action plan contained two subject areas; Business Continuity and Allerdale Investment Partnership. Actions were set out for each area and the expected outcomes.

 

Councillor D Fairburn asked what were the environmental implications of the Lillyhall Land purchase and the Sea Defences on the Solway Coast Line.

 

The Head of Governance and Monitoring Officer advised that the environmental implications were set out in the reports relating to those projects.

 

Members approved the Annual Governance Statement 2016/17.

 

Resolved

 

That the Annual Governance Statement for 2016/17 be approved.

 

Agreed

 

That:

 

a)  The reports detailing the environmental implications of the Lillyhall Land Purchase and the Sea Defences on the Solway Coast Line will be circulated to members.

 

117.

Audited Statement of Accounts 201/17 pdf icon PDF 71 KB

Additional documents:

Minutes:

In accordance with the Accounts and Audit (England) Regulations 2015, the Head of Financial Services submitted the Council’s 2016/17 Statement of Accounts for the Audit Committee’s consideration and approval.

 

The Statement of Accounts summarise the Council’s financial performance, financial position and cash flows for the financial year from 1 April 2016 to 31 March 2017.

 

The group accounts consolidate the financial statements of the Authority and its (material) interests in subsidiaries, associates and joint ventures.

 

The Financial Services Manager provided Members with a presentation on the Statement of Accounts designed to support members’ consideration of the statements. The presentation included:

·  an overview of the content of the narrative report

·  an outline of the changes made to accounting policies and the major judgements made in applying accounting policies.

·  addressing a series of challenge questions for each of core financial statements (comprehensive income and expenses statement, movement in reserves statement, balance sheet and cash flow statement) and supplementary statements (collection fund and group accounts), including providing explanations for significant year on year changes in the amounts reported in each of the core and supplementary financial statements.

·  confirming the consistency of the statement of accounts with other financial information presented to members.

·  explaining the changes made to the unaudited Statements of Accounts since their publication.

 

Councillor D Fairbairn asked the Financial Services Manager for the ratio between the highest paid and the lowest paid. The Financial Services Manager advised members that he could not supply the figures during the meeting and agreed to issue members with this information following the meeting.

 

Councillor D Fairbairn asked for the maintenance costs of the heritage assets for 2016/17. The Head of Financial Services advised members that she could not give the costs during the meeting and would forward the information onto members.

 

The Chair of the Audit Committee signed and dated the statement.

 

Resolved

 

That:

 

a)  the Statement of Accounts 2016/17 be approved

b)  the Statement of Accounts 2016/17 be signed by the Chair of the Audit Committee

c)  Upon receipt of the signed audit opinion, the final Statement of Accounts 2016/17 be published by the statutory deadline of 30 September 2017

 

Agreed

 

a)  That the Financial Services Manager will circulate to all members the ratio of the highest paid and the lowest paid.

 

b)  The Head of Financial Services will forward members details of the maintenance costs for the heritage assets for 2016/17.

 

118.

Audit Findings Report pdf icon PDF 628 KB

Minutes:

Grant Thornton submitted a findings report highlighting the key matters arising from the audit of the Council’s financial statements for the year ended 31 March 2017.

 

J Farrar, Grant Thornton presented Members with a summary of the report.

 

Members were informed that the 2016/17 Statement of Accounts submitted for audit was of good quality and that they intended to issue an unqualified opinion on those statements.

 

Members were also informed that the Auditors work had:

·  not identified any control weaknesses which they wished to highlight to the Council’s attention.

·  confirmed that the Council had proper arrangements in place to secure economy, efficiency and effectiveness in its use of resources

 

Members noted the report.

 

Councillor D Fairbairn congratulated the staff on all their hard work on behalf of him and the members of the Audit Committee.

 

Agreed

 

That the contents of the report be noted.

 

Councillor J Colhoun left the meeting

C Nicholson, Head of Financial Services left the meeting

119.

Letter of Representation 2016/17 pdf icon PDF 61 KB

Additional documents:

Minutes:

The Head of Financial Services presented to Members the Letter of Representation, made in connection with the audit of the Council’s 2016/17 Statement of Accounts.

 

Members approved the Letter of Representation.

 

Resolved

 

That:

 

a)  The Letter of Representation 2016/17 be approved

b)  The Letter of Representation 2016/17 be signed by the s151 Officer on behalf of the Council