Agenda and minutes

Venue: Conference Room, Argyle Road, Sevenoaks

Contact: Email: democratic.services@sevenoaks.gov.uk 

Items
No. Item

Cllr. Brookbank in the Chair.

1.

Minutes pdf icon PDF 36 KB

To agree the Minutes of the meeting of the Committee held on 18 March 2014, as a correct record

 

Minutes:

Resolved:  That the minutes of the Audit Committee held on 18 March 2014 be agreed and signed as a correct record.

2.

Declarations of Interest

Any declarations of interest not already registered.

Minutes:

There were no additional declarations of interest.

 

3.

Actions from Previous Meeting pdf icon PDF 12 KB

Minutes:

The actions from the previous meeting were noted.

4.

Responses of the Council, Cabinet or Council Committees to the Committee's reports or recommendations pdf icon PDF 14 KB

Minutes:

The response from the Local Planning & Environment Advisory Committee to Minute 17 Audit Committee 10 September 2013, was noted.

5.

Audit Committee Terms of Reference pdf icon PDF 28 KB

Additional documents:

Minutes:

It was noted that 3 (p) of the Terms of Reference would be reviewed as fell more into the remit of the Governance Committee.

 

Resolved:  That the report be noted.

6.

External Audit - Audit Committee Update pdf icon PDF 27 KB

Additional documents:

Minutes:

Mr Andy Mack (Engagement Lead) and Mr Geoffrey Bannister (Audit Manager), from Grant Thornton presented their Audit Committee update.  The paper also included a summary of emerging national issues and developments and a number of challenge questions I respect of these merging issues.  To date they reports the audit was progressing to plan and good arrangements continued to be in place.  In response to questions Members were advised that compared to a couple of years ago there had been significant improvement in the joint working arrangements with Dartford Borough Council on governance and record keeping.

 

Public Sector Equality Duty

Members noted that consideration had been given to impacts under the Public Sector Equality Duty.

 

Resolved:  That the report be noted.

 

 

7.

External Audit - Annual Audit Plan pdf icon PDF 27 KB

Additional documents:

Minutes:

Mr Andy Mack and Mr Geoffrey Bannister (Audit Manager presented the Audit Plan which highlighted the key elements of their 2013/14 external audit strategy for the Council.  The three main areas were financial statements, value for money and housing benefits.  The Council had a good track record of accounts preparation with only some minor presentational issues.  The audit fee would be the same as the previous year. 

 

In response to questions Mr. Mack advised that the adoption of the international financial standards had meant more information on the accounts, but it was time now to cut back.  It would be possible to streamline the accounts by removing notes that were not material or did not add value to the user.  Ways of streamlining the accounts would be discussed with the Chief Finance Officer. 

 

The Chief Finance Officer stated that Department for Local Communities and Local Government proposal to being forward the timetable for closure of accounts by up to two months could in reality lead to a lot of assumptions and estimates to achieve the deadline.  Mr. Mack believed it would be possible without.

 

Public Sector Equality Duty

Members noted that consideration had been given to impacts under the Public Sector Equality Duty.

 

Resolved:  That the report be noted.

 

8.

Anti- Fraud Team Report 2013/14 pdf icon PDF 30 KB

Additional documents:

Minutes:

The Audit Risk and Anti Fraud Officer presented a report which set out details of the activities of the Anti-Fraud Team during 2013/14, the team’s work plan for 2014/15 and the potential impact on fraud investigation services within Sevenoaks District Council caused by the creation of the Single Fraud Investigation Service (S-FIS).  He further advised that a date had now been received for the transfer of Sevenoaks District Council staff would be eligible for transfer to the Department of Work and Pensions (DWP), as February 2016.  Negotiations would commence six months prior to this.  The S-FIS would only investigate welfare fraud and so the investigation of fraud within Council Tax Support claims and Council Tax (discounts and exemptions) would remain the responsibility of the local authority.

 

A Member queried whether more money was being retrieved than spent to retrieve.  The Officer reported that more fraud was being detected but as to the monetary value this was constant.  The recent amount discovered was the highest from the last four years.  However they only assisted with the detection of the fraud not the retrieval.  With regards to Council Tax a post was currently funded by Kent County Council (KCC) as every £1 retrieved, they received £0.84.

 

Members agreed that it would be helpful to have some form of cost benefit analysis.  The Chief Finance Officer advised that as positions were part funded by Government but no funds formally identified it would be difficult  to differentiate.

 

Action 1:  That the Chief Finance Officer and Chairman further investigate ways of bringing a cost benefit analysis to the Committee.

 

Public Sector Equality Duty

 

Members noted that consideration had been given to impacts under the Public Sector Equality Duty.

 

Resolved:  That the contents of the report and the work of the Anti-Fraud Team carried out in 2013/14 and that proposed for 2014/15, be noted.

Cllr. Grint in the Chair.

9.

Report on Internal Audit Recommendations Outstanding pdf icon PDF 35 KB

Additional documents:

Minutes:

The Audit Risk and Anti Fraud Manager presented a report updating Members on progress of the implementation of recommendations agreed with management, and outstanding recommendations due for implementation by 30 April 2014.  A report would be presented to all future meetings providing details on Internal Audit recommendations which had not been completed by management within the implementation due date.  It would also include any relevant explanations for delay or cancelation of recommendations. Where appropriate, Members would be able to request responsible management to attend to provide further information regarding the reasons for the delay and its implications.

 

Public Sector Equality Duty

 

Members noted that consideration had been given to impacts under the Public Sector Equality Duty.

 

Resolved:  That

                      a)          the information in Appendix A to the report be noted; and

 

                      b)          the reasons for delayed implementation be noted, and the revised dates for implementation provided by management, as noted in Appendix B to the report, endorsed.

 

10.

Annual Self Assessment Review of the effectiveness of Internal Audit Service 2013/14 pdf icon PDF 34 KB

Additional documents:

Minutes:

The Audit Risk and Anti Fraud Manager presented a report concerning  the outcome of the annual self-assessment review of the Council’s Internal Audit Function.  It was the first report to be produced in accordance with the new Public Sector Internal Audit Standards (PSIAS) which came into effect on 1 April 2013.  The new standards related to all public sector internal audit functions and were mandatory. Appendix A to the report set out the details of the self-assessment, which was undertaken using the standardised checklist.

Members commented that the template produced a a very detailed review.  The Audit Risk and Anti Fraud Manager advised that it was recommended that once every five years there should be an external assessment.

Mr. Mack reported that mid Kent (Ashford Borough Council, Maidstone Borough Council, Swale Borough Council and Tunbridge Wells Borough Council) had just had the first external review of the country, the details of which were now public.  The Institute of Internal Auditors had carried this out.  It was agreed that the Committee should be involved in the appointment process of the external reviewers.

Public Sector Equality Duty

 

Members noted that consideration had been given to impacts under the Public Sector Equality Duty.

 

Resolved:  That the Annual Self-assessment Review of the Effectiveness of Internal Audit Service 2013/14, be approved.

 

11.

Internal Audit Annual Report - 2013/14 pdf icon PDF 35 KB

Additional documents:

Minutes:

The Audit Risk and Anti Fraud Manager presented a report setting  out the achievements of the Internal Audit team in delivering the assurance requirements for the period April 2013 to March 2014.

 

Public Sector Equality Duty

 

Members noted that consideration had been given to impacts under the Public Sector Equality Duty.

 

Resolved:  That

a)        the work of the Internal Audit Team for 2013/14 be noted and approved; and

 

b)        the Audit Manager’s Annual Assurance opinion that the Council had effective internal controls and governance arrangements in place for delivering its objectives and the management of its business risks, be supported.

           

12.

Report on the Public Sector Internal Audit Standards pdf icon PDF 34 KB

Additional documents:

Minutes:

The Audit Risk and Anti Fraud Manager presented a one off report setting out the Council’s readiness to implement the new Public Sector Internal Audit standards. 

 

Public Sector Equality Duty

 

Members noted that consideration had been given to impacts under the Public Sector Equality Duty.

 

Resolved:  That the report on the implementation of the new Public Sector Internal Audit Standards and the proposals for achieving full compliance be approved.

 

13.

Annual Governance Statement 2013/14 pdf icon PDF 37 KB

Additional documents:

Minutes:

The Chief Finance Officer presented the Annual Governance Statement (AGS) which he advised was an important corporate document which explained the Council’s governance arrangements and controls it employed to manage the risk or failure to achieve strategic objectives.   The Council was responsible for ensuring that its business was conducted in accordance with the law, proper standards, good governance and that public money was safeguarded and properly accounted for.  The document was owned by all Senior Officers and Members of the Council.

 

The Chief Executive, Chief Officers and more managers than in previous years had been involved in the process and had completed a detailed questionnaire to raise any issues that could be included in the AGS.  The Internal Audit Team had also analysed the previous years AGS and minutes of various meetings held during the year to ensure that everything was included.  This was a more detailed process than used in previous years as the importance of the document continued to increase.  The AGS confirmed that the Council had sound systems of internal control and good governance arrangements in place in 2013/14.

 

It was noted that reference to the ‘District Auditor’ needed to be changed to ‘External Auditor.’

 

 

Public Sector Equality Duty

 

Members noted that consideration had been given to impacts under the Public Sector Equality Duty.

 

 

Resolved:  That the Annual Governance Statement for 2013/14, which accompanies the Council’s Accounts, be agreed.

14.

Draft Strategic Risk Register pdf icon PDF 58 KB

Additional documents:

Minutes:

The Audit Risk and Anti Fraud Manager presented a report which gave Members the opportunity to review and comment on the Council’s Draft Strategic Risk Register.  The Draft Register had been developed by Officers, taking in the views of the Officers Risk Management Group, Service Managers and Chief Officers.  It set out risks that Officers considered could prevent the Council delivering the Vision and Promises set out in the Council’s Corporate Plan.

 

The Chairman noted that the survey had identified the need for risk management training and it had been the intention to deliver this at the meeting but he had felt that that the agenda was already to full so training should be held on another occasion.

 

Action 2: The Chairman, Chief Finance Officer and Audit Risk and Anti Fraud Manager to meet and discuss training.

 

It was agreed that this was a document that should be considered more regularly and in more detail throughout the year.

 

Action 3:  The Chairman, Chief Finance Officer and Audit Risk and Anti Fraud Manager to meet and discuss how best to address this for the rest of the year.

 

Public Sector Equality Duty

 

Members noted that consideration had been given to impacts under the Public Sector Equality Duty.

 

Resolved:  That the Draft Strategic Risk Register be agreed with no further  recommendations, amendments or additions.

15.

Statement of Accounts 2013/14 - Member Working Group pdf icon PDF 29 KB

Minutes:

Members considered setting up working group to review the 2013/14 Draft Statement of Accounts and recommend any changes to the Foreword and presentational changes to facilitate better comparison of information between years.

 

Public Sector Equality Duty

 

Members noted that consideration had been given to impacts under the Public Sector Equality Duty.

 

Resolved:  That

 

                      a)          a Member Working Group be set up to review the 2013/14 Draft Statement of Accounts; and

 

                      b)          the membership consist of Councillors Mrs Bayley, Brookbank, Fittock and Grint, with the Portfolio Holder for Finance & Resources, Cllr Ramsay, and Deputy Portfolio Holder , Cllr Firth invited to attend.

 

16.

Review of the Effectiveness of the Audit Committee pdf icon PDF 35 KB

Additional documents:

Minutes:

The Chairman introduced the report of the Audit Risk and Anti Fraud Manager, which put forward proposals for assessing the achievements for the Audit Committee for the year 2013/14, its first full year of operation. 

 

Looking at the responses received to the survey it was agreed that it was helpful to have Grant Thornton present for at least three meetings during the year, even thought they were only obliged to attend two. 

 

It was noted that the Constitution required an Annual report to Council on the work of the Committee.  It was agreed that it would be useful to amalgamated this work and place it on the Work Plan.

 

Public Sector Equality Duty

 

Members noted that consideration had been given to impacts under the Public Sector Equality Duty.

 

Resolved:  That the Annual Self-assessment Review of the Effectiveness of the Audit Committee 2013/14, be approved.

17.

Work Plan pdf icon PDF 20 KB

Minutes:

The work plan was noted.  Members discussed and agreed it would still be useful to have an update on any Community Infrastructure Levy (CIL) arrangements at the next meeting.  Implementation of Audit recommendations, and the Annual report to Council/ Review of Effectiveness report to be added to the meeting in March 215.

 

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