| Time: | 7.30pm | Place: | Committee Room 1, Council Offices, Gernon Road, Letchworth Garden City |
| PRESENT: | Councillor David Levett (Chairman),Councillor Bill Davidson, Councillor Ian Mantle and Councillor Lawrence Oliver. |
| IN ATTENDANCE: | Norma Atlay - Strategic Director of Finance, Policy and Governance Andy Cavanagh - Head of Finnance, Performance and Asset Management Tim Neill - Accountancy Manager Fiona Timms - Performance and Risk Manager Terry Barnett - Audit Manager - SIAS Nigel Schofield - Committee and Member Services Officer Phil Westerman - Grant Thornton Denis Thorpe - Grant Thornton |
| ALSO PRESENT: | Councillor John Booth. |
| Item | Description/Resolution | Status | Action | |
| PART I | ||||
| 17 |
APOLOGIES FOR ABSENCE An apology for absence had been received from Councillor David Kearns. An apology for absence had also been received from the Head of Assurance - SIAS, Helen Maneuf. |
Noted | ||
| 18 |
MINUTES Minutes RESOLVED: That the Minutes of the Meeting of the Finance, Audit and Risk Committee held on 18 June 2012 be confirmed as a true record of the proceedings and be signed by the Chairman. |
Agreed | ||
| 19 |
NOTIFICATION OF OTHER BUSINESS There was no other item of business tabled. |
Noted | ||
| 20 |
CHAIRMAN'S ANNOUNCEMENTS The Chairman welcomed everyone to the meeting and to Councillor Ian Mantle on joining the Committee. The Chairman advised that Councillor Lorna Kercher had stood down from this Committee and would be a substitute Member. The Chairman thanked Councillor Kercher for her support and input to the Committee. The Chairman reminded Members that, in line with the Code of Conduct, any Declarations of Interest should be declared immediately prior to the item in question. The Chairman welcomed Terry Barnett (Audit Manager - SIAS) to his first meeting of the Finance, Audit and Risk Committee. |
Noted | ||
| 21 |
PUBLIC PARTICIPATION There was no public participation. |
Noted | ||
| 22 |
RISK MANAGEMENT UPDATE Report Appendix A Appendix B The Performance and Risk Manager (PRM) presented the report of the Head of Finance, Performance and Asset Management which provided an update on the Management of Strategic and Corporate Risks owned by Cabinet and the Senior Management Team. The PRM advised the Committee that the Senior Management Team (SMT) reviewed and challenged Top Risks on 4 September 2012 and the outcome of the review was presented on the Risk Matrix at Appendix A to the report. The PRM proposed that the Cabinet Top Risk of Waste and Recycling should have its probability score for overall risk matrix score increased from a 2 to a 7. The PRM referred the Committee to Appendix B for a description of this risk including four sub risks (Alternative Financial Model, Disposal of cardboard, Food Waste and a proposed Northern Transfer Station). The PRM next advised the Committee that a proposal had been made to increase the probability score from a 5 to a 7 for the SMT Top Risk of Shared Services and New Ways of Working as shown on the Risk Matrix at Appendix A. The PRM confirmed that this risk was being closely monitored as the detailed business case for Shared Services was being finalised and the Committee noted that should this project proceed to implementation then the identified risks would be adopted by Cabinet as this project would be directly linked to the budget for 2013-2014. The PRM concluded the report with confirmation that SMT had agreed to reduce the matrix score from a 9 to a 5 for the Procurement, Tendering and Letting of Contracts Risk which SMT considered to be a more realistic assessment when compared to other Top Risks. The PRM advised that there had been no more challenges from outside tenderers which had allowed a reduction in the probability score. The Chairman thanked the Performance and Risk Manager for the updates on the three risks and invited comments and or questions from the Committee. A Member sought clarification on the Top Risk for the redevelopment of Hitchin Town Hall. The PRM stated that this risk was still in the Risk Matrix but the title was ‘Delivery of outstanding outcomes from the Museum Service FSR' and that a probability score of 9 was maintained. The Committee agreed to the proposals for changing probability scores for ‘Shared Services and New Ways of Working' and Procurement, Tendering and Letting of Contracts and that Cabinet should be advised of the support from this Committee for the increase in the probability score for the Cabinet Top Risk ‘ Waste and Recycling'. RESOLVED: (1)That the likelihood of an increased probability score for the Cabinet Top Risk ‘Waste and Recycling' from a 2 to a 7 matrix score (as detailed at Appendix B) with the identified sub risks be noted and accepted; (2)That the increased probability score of the Senior Management Team Top Risk ‘ Shared Services and New Ways of Working' from a 5 to a 7 matrix score (as detailed at Appendix B) be accepted; (3)That the proposal to reduce that overall matrix score for the Senior Management Team Risk ‘ Procurement, Tendering and Letting of Contracts from a 9 to a 5 and with a more condensed description be agreed. RECOMMENDED TO CABINET: That Cabinet be requested to consider the proposal as accepted by the Finance, Audit and Risk Committee to increase the probability score from a 2 to a 7 matrix score for the Cabinet Top Risk ‘ Waste and Recycling'. REASON FOR DECISION: To allow the Finance, Audit and Risk Committee make comments and observations on the Top Risks owned by the Senior Management Team and the Top Risks owned by Cabinet. |
Agreed | ||
| 23 |
ANNUAL GOVERNANCE STATEMENT AND PROGRESS AGAINST ACTION PLAN Report Appendix A The Performance and Risk Manager presented the report of the Head of Finance, Performance and Asset Management which provided the final Annual Governance Statement (AGS) for 2011-2012 (following review of the draft AGS on 18 June 2012 - Minute 8 refers) and progress against the improvement actions for implementation in 2012 - 2013. The PRM advised that the AGS conformed to CIPFA guidelines and was a corporate document which had been reviewed and commented on by Shared Internal Audit Service and Grant Thornton the external auditors. Of particular note was the change to the NHDC Constitution where this Committee would approve the AGS and not Full Council as before. The Committee noted that the AGS confirmed the council's financial arrangements conformed with the CIPFA Statement on the role of the Chief Financial Officer in Local Government (2010). The PRM advised the Committee that each Head of Service and Corporate Manager had completed an assurance statement that included a review of their service risks and risk management practices. Also, that the Internal Audit Report and the review of the effectiveness of this Committee (18 June 2012, Minute 15 refers) had been considered in the compilation of the AGS. The PRM advised that the AGS Action Plan was on target and referred the Committee to Table 1 which listed six actions and confirmed that three actions (4.10, 4.11, 4.12)had been implemented. The three delayed actions (4.13, 4.14, and 4.15) that remained were: Revise Officer/Member Protocol, Development of Shared Procurement Service and Shared Support Service - Governance arrangements. The PRM referred the Committee to the final AGS presented at Appendix A for review and approval. The PRM confirmed that the external auditors had reviewed the AGS and it would be cross referenced in the report to be presented at Agenda Item 8 - Annual Report to those charged with Governance. The Chairman thanked the Performance and Risk Manager for the updating on the Annual Governance Statement and invited comments and or questions from the Committee. After a short discussion the Chairman proposed and it was agreed that the Annual Governance Statement should be approved and that the Chief Executive and Leader of the Council be invited to sign the document. RESOLVED: (1)That the Annual Governance Statement for 2011 - 2012 as presented at Appendix A be agreed; (2)That the Leader of North Hertfordshire District Council and the Chief Executive of North Hertfordshire District Council be requested to sign the Annual Governance Statement for 2011 - 2012 as presented at Appendix A; (3)That the summary of the actions taken in the Action Plan arising from the 2011 - 2012 Annual Governance Statement (detailed at sections 4.10 to 4.15) be noted; (4)That the Head of Finance, Performance and Asset Management be requested to provide a further progress report on the Action Plan at the meeting scheduled for 20 March 2013. REASON FOR DECISION: For the Finance, Audit and Risk Committee to review and comment on the arrangements for Corporate Governance and agree actions to ensure compliance with best practice. |
Agreed | ||
| 24 |
ANNUAL REPORT TO THOSE CHARGED WITH GOVERNANCE Report Mr Phil Westerman of Grant Thornton the external auditors presented this report and summarised the auditor's findings and advised the Committee that during the audit the audit plan had not been altered. The audit was substantially complete subject to an updating of the past balance sheets review to the date of signing of the accounts. The external auditor advised that there were a number of areas for improvement in the accounts close down process, mainly relating to ‘account mapping' and documentation of support for estimates and judgements. The Committee noted that Grant Thornton would on completion of the audit ensure with finance that any revised arrangements were included in the audit preparation for 2012-2013 together with other recommendations as listed at Appendix A to this report. Mr Westerman advised the Committee that there were three key messages arising from the audit: The need to keep appropriate non - current asset accounting records separate from those kept for estate management supported by a monthly or quarterly reconciliation process; maintain an appropriate schedule of non-current asset revaluation to support the valuation of the Council estate within the requirements of IAS16 and evaluate the documented basis for any significant accounting treatments which affect the Council's income and expenditure and relate to areas of significant accounting judgements or estimates such as provisions, assets held for sale or redevelopment and grant income recognition. Mr Westerman concluded his summary with the statement that there would be an unqualified opinion on ‘Value for Money' and that there would be a separate report on this topic to FAR at a future meeting. Mr Westerman also advised the Committee that in Grant Thornton's opinion there were weaknesses in internal control concerning journal postings and that Management should keep the systems of controls under review. Mr Westerman wished to bring the Committee's attention the external audit's findings on the valuation of fixed assets. The recommendation was for the Council to prepare a full register each year of each class of fixed asset and not enough use was made of an appropriate accounting record, within a suitable IT environment. The NHDC Valuer should use the GVAS system which would include the basis of the valuation, any specific valuation considerations which should be supported by detailed schedule of results. Mr Westerman emphasised the need for the Finance Management Team to work in tandem with the valuer as changes in asset data or valuation had been recorded in the incorrect accounting period. The Head of Finance, Performance and Asset Management advised that should an asset be considered for disposal an external professional valuation would be sought and take into account market values. Mr Westerman stated that not all assets required an annual valuation such as property, plant and equipment where there were only insignificant changes in fair value, valuations every three or five years would be appropriate. Mr Westerman acknowledged that there had been no significant misstatements and it was clear that the Council should establish, apply and communicate a consistent treatment of income received in the form of grants and contributions form other parties. The Committee noted that the audit had identified insufficient documentation for some provisions but Management had agreed to undertake a full review of provisions during 2012 - 2013. Mr Westerman stated that the accounts for PAYE and VAT were in good order and that the Value for Money Audit was good and the Council had proper arrangements in place for securing financial resilience and proper arrangements for challenging how it secures economy, efficiency and effectiveness. The Chairman thanked Mr Westerman for the summary of the Grant Thornton findings in this Annual Report to those charged with Governance and invited comments and or questions from the Committee. The discussion concentrated on the outcomes of the valuation review and the Head of Finance, Performance and Asset Management (HF) advised that good progress had been made in the previous 12 months, there was more contact with the valuer even with the reduced resources, but there still remained scope for improvement. Mr Westerman stated that there had been good progress and the Committee agreed that there should be one system that all could use. The Strategic Director for Finance, Policy and Governance (SD) advised that there would be a link between a Fixed Asset Module and a Financial Model in the accountancy programme. The HF advised that external valuers had sometimes been used to provide a valuation of specialist assets such as Leisure Centres. Following a question the HF advised that the Council could potentially decide to sell assets at less than market value in pursuance of a Council Objective, such as enabling housing development and this value may well be less than the value stated in the accounts. The HF advised the Committee that this could be an outcome of an assessment of economic, social or environmental ‘well being' that arose from a proposed scheme. In response to a question about the valuation of Hitchin Museum and Letchworth Museum being included as part of the overall business case for the redevelopment of Hitchin Town Hall as North Hertfordshire Museum and Community Facility. The HF confirmed that the reduction in the ongoing running costs of the two museums was taken into account, but not the potential sale value of the two buildings, which, on disposal would become a Corporate capital receipt. The Accountancy Manager stated and the external auditor agreed that it was taking some time for the finance team to fully adjust to the requirements of the International Financial Reporting Standards, in particular the accounting for grants and contributions, which was at odds with the matching accounting principle. The external auditor agreed it was also taking time for Grant Thornton to become well practiced with the new procedures. The Committee acknowledged that there were a lot of recommendations referring to Information and Communications Technology and the HF confirmed that all the recommendations would be addressed by the ICT Manager and his team. RESOLVED: (1)That the proposal to make no changes or alterations to the Audit Plan be noted and welcomed; (2)That the proposed areas for improvement identified for the accounts closing down process relating to ‘account mapping' and documentation of support for estimates and judgements be noted; (3)That the external auditors comments on the valuation of fixed assets be noted and an appropriate accounting record be agreed between the Valuer and Financial Management Team; (4)That the overall list of recommendations as listed at Appendix A be noted; (5)That the key messages that arose from the Audit of NHDC's financial statements as detailed in Sections 2 and 3 be noted; (6)That the proposal by the external auditor to give an unqualified opinion on the Value for Money audit be welcomed; (7)That the recommendations set out in the Action Plan at Appendix A and agreed with the Strategic Director of Finance, Policy and Governance be noted. REASON FOR DECISION: For the Finance, Audit and Risk Committee to review and comment on the outcomes of the Annual Report for the year ended 31 March 2012 to those charged with Governance at North Hertfordshire District Council. |
Noted | ||
| 25 |
STATEMENT OF ACCOUNTS 2011/12 Covering Report Appendix A - Statement of Accounts The Accountancy Manager (AM) presented the report of The Strategic Director of Finance, Policy and Governance which sought the approval of this Committee of the audited Statement of Accounts for 2011-2012 as presented at Appendix A. The AM confirmed that the audited Statement of Accounts gave a true and fair view of the financial position of the Authority as at 31 March 2012 plus the income and expenditure for the year 2011-2012 and had to be signed off by 30 September 2012. The AM reminded Members that the Council had the duty to set a balanced budget and maintain a prudent balance. The AM referred the Committee to The Foreword in the Statement of Accounts which gave an explanation on the presentation of the accounts and highlighted the most significant issues. The AM advised that following discussions with the external auditor a number of adjustments/amendments were made to the un-audited version of the accounts, the un-audited accounts had been published on the NHDC website and hard copies made available at the Customer Service Centre during the course of the audit for public inspection. The Committee noted that there were no queries from the public during the period of inspection and no one visited the Council Offices to view the hard copies. The AM concluded his presentation by stating that Officers were not aware of any events since the closure of the accounts that would materially affect the amounts included in the Statement of Accounts. The Chairman thanked the Accountancy Manager for the presentation and invited comments and or questions from the Committee. In response to a question about the differences in the Costs of Collection Allowance from £867K at 31 March 2011 to £479K at 31 March 2012 the AM confirmed that he would send a written clarification on the reason for the difference to all Members of the Committee. RESOLVED: (1)That the audited 2011-2012 Annual Statement of Accounts as set out in Appendix A be noted; (2)That the Strategic Director of Finance, Policy and Governance be requested to arrange the signing of the Statement of Accounts with the Chairman of the Finance, Audit and Risk Committee. REASON FOR DECISION: To allow the Finance, Audit and Risk Committee comment as appropriate on the 2011 - 2012 Statement of Accounts. |
Agreed | ||
| 26 |
FIRST QUARTER REVENUE MONITORING 2012 - 2013 Report Appendix A The Accountancy Manager (AM) presented the report of the Strategic Director of Finance, Policy and Asset Management which was a report to Cabinet that would be debated on 25 September 2012 and gave the summary position on income and expenditure for the period 1 April to 30 June 2012 for the General Fund and the Council's trading account Careline. The AM advised the Committee of a small number of minor amendments that had been made to the report since the publication of the FAR agenda. The AM gave details of the Executive Summary where the forecast net expenditure was £132K lower than the working budget, that the carried forward budget of £418K had been 26 per cent spent, that 99 per cent (£602K) of efficiency proposals would be achieved in 2012-2013, that there was one key indicator at red status with the remaining four at green status, that the general fund reserve was now forecast at a balance of £2.111M at 31 March 2013 which was £463 higher than the revised minimum balance of £1.648M, that the allowance for known financial risks stood at £890K with an expenditure of £20K at the end of the first quarter and the earmarked reserves balance was forecast to be 2.429M at 31 March 2013. The AM advised the Committee that whether the additional income of £88K would be used as a contribution to capital expenditure would remain under review during the year as there were currently inadequate capital receipts to fund the capital programme in 2012 - 2013. The AM was pleased to advise the Committee that interest rate for Sterling was an average of 2.36 per cent and Tradition achieved 2.24 per cent which was above the benchmark provided by Sector. RESOLVED: That the details of the summary position on income and expenditure for the period April to June 2012 for the General Fund and the Council's trading account: Careline within the report to Cabinet on 25 September 2012 as presented at Appendix A noted; REASON FOR DECISION: To allow the Finance, Audit and Risk Committee comment as appropriate on the first quarter revenue monitoring report to Cabinet for 2011 - 2012. |
Noted | ||
| 27 |
FIRST QUARTER CAPITAL MONITORING 2012 - 2013 Report Appendix A Appendix B Appendix C The Accountancy Manager (AM) presented the report of the Strategic Director of Finance, Policy and Governance which was a report to be presented to Cabinet on 25 September 2012, which gave the status of the capital programme for 2012-2013 at 30 June 2012 and its impact on the 2013-2014 programme and upon available capital funding resources. The AM advised the Committee that there were no changes to this report since the FAR agenda was published. The AM referred the Committee to Appendix A which included summaries of the capital programme by priorities and by service, and to Appendix B which gave the full capital programme and revised costs of schemes as well as the provisional capital programme from 2012-2013 to 2015-2016. The Committee noted the anticipated funding source for each capital scheme presented at Appendix C. The AM advised the Committee that the projected expenditure for 2012-2013 (including all changes) was now £8.228M which was an increase of £239K since June 2012. The Committee noted that the increase in spend was partly due to a revision of the completion times for schemes, a net decrease in the expected spend on schemes and partly due to the inclusion of two new projects. The AM referred the Committee to Tables 1, 2 and 3 for the full details. The Chairman thanked the Accountancy Manager for the summary of the capital expenditure and invited comments and or questions from Members. In response to a question The Accountancy Manager advised that at Appendix B it should be noted that under Asset Management the costs allocated to structural repairs at Letchworth Town Hall would be removed from the next report as the lease had been signed with North Herts College during the second quarter of 2012-2013 and these costs would be covered by the lessee. RESOLVED: (1)That the changes to the projected capital programme for 2012 -2013 that arose from the re-profiling of schemes as identified at Paragraph 4.3 in the report to Cabinet on 25 September 2012 be noted; (2)That the changes to the projected capital programme for 2012 - 2013 that arose from changes to the capital schemes as identified at Paragraph 4.4 in the report to Cabinet on 25 September 2012 be noted; (3)That the proposed two new schemes in the Capital programme for 2012 - 2013 as identified at Paragraph 4.5 (increase in expenditure of £1.0M) in the report to Cabinet on 25 September 2012 be noted. REASON FOR DECISION: To ensure that the Finance, Audit and Risk Committee are able to comment on the aspect of Capital Monitoring Report to Cabinet. |
Noted | ||
| 28 |
FIRST QUARTER TREASURY MANAGEMENT REPORT 2012/13 Report Appendix A The Accountancy Manager presented the report of the Strategic Director of Finance, Policy and Asset Management and advised that this was the first separate Treasury report to Cabinet which FAR were invited to comment on and note. In line with the 2012-2013 Treasury Strategy adopted by Council on 9 February 2012 (Minute 59 refers) it had been agreed that a separate Treasury Management report would be easier for officers to update and be more clear to Members. The AM reminded the Committee that the Treasury Strategy had three inherent risks viz. Credit Risk, Liquidity Risk and Market Risk and the AM identified the problems with each risk and how the Council had mitigated against each risk during the first quarter of 2012-2013. The Committee noted that Sector Treasury Services had been contracted to provide treasury advice for the 2012-2013 financial year which included regular updates on economic and political changes which might impact on the Council's borrowing and investment activities. The Sector Treasury Management update was presented at Appendix A. The AM advised the Committee that Treasury Management was a separate activity in its own right and in recent years the profile of treasury activity had grown, and Council had to approve an Annual Treasury Strategy. The AM confirmed that the Council had received interest of £331K on investments of £55M at an average interest rate on new deals of 2.27 per cent which exceeded the bench mark of 1.7 per cent provided by Sector. The Chairman thanked the Accountancy Manager for the clarification and description of the Treasury Management Strategy. There were no comments or questions from the Committee. RESOLVED: That the position of Treasury Management activity at the end of the first quarter of 2012 be noted. REASON FOR DECISION: To allow the Finance, Audit and Risk Committee comment as appropriate on the First Quarter Treasury Management Report for 2012 - 2013. |
Noted | ||
| 29 |
SHARED INTERNAL AUDIT SERVICES UPDATE - PROGRESS AGAINST THE 2012-2013 PLAN Report The SIAS Audit Manager (SM) advised the Committee that the report detailed the progress by SIAS in delivering the Council's Audit Plan for 2012-2013 as at 24 August 2012. The SM was pleased to confirm the completion of the outstanding four audits from 2011-2012 and there had been no limited or no assurance assessments. At 24 August 2012 the SM stated that 26.7 per cent of the 2012-2013 Audit Plan days had been delivered (33 per cent at 14 September 2012) and referred the Committee to Appendix A which gave an update on each individual project and amendments within the Audit Plan. The SM advised that there were no proposals to amend the Audit Plan, that the planned days would achieve the 95 per cent target and that 95 per cent of planned audits would be achieved. The Committee were pleased to note that that all returned client satisfaction questionnaires had been at ‘satisfactory' level and that at 24 August there had been no High Priority Audit recommendations arising from the two 2012-2013 audits completed to date. Twenty three per cent of planned audits were at the draft stage. There had been six audits with substantial assurance levels with a number of recommendations of which one (within the 2011-2012 review of Creditors) had a high priority. The SM referred the Committee to Appendix B which detailed the implementation status of previously agreed high priority audit recommendations. The SM proposed and it was agreed to remove the implemented high priority recommendation (No. 7) (Benefits Realisation - Office Accommodation Project) from Appendix B. The Chairman thanked the Audit Manager for the updating on the internal Audit Plan. There were no comments or questions from the Committee. RESOLVED: (1)That the details of progress within the Internal Audit Report be noted; (2)That the proposed amendments to the Audit Plan as at 24 August 2012 as listed at Appendix A be agreed; (3)That the proposal to remove the implemented high priority recommendation: Benefits Realisation - Office Accommodation Project as listed at Appendix B be agreed. REASON FOR DECISION: To allow the Finance, Audit and Risk Committee comment as appropriate on the progress against the 2012-2013 Shared Internal Audit Services Plan |
Agreed | ||
| 30 |
AMENDEMENTS TO THE COUNCIL'S FINANCIAL REGULATIONS Report Appendix A Appendix B The Head of Finance, Performance and Asset Management (HF) advised the Committee that the report set out recommended changes to the Council's Financial Regulations for approval by Cabinet and then formal adoption by Council. The HF referred the Committee to the complete regulations as set out in Appendix B and to Appendix A which detailed the 46 main changes to the Financial Regulations. The HF confirmed that the Financial Regulations formed part of the NHDC Constitution, written to CIPFA guidelines and the financial accountability of Cabinet Members, The Chief Executive, Section 151 Officer, Monitoring Officer, Strategic Directors and Heads of Service with each section of the Regulations giving the overarching financial responsibilities. The HF identified some of the key changes at Paragraph 4.2: Income from disposals will be credited to the General Fund; the Contracts Register will now list all contracts over £5,000 due to increasing procurement activity; At the start of a new project the Chief Executive would via Cabinet or solely appoint the Project Board and Project Executive; That the appropriate Strategic Director in consultation with the Strategic Director of Finance, Policy and Governance should establish a charging policy for the supply of services in line with corporate policies and government guidelines and that Cabinet must now authorise additional expenditure if there was an increase in the capital provision by more than 10 per cent or £25,000 whichever was the lesser (with a minimum of £10,000). With regard to the Contracts Register the HF expected that there would be an increasing number of enquiries under FOI from members of the public. The Chairman thanked the Head of Finance, Performance and Asset Management for the updating and clarification of the important changes to the Financial Regulations and invited comments and or questions from the Committee. In response to an enquiry the HF advised that Project Boards would not include Members of the Public, but could accept professional and expert advice. The HF also confirmed that Cabinet had previously agreed that the Chief Executive and the Leader of the Council would be given delegated powers to decide on whether Councillors should be members of Project Boards. RESOLVED: (1)That the amendments to the Council's Financial Regulations as set out in Appendix B to the report be agreed; (2)That the Committee approve delegation to the Strategic Director of Finance, Policy and Governance in consultation with the Portfolio Holder for Finance and IT to make any necessary changes to the Financial Regulations that arose from agreed amendments to The NHDC Constitution, Contract Procurement Rules or from new or amended Legislation; (3)That the Head of Finance, Performance and Asset Management be requested to advise Cabinet of the agreement of the Finance, Audit and Risk Committee to the revised Council's Financial Regulations. REASON FOR DECISION: To allow the Finance, Audit and Risk Committee to note and comment as appropriate on the amendments to the Council's Financial Regulations. |
Agreed | ||
| 31 |
CONSIDERING THE RECRUITMENT OF AN INDEPENDENT MEMBER OF THE FINANCE, AUDIT & RISK COMMITTEE Report Appendix A Appendix B Appendix C The Head of Finance, Performance and Asset Management (HF) reminded the Committee that at the meeting of FAR held on 18 June 2012 (Minute 15 (4) refers) he had been requested to make enquiries about the appointment of an Independent Member to this Committee. The HF advised the Committee that CIPFA and the National Audit Office recommended that an Audit Committee should have an independent member even though this was for guidance only. With this in mind the HF thanked the SIAS Head of Assurance for the advice on the work undertaken by Broxbourne Borough Council and earlier information from the London Borough of Barnet regarding an independent member. The HF advised the Committee that as far as he was aware there was only one local authority in Hertfordshire that had appointed an independent member viz. Stevenage Borough Council and that SIAS considered the Stevenage Committee as a strongly performing Audit Committee. The HF referred the Committee to Appendices A, B and C which detailed the Draft Advertisement, Draft job/role description and Draft Person Specification respectively. The HF commented that should the Committee wish to recommend the appointment of an independent member then the format and membership of an interview panel should be determined in consultation with the Leader of the Council, the Portfolio Holder for Finance and Information Technology and the Strategic Director of Finance, Policy and Governance. The Chairman thanked the Head of Finance, Performance and Asset Management for the updating report and specifically the assistance provided by the Head of Assurance at SIAS, and invited comments and or questions from the Committee. The Committee held a short discussion and agreed that the Head of Finance, Performance and Asset Management should not proceed with any of the proposals to recruit an Independent Member of the Finance, Audit and Risk Committee RESOLVED: That the Finance, Audit and Risk Committee did not wish to proceed with the appointment of an Independent Member of the Finance, Audit and Risk Committee. REASON FOR DECISION: To allow the Finance, Audit and Risk Committee to note and comment as appropriate on the proposed arrangements for the appointment of an independent member to this Committee. |
Agreed | ||
| 32 |
FUTURE MEETINGS - POSSIBLE AGENDA ITEMS Following the lengthy debate on the outcome of the external audit on the issues linked to the valuation of fixed assets (Minute 24 above refers) it was agreed that the Head of Finance, Performance and Asset Management be requested to present a report on the revised Valuation Process and the strengthened link between the Valuation Department and the Finance Department to a future meeting of the Finance, Audit and Risk Committee. |
Agreed | ||