| Time: | 7.30pm | Place: | Committee Room 1, Council Offices, Gernon Road, Letchworth Garden City |
| PRESENT: | Councillor David Levett (Chairman), Councillor M.E. Weeks (Vice-Chairman), Councillor John Booth (substitute), Councillor David Kearns, Councillor Ian Mantle and Councillor Lawrence Oliver. |
| IN ATTENDANCE: | Norma Atlay - Strategic Director of Finance, Policy and Governance Andy Cavanagh - Head of Finance, Performance and Asset Management Tim Neill - Accountancy Manager Fiona Timms - Performance and Risk Manager Helen Maneuf - Head of Assurance - SIAS Nigel Schofield - Committee and Member Services Officer Denis Thorpe - Grant Thornton |
| ALSO PRESENT: |
| Item | Description/Resolution | Status | Action | |
| PART I | ||||
| 33 |
APOLOGIES FOR ABSENCE An apology for absence had been received from Councillors Bill Davidson and Michael Muir. In accordance with NHDC regulations Councillor John Booth advised the Chairman that he would be a substitute for Councillor Bill Davidson. An apology for absence had been received from Phil Westerman of Grant Thornton. |
Noted | ||
| 34 |
MINUTES Minutes RESOLVED: That the Minutes of the Meeting of the Finance, Audit and Risk Committee held on 20 September 2012 be confirmed as a true record of the proceedings and be signed by the Chairman. |
Agreed | ||
| 35 |
NOTIFICATION OF OTHER BUSINESS There was no other item of business tabled. |
Noted | ||
| 36 |
CHAIRMAN'S ANNOUNCEMENTS The Chairman welcomed everyone to the meeting and reminded Members that, in line with the Code of Conduct, any Declarations of Interest should be declared immediately prior to the item in question. |
Noted | ||
| 37 |
PUBLIC PARTICIPATION There was no public participation. |
Noted | ||
| 38 |
VALUE FOR MONEY - FINANCIAL RESILIENCE Introduction Report Mr Denis Thorpe of Grant Thornton the NHDC External Auditors thanked the Chairman for the opportunity to address the Committee. Mr Thorpe confirmed that NHDC had proper arrangements in place for securing financial resilience, had proper arrangements for challenging how it secured economy, efficiency and efficiency. With regard to financial resilience in 2010-2011 Mr Thorpe advised that NHDC had achieved Green status for: Key Indicators of performance; Strategic financial planning; Financial governance and Financial control. The Committee were pleased to note that the follow up review of Financial Resilience for 2011 - 2012 had given Green status for Key Performance Indicators; Strategic Financial Planning and Financial Control. Mr Thorpe referred the Committee to Sections 2, 3, and 4 for a detailed description and assessment of the ratings. In conclusion Mr Thorpe advised the Committee that Grant Thornton were satisfied that NHDC had put in place proper arrangements to secure economy, efficiency and effectiveness in its use of resources for the year ending 31 March 2012 and that there were no recommendations arising from the 2011-2012 review. The Chairman thanked Mr Thorpe for the presentation and queried the need for more commentary on cash flow forecasting. Mr Thorpe clarified the recommendation of further cash flow forecasting to Members and in response the Accountancy Manager advised that the borrowing limits within the Treasury Strategy were already monitored and reported to Members on a quarterly basis. Also, that the Authority had not been required to take out new borrowings for a long time but if the ongoing cash position did change significantly then further cash reporting would become more worthwhile. In response to a further question The Head of Finance, Performance and Asset Management advised the Committee that the reduced yield from investments experienced over the last couple of years was not a reflection of the Authority's liquidity and NHDC did not borrow on a regular basis. RESOLVED: (1) That Grant Thornton be thanked for the presentation; (2) That the outcomes of the Value for Money - Financial Resilience in 2010-2011 and 2011 - 2012 be welcomed and noted. REASON FOR DECISION: To note the outcomes of the Value for Money - Financial reviews. |
Noted | ||
| 39 |
ANNUAL AUDIT LETTER AT 31 MARCH 2012 Introduction Report Mr Denis Thorpe of Grant Thornton the NHDC External Auditors thanked the Chairman for the opportunity to address the Committee. Mr Thorpe advised that the Annual Audit Letter was a report required by Government and summarised the key issues from the audit for the year ended 31 March 2012. The most important outcome to note was the unqualified opinion on the Council's accounts for the year ended 31 March 2012 given on 20 September 2012. Mr Thorpe then advised the Committee that the accounts for the year ended 31 March 2012 gave a true and fair view of the Council's financial affairs and of the income and expenditure recorded by NHDC. Also, that the Council made the proper arrangements to secure economy, efficiency and effectiveness in its use of resources for the year ending 31 March 2012. Mr Thorpe referred the Committee to the three key messages that arose from the audit: 1.There was a need to maintain suitable non-current asset accounting records separate from the records maintained for estates management supported by monthly or quarterly reconciliation process; 2. There was a need to have formal arrangements that would support a schedule of non-current asset revaluation tests that would support an ongoing valuation of the Council's estate to meet the requirements of IAS 16 and the NHDC accounting policy and 3. There was need to evaluate, document and maintain the basis for any significant accounting treatments that impacted on the Council's income and expenditure position and related to areas of significant accounting judgements or estimates, such as provisions, assets held for sale or redevelopment and grant income recognition. The Chairman thanked Mr Thorpe for the synopsis of the report and was pleased to advise a Member that the reporting term ‘adequate' was good. Mr Thorpe confirmed that Grant Thornton would work closely with NHDC officers in reviewing the areas identified for action in response to the key messages and that any Member was welcome to approach Grant Thornton at any time for additional clarification on any query they might have. Another query concerned the definition of a non - current asset and Mr Thorpe advised that there must be a strict adherence to accounting practices and keep accurate records regarding all assets. The Head of Finance, Performance and Asset Management advised that there were periodic meetings between the Accountancy Manager and the senior estates surveyor to maintain linkages which had been requested by Grant Thornton previously (Minutes passim) and the Accountancy Manager confirmed that there was good access to all asset data and good contact between accounts and estates. The Committee agreed that there needed to be more work on the agreed valuations with agreement on recorded values and the judgement behind the valuations. However, a Member questioned the need for a formal asset management report and the amount of officer time taken up on asset valuations given it was such a low priority for Members. Mr Thorpe advised that the valuation of the Authority's fixed assets was a significant way the Council presented a true and fair view of its' financial position. RESOLVED: (1) That the information on the outcomes of the annual audit be noted; (2) That the unqualified opinion on the Council's accounts be welcomed. REASON FOR DECISION: For the Committee to be aware of the outcomes of the Annual Audit and agree the actions defined in the key messages. |
Noted | ||
| 40 |
GRANTS CERTIFICATION REPORT The Chairman advised that this report from the external auditors would be deferred to the next meeting scheduled for 28 January 2013. A Member expressed concern about the non availability of this report and what was the reason for the deferral. Mr Thorpe replied that the report could only be submitted when all reporting was complete. Unfortunately officers and Grant Thornton had yet to complete the Housing Benefit grant claim form as amendments were still outstanding and there were a considerable number of manual adjustments to be completed. In response to a question the Strategic Director of Finance, Policy and Governance considered that it would not be appropriate to purchase new Housing Benefit software at this time, given the process underway nationally to move towards a Universal Credit Scheme. Once implemented it was expected that NHDC would no longer process Housing Benefit but would continue to process Council Tax Support. RESOLVED: That the reasons for deferral of the Grant Certification Report to the meeting scheduled for 28 January 2013 be noted. |
Noted | ||
| 41 |
EXTERNAL AUDITOR'S FEE FOR 2012-2013 AUDIT Introduction Report Mr Denis Thorpe of Grant Thornton the NHDC External Auditors thanked the Chairman for the opportunity to address the Committee. Mr Thorpe advised that the Audit Commission had set the scale of fees and as NHDC had currently no significant audit risks, had in place a sound control environment which gave the appointed auditor complete and accurate financial statements with supporting working papers within an agreed timetable the fee for the 2012- 2013 Audit would be £68,482 a reduction of 40 per cent. Mr Thorpe advised that any additional work requested by NHDC would be charged on top of the Audit Fee. The Committee noted that the fee was based on a risk based approach as set out in the Code of Audit Practice and work mandated by the Audit Commission for 2012-2013. Mr Thorpe referred the Committee to the phases of the audit timetable: Audit planning and interim audit; Final accounts audit; Value for Money; Financial resilience; Whole of government accounts; Annual audit letter and Grant certification. In response to a question Mr Thorpe confirmed that there was a fee set for grant certification, but any additional invoicing would be determined by the amount of any additional grant certification report. RESOLVED: That the proposed Annual Audit Fee for 2012-2013 be noted. REASON FOR DECISION: To ensure that the Committee were aware of the Annual Audit Fee for 2012-2013 and the audit timetable. |
Noted | ||
| 42 |
RISK MANAGEMENT UPDATE Report Appendix A Appendix B Appendix C Appendix D 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 20 November 2012 and the outcome of the review was presented on the Risk Matrix at Appendix A to the report with full details of each risk being available on Covalent. The PRM advised the Committee that following the decision by NHDC to withdraw from The Shared Services Project with Stevenage Borough Council and East Herts District Council the Senior Management Team had reviewed the risk ‘Shared Services and New Ways of Working'. The PRM proposed to the Committee that this risk should be removed from the Risk Register. The PRM confirmed that the Risk and Opportunities Management Strategy had been reviewed to reflect the new agreed Priorities (1. Living within our means to deliver cost effective services; 2. Working with local communities; and 3. Protecting our environment for our communities) and the recommendations from the internal audit completed earlier in 2012. The PRM referred the Committee to Appendix B for a summary of the changes and to Appendix C which presented the revised Risk and Opportunities Management Strategy for 2012-2015 and to Appendix D which presented the Risk and Opportunities Policy Statement The PRM concluded her report with assurance that any additional resources required to complete risk management actions were included in the Corporate Business Planning process and that there were no direct financial implications from the report. Also, that if any key financial risks should arise and could have an impact on the General Fund would be included within the General Fund balance for 2013 - 2014. The Chairman thanked the Performance and Risk Manager for the updating on Risks and the Risk and Opportunities Management Strategy and invited questions and or comments from the Committee The Committee were in agreement that the SMT Top Risk of Shared Services and New Ways of Working should be removed from the Risk Register but subject to Cabinet also agreeing that the project for Shared Support Services should be discontinued. Comment was also made that New Ways of Working should be retained as a Risk on the Risk Register and retained on the Risk Matrix at Appendix A even if the Shared Services Project had been cancelled. Comment was also made as to a distinction between a risk, opportunity and an issue, and that any project would bring opportunities for the Council. The PRM confirmed that there always risks associated with the delivery of projects and these had to be managed. If the risks were well managed the project should be delivered successfully which would ensure that the original opportunity was achieved. Bearing in mind the comments made by the Committee the Performance and Risk Manager agreed to amend the Risk Matrix, The Risk and Opportunities Management Strategy to change risk to issue at Section 3.6 of the Strategy. RESOLVED: (1) That the Finance, Audit and Risk Committee agreed with the proposal to delete the Senior Management Team Risk of Shared Services and New Ways of Working subject to the agreement of Cabinet of the cessation of the Shared Support Services project; (2) That the proposal to forward the Risk and Opportunities Management Strategy (with alterations) to Cabinet for consideration be agreed; (3) That the proposal to forward the Risk and Opportunities Management Policy Statement to Cabinet for consideration be agreed. RECOMMENDED TO CABINET: (1) That the Finance, Audit and Risk Committee recommend to Cabinet that the revised Risk and Opportunities Management Strategy (with alterations) be agreed; (2) That the Finance, Audit and Risk Committee recommend to Cabinet that the Risk and Opportunities Management Policy Statement be agreed. REASON FOR DECISION: To provide the Finance, Audit and Risk Committee with the opportunity to review changes in risks for Senior Management Team and Cabinet and forward Strategies and Policies to Cabinet. |
Agreed | ||
| 43 |
SECOND QUARTER REVENUE MONITORING 2012-2013 Report Appendix A The Accountancy Manager (AM) presented the report of the Strategic Director of Finance, Policy and Governance which in turn would be presented to Cabinet on 11 December 2012. The AM advised that there had been no amendments to this report since publication. The AM advised Members that the revised net expenditure for 2012-2013 was £16.024 M. which was a £110 K increase in the working budget. The AM referred the Committee to the Executive Summary at Paragraph 4 which had cross references to Tables 1, 2, 3, 4, 5, 6 and 7: There would be £602K of efficiencies achieved (budget of £609K); There had been a £110K increase in the working budget; there were three carry forwards at amber status (total £189K) that may not be spent of which two would be transferred to new earmarked reserves; The General Fund Reserve was now forecast to have a balance of 2.101M at 31 March 2013; There had been an allowance of £0.890M for known financial risks of which at the end of the second quarter £199K of these risks had been realised and; the amount of earmarked reserves was forecast to be £2.572M at 31 March 2013.and the five key financial indicators were at green status. The AM referred to each table in the report for additional clarification. The Chairman thanked the Accountancy Manager for the updating on the Second Quarter Revenue Monitoring 2012-2013 and invited questions and or comments from the Committee. A Member queried why at Table 3 the staff reductions estimate had not met the target and the AM advised that efficiencies were always an estimate and although there was a part year effect in 2012-2013 the efficiency target was expected to be fully achieved in future years. The Strategic Director for Finance Policy and Governance advised that it had been agreed by officers that future efficiencies would be calculated at less than a full year as staff reductions took time and it was policy not to accept voluntary redundancies. It was expected that in 2013-2014 such savings would be noted for 11 months but in 2014-2015 would be covering a full year. RESOLVED: That the contents of the Second Quarter Revenue Monitoring Report for 2012-2013 to Cabinet be noted; REASON FOR DECISION: For the Finance, Audit and Risk Committee to comment as appropriate on the Second Quarter Revenue Monitoring Report for 2012-2013. |
Noted | ||
| 44 |
SECOND 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 in turn would be presented to Cabinet on 11 December 2012. The AM advised that there had been no amendments to this report since publication. The AM referred the Committee to Table 1 at Paragraph 4.3 and confirmed that the most significant amendment to the capital programme was the re-profiling of the North Hertfordshire Museum and Community Facility scheme which now incorporated the full project cost. In response to a question about the purchase of 160 new personal computers the AM confirmed that the programme would roll out in the next few months and that the installation of Windows 7 software was already budgeted. A Member questioned the apparently quick spend of set aside receipts amounting to £4.6M and the AM advised that the capital programme would need to remain under close review because of the limited availability of resources and new capital receipts. The AM confirmed that it was not only the North Hertfordshire Museum and Community Facility project that would require use of the Council's set aside receipts. The Head of Finance. Performance and Asset Management expected that there would be receipts for land and buildings disposals in 2013-2014. The Strategic Director of Finance, Policy and Governance gave the example of the North Herts Museum and Community Facility as being an ‘invest to save project' where £150K of revenue saved was a better return than interest received on deposited money. The Committee noted that at current interest rates £5M on deposit earned £110K interest per annum. RESOLVED: That the contents of the Second Quarter Capital Monitoring Report for 2012-2013 to Cabinet be noted; REASON FOR DECISION: For the Finance, Audit and Risk Committee to comment as appropriate on the Second Quarter Capital Monitoring Report for 2012-2013. |
Noted | ||
| 45 |
TREASURY STRATEGY MID YEAR REPORT 2012-2013 Report Appendix A The Accountancy Manager (AM) presented the report of the Strategic Director of Finance, Policy and Governance which in turn would be presented to Cabinet on 11 December 2012. The AM advised that there had been no amendments to this report since publication and referred the Committee to Appendix A which was the SECTOR Treasury Management Update at mid year 202-2013 which included an update on the Council's Investment Strategy. The Chairman thanked the Accountancy Manager for the update. A Member referred to Paragraph 4.5 and the list of investments and questioned why HSBC were listed and the AM advised that the Council had both a current and call account with HSBC for day to day cash management. A Member referred to Paragraph 4.6 and thought that this was the first reference in a Treasury Report to a money market fund. The Member considered that if financial institutions did not want to receive deposits from local authorities then a money market fund might be the way forward. The AM advised that this route would offer a low risk, flexible option for investment albeit with a low return and that this option might be considered when setting the Treasury Strategy for 2014-2015. In response to another question on whether better rates were available the AM confirmed that the Council had very limited options of where money could be invested against the need to manage the level of risk and maximise investment income. The Strategic Director of Finance, Policy and Governance stated that NHDC monies available for investment were not large in the overall money markets and that it was very important to protect this financial asset that was owned on behalf of the residents of North Hertfordshire. A Member queried the amount of £1M allocated to housing at Section 5 of Appendix A and it was confirmed that this was for the new Local Authority Mortgage Scheme. RESOLVED: (1) That the position of the NHDC Treasury Management Strategy at the end of the second quarter for 2012-2013 be noted; (2) That the Annual Investment Strategy as detailed at Appendix A be noted. REASON FOR DECISION: To allow the Finance, Audit and Review Committee examine and comment on the Treasury Management Strategy for 2012-2013. |
Noted | ||
| 46 |
CORPORATE BUSINESS PLANNING - DRAFT BUDGET 2013-2014 Report Appendix 1 Appendix 2 Appendix 3 Appendix 4 Appendix 5 Appendix 6 Appendix 7 Appendix 8 The Accountancy Manager (AM) presented the report of the Strategic Director of Finance, Policy and Governance which was in a draft format for presentation to Cabinet on 11 December 2012. The AM advised the Committee that there had been several changes since publication of the report: - Table 4 - Budget Risks. A total of 55 Risks valued proportionally at £1,505K of which 13 were high risks with a proportional value of £767K; - Table 7 - Efficiency savings of £921K in 2013-2014 with a total of £1,081K in 2014-2015; - Appendix 1 - Total Net Expenditure for 2013-2014 now £15,003K; - Appendix 5 - Remove R7 ‘Reconfiguration of the Waste and Recycling Collection Service' and amend Investment Total to £105K. The AM took the Committee through the report, the eight appendices and described the background to the changes listed above and advised that the financial strategy was based on many assumptions including all those listed in Paragraph 3.4 of the report. The AM advised that this budget was subject to the announcement of the settlement grant expected on 19 December 2012 and therefore the budget was still being prepared on a best case and worse case scenario. The Chairman thanked the Accountancy Manager for the presentation and clarification of the changes to the budget for 2013-2014 since the publication of the report, and invited questions or comments from the Committee. In response to a question the Head of Finance, Performance and Asset Management agreed that at Appendix 5 Revenue Investment Proposal - R2 ‘Asbestos survey of all Council premises' this investment could be staged over two years. However, it was noted that it would financially beneficial to issue a contract for all the work to be done at onetime rather than in separate tranches. The Chairman proposed and it was agreed that at Appendix 3 Efficiency Proposal E3 ‘Housing and Public Protection - Grant Funding to Herts Young Homeless Group should be removed as this cost could be a false economy and the over - achievement of the efficiency target provided the flexibility to do so. In response to a question the Strategic Director of Finance, Policy and Governance clarified that the Homelessness earmarked reserve was held for planned homelessness prevention activities over more than one year. With regard to Appendix 3 Efficiency Proposal E9 the Committee expressed concern at the quoted cost estimates (£20K) for providing Christmas Trees in public places in North Hertfordshire and that the proposal to pass such costs to the Area Committees was not supported. It was also agreed that the cost of the Christmas Tree at Letchworth Library should not be supported in 2013-2014 and onwards. It was also proposed that these costs should be reviewed again and if possible put out to tender for the supply and installation of five trees and seek a source of Christmas Trees from within North Hertfordshire. Of particular concern to Members of the Committee was the intention listed in the budget and as detailed in Paragraphs 4.7.4 and 4.7.5 of the report to accept the freeze on Council Tax matched by a Government Grant of one per cent of the Council Tax collected by the Council. The Committee expressed a strong view that Cabinet and ultimately Council should seriously consider the implications of taking this payment year on year as this eroded the base budget and that there was clear risk to the Council if the grant was taken. RESOLVED: (1) That the changes and amendments made to the Corporate Business Planning Report for 2013-2014 be noted; (2) That Cabinet be advised that the Finance, Audit and Risk Committee did not support the proposal to move the costs of providing Christmas Trees in Letchworth, Hitchin, Royston and Baldock to Area Committees (3) That Cabinet be advised that the Finance, Audit and Risk Committee did not support the costs of providing a Christmas Tree at Letchworth Library after the 2012 Festive Season (Efficiency Proposal E9); (4) That the Finance, Audit and Risk Committee requested that officers should issue a tender for the supply and installation of Christmas Trees in the four North Herts towns from 2013-2014 onwards and that such trees should be sourced from within North Hertfordshire if at all possible; (5) That Cabinet be advised that the Finance, Audit and Risk Committee requested that Efficiency Proposal E3 Housing and Public Protection - Funding to Young Homeless Group be deleted; (6) That Cabinet be advised that the Finance, Audit and Risk Committee were seriously concerned about the implications on the base budget in future years of not increasing Council Tax in 2013-2014 and in the future years and not taking the Government's offer of a Council Tax Freeze Grant. RECOMMENDED TO CABINET: (1) That the Finance, Audit and Risk Committee did not support the proposal to move the costs of providing Christmas Trees in Letchworth, Hitchin, Royston and Baldock to Area Committees (Efficiency Proposal E9); (2) That the Finance, Audit and Risk Committee did not support the costs of providing a Christmas Tree at Letchworth Library after the 2012 Festive Season (Efficiency Proposal E9); (3) That Cabinet be requested to delete the Efficiency Proposal E3 Housing and Public Protection - Funding to Young Homeless Group. (4) That Cabinet be requested to seriously consider the implications on the base budget of a Council Tax Freeze in 2013 - 2014. REASON FOR DECISION: For the Finance, Audit and Risk Committee to comment on the Corporate Business Planning Process for 2013-2014 and propose changes as appropriate to Cabinet. |
Noted | ||
| 47 |
AMENDMENTS TO THE COUNCIL'S PROCUREMENT STRATEGY Report Appendix A Appendix B The Head of Finance, Performance and Asset Management (HF) presented the report of the Strategic Director of Finance, Policy and Governance which set out recommendations to the NHDC Procurement Strategy for consideration by this Committee and if appropriate forward to Council for adoption. The HF reminded the Committee that in order to conduct its business in an efficient manner there needed to be a sound Procurement Strategy and Process in place. The HF confirmed that a review of the Procurement Rules would be presented to the Committee at the meeting to be held on 28 January 2013. The HF advised the Committee of the main changes proposed in this review as listed at Appendix A and the revised Procurement Strategy as presented at Appendix B. The HF confirmed that the limit of NHDC procurement cards would be increased to £500; that tenderers would be required to have a Fair Trade Policy; that small to medium sized firms would be encouraged to tender for contracts. Also that the impact of The Localism Act 2011 and the Social Value Act 2012 had been taken into account when revising the Procurement Strategy. The Committee noted that there was one outstanding item at Red Status relating to the training of Service Managers in Contract Management and plans were being developed to address this issue. The HF confirmed that currently 25 per cent of suppliers to NHDC were based in North Hertfordshire and 70 per cent of purchases on NHDC Purchase Cards were from suppliers in North Hertfordshire. A Member enquired as to the course of action should a contractor cease trading or was taken over, or a Fair Trade registered company was replaced by a non Free Trade Company and would the new supplier be subject to the same contract requirements. The Strategic Director of Finance, Policy and Governance assured the Committee that a thorough check was always taken in such circumstances and the principles of the Procurement Strategy had to be met by a replacement contractor. In response to a question the HF confirmed that issues of contractors paying at least la minimum wage, adhering to the EU Working time Directive, ethical behaviour and so on were addressed in the Equality and Social Inclusion section of the Procurement Strategy. The HF confirmed that the Member query regarding payment of the living wage would be investigated. With regard to Fair Trade the HF confirmed that matters such as this could be resolved at the pre-qualification stage RESOLVED: (1) That the changes to the Procurement Strategy as presented at Appendix A and the Revised Procurement Strategy as presented at Appendix B be agreed; (2) That Officers be requested to conduct a monitoring review of current contracts and undertake a review of the ethical standards of suppliers to NHDC. (3) That any further changes to the Procurement Strategy be delegated to the Chairman and Vice - Chairman of the Finance, Audit and Risk Committee. RECOMMENDED TO COUNCIL: That at a future meeting of Council the Procurement Strategy be adopted. REASON FOR DECISION: To ensure that the Council's Procurement Strategy remained relevant and fit for purpose. |
Agreed | ||
| 48 |
SHARED INTERNAL AUDIT SERVICES UPDATE - PROGRESS AGAINST THE 2012-2013 PLAN Introduction Report The Head of Assurance - SIAS (HA) presented the Shared Internal Audit Services update report and progress against the 2012-2013 Audit Plan at 9 November 2012, with the audit outcomes for the period 25 August 2012 to 9 November 2012, proposed amendments to the 2012-2013 Audit Plan, the status of previously agreed high priority audit recommendations, proposed removal of completed actions and an update on performance management information at 9 November 2012. The HA assured the Committee that all audits would be completed by the end of the fourth quarter, that staff had been allocated to all audits and that there was sufficient capacity to deliver and complete the Audit Plan. The HA requested that all completed audits should be removed from the 2012-2-013 Audit Plan. At 9 November 2012 the HA confirmed that 41 per cent of the 2012-2013 audit days had been delivered and referred the Committee to Appendix A for further details on each individual project within the Audit Plan. There had been ten audits completed with two Full levels of assurance, five levels of Substantial assurance and three Moderate levels of assurance. The Committee noted that there was only one high priority recommendation for the Debt Recovery Audit and a Member questioned the large number of merits requiring attention of which the Committee had no details. Whilst accepting that much more detail for each audit was available via COVALENT it was clear that the Chairman and other Members sought more detail on the outcomes of audits to be presented to Committee if there were high priority recommendations. The Head of Finance, Audit and Asset Management (HF) assured the Committee that if there was an exception the Committee would receive the full audit report and the Strategic Director for Finance, Policy and Governance (SD) reminded Members that previous audit reports to this Committee and PARC and ERIC only had high priority recommendations and this was a very similar reportage. To assist Members the Performance and Risk Manager (PRM) agreed to provide Members with a Covalent summary report. The PRM confirmed that all audits were regularly monitored and progress followed up and the Committee would be advised of any problems or delays. The Chairman expressed concern about different values for completed audit days identified by the external auditor as opposed to the completed days given in this report. A Member considered that as this was the first full year of audit using shared services the audit plan might have been over ambitious and that for 2013-2014 a smaller audit plan could be considered and the Chairman questioned whether NHDC could provide enough support to the Internal Audit as per the plan for 2012-2013. It was also suggested that a prioritisation of audits could be the way forward in light of the delays encountered this year. The SD advised the Committee that NHDC would take a risk based approach to audit and it would always be an audit of high/medium risks. As the Section 151 Officer the SD needed assurance that all financial processes at NHDC were sound and confirmed that there had been a reduction in audit days at NHDC since the move to shared services and the HF added that the NHDC request for audit days was on par with most of the other local authorities in Hertfordshire. The Chairman thanked Members and Officers for their contribution and requested that the comments and questions raised be noted and actioned as appropriate. RESOLVED: (1) That progress on the Internal Audit Plan for 2012-2-013 be noted; (2) That the proposed amendments to the Internal Audit Plan for 2012-2013 be agreed; (3) That the implemented high priority recommendations be removed. REASON FOR DECISION: For the Finance, Audit and Risk Committee to examine and comment on the progress of the Internal Audit Plan for 2012-2013. |
Noted | ||
| 49 |
FUTURE MEETINGS - POSSIBLE AGENDA ITEMS There were no suggestions for any new agenda items. |
Noted | ||