Agenda item

RESOLVED: That the Committee commented on and noted the Internal Audit report as attached at Appendix A.

REASON FOR DECSION: To allow the Committee to discuss the findings of the Internal Audit report, and contribute to the actions to improve the effectiveness of the Committee.

Audio recording – 3 minutes 50 seconds

The Service Director – Resources presented the report entitled ‘Internal Audit Report – Review of Finance, Audit and Risk Committee’ and highlighted the following:

·       The annual audit by SIAS had been completed, which included interviews with two members of the Committee, as well support Officers.

·       The recommendations from SIAS were included as an appendix at page 24 of the report.

·       The proposed annual self-assessment was previously conducted at the Council, however this was not well completed by Members. This could be reintroduced to allow more focussed training to be provided but would require Members to complete and return the assessment.

·       This Committee still received finance reports, which was not the best approach but had been considered pragmatic. This recommendation was not for this Committee to decide, as would need to be part of the ongoing Constitutional Review.

·       Members of the Committee could request to speak with auditors and, whilst this had not been taken up to date, Officers can provide relevant signposting. 

·       It was recommended that risk reports should have more detailed summaries included, and feedback on this change would be appreciated.

·       Committee members were encouraged to attend training, where possible, and sessions ahead of the meeting had been set up for this Committee. Feedback was welcomed on this to ensure that training provided was effective at addressing the needs of the Committee.

The following Members asked questions:

·       Councillor Ruth Brown

·       Councillor Vijaiya Poopalasingham

·       Councillor Ralph Muncer

·       Independent Member John Cannon

In response to questions, the Service Director – Resources advised that:

·       The pre-meeting training sessions could be recorded and uploaded to GrowZone for Members unable to attend.

·       A meeting with the auditors could be arranged alongside the pre-meeting training for this Committee, at the meetings which the auditors would present reports.

·       This Committee was the Audit Committee, however the issue identified was that financial reports were brought to this Committee. These reports were approached as providing critical governance advice on these items. However, it was felt this meant the Committee was too involved.

·       The proposals would mean that financial reports would need to go to Overview and Scrutiny Committee, or another new Committee to consider these.

·       Trends from both this audit and the recently completed Corporate Peer Challenge report highlighted that reports to this Committee should focus on governance and risk.

·       Training sessions were not mandatory, but Members were strongly encouraged to attend, especially sessions provided at the start of each civic year.

·       Providing training required a balance between making it accessible for new councillors, whilst trying to provide more detail for more experienced members.

Councillor Vijaiya Poopalasingham proposed and Councillor Ruth Brown seconded to approve the recommendation.

The following Members took part in the Debate:

·       Councillor Sean Nolan

·       Councillor Ruth Brown

·       Independent Member John Cannon

·       Councillor Ralph Muncer

The following points were made as part of the Debate:

·       The Chair had recently attended a session with other Audit Committee Chairs, where this Council was an outlier in its approach to financial reports.

·       Most Members did not look at these items daily and therefore the training provided to assist with discussions and provide knowledge of the areas was welcomed.

·       The previous Peer Challenge report had also highlighted the Council as  an outlier in this way of working, however changes were delayed until after the all-out election. There had been discussions around this at the Constitutional Review Working Group, but there would need to be specific consideration of this change and the potential impact of another Committee.

·       Due to its size, the Council may not always be able to mirror the practices at larger organisations.

Having been proposed and seconded and, following a vote, it was:

RESOLVED: That the Committee commented on and noted the Internal Audit report as attached at Appendix A.

REASON FOR DECSION: To allow the Committee to discuss the findings of the Internal Audit report, and contribute to the actions to improve the effectiveness of the Committee.