Agenda item

On 29 May 2014, the committee agreed that a task group should undertake a self-assessment of the committee’s effectiveness in line with CIPFA’s revised and updated 2013 edition of Audit Committees: Practical Guidance for Local Authorities and Police.  This work is now complete and the task group’s findings are brought to the committee for consideration.

Declarations of Interest:

None.

Witnesses:

Nick Harrison, Chairman of the Task Group

Kevin Kilburn, Deputy Chief Finance Officer

Key points raised during the discussion:

1.    The Chairman introduced the task group’s report on its review of the committee’s effectiveness. 

2.    With regard to the amendments to the terms of reference, the Chairman confirmed that in the main the changes were to formalise what the committee already does. 

3.    The committee queried if an annual report to Council on its activities was enough.  The Chairman suggested that the Council may not be the best forum to have a discussion on governance issues and that other channels could be used to develop that understanding within the Council.

4.    The Chairman explained that the work to improve working arrangements between Audit & Governance Committee and Select Committees would be led in the first instance by the Chairmen and Vice-Chairmen of Audit & Governance Committee and Council Overview and Scrutiny Committee.  The Regulatory Committee Manager also confirmed that she would be working with Scrutiny Officers to support that relationship.  The Chief Internal Auditor also suggested that the Select Committees use Audit & Governance Committee as a tool to provide information to Internal Audit about concerns.  A Member informed the committee of a Children and Education Select Committee task group looking at school governance which was working closely with Internal Audit.  This had been a very useful exercise. 

5.    With regard to the partnership arrangements, the Chairman highlighted the blue-light collaboration as an area which the Audit & Governance Committee needed to consider.

6.    The committee agreed with the need of an additional meeting for the committee and it was proposed that this be in February, with the March meeting pushed to the start of April.  Members also raised the Accounts meeting in July as an issue, suggesting that the other items on the July agenda be moved (Recommendations tracker: A30/14).

7.    The Chief Internal Auditor suggested that the assurance mapping work could be brought to the committee in February 2015.  It was agreed that the committee would not be ‘scrutinising’ the assurance mapping but would ‘consider and review’ it.

8.    The Deputy Chief Finance Officer offered to take forward external audit’s reporting on performance with Grant Thornton.

9.    The Chairman suggested that it would be necessary for the committee to be mindful of major projects and consider them when reviewing the Audit Plan each year.

10.  Members discussed the Council’s objective to increase income from its investment in assets.  The Deputy Chief Finance Officer informed the committee that investment in new assets is considered by the Investment Advisory Panel.  The Chairman stated that an audit of the setting up of the Panel and the initial performance outcomes would be included in next year’s audit plan. 

11.  The Chairman informed the committee that each select committee had set up a Performance and Finance task group and that he would be suggesting that a member of Audit & Governance Committee joins the Adult Social Care Select Committee task group.  The Deputy Chief Finance Officer confirmed that the Family, Friends and Community Support programme had started to achieve its savings.

12.  The Chief Internal Auditor suggested that officers would be able to bring information on fraud risk to the February meeting of the committee.

13.  The committee suggested that the informal sessions on risk, audit and fraud had been very useful. 

Actions/Further information to be provided:

      i.        The July agenda of the committee to be revised to reduce the number of items in addition to the Accounts.

RESOLVED:

1.    That the Committee recommends to Council that its terms of reference be amended as follows:

                      i.        A brief Statement of Purpose to be included: “The Council recognises the importance of undertaking scrutiny of the management of the internal control systems and the Audit & Governance Committee provides an independent and high-level focus on audit, governance and financial accounts matters”.

                     ii.        To amend section (b) under Regulatory Framework to read: To monitor the effectiveness of the councils’ anti-fraud and anti-corruption strategy, including by reviewing the assessment of fraud risks”.

                    iii.        To add “To approve the Internal Audit Charter” under Audit Activity, following section (b).

                   iv.        To amend section (b) under Audit Activity to read: “To approve the annual Internal Audit Plan & Inspection Plan and monitor its implementation”.

                    v.        To add “To provide oversight to the Annual Report of the Council” under Regulatory Framework, following section (e) (Recommendations tracker ref: A31/14).

2.    That a communications plan be prepared and implemented to raise the committee’s profile and the profile of control systems with officers and backbench Members (Recommendations tracker ref: A32/14).

3.    That work be undertaken to improve working arrangements between Audit & Governance Committee and the Select Committees (Recommendations tracker ref: A33/14).

4.    That the committee develops a protocol for working with the newly established Statutory Responsibilities Network (Recommendations tracker ref: A34/14).

5.    That the committee develops a map of partnership arrangements and negotiates its role alongside those arrangements with the Leader, according to their type and the risk attached (Recommendations tracker ref: A35/14).  

6.    That the number of committee meetings be increased to six per year, while the committee continues to adopt innovative ways of working outside formal committee meetings (Recommendations tracker ref: A36/14).  

7.    That the committee considers and reviews the Assurance Framework upon completion of the assurance mapping process (Recommendations tracker ref: A37/14).

8.    That Grant Thornton provides information on its performance to the committee, in a format agreed with the Chairman (Recommendations tracker ref: A38/14).

9.    That the Chairman (or in his/her absence, the Vice-Chairman) be consulted upon the appointment or removal of the Chief Internal Auditor (Recommendations tracker ref: A39/14).

10.  That the committee considers how to develop its involvement in major projects such as the New Models of Delivery project (Recommendations tracker ref: A40/14).

11.  That the Chairman discuss with the Chairman of Adult Social Care Select Committee the possibility of joint scrutiny with that Committee as to whether robust arrangements are in place to achieve savings in Adult Social Care (Recommendations tracker ref: A41/14).

12.  That the committee improve its approach to ensuring that the council has effective arrangements for countering fraud and corruption risks (Recommendations tracker ref: A42/14).

13.  That the full committee continues with its regular training covering all areas of its work, while individualised training programmes are agreed with Members as requested (Recommendations tracker ref: A43/14).

Committee Next Steps:

None.