Agenda and minutes

Audit & Regulatory Committee - Wednesday, 26th July, 2017 6.30 pm

Venue: The Board Room, Pavilion Gardens, Buxton. View directions

Contact: Helen Gale Telephone 01298 28400 Ext. 2140  Email: helen.gale@highpeak.gov.uk

Items
No. Item

18/10

To approve the Minutes of the previous meeting pdf icon PDF 229 KB

Minutes:

RESOLVED:

 

That the minutes of the meeting held on 18 May 2017 be approved as a correct record.

 

18/11

External Audit Oral Update

Minutes:

The External Auditors advised that the draft accounts had been well prepared.  The timescale had been brought forward and implemented a year early. The audit findings, value for money conclusion and summary would be circulated for the September Committee meeting, though any questions could be raised before.

 

RESOLVED:

 

That the oral update be received with thanks.

 

 

18/12

Revised Local Code of Corporate Governance pdf icon PDF 353 KB

Minutes:

Consideration was given to the revised Local Code of Corporate Governance.  The international framework and language used were discussed. Determining the interventions necessary to optimise the achievement of the intended outcomes meaning what do we need to do to deliver the best results.

 

RESOLVED:

 

That the revised Local Code of Corporate Governance be approved, subject to the addition of plain English translations where required.

18/13

Annual Governance Statement 2016/17 pdf icon PDF 262 KB

Additional documents:

Minutes:

Regulation 6 (1) (a) of the Accounts and Audit Regulations 2015 requires the Council to conduct a review each financial year of the effectiveness of its system of internal control and approve an Annual Governance Statement (AGS).  The statement needs to be prepared in accordance with proper practices in relation to accounts and must be approved in advance of the Council approving the statement of accounts. ‘Proper practices in relation to accounts’ relates to those accounting practices which are contained in a code of practice or other document which is identified for the purposes of this provision by regulations made by the Secretary of State. Such guidance is contained in the Chartered Institute of Public Finance & Accountancy (CIPFA) / Society of Local Authority Chief Executives (SOLACE) framework and guidance on ‘Delivering Good Governance in Local Government’.

 

RESOLVED:

 

That subject to any amendments required to the Financial Statements, the Annual Governance Statement 2016/17 be approved.

18/14

Draft Statement of Accounts 2016/17 pdf icon PDF 501 KB

Minutes:

The Committee received the draft Statement of Accounts 2016/17, in compliance with the legislative provisions in relation to financial reporting and the Council’s commitment to transparency and accountability in the stewardship of public funds. 

 

The Committee noted that the draft accounts were subject to audit and final adjustment and for 2017/18 would need to be published by 31/5/2018.  Members were welcomed to submit questions or comments in writing to the Finance and Procurement Manager prior to the September meeting.

 

It was reported that movement in housing association stock would be included in the Housing Revenue Account business plan.

 

RESOLVED:

 

That the Committee note the draft Statement of Accounts 2016/17 prior to external audit and submit questions or comments in writing to the Finance and Procurement Manager in advance of the September meeting.

 

18/15

Annual Treasury Management Report 2016/17 pdf icon PDF 987 KB

Minutes:

Consideration was given to the Council’s Treasury Management performance in 2016/17 in compliance with the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Code of Practice on Treasury Management 2009 and generally accepted good practice. 

 

The Treasury Management Strategy, interest rates, investment in sterling (GBP), loan end dates and benchmarking were discussed.

 

RESOLVED:

 

That Council be recommended to approve the Annual Treasury Management Report 2016/17.

 

18/16

Treasury Management Update pdf icon PDF 614 KB

Minutes:

The Council’s Treasury Management performance in 2017/18 was scrutinized in compliance with the Chartered Institute of Public Finance and Accountancy’s (CIPFA) Code of Practice on Treasury Management 2009 and generally accepted good practice.  Signatory amendments and changes to treasury management advisors were discussed.

 

RESOLVED:

 

1.    That Council be recommended to note the current Treasury Management position (as at 30th June 2017).

 

2.    That the Royal Bank of Scotland (RBS) mandate application be completed to the effect that all existing signatories be removed (section 5) and two new authorised signatories are added (section 6):

 

·         Claire Hazeldene (Finance & Procurement Manager)

·         Stephen Robinson (Principal Finance Officer)

 

 

18/17

2016/17 Internal Audit Periodic Report pdf icon PDF 224 KB

Additional documents:

Minutes:

The Accounts and Audit Regulations 2015 required the Council to “undertake

an effective internal audit to evaluate the effectiveness of its risk management, control and governance processes, taking into account public sector internal auditing standards or guidance”.  In accordance with the Public Sector Internal Audit Standards, the Audit Manager must report periodically to the Audit Committee on the internal audit activity’s performance relative to its plan.

 

RESOLVED:

 

That the progress information contained within the report be noted.

 

18/18

Internal Audit - Annual Report 2016/17 pdf icon PDF 254 KB

Additional documents:

Minutes:

It was reported that the Accounts and Audit Regulations 2015 requires the Council to “undertake an effective internal audit to evaluate the effectiveness of its risk management, control and governance processes, taking into account public sector internal auditing standards or guidance”.  In accordance with the Public Sector Internal Audit Standards, the Audit Manager must deliver an annual internal audit opinion and report that can be used by the organisation to inform its governance statement.

 

RESOLVED:

 

1.       That the Audit Service’s 2016/17 year end performance information contained within the report be noted.

 

2.       That the opinion on the overall adequacy and effectiveness of the Council’s internal control environment be noted.

 

 

18/19

2016/17 Annual Review of effectiveness of Internal Audit pdf icon PDF 239 KB

Additional documents:

Minutes:

The Accounts & Audit Regulations 2015 require the Council in each financial year to conduct a review of the effectiveness of the system of internal control, and that the findings of this review must be considered by a committee or by members of the authority meeting as a whole.  An annual review of the effectiveness of Internal Audit to demonstrate conformance with the Public Sector Internal Audit Standards and Local Government Application Note forms part of this review. 

 

Resources and the tendering process for the external quality assessment report were discussed.

 

RESOLVED:

 

That the annual review of the effectiveness of Internal Audit for 2016/17 including the Quality Assurance and Improvement Programme be noted and that Internal Audit is operating effectively and can be relied upon when considering the Annual Governance Statement for 2016/17.

 

18/20

2016/17 Annual Review of effectiveness of the Audit and Regulatory Committee pdf icon PDF 227 KB

Additional documents:

Minutes:

Having considered the report on the Annual Review of the Effectiveness of Internal Audit, the Committee were aware of the requirement to comply with the Accounts and Audit Regulations 2015.  As part of the process of assurance, best practice suggests that an annual review of the effectiveness of the Audit & Regulatory Committee be undertaken. 

 

The revised terms of reference, updating the skills audit, advertising and possible length of service of 3 or 4 years for independent members were also discussed.

 

RESOLVED:

 

1.      That the annual review of the effectiveness of the Audit and Regulatory Committee be approved.

 

2.      That the revised terms of reference (Appendix 3 to the report) be approved, subject to further consideration by the Constitution Sub-Committee.

 

3.      That the recruitment process for independent members of the Committee, detailed in Section 3.9 of the report, be noted.

 

4.      That recruitment be considered by the Chairman, Vice-Chairman and the Executive member.

 

5.      That the skills audit be revisited once the independent members have been appointed.

 

 

18/21

Exclusion of the press and public

To resolve that the public and press be excluded from the meeting for the following item because there may be disclosure to them of exempt information as defined in  Part I of Schedule 12A of the Local Government Act 1972.

 

Minutes:

RESOLVED:

 

That the public and press be excluded from the meeting for the following item because there may be disclosure to them of exempt information as defined in paragraphs 3 and 5 of Part I of Schedule 12A of the Local Government Act 1972.

 

18/22

Buxton Crescent & Thermal Spa Project - Oral Update

Minutes:

The Committee received an oral update relating to the Buxton Crescent and Spa Project and associated risks.

 

RESOLVED:

 

That the oral update be received with thanks.