Meeting documents

Audit Committee
Thursday, 19th April, 2007 7.00 pm

Date:
Thursday, 19th April, 2007
Time:
7.00pm
Place:
Meeting Room A, Town Hall, Bury
 

Attendance Details

Present:
Councillor E B Briggs (in the Chair);
Councillors D Ashworth, K Audin, Y Creswell, D O’Hanlon, A Matthews K Rothwell and B Vincent.

Co-opted:
Mr K Wainwright (Co-Opted Member)
Apologies for absence:
Councillor P Ashworth
Buttons
Item Description Decision
Open
AU.1241 DECLARATIONS OF INTEREST
Preamble for item AU.1241
 
AU.1242 PUBLIC QUESTION TIME
Preamble for item AU.1242
 
AU.1243 Minutes of the Meeting held on Tuesday, 20th February, 2007 7.00pm
 Delegated decision:

That the minutes of the meeting held on 20 February 2007 be approved as a correct record and signed by the Chair.
AU.1244 AUDIT COMMISSION TRAINING SESSION
Preamble for item AU.1244
It was agreed:

That Rashpal be thanked for his presentation
AU.1245 DRAFT EXTERNAL AUDIT INSPECTION PLAN 2007/2008
Preamble for item AU.1245
Delegated decision:

That the contents of the Draft Plan be noted.
AU.1246 EXTERNAL AUDIT PROGRESS UPDATE
Preamble for item AU.1246
Delegated decision:

That the contents of the report be noted.
AU.1247 LOCAL CODE OF CORPORATE GOVERNANCE
Preamble for item AU.1247
Delegated decision:

1. That the draft Code be approved as it reflects the best and most up-to-date professional guidance on corporate governance.

2. That the Head of Strategic Finance be thanked for his report.
AU.1248 GIFTS AND HOSPITALITY
Preamble for item AU.1248
Delegated decision:

1. That the approach outlined in the report be endorsed.

2. That the contents of the report be noted.
AU.1249 PARTNERSHIP WORKING
Preamble for item AU.1249
Delegated decision:

1.That the work done to date be endorsed.

2.That the contents of the report and the appendix be noted.
AU.1250 EXCLUSION OF PRESS AND PUBLIC
 Delegated decision:

That in accordance with Section 100(A)(4) of the Local Government Act 1972, the press and public be excluded from the meeting during consideration of the
following items of business since they involved the likely disclosure of exempt information relating to any action taken, or to be taken in connection with the prevention, investigation and prosecution of crime.
AU.1251 NOTICE OF THANKS
 Councillor Briggs explained that this would be the last meeting of the Audit Committee that he would be attending as he was standing down as a Councillor at the forthcoming elections.

Councillor Briggs thanked all those present for their support over the previous year and wished every body well for the future.

The Members of the Audit Committee thanked Councillor Briggs for his hard work and dedication.
Exempt
AU.1252 INTERNAL AUDIT PROGRESS REPORT
  • (Attachment: 9)A report from the Head of Internal Audit
  • |
    (Attachment: 10)Appendix A
  • |
    (Attachment: 11)Appendix B
  • |
    (Attachment: 12)Appendix C
  • |
    (Attachment: 13)Appendix D
  
AU.1253 INTERNAL AUDIT BENCHMARKING - CIPFA BENCHMARKING CLUB RESULTS FEEDBACK 2005/2006
  • (Attachment: 14)A report from the Head of Internal Audit
 
AU.1254 INTERNAL AUDIT REPORT - MEMBERS' FEEDBACK
  • (Attachment: 15)A report from the Head of Internal Audit
  
AU.1255 AUDIT COMMITTEE EFFECTIVENESS
  • (Attachment: 16)A report from the Head of Internal Audit
  
The meeting started at 7.00 pm and ended at 8.30 pm

Preamble

Preamble
ItemPreamble
AU.1241There were no declarations of interest made the meeting.
AU.1242There were no members of the public present to ask questions at the meeting.
AU.1244Rashpal Khangura, Audit Manager at KPMG gave a training session setting out the work of KPMG and their planning process.

It was explained that the International Standard on Auditing (ISAs) 300 sets out the key aspects of audit planning as:-

1.Audit Strategy

The Audit Commission’s Code of Audit Practice sets out the core responsibilities as:-

•Issue an opinion on the accounts
•Issue a conclusion on the Council’s value for money.

and the types of work as:-

•Audit of financial statements including Statement on Internal Control
•Use of Resources including performance management reviews
•Best Value Performance Plan and Data Quality review
Audit Committee, 19 April 2007

•Certification of external returns
•Dealing with electoral challenge

2.Risk Assessment

Risk assessment was explained as:-

•Consideration of risks relevant to KPMG’s audit responsibilities
•KPMG targeting their work at the identified risks

and was dealt with by:-

•Cumulative knowledge of the audit
•Planning guidance issued by the Audit Commission
•Specific results of previous/ongoing audit work
•Interview with Council officers
•Liaison with Internal Audit
•Results of other review bodies
•Review of risk registers

3.Timing of Audit Planning

•At the start of the audit period
•Compliant with the Audit Commission deadline of 31 May 2007
•Continual process throughout the audit period

The training session gave Members the opportunity to ask questions and make comments relating to audit planning.
AU.1245Rashpal Khangura and Jillian Burrows from KPMG presented the Draft Audit and Inspection Plan.

It was explained that the final version of the Plan would be included as an agenda item on the first agenda of the next Audit Committee meeting.

Members were asked to review the Draft Plan and contact KPMG with any comments or inclusions.
AU.1246Rashpal Khangura from KPMG submitted a report summarising the ongoing work of KPMG.
AU.1247The Head of Strategic Finance presented a report which provided Members with an up-dated version of the Local Code of Corporate Governance reflecting the latest draft guidance from the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Society of Local Authority Chief Executives (SOLACE).

It was explained that the Code reflected the latest draft guidance and could possibly require updating if the final guidance varied from the draft. It was felt that the Local Code should be up-dated as part of the ongoing work which was being undertaken the review the authority’s Ethical Framework.

A key change from the original Code was the requirement to produce an annual Governance Statement which will replace the existing Statement of Internal Control.
AU.1248The Head of Strategic Finance presented a report outlining the Council’s system to declare, monitor and report gifts and hospitality offered to or received by staff.

AU.1249The Head of Strategic Finance presented a report outlining the Council’s approach to establishing an effective governance/control environment in respect of Partnership Working.

Appended to the report was the Draft Code of Practice for Partnerships which had been circulated within Departments for comment. The consultation was expected to conclude at the end of April 2007.

A final version of the Code would be launched at a future date, yet to be specified.