| AU.59 | Councillor Rothwell declared a personal interest in Minute AU.65 - Statement of Accounts as he was a tenant of Six Town Housing and a Governor at a Bury school.
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| AU.60 | There were no members of the public present to ask questions at the meeting.
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| AU.62 | Councillor Audin referred to Minute AU.426 - Quarterly Governance Statement and reported that the Assistant Director of Human Resources would be invited to the next meeting of the Audit Committee.
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| AU.63 | Mike Owen, Executive Director of Resources explained that the Audit Committee would not be asked to approve the accounts at this meeting as had previously been required. The Committee would be asked to note the contents and then receive the audited Statement of Accounts at the August meeting.
The Assistant Director of Resources, Steve Kenyon gave a presentation explaining the Statement of Accounts.
It was explained that the draft Accounts gave a summary of the Council’s financial performance for the year ended 31 March 2011 and set out the net worth in respect of assets and liabilities, were a key element of accountability
and governance, contain a number of key financial statements and outline key responsibilities, policies and the audit opinion.
The Draft Accounts must be approved by the Council’s s151 Officer no later than 30 June 2011. The Accounts would then be placed on the Council’s website and open to public inspection between 30 June and 29 July. The audited accounts will then be represented to the Audit Committee at its meeting on 25 August 2011.
Steve gave an overview of the Council’s financial position as set out in the Draft Accounts and explained the Revenue Budget, the Comprehensive Income and Expenditure Statement, the Housing Revenue Account Balance Sheet and the other statements within the document.
It was also explained that the Council had to complete the accounts in line with the International Financial Reporting Standard (IFRS) which was a common approach to allow comparisons across organisations, sectors and countries.
Heather Garrett from KPMG explained the work that had been carried out by KPMG with full support of the Council.
It was reported that a majority of Councils were not presenting their draft accounts to their Audit Committees as it was not now a statutory requirement. Steve explained that it was felt that it was good practice to present to the Audit Committee so Bury would continue to this.
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| AU.64 | The Assistant Director of Resources (Finance and Efficiency), Steve Kenyon introduced a report from the Deputy Leader of the Council and Executive Member for Finance which set out the Draft Statement of Accounts.
It was explained that the 2011 Accounts and Audit Regulations, issued on 31 March 2011, stipulated that the pre-audited accounts must be approved on or before 30 June by the Responsible Finance Officer (S151 Officer) in place of the Chair of the Audit Committee. It was also explained that the Annual Governance Statement which was previously included as part of the Statement of Accounts was now to be published as a separate document to accompany the Statement.
The Draft Statement of Accounts was attached to the report and contained an introduction by the Deputy Leader of the Council and Executive Member for Finance, an explanatory foreword, Summary of the Council’s Financial Results, Statement of Responsibilities, Accounting Policies, Core Financial Statements, Movement in Reserves Statement, the Comprehensive Income and Expenditure Statement, Balance Sheet, Cash Flow Statement, Notes to the Core Financial Statements, the Housing Revenue Account, the Collection Fund and the Group Accounts.
Also attached to the report was an aide memoir to help establish and provide evidence of a robust review of the accounts by the S151 officer and Members of the Committee.
Members were given the opportunity to ask questions and make comment on the contents of the report and the following issues were raised:-
• Whether the Council was responsible for the budgets of the high schools.
It was explained that the Council monitored school budgets which were within the remit of the S151 Officer.
• Mr Gremson asked whether it would be possible to produce a ‘Layman’s guide’ to accompany the accounts.
It was reported that the presentation given during the training section of the meeting which explained the Statement of Accounts would be forwarded to all Members. There was a podcast on YouTube and it was also reported that Members could have a separate training session if required.
• Councillor Vincent referred to the changes that had been made by the Accounts and Audit Regulations and the fact the Accounts would not now be signed off by this Committee until August he felt was a welcomed change as it gave the Committee time to review the contents.
• Councillor Vincent asked what would happen when the Audit Commission ceased to exist.
It was explained that nothing had yet been confirmed as to what would happen in relation to the External Audit of the Council. It was reported that it may mean that the Council would be able to appoint their own external auditors which could open up the process to tenders.
• Councillor Gartside referred to the work that had been undertaken in relation to the IFRS and asked that the Committee record their thanks to the Finance Team for undertaking the work.
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| AU.65 | The Assistant Director of Resources (Finance and Efficiency), presented a report introducing the Annual Governance Statement.
It was explained that under the Accounts and Audit Regulations (amended 2006), the Council is required to produce an Annual Governance Statement which is one of the documents that supports the annual Statement of Accounts.
The Annual Governance Statement provides an assurance that the Governance Framework is operating effectively and reports any significant issues arising during the year. The Governance Framework comprises the systems, processes, culture and values through which the Council delivers its core functional activities.
It was explained that it was a legal requirement for every Council to produce an annual statement; Bury produced a quarterly report in line with best practice.
Appended to the report was the Annual Governance Statement 2010/2011.
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| AU.66 | Steve Kenyon presented a report providing Members with details of risk management activity that had taken place over the previous 12 months. The report outlined the risk management policies and practices in place and highlighted the key issues that would be addressed during the coming financial year.
The report explained how risk management was implemented across the Council and within each of the directorates.
It was explained that Risk Assessment Action Plan Registers (RAAP’s) were used across departments to record identified risks and opportunities and the actions being taken.
The Council’s risk management framework was outlined within the report and each of the department’s progress against the risks was set out.
It was explained that as well as the department RAAP’s there was the also Corporate RAAP which records the council’s most significant risks. The Corporate RAAP is reviewed continually by the Management Board.
Member input was sought via the Corporate Risk Management Group and quarterly reports to the Audit Committee.
Appended to the report were the Corporate and Departmental RAAP’s.
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| AU.67 | The Head of Internal Audit, Barrie Strothers presented a report summarising the work undertaken by the Internal Audit Section during the 2010/2011 financial year. The report contained an Audit Opinion which assessed the authority control framework as “robust” and updated the Members on some of the issues facing the Internal Audit Service.
Appended to the report was a Review of the Effectiveness of Internal Audit and the Annual Report and Opinion for 2010/2011
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| AU.68 | Heather Garrett, representing KPMG presented the Committee with the Progress Statement for the External Audit Programme 2010/2011.
Details of the ongoing work and when that work would be completed and reported to the Committee were included in the report with comments on progress.
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