Meeting documents

Audit Committee
Tuesday, 6th December, 2011 7.00 pm

Date:
Tuesday, 6th December, 2011
Time:
7.00 pm
Place:
Meeting Rooms A & B, Town Hall , Bury
 

Attendance Details

Present:
Councillor A Audin (in the Chair);
Councillors, J Byrne, J Columbine, D O’Hanlon and K Rothwell.
Co-opted:
Mr D Gremson, Co - opted Member,
Heather Garrett(KPMG), Gemma Dyce (KPMG)

There were no members of the public in attendance at the meeting

Apologies for absence:
Councillors P Bury, I Bevan, I Gartside and B Vincent
Buttons
Item Description Decision
Open
AU.429 DECLARATIONS OF INTEREST
 
AU.430 PUBLIC QUESTION TIME
 
AU.431 Minutes of the Meeting held on Thursday, 25th August, 2011 7.00 pm
Delegated decision:

That the Minutes of the meeting of the Audit Committee held on 25 August 2011 be approved as a correct record and signed by the Chair.
AU.432 FINANCIAL AND PERFORMANCE MONITORING REPORT - APRIL 2011 TO SEPTEMBER 2011
Delegated decision:

That the contents of the report be noted.

AU.433 QUARTERLY GOVERNANCE STATEMENT JULY TO SEPTEMBER 2011
Delegated decision:

1. That the contents of the report be noted.

2. That the revised Anti-Fraud and Corruption Strategy be approved.

3. That a report on cash transactions of over £1000 be brought to a future meeting of the Audit Committee.
AU.434 GIFTS AND HOSPITALITY
Delegated Decision:

That the contents of the report be noted.
AU.435 ANNUAL AUDIT LETTER 2010/2011
Delegated Decision:

That the contents of the letter be noted.
AU.436 EXTERNAL AUDIT PROGRESS STATEMENT 2011/2012
Delegated decision:

That the contents of the report be noted.

AU.437 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.
Exempt
AU.438 FRAUD RISK EVALUATION DIAGNOSTIC (FRED1)
  • (Attachment: 10)A report from the Head of Internal Audit
  • |
    (Attachment: 11)Apppendix A
  • |
    (Attachment: 12)Appendix B
 
AU.439 INTERNAL AUDIT PROGRESS REPORT
  • (Attachment: 13)A report from the Head of Internal Audit
  • |
    (Attachment: 14)Appendix A
  • |
    (Attachment: 15)Appendix B
  • |
    (Attachment: 16)Appendix C
  • |
    (Attachment: 17)Appendix D
 
AU.440 INTERNAL AUDIT REPORTS - MEMBERS' FEEDBACK
  • (Attachment: 18)A report from the Head of Internal Audit
  • |
    (Attachment: 19)Appendix A
 
The meeting started at 7.00 pm and ended at 8.20 pm

Preamble

Preamble
ItemPreamble
AU.429Councillor Rothwell declared a personal interest in any item that referred to Council finances as he was a tenant of Six Town Housing and a Governor at a Bury school.

Council Audin reported that the Committee Members had recently received an audit report relating to Mersey Drive. Councillor Audin declared a personal interest as she was a governor at the school.
AU.430There were no members of the public present to ask questions under this item.
AU.431Councillor O’Hanlon asked that it be noted that more questions were asked relating to sickness than were recorded within the minutes.
AU.432The Assistant Director of Resources (Finance and Efficiency), Steve Kenyon presented a report updating Members of the Committee on the Authority’s financial and performance position in line with the Committee’s Statement of Purpose to ‘provide independent scrutiny of the authority’s financial and non-financial performance to the extent that it affects the authority’s exposure to risk and weakens the control environment’.

The report indicated that the authority was projecting an overspending of £0.457m for the year based on spending and income information as at 30 September 2011.

The report also gave a summary of performance during quarter 2 of the 2011/2012 financial year. The table set out at 4.3.1 of the report highlighted areas of concern which were classed as “double-red” (performing worse than at the end of 2010/2011 and not forecast to meet 2011/2012 targets at the end of the first six months of the financial year).

Members were given the opportunity to ask questions or make comment on the contents of the report.
AU.433The Head of Internal Audit presented a report providing Members with a quarterly update on the Annual Governance Statement which had been approved by the Audit Committee at its meeting on 21 June 2011.

The report gave an update on the continuous monitoring that was carried out and highlighted any relevant issues with regards to Risk Management, Business Continuity, Budget Monitoring, the work of Internal Audit, the work of the Governance Panel, Gifts and Hospitality, Anti Fraud and Corruption Strategy and the Medium Term Financial Strategy and an update on sickness absence across the authority which the Audit Committee had requested be included within the Statement.

Included within the statement was a revised version of the Anti Fraud and Corruption Strategy which had been updated to include personnel changes/restructuring, information relating to the Bribery Act and updated content re: money laundering.

Members were given the opportunity to ask questions and make comment and the following points were raised:-

• Councillor O’Hanlon asked why Councillors were considered outside the Council when referring to the Whistleblowing Policy?

Barrie explained that it was to highlight that staff could contact Members with concerns if they wished. He stated that the wording within the Policy would be looked at again.

• Mr Gremson referred to 4.1 of the Anti Money Laundering Guidance where it was stated that cash payments of £5000 and over would be seen as a possible risk factor relating money laundering. Mr Gremson asked whether £5000 was too high a figure and that maybe this should be lowered.

Barrie Strothers explained that the £5000 was based on CIPFA guidance and also following the other AGMA members policies’.

• Councillor O’Hanlon asked whether the Committee could be informed of the number of cash transactions of £1000 and over for the past financial year.
AU.434
Steve Kenyon presented a report providing Members with an update of the system to declare, monitor and report gifts and hospitality offered to or received by staff and Members. The report presented a summary of declarations made for the period July 2011 to September 2011.
AU.435Heather Garrett from KPMG presented the Committee with the Annual Audit Letter 2010/2011. The letter summarised the key findings from the 2010/2011 audit of the Council and incorporated their findings in relation to the Financial Statements of the authority and the value for money conclusion.

KPMG issued an unqualified opinion on the Authority’s financial statements on 31 August 2011 which confirmed that they were satisfied that the financial statements gave a true and fair view of the financial position of the Authority and of its expenditure and income for the year.

Appended to the report was a breakdown of the fees for the 2010/2011 audit.
AU.436Gemma Douse, representing KPMG presented the Committee with the Progress Statement for the External Audit Programme 2011/2012.

Details of the work planned for the year and when that work would be completed and reported to the Committee were included in the report.