AU.118 | Councillor Rothwell declared a personal interest in Minute AU.122 - Draft Statement of Accounts as he was a tenant of Six Town Housing and a Governor at a Bury school.
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AU.119 | There were no members of the public present to ask questions at the meeting.
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AU.121 | Steve Kenyon, Assistant Director of Resources (Finance and Efficiency) explained that the Audit Committee would not be asked to approve the accounts at this meeting. The Committee would be asked to note the contents and then receive the audited Statement of Accounts at the August meeting for approval.
It was explained that the draft Accounts gave a summary of the Councils financial performance for the year ended 31 March 2012 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 Councils s151 Officer no later than 30 June 2012. The Accounts would then be placed on the Councils 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 23 August 2012.
Steve gave an overview of the Councils 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.
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.122 | 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.
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 Councils 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 raised a number of questions at the meeting and responses were given.
Steve Kenyon invited further questions to be submitted in the period between this Committee meeting, and the august meeting.
Likewise he extended the offer of further training / briefing sessions to individual Members, or as a group.
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AU.123 | The Head of Internal Audit, Barrie Strothers 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 2011/2012.
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AU.124 | 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 (RAAPs) were used across departments to record identified risks and opportunities and the actions being taken.
The Councils risk management framework was outlined within the report and each of the departments progress against the risks was set out.
It was explained that as well as the department RAAPs there was the also Corporate RAAP which records the councils 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 RAAPs.
Members of the Committee were given the opportunity to ask questions and make comments and the following points were raised:-
Councillor FitzGerald referred to the wording on some of the risks and asked whether this could be reviewed and possibly updated. Steve Kenyon explained that risks were reviewed on a quarterly basis, and would be updated as appropriate.
Councillor Hankey asked whether it was too early to reduce the risk relating to the budget and the Plan for Change as they had only just been approved. Steve Kenyon explained that this was an Annual Risk Management Report covering 2011/12. The Plan for Change covers the period 2012/13 and beyond. It was explained that the Plan for Change was being rigourously monitored, and that any change to risk scores would be picked up in quarterly reviews.
Councillor FitzGerald asked that the Committee receive guidance relating to the scoring of risks. Agreed.
Steve confirmed that all comments made would be noted.
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AU.125 | The Head of Internal Audit, Barrie Strothers presented a report summarising the work undertaken by the Internal Audit Section during the 2011/2012 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 2011/2012.
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AU.126 | Barrie Strothers presented the Committee with the Progress Statement for the External Audit Programme 2011/2012.
The report contained information relating to the ongoing work of the External Auditors and when the findings of that work would be reported to the Audit Committee.
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