| AU.729 | Councillor 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.
Councillor Nuttall declared a personal interest as she was a Governor at St Stephens Primary School and Lowercroft Primary School.
Councillor Hankey declared a personal interest as he was a Governor at Old Hall Primary School.
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| AU.730 | There were no members of the public present to ask questions under this item. |
| AU.732 | Barrie Strothers gave a presentation explaining the process of producing the Annual Audit Plans.
The presentation explained that the starting point was to calculate the available resources in relation to the audit days available and then allocate across the following plan headings:-
• Section 151 - 25%
• Governance - 15%
• Fraud - 15%
• Front Line Services - 45%
This was then divided over the Departments:-
• Corporate - 33%
• Children’s Services - 25%
• Environment and Development Services - 17% (With a further 6% for Six Town Housing)
• Adult Care Services - 12%
• Chief Executive’s - 7%
The following departmental documents would also be referred to:-
• Structures
• Plans
• Risk Registers
• Development File
• Any areas highlighted by the Chief Internal Auditors Group (AGMA wide) would also be considered.
It was also explained that in order to prepare the plan there were a number of documents that required updating such as the Risk Universe document and the Pro - active Fraud Plan. Any audit work carried over from the previous year would also need including as well as areas highlighted by the Audit Committee and KPMG. Finally, Internal Audit would consult with the Departments before the Draft Audit Plan was presented to the Audit Committee for their comments and approval.
Also within the presentation was a slide highlighting areas that could be considered from the Proactive Fraud Plan.
Members of the Committee were given the opportunity to ask questions and make comments and the following points were raised:
• Councillor Cassidy referred to the Car Loan Scheme that the Council provided for employees and asked what happened if an employee with a loan left the authority.
It was explained that the loan would be required to be settled before the employee left.
• Councillor Vincent asked what the current take up of the car loans scheme was.
It was explained that the loan rates offered by the authority were currently very competitive so the take up rate was quite steady.
• Councillor Rothwell referred to the Computer Audit services that were outsourced to another AGMA authority and asked whether this was for all computer audit work or more ‘on-demand’.
Barrie explained that this was for specialist work. Bury was allocated 20 days per year and would use these days for specific work which was planned in a mini audit plan at the start of the year. It was also explained that the Internal Audit Team did include a computer auditor who carried out the day to day computer audit work.
• Councillor FitzGerald referred the welfare reforms that were currently being implemented and asked whether this had been factored in when producing the plan.
Barrie explained that issues such as this were considered when putting the forward plan together and the plan was a fluid document which could be updated as the year progressed.
• Councillor Bury referred to the 6% that was set aside for audit work relating to Six Town Housing and asked whether Six Town Housing were recharged for the days.
Barrie explained that the six days built into the plan for Six Town Housing were for statutory work relating to Section 151 requirements.
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| AU.733 | The Assistant Director of Resources (Finance and Efficiency), Steve Kenyon presented a report updating Members of the Committee on the Authority’s financial 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 £0.202m for the year based on spending and income information as at 31 December 2012.
At the last meeting of the Audit Committee a query relating to Commitment Accounting was raised and Steve explained that this information had been built into the report.
Members of the Committee were given the opportunity to ask questions and comment and the following points were raised:-
• Councillor Vincent asked if an end date was known in relation to the equal pay settlement.
Steve explained that following the recent Birmingham Judgement the period that claims could be submitted up to had been extended.
• Councillor Rothwell referred to the estimated under achievement of income targets and asked whether the targets could have been overestimated in the beginning.
Steve explained that all targets have to be robust and be real income targets. The targets and the actual achieved income are symptomatic of economic conditions.
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| AU.734 | The 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 26 June 2012.
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.
Members were given the opportunity to ask questions and make comment
and the following points were raised:-
• Councillor FitzGerald referred to risk 12 in Appendix A in relation to the Welfare Reform Agenda and asked whether wording of the risk should be reconsidered.
Steve Kenyon stated that he would ensure that these comments were noted.
• Councillor Bury referred to risk 8 - money from the Department of Health to manage the Public Health Service and asked whether the money referred to would be ring-fenced.
It was confirmed that this was the case.
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| AU.735 | 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 covered the period July 2012 to December 2012.
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| AU.736 | Gemma Douse, representing KPMG presented a report summarizing the results of the work on the certification of the Council’s 2011/2012 grant claims and returns.
It was reported that KPMG had issued unqualified certificates for four returns but it had been necessary to issue a qualification in relation to the Housing and Council Tax Benefit Claim. Appended to the report was a breakdown of the fees for the 2011/2012 audit.
No Audit Adjustments were necessary and the Council was found to have good arrangements for preparing its grants and returns.
It was also reported that the overall fee for the certification of grants and
returns had reduced from the original estimate of £35,000 to £24,190. The
reduction reflected the reduced number of grants certified and the continued
improvements in the Councils working papers and timely responses to
queries raised.
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| AU.737 | Rachel Lindley, representing KPMG presented the Committee with the External Audit Plan 2012/2013.
The report described how KPMG would deliver both their financial statements audit work and the approach to Value for Money work for 2012/2013.
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| AU.738 | Rachel Lindley, representing KPMG presented the Committee with the Progress Statement for the External Audit Programme 2012/2013.
Members of the Committee were given the opportunity to ask questions and make comments and the following points were raised:-
• Councillor Hankey asked whether the amount of work to be undertaken would remain the same as previous years even though there would be the reduction in fee.
Rachel explained that the amount of work would be at a similar level but KPMG would be looking at ways of working differently to produce efficiencies.
• Councillor FitzGerald referred to the offshore Audit Resource that was mentioned in the report and asked how this would work.
Rachel explained that the offshore resource would be used for very specific tasks and would have very stringent quality controls in place. It was also explained that by utilising the offshore facility it allowed for work to be undertaken 24 hours and therefore completed faster.
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| AU.740 | Councillor FitzGerald referred to Minute AU.557 from the Minutes of the last Meeting and asked whether there had been a dialogue with the Customer Contact Centre.
Steve Kenyon explained that contact centre statistics were available on the intranet, and a link had been provided.
It was outlined that a large number of services are now accessed via the contact centre; with varying degrees of integration between the contact centre and individual business processes.
It was explained that the Audit Plan was included as an item on the agenda for this meeting and this may be something that could be included in the Plan for the forthcoming year.
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