Agenda and minutes

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Items
No. Item

AU.1

APOLOGIES FOR ABSENCE

AU.2

DECLARATIONS OF INTEREST

Members of the Audit Committee are asked to consider whether they have an interest in any of the matters on the agenda and, if so, to formally declare that interest.

 

Minutes:

Councillor Steve Wright declared a personal interest in any item relating toschools in the Borough as his wife is employed at a local school.

 

Councillor Sam Butler declared a personal interest in any reference to Homes England as his Fiancée was employed by them.

AU.3

MINUTES OF THE LAST MEETING pdf icon PDF 147 KB

The Minutes of the last meeting of the Audit Committee held on 18 March 2021 are attached.

Minutes:

It was agreed:

 

That the Minutes of the last meeting held on 18 March 2021 be approved as a correct record and signed by the Chair.

AU.4

MATTERS ARISING

Minutes:

There were no matters arising

AU.5

DRAFT STATEMENT OF ACCOUNTS 2020/21 pdf icon PDF 399 KB

Briefing report attached

The Draft Statement of Accounts are attached.

Additional documents:

Minutes:

Sam Evans, Joint Chief Finance Officer presented a briefing note setting out the unaudited Statement of Accounts for the 2020/21 financial year.  The report highlights the overall financial position for the year.

 

Whilst there is no longer a requirement to present the unaudited accounts to Members before the external audit process commences, the Council has continued this practice as it gives Members early notification of the financial outcome of the previous financial year and is considered to be good practice.

 

There is a requirement to obtain certification of the accounts by the responsible financial officer, for the Council this is the Executive Director of Finance and S151 Officer.

 

The accounts will be available for public scrutiny from 2 August to 13 September.  This will be advertised on the Council’s website.  The unaudited accounts will be placed on the Council’s website on 31 July in line with the Government’s policy of increased transparency in the public sector.  And the accounts will be subject to external audit.

The style and format of the accounts is largely prescribed by the CIPFA Code of Practice (The Code). Audit Committee should assure themselves that the Narrative Report is consistent with the core financial statements.

The Statementof Accounts for Bury Councilcomprises of:

 

               A narrative statementby the Executive Director of Finance and S151 Officer

·                         The statement ofresponsibilities forthe accounts

·                         The core financialstatements, comprising:

·                         The movement inreserves statement

·                         The comprehensive incomeand expenditurestatement

·                         The balance sheetas at31 March 2021

·                         The cash flowstatement

·                         The notes to thecore financialstatements

·                         The Housing Revenue Account

·                         The Collection Fund

·                         The Group Accounts

 

It was explained that Elected members arenot expectedto befinancial experts,but theyare responsible for approving and issuing the Council’s financial statements. Indoing this they are playing a key role in ensuring accountability and value formoney aredemonstrated tothe public.However, localauthority financialstatements arecomplex andcan bedifficult tounderstand: theymust comply with CIPFA’s Local Authority Code of Practice, which is based on InternationalFinancial ReportingStandards andalso theaccounting andfinancing regulationsof central government

 

This covering report explains the key features of the primary statements andnotesthatmakeupthe2020/21Statement ofAccounts. Thenarrative statementprovides further information on the key issues for the benefit of readers of thestatements.

 

Sam explained that the narrative statement provided information onthe financialstatements and gave an explanation of keyevents andtheir effecton thefinancial statements. It was reported that theinformation inthe narrativestatement isconsistent withbudget informationprovided duringthe yearand reconcilesto theyear-end  financialposition reported to Cabinet on 21st July 2021.

 

Those present were given the opportunity to ask questions and make comments and the following points were raised:-

 

·        Councillor Butler referred to the Government grants that had been received in relation to COVID and asked whether this was making  ...  view the full minutes text for item AU.5

AU.6

EXTERNAL AUDITOR'S ANNUAL AUDIT LETTER 2019-20 pdf icon PDF 725 KB

The Annual Audit Letter from Mazars is attached

Minutes:

Karen Murray from the External Auditors Mazars presented the Committee with the External Auditor’s Annual Letter. The  report had been presented to the Committee at it’s meeting in March and this was now the final version. The report confirmed the completion of the work carried out by Mazars for the 2019/2020 audit year and had been issued following certification of the whole of Government Accounts return.

 

The report would be available for public access on the Council website.

 

Mazars had issued an unqualified opinion on the Council’s accounts on the 25 March and the work on the whole of Government accounts return was completed on 21 June 2021.

 

Those present were given the opportunity to ask questions and make comments and the following points were raised:-

 

  • Councillor Gartside referred to weaknesses in the Governance arrangements and asked what the current view of the External Auditors was.

 

Karen reported that the work had been carried out in relation to governance arrangements, but Mazars had not been able to confirm that arrangements had been embedded in the day to day work of the Council. There was nothing that External Auditors were concerned about, and work would be carried out during the course of the 2020/2021 audit to confirm this.

 

Delegated decision:

 

That the report be noted.

AU.7

EXTERNAL AUDIT PROGRESS REPORT pdf icon PDF 465 KB

A report from Bury’s External Auditors, Mazars, is attached.

Minutes:

Karen Murray presented the Committee with an update of the progress made by Mazars in relation to the work for the 20/2021 financial year. The report had two purposes, firstly to ensure that the audit work is on track and secondly to ensure that the Committee were satisfied with the governance of the council.

 

Karen reported that the External Auditors would not be able to deliver the audit work in line with the deadline of the end of September as set out in the regulations, but would be reporting back to the Committee in November.

 

A notice would be published on the Council website which would state that the work was ongoing, as long as this was done then the Council will have complied with its statutory duties.

 

As at end of June 2021 there were still 100 authorities who were waiting on their 2019/2020 accounts to be audited and work hadn’t even started on their 20/2021 accounts.

 

Karen referred to the work that was ongoing in relation to the findings of the Redmond Review and how this would inform the audit regime going forward.

 

Karen also referred to other information that was provided in section two of the report that set out the guidance from the National Audit Office relating to changes in respect of the VFM that the external auditors carried out and how from 2021the new code of practice will direct the external auditors to provide a commentary and not give a conclusion as previously.

 

Karen also referred to the Government Office report on the response to the pandemic and explained how this was useful as it set out the challenges that had been faced and would be faced by local authorities and S.151 Officers going forward.

 

The Audit Strategy will be brought to the next meeting of the Audit Committee

 

Those present were given the opportunity to ask questions and make comments and the following points were raised:-

 

  • Councillor Whitby stated that it was disappointing that the work would not be completed in the required timescales. Councillor Whitby referred to the work that had been carried out by the Council Officers.

 

  • Councillor Gartside referred to the number of Councils that still not had their 2019/2020 audits completed.

 

Karen explained that there were a number of Councils that not had their 2019/2020 Audit of accounts completed which meant that work could not start on the 2020/2021 accounts. Bury were not within this group and therefore the 2020/2021 accounts would be audited but the work would be completed late.

 

  • Councillor Gartside asked what the issues were regarding the lateness of the audit last year.

 

Karen explained that this was the first year that Mazars were working remotely due to the pandemic. It was also explained that the Council had agreed that they would complete the work later to enable the Council to deal with the issues highlighted the previous year.

 

  • Councillor Gartside asked if the audit completion work should be back on track for the following year.

 

Karen  ...  view the full minutes text for item AU.7

AU.8

ANNUAL GOVERNANCE STATEMENT & HEAD OF AUDIT OPINION pdf icon PDF 797 KB

A report from Sam Evans – Executive Director of Finance, S151 Officer is attached

 

Minutes:

The Audit Committee were presented with the draft Annual Governance Statement and Head of Audit Opinion report.

 

The draft AGS is presented for an initial review by theAudit Committee and a final document will be presentedto Committeein Septemberfor recommendation for approvalat FullCouncil laterin theyear.

 

Those present were given the opportunity to make comments and ask questions and the following points were raised:

 

·         Councillor Butler referred to the training that had been provided to the Audit Committee Members at the start of the Municipal Year and asked that this be expanded upon to ensure that the Committee members received all relevant training that was available.

 

It was explained that the Committee would be receiving information provided by Mazars which they would find useful and that training sessions would be built into each scheduled meeting.

 

Sam explained that she would be holding a training workshop event in relation to Council finances and it was anticipated that this would be towards the end of September.

 

Councillor Whitby referred to the Audit training that that she had attended which had been provided by the LGA and recommended that Members attend if it is provided again.

 

Delegated decision:

 

That the Audit Committee

 

1.   Notes the draft AGS and provide initial      comments,

 

2.   Notes that the AGS will be available on theCouncil’s website from the end of July andavailable forpublic inspection;

 

3.   Notes that a final AGS will be presented toCommittee in September for approval and forrecommendation toFull Council.

AU.9

RISK REGISTER

An update will be given at the meeting.

Minutes:

It was reported that this item would be deferred to a future meeting of the Audit Committee. A review was currently being undertaken to ensure that there was consistency across the Council in relation to risk management and how it was calculated and reported.

 

It was explained that the report would contain details of the Council risks and the Audit Committee would be given the opportunity to carry out a ‘deep dive’ exercise on whichever risk the Committee identified.

AU.10

INFORMATION GOVERNANCE pdf icon PDF 1 MB

Report from the Deputy Chief Executive is attached

Minutes:

Lynne Ridsdale presented a report providing an update to the Audit Committee on the work of the IGSG, the IG work programme and associated activity that has been progressed during the first quarter of 2021/22.

 

It was explained that Information Governance (IG) is the strategy or framework for handling personal information in a confidential and secure manner to appropriate ethical and quality standards, ensuring compliance with the relevant statutory and regulatory requirements.

It is of paramount importance to ensure that information is efficiently and legally managed, and that the appropriate policies, procedures, guidance and management accountability and structures provide a robust governance framework for information management.

 

IG within the Council is delivered through a distributed model of responsibility rather than through a specific or dedicated team, with key roles identified and assigned to ensure appropriate oversight and accountability. These roles include for example, the Senior Information Risk Officer (SIRO), the Data Protection Officer (DPO), Information Asset Owners (IAO) and Information Asset Managers (IAM).

 

The Information Governance Steering Group (IGSG) will provide assurance on IG within the Council, to the Committee through strategic and operational oversight and delivery of its wide-reaching work programme, which includes compliance with all statutory requirements and annual compliance with the Data Security and Protection Toolkit (DSPT).

 

The Audit Committee is responsible for providing assurance on the Council’s governance (including risk and information governance) and as set out in the Council’s Constitution, is required to annually review the IG requirements. 

 

It was explained that in 2019, Bury Council invited the Information Commissioner’s Office (ICO) to undertake a supportive review and audit of the Council’s IG arrangements in place to ensure the organisation’s compliance with the GDPR. The review was due to take place in May 2020 but was deferred due to the pandemic and rearranged for June 2021.

 

The report also gave updates in the following areas:

 

·         Data Security and Protection Toolkit

·         Information Governance Steering Group

·         GDPR Internal Audit

·         Information Governance Framework

 

Delegated decision:

 

That the Audit Committee:

 

1. Note the update provided;

 

2. Note the re-establishment of the IGSG and its formal reporting to

the Audit Committee;

 

3. approve the Terms of Reference of the IGSG; and

 

1.   Endorse the Information Governance Framework as presented.  

 

AU.11

ANNUAL INTERNAL AUDIT YEAR END UPDATE pdf icon PDF 629 KB

Report from Sam Evans, Executive Director of Finance (S151 Officer) is attached.

Minutes:

Janet Spelzini presented a report summarising the results of internal audit work during 2020/21 and giving an overall opinion of the Authority’s control environment as required by the Accounts and Audit Regulations 2015.  

 

It was reported that based upon the results of audit work undertaken during the year, the Acting Head of Internal Audit’s opinion is that the Authority’s control environment provides substantial assurance that the significant risks facing the Authority are addressed. 

 

Members were given the opportunity to ask question and the following points were raised:

 

  • Councillor Rydeheard asked about the grading system.

 

Sam explained that the Audit Committee could request the officer responsible for a specific service area attend a meeting of the committee if that service had received a report with the outcome showing a limited level of assurance.

 

  • Councillor Whitby explained that the Committee would receive a summary of all internal Audit reports with the Audit Update reports.

 

Delegated decision:

 

That the contents of the report be noted.

 

AU.12

Internal Audit Plan 2021.2022 pdf icon PDF 892 KB

A report from the Executive Director of Finance (S151 Officer) is attached.

 

Minutes:

The Acting Head of Internal Audit presented a report setting out the context of the Internal Audit Service explaining the approach to the compilation of the 2021/22 internal audit annual plan. The annual plan was incorporated at Annex 1 to the report. 

 

Delegated decision:

 

  1. That the contents of the report be noted

 

2.   That the annual audit plan for 2021/22 be approved.