Agenda item
Audit Commission Annual audit letter and governance report
This report sets out progress against the recommendations in the Annual Governance Report.
Minutes:
The Committee received a report that set out progress against the recommendations in the Annual Governance Report. Mick Bowden, Deputy Director of Finance and Corporate Services in introducing the report provided updates for action plans as follows:
(i) Review of financial reporting and year end closedown plan had been undertaken. Two key members of the Finance team involved in year-end process had attended the Audit Commission training course which had been followed by the Commission’s presentation to finance staff on 2010/11 audit feedback audit and key issues for 2011/12.
(ii) Timetables for central finance team, finance business partners and budget holders had been produced to ensure statutory timescales would be met.
(iii) All relevant accounting requirements covered by final accounts plan had been provided and a review of the approach to the Heritage Assets with Audit Commission was well advanced.
(iv) Robust closedown plan was shared with the Audit Commission and were being used as the basis for weekly review meetings between Council and Audit Commission officers.
(v) Officers were currently reviewing the working paper requirements list provided by the Audit Commission.
(vi) Although the latest review of PFI agreements (Jan 2012) had not identified changes a further review was planned for year end.
(vii) Monthly reports to Strategic Finance Group (SFG) had continued and Audit Commission officers invited to attend the SFG meeting in March.
(viii) Officers had completed the reconciliation of migrated balances in debtors and creditors and were now focussing on 2011/12 entries in advance of year end.
(ix) Work on outstanding items had been completed and officers were now working on current entries as part of an on-going reconciliation process.
(x) Bank balance reconciliation had been completed and as at 31 January 2012 the bank reconciliation difference was £46,000.
(xi) Overall analytical review of debtor/creditor balances would be completed at year end.
(xii) Currently in discussion with the Audit Commission regarding two key issues (valuations of housing stock and treatment of non-maintained schools) to agree treatment in advance of year end.
(xiii) The latest requirements had been reviewed to identify changes. In some cases (eg. HRA subsidy changes) technical guidance is still awaited from CIPFA and would be incorporated when published.
(xiv) The budget report to Executive had set out risks and a proposal to increase non-earmarked reserves by £1m in 2012/13.
(xv) Audit Commission would review progress against action plan in March/April 2012.
In response to a query by the Chair, the Deputy Director confirmed that the timetable set for various activities was on schedule and that he would second resources to the schools’ team to address the shortage being caused through staff turnover of staff in that team. Clive Heaphy, Director of Finance and Corporate Services clarified the methodology used in arriving at the £1million reserves to deal with medium term risks. He continued that as an added transparency, briefing notes were being made available to members through reports to the One Council Overview and Scrutiny Committee.
Andrea White, District Auditor expressed satisfaction with the processes and reviews including close down plans. However, she pointed out that capacity remained an issue and suggested a culture shift and “round table meetings”. She added that this conclusion had been made clear in her progress report to the Committee. Paul Viljoen, Audit Manager confirmed that that he had been inputting into the weekly meeting to which the Deputy Director referred.
In bringing the discussion to a close, the Chair suggested that reports on further progress made be sent electronically to all members of the Audit committee and that briefing notes reported to One Council Overview and scrutiny be appended to reports for future meetings of this Committee.
RESOLVED:
(i) that the progress report in relation to the action plan be noted;
(ii) that the Annual Audit Letter reported to the Executive on 16 January 2012 be noted;
(iii) that a further progress report made be e-mailed to members of Audit Committee around April 2012
(iv) that the Audit Commission members’ briefing notes be reported to the Budget and Finance Overview and Scrutiny Committee as and when they are published and are appended to the Commission’s progress reports for future meetings of this Committee.
Supporting documents:
- 1- Audit Commission action plan report, item 5. PDF 61 KB
- 2010-2011 - Annual Audit Letter 1, item 5. PDF 667 KB
- 1a- Appendix 1 Audit Commission action plan, item 5. PDF 58 KB
- 1b- Appendix 2 Closedown Timetable, item 5. PDF 61 KB
- 1c- Appendix 3 AAL action plan, item 5. PDF 42 KB