Agenda item
Audit Commission Progress Report
The report from the Audit Commission is attached.
Minutes:
Andrea White and Martin Searle (Audit Commission) introduced the report from the Audit Commission which set out the Commission’s progress in discharging their responsibilities as the council’s external auditor. Martin Searle advised that the interim audit was nearing completion, the Commission was pleased with progress and there were no significant findings to date. Preparation of the 2011/12 financial statements had been challenging and together with finance officers had been closely monitored. Work was also continuing on the council’s private finance initiative schemes. It was expected that a complete set of financial statements would be ready by the end of the month. Discussions had also taken place over accounting arrangements for schools and improvements have been made.
The Deputy Director of Finance and Corporate Services, Mick Bowden, summarised the progress of work by finance officers. Issues raised in the previous year’s audit had all been addressed including the technical accounting issues referred to the report. Final checks against the check list were taking place.
The Chair congratulated the finance team for their work and for adhering to the plans put in place the previous year. The Director of Finance and Corporate Services acknowledged the significant improvement in efficiency and advised that a review would be taking place at the end of the week. He also thanked the Audit Commission staff for their contribution.
Andrea White advised that auditing of the Pension Fund had commenced. The change in administration from LPFA to Capita Hartshead would be the subject of a report in November. The committee heard from Martin Searle that there were currently no Value For Money issues to report and the outcome of work would be reported in September 2012. Members also heard that the Audit Commission had received correspondence on issues of importance to the borough and its residents such as library transformation programme and would be responding. Martin Searle drew attention to the reduction in subsidy of approximately £15,000 resulting from the misclassification by the council of overpayments revealed by the Department of Work and Pensions and work on other grant claims would be prioritised for completion in advance of transfer to KPMG on 31 October 2012. Martin Searle reminded the committee of the announcement in the Queen’s Speech of the government’s intention abolish the Audit Commission and drew attention to the reduction in fees for the main audit and the certification of grant claims. The committee noted that the National Fraud Initiative had been successful and revealed issues on which members could challenge. Other matters of interest included consultation on Public Sector Audit Standards which would take place over the summer and the introduction of Local Payment By Results schemes in local authorities. It was noted that CIPFA’s ‘Brief Guide to Local Government Finance Reforms’ was available.
Members welcomed the report, particularly the fee reduction, noted that the Payment By Results document was still in the process of being evaluated and asked that any relevant issues be circulated so a decision could be made on how best to proceed.
RESOLVED:
that the report be noted.
Supporting documents: