Agenda and minutes

Members are requested at the start of the meeting to declare any known interests in any matter to be considered, and are reminded that any such interest should also be declared at the start of an item or during any discussion of the matter concerned.

            The Chair reminded Members of the need to declare any known interests in any matters to be considered at the meeting. No declarations were made.

See explanatory note below.  Please phone the Committee Officer whose name and number appears at the top of this agenda if you need further guidance).

No questions were asked under Standing Order 28. 

To receive the minutes of the meeting held on 30 May 2006

            Resolved - That the minutes of the meeting held on 30^th May 2006 be confirmed and signed.

            The Group Director, Resources, introduced the Chief Executive’s report on the content of the Draft Statement of Internal Control (SIC), and, in accordance with guidance issued by CIPFA, invited the Committee to review the details of the Draft Statement.

            The Head of Internal Audit explained that it was the purpose of the Statement to facilitate a continuous review of the effectiveness of the Council’s internal control and risk management arrangements, to ensure compliance with the requirements of the Accounts and Audit Regulations 2003, and that, as part of that process of review, the Audit Committee was to provide an independent review of the content of the Statement. The Head of Internal Audit guided the Committee through the draft Statement and the Assurance framework utilised by the Council to ensure that its business is conducted in accordance with the law and proper standards, that public money is safeguarded and properly accounted for and is used economically, efficiently and effectively.

            It was noted that the review was informed by the executive managers within the Council who have responsibility for the development and maintenance of the internal control environment, by the work of Internal Audit, comments made by the Council’s External Auditors in their annual audit letter and other reports, and from other review and inspectorate bodies. The Head of Internal Audit advised that Directors had completed a questionnaire reviewing the control environment within their directorates and that the results of these questionnaires had been used to inform the assessment of significant control issues for the Council.

            Resolved – (1) That the content of the Council’s Draft Statement of Internal Control be agreed.

            (2) That, with reference to the identification of Housing Benefits in the SIC as a significant internal control issue and also a service area where improvements have been driven forward in 2005/6, the details of Internal Audit reports recently completed in respect of the Revenues and Benefits service be submitted to the July meeting of the Committee for consideration.

            The Director of Finance submitted a report introducing the Council’s Draft Statement of Accounts for the year ending 31^st March 2006 and inviting the Audit Committee to (a) scrutinise and approve the pre-audited Statement of Accounts for Financial Year 2005/06, in accordance with its terms of reference, and (b) determine whether supplementary information on Schools balances and community assets included in the covering report (Appendices 2 and 3 refer) remains relevant to Members’ requirements. 

            The Director of Finance introduced his report by providing the Committee with a brief financial overview, explaining the financial aspects of the Council’s activities and the main characteristics of its financial position, and placing the accounts in context. In particular, the Director advised that the deadline for approving the unaudited accounts had been brought forward for each of the last 3 years, from 30^th September in 2002/3 to 30^th June for the last Financial year and that, whilst the commuted deadline had presented a number of challenges, the Council had, again, been able to meet the statutory deadline. He commented that, in general terms, the 2005/06 close-down process has gone well but, nonetheless, officers would be undertaking a post-closing review of the final accounts process during July to identify areas where further improvements can be made in future years. 

            Following the Director’s introduction of the Statement of Accounts, the Council’s Group Finance Manager, Corporate, guided the Committee through the accounts in some detail, focussing on the key statements within the accounts, responding to Members’ questions on varying aspects of the pre-audited accounts and providing additional supporting information to the Committee as required.

            Resolved – (1) That the pre-audited Statement of Accounts for the Financial Year 2005/06 be approved, subject to the incorporation of amendments requested by Members during the course of the Committee’s consideration and debate the accounts, and that, in order to met the statutory deadline for the completion of the final accounts process, the Chair of the Audit Committee be authorised to sign the amended Statement of Accounts 2005/06 on behalf of the Committee.

            (2) That a report be submitted to the Committee advising on progress in implementing the recommendations of the 2005-06 Closing Action Plan.

            (3) That a report be submitted to the Committee providing additional information in relation to Schools Reserves and, in particular, the rollover position of individual schools.

            (4) That the Finance Department be congratulated on its positive response to the review of the Council’s final accounts process and its achievement in meeting the commuted deadline for closing the 2005/6 Accounts.