Agenda and minutes

To approve the minutes of the meeting held on 7 July 2011 (AU3) and to receive information arising from them.

The Minutes of the meeting held on 7 July 2011 (AU3) were approved and signed.

Matter arising from Minute 41/11

Councillor Armitage confirmed that the discussion had taken place.  The Committee asked the Monitoring Officer to report to the ’s next meeting in order to clarify Audit Committee involvement with the scrutiny function. 

11:10

Annual Governance Report 2010/11 (Oxfordshire County Council); and

Annual Governance Report 2010/11 (Oxfordshire County Council Pension Fund)  (AU5).

External Audit progress on 2010/11 audit plan (oral report).

A representative of the Audit Commission will attend for these items. 

The Committee is RECOMMENDED to consider and note the reports.  

(The Committee took Agenda Items 5 & 6 together; for ease of reference the items are minuted separately).

The Committee considered:

the Annual Governance Report 2010/11 (Oxfordshire County Council);

the Annual Governance Report 2010/11 (Oxfordshire County Council Pension Fund)  (AU5); and

an addendum (a copy of which is attached to the signed Minutes).

Ms. Grindley, Audit Commission presented the Reports which summarised the findings from the 2010/11 audit, which was substantially complete.  No weaknesses were found and she commended the Council’s staff for putting early arrangements in place for the implementation of the new international financial regulations.  

The Committee considered the key messages in the Reports and took note of the adjustments to the financial statements, agreed (in respect of the OCC Report) with management’s reasons for not amending the 2 extrapolated errors which the Commission had identified as set out in the draft letter of representation, and approved the letters of representation and the proposed action plans.  

Members welcomed the two Audit Commission Annual Governance Reports and, with Councillor Jim Couchman, Cabinet Member for Finance & Property thanked the Audit Commission representatives for them. 

Audit Commission Outsourcing Update:

At members’ request Ms. Grindley and Ms. Fetigan then summarised the current position regarding the timetable for the outsourcing process, as follows:

Following confirmation of the outsourcing of all local audit work from 2012/13, the Audit Commission was now able to provide further details about the timetable for the principal bodies' and small bodies' procurements.

The table below provided the key milestones currently planned for each of the procurements. This was intended as a guide and while the Commission did not intend to depart from the timetable it reserved the right to do so at any stage.

RESOLVED: to note the reports. 

11:40

Final Statement of Accounts 2010/11 ; and

Management Representation Letter 2010/11 to the Auditors

Reports by Chief Finance Officer (AU6). 

The Committee is RECOMMENDED to:

(a)  consider and approve the Final Statement of Accounts 2010/11 (signed by the Chairman of the Committee) for publication by 30 September 2011; and

(b)   consider and approve the Management Representation Letter 2010/11.   

The Committee considered the Final Statement of Accounts 2010/11 and

the Management Representation Letter 2010/11 to the Auditors (AU6). 

Ms. Skivington introduced the report and outlined the changes which had been made in line with the new international financial regulations.  An addendum was circulated (a copy of which is attached to the signed Minutes) regarding the Pension Fund Accounts Note 1 - accounting policies basis of preparation, a new Note 21 – Financial Instruments, and a revised note 22 - Risk. She then responded to members’ questions and comments including the treatment of reserves and grants under the new regulations.   

The Committee, with Councillor Jim Couchman, Cabinet Member for Finance & Property, thanked the relevant Council staff for their excellent work on the introduction of the new Regulations and the Final Statement of Accounts. 

The County Solicitor undertook to respond following the meeting to members’ queries regarding asset transfer and the new Academies, and the current position of the Nettlebed School site.

RESOLVED to:

(a)   subject to the Chief Finance Officer finalising changes to the disclosure notes with the Audit Commission, approve the Final Statement of Accounts 2010/11 (signed by the Chairman of the Committee) for publication by 30 September 2011; and

(b)    approve the Management Representation Letter 2010/11.  

12:00

Report by Assistant Chief Executive & Chief Finance Officer (AU7). 

The report summarises the matters arising at the most recent meeting of the Audit Working Group (AWG). 

The Committee is RECOMMENDED to note the report. 

12:20  Working lunch

The Committee considered a report  (AU7) which summarised the main business items arising at the most recent meeting of the Audit Working Group (AWG), which were as follows:

AWG4 – Highways & Transport Action Plan Update*

AWG6 – Internal Audit – Issues & Follow-up Progress

AWG7 – SAP Roles Update

AWG8 – Fairer Charging Update

*In relation to AWG 4 ‘Highways & Transport Action Plan Update’ the Committee agreed, subject to Audit Working group consideration, to include in its Work Programme the Highways Contract (management actions) as an agenda item on16 November 2011 and ask the Senior officers concerned to:

- arrange / attend an informal briefing for all Councillors on 16 November 2011 at 10am (prior to the Audit Committee at 11am);

- prepare and circulate the informal briefing note in advance of the meeting of the Audit Working Group on 3 November 2011; and

- attend the Audit Committee for this item on 16 November 2011. 

RESOLVED:  to note the report. 

12:30

Report by Assistant Chief Executive & Chief Finance Officer (AU8).

The report presents the Internal Audit Plan for quarter 3, 2011/12.

The Committee is RECOMMENDED to approve the quarter 3 Internal Audit Plan. 

The Committee considered a report (AU8) which presented the Internal Audit Plan for quarter 3, 2011/12.  

In relation to ‘Treasury Management Audit’ Councillor Stratford spoke in favour of an enhancement of member training to support councillors in their Treasury Management scrutiny/challenge role.  

RESOLVED: to

(a)       approve the quarter 3 Internal Audit Plan; and

(b)       note the progress with the Quarter 1 & 2 activity. 

12:50

Report by County Solicitor & Monitoring Officer (AU9).

The report summarises the findings of the Local Government Ombudsman (LGO)’s Annual Review of Oxfordshire County Council for the year ended 31 March 2011. The Annual Review sets out the nature of the issues considered by the Ombudsman and the Council's performance in handling them. 

The Committee is RECOMMENDED to note and comment upon this report and on the Local Government Ombudsman’s Annual Review of Oxfordshire County Council for 2010/11.  

The Committee considered a report (AU9) which summarised the findings of the Local Government Ombudsman (LGO)’s Annual Review of Oxfordshire County Council for the year ended 31 March 2011. The Annual Review set out the nature of the issues considered by the Ombudsman and the Council's performance in handling them. 

Mr. Clark introduced the report.  There were no trends or issues of concern arising from the LGO’s Review. 

The Committee welcomed the overall positive findings of the Review. 

RESOLVED:  to note the report on the Local Government Ombudsman’s Annual Review of Oxfordshire County Council for 2010. 

1:10

To review / update the Committee’s Work Programme (AU10).

The Committee reviewed / updated it’s Work Programme (AU10).

RESOLVED: to agree the Work Programme subject to:

16 November 2011:

- add: ‘Clarification of Audit Committee involvement with the scrutiny function’ (Monitoring Officer);

- add: ‘Business Strategy: update & key extracts from the Cabinet’s Financial Monitoring & Business Strategy Delivery report’ (Chief Finance Officer); and

- delete: ‘Financial Management Action Plan’ (as the Committee had decided it was no longer required).