Return to AgendaITEM AU3
AUDIT committee
MINUTES of the meeting held on 4 March 2009 commencing at 11.00 am and finishing at 12.50 pm.
Present:
Voting Members: Councillor David Wilmshurst - in the chair
Councillor Alan BrydenCouncillor Patrick Greene Councillor Timothy Hallchurch MBE Councillor Ray Jelf Councillor Charles Mathew Councillor Dermot Roaf Councillor John Sanders
Non-Voting Members: Dr Geoff Jones
By Invitation: Robert Hathaway, Lorraine McMullen (Audit Commission)
Other Members in Councillor C.H. Shouler (for Agenda Items 5, 6, 7) Attendance:
Officers:
Whole of meeting: P.G. Clark, I. Dyson, G. Malcolm, S. Scane (Corporate Core).
Part of meeting:
The Committee considered the matters reports and recommendations contained or referred to in the agenda for the meeting, and decided as set out below. Except insofar as otherwise specified, the reasons for the decisions are contained in the agenda and reports, copies of which are attached to the signed Minutes.
11/09 APOLOGIES FOR ABSENCE AND TEMPORARY APPOINTMENTS
Apologies for absence and temporary appointments were received as follows:
12/09 MINUTES
The Minutes of the meeting of the Committee held on 21 January 2009 were approved and signed.
13/09 ANNUAL AUDIT & INSPECTION LETTER 2007/08 (Agenda Item 5)
Mr. Hathaway and Ms. McMullen presented the Audit Commission’s draft Annual Audit and Inspection Letter 2007/08 (AU5). The Letter summarised the Auditors’ work and key findings relating to the financial year 2007/08, drawing on the most recent Comprehensive Performance Assessment (CPA), the findings and conclusions from the audit of the Council for 2007/08 and from any inspections which had been undertaken since the Annual Audit and Inspection Letter 2006/07. It omitted overall performance and service specific scores, which were embargoed until 5 March 2009. The draft Letter was brought to this Committee for consideration and comment.
Mr Hathaway highlighted the key messages (paragraphs 1-4) and the further action needed by the Council (paragraphs 5-7). The auditors’ had judged that the Council was improving well; the Final Letter would complete and confirm the assessments for the CPA scorecard shown at Table 1, including the overall star rating, which was embargoed at this time. The Council continued to provide good value for money and of particular note was the overall Use of Resources score which had increased from 3 in 2007 to the maximum of 4 in 2008.
Councillor Shouler, Cabinet Member for Finance paid tribute to Sue Scane, Chief Finance Officer, her team and colleagues for their work which had contributed to the financial strength of the Council and the achievement of the maximum 4 star Use of Resources rating.
The Committee then considered the draft Letter, focusing on the auditors’ methodology and action planning. The key comments to the Audit Commission / Cabinet arising during debate were as follows:
The Committee:
- was delighted with the Commission’s judgment that the Council was making good progress against most of its priorities, had retained its overall assessment score of 3 and in particular that the ‘Use of Resources’ score had improved from 3 to 4, for which the Committee commended members and officers, in particular the Leader of the Council, the Cabinet Member for Finance, the Assistant Chief Executive & Chief Finance Officer and all concerned with the outcome;
- considered that it was unclear how data from years other than 2007/08 had influenced the assessment scores for the year which was the subject of this Letter;
- found it difficult to relate the text in paragraph 19 ‘World Class Economy’ with the assessment scores shown in Table 2 on page 18 ‘Quality of services for children & young people’; and
- expressed concern that the Audit Commission had not explained in the draft Letter or to the Committee’s satisfaction at the meeting how the criteria for Cogges Museum had contributed to the overall re-assessment of the ‘Culture’ score.
Following questions and comments and in the light of discussion with the Committee Mr. Hathaway undertook to make any minor textual corrections / clarifications to the Letter. At members’ suggestion he was willing to give a briefing on the new performance framework (‘Corporate Area Assessment’) to all councillors following the County Council elections in June 2009.
RESOLVED: to:
(a) receive the draft Annual Audit and Inspection Letter 2007/08 and note the comments from the Audit Commission;
(b) refer the finalised Letter and key comments shown above to Cabinet for consideration, inviting individual Cabinet Members to pursue the respective recommendations with the appropriate Directors;
(c) ask Members wishing to refer sections of the Letter to scrutiny committees to do so through the Scrutiny Co-ordinating Group for co-ordination; and
(d) refer the Letter to the Scrutiny Coordinating Group to help develop planning for 2009/10.
14/09 AUDIT WORKING GROUP REPORT - 19 FEBRUARY 2009 (Agenda Item 6)
The Committee considered a report (AU6) on the following specific matters which had been considered by the Audit Working Group (AWG):
· Internal Audit Progress Report · Risk Management Progress Report
(The Committee noted that an update on Risk Management business continuity planning would be included in the Annual Governance Statement to the Committee at its June 2009 meeting.)
· SAP Authorisations - Progress Report · Draft AWG Work Programme 2009/10 · Review of AWG Terms of Reference. · Schools Support Finance Actions – Progress Report
RESOLVED: to:
(a) note the report;
(b) approve the AWG Work Programme for 2009/10; and
(c) approve the revised AWG Terms of Reference
15/09 2008 ANNUAL REPORT OF THE AUDIT COMMITTEE TO COUNCIL (Agenda Item 7)
On 29 November 2006 the Committee had adopted a process for preparing the report to Council (7 April 2009) in respect of the Committee’s performance on the implementation of its Work Programme.
Accordingly the Chairman presented and introduced the draft Annual Report to the Committee (AU7) and invited members to comment prior to its submission to Council.
RESOLVED: to endorse the Annual Report to Council (AU7) subject to the addition in the report of a reference to Annex 3 and minor textual corrections
16/09 WORK PROGRAMME 2009/10 (Agenda Item 8)
The Committee reviewed and updated its Work Programme (AU8).
RESOLVED: to adopt the Work Programme as attached as Annex 1 to these Minutes.
................................................................................... in the Chair
Date of signing.................................................................. 2009 ANNEX 1
AUDIT COMMITTEE WORK PROGRAMME 2009/102009
22 April
Effectiveness of the System of Internal Audit (Peter Clark, Monitoring Officer) A commentary on the performance of the system throughout 2008/09.
Internal Audit Services: Internal Audit Strategy & Annual Plan 2009/10 (Ian Dyson)
International Financial Reporting Standards: to report significant changes in local authorities’ Accounts preparations (H. Cameron, Project Manager IFRS)
Project Link: post project review following Change Management Board consideration (John Jackson / Sue Scane)
Safeguarding and Child Protection Services in Oxfordshire (Provisional) (Andy Couldrick) Topic identified by the Committee on 21 January 2009: any matters relating to the business of the Audit committee arising from:
24 June
Internal Audit Services – Annual report 2008/09 (Ian Dyson)
Annual Governance Statement 2008/09 (Peter Clark / Sue Scane)
Arrangements for the Inspection of the Accounts (Sue Scane)
Statement of Accounts 2008/09 (Sue Scane)
Annual Audit & Inspection Plan – Audit 2009/10 (Audit Commission – Maria Grindley, Relationship Manager)
Audit Working Group – AWG Chairman’s Annual Review of Activities 2008/09 23 SeptemberRisk Management Annual Report (Ian Mills)
Final Statement of Accounts 2008/09:
(KPMG LLP)
(Sue Scane)
(Sue Scane)
Financial Management Action Plan (Georgina Paton) Update / review - requested on 21 January 2009.
18 November
Audit Committee - Draft Work Programme 2009/10 (Co-ordinated by Committee officer in consultation with relevant directorate officers)
2010
20 January
Annual External Audit Report 2008/09 (KPMG LLP)
Statement on Internal Control – Annual Review of Effectiveness (Peter Clark & Sue Scane)
Review of the Process for Reporting on the Effectiveness of the System of Internal Audit (Ian Dyson)
3 March
2009 Annual Report of the Audit Committee to Council (in accordance with the process adopted by the Committee on 29 November 2006)
April
Review of the Effectiveness of the System of Internal Audit (Assistant Chief Executive & Chief Finance Officer)
Other matters
Report authorised in February 2007:
Annual Audit & Inspection Letter 2005/06
On 27 June 2007 the Committee noted that the three significant areas raised at paragraph 8 of the Letter were the subject of scrutiny committee consideration. The Assistant Chief Executive & Chief Finance Officer was asked to add the outcomes to the Committee’s Work Programme for its consideration when appropriate.
Regular Reports:
Audit Working Group (Ian Dyson)
Audit Committee Work Programme – update/review (Committee Officer/Chairman/relevant officers)
March 2009
|