Agenda and minutes

Prior to discussion of business the Chair of the Committee advised of a couple of issues he was currently pursuing regarding Truancy, and whether or not this was a matter of concern for schools within Argyll and Bute, and a recent Consultation on Performance Indicators.

None declared.

Audit Committee 12 December 2008

The Minutes of the Audit Committee meeting held on 12 December 2008 were approved as a correct record subject to the following addition to the decision at Item 7 – Performance Management Quarterly Report:

To note the Audit Committee’s ongoing concern regarding the content of information provided within the Quarterly Performance report, agreeing that it was important that Services highlighted specific targets and that if these are not being achieved information should be provided on what the Service is doing to rectify the situation.

Report by Internal Audit Manager

A report setting out a self assessment checklist and work plan framework was presented to the Audit Committee in December 2008 and it was agreed to consider a self assessment exercise at a separate meeting out with the cycle of Audit Committee meetings.  A report setting out the proposed template of activities and issues for consideration prior to this self assessment exercise was considered along with a report from KPMG providing a suggested way to take this forward.

The Committee also discussed their recent visit to East Renfrewshire Council’s Audit Committee.

Decision

To note the contents of the reports and to request the Committee Services Officer to identify a suitable date sometime during the months of April/early May 2009 for the Audit Committee’s away day facilitated by KPMG.

(Reference: Report by Internal Audit Manager dated 27 January 2009, submitted and Report by KPMG, tabled)

Report by Internal Audit Manager

In compliance with the Chartered Institute of Public Financial Accountants (CIPFA) guidance, a draft Terms of Reference (TOR) was presented to the Audit Committee in December 2008 for review.  The Committee decided that further amendments should be made and a report introducing an updated draft Terms of Reference was before the Committee for consideration.

Decision

To agree the draft Terms of Reference and request the Director of Corporate Services to pick these up during the forthcoming Review of Political Management Arrangements subject to the following amendments:-

a)                  Introductory paragraph to be reworded to read “The Committee’s Terms of Reference are generally to promote good internal control, financial management, risk, governance and performance management, in order to provide reasonable regulations, including the Council’s Financial and Security Regulations, Contract Standing Orders and accounting codes of practice”;

b)                  Under Audit Activity – bullet point 7 to read “to facilitate training to support the role of Audit Committee Members; and

c)                  Under Performance – bullet point 2 to read “to assess the effectiveness of the Council’s Performance Management System”.

(Reference: Report by Internal Audit Manager, submitted)

Report by Internal Audit Manager

A report detailing report summaries and action plans for finalised audit work in respect of Corporate Governance and Catering Procurement was before the Committee for consideration.

Decision

To note the contents of the report and that these will be followed up by Internal Audit.

(Reference: Report by Internal Audit Manager, submitted)

Report by Internal Audit Manager

Audit Scotland issued an Accounts Commission report in November 2008 entitled “Priorities and Risks Framework”.  The Priorities and Risks Framework is a tool for external auditors to use when planning the audits of local government bodies in Scotland and is a document which summarises the key national priorities and risks which face Councils in the coming year. The key messages from this national report were before the Committee for consideration.

Decision

1.      To note the contents of the report and that these will be followed up Internal Audit; and

2.      To note that Audit Scotland have instructed External Auditors to make sure that Councils act on these national reports.

(Reference: Report by Internal Audit Manager, submitted)

Report by Internal Audit Manager

The Committee considered a report detailing the results from a review performed by Internal Audit on recommendations due to be implemented by 31 December 2008.

Decision

1.      To note the contents of the report and that these will be followed up by Internal Audit.

2.      To note that Actions A4, B4 and E1 detailed at Appendix 2 of the report will be removed from future reports as they have now been implemented;

3.      To note that Actions C1 and B13 detailed at Appendix 4 of the report will be removed from future reports as they are now complete; and

4.      To note that the Governance and Risk Manager will arrange for Register of Interest Forms to be provided to the Chair and Vice Chair of the Audit Committee.

(Reference: Report by Internal Audit Manager dated 11 February 2009, submitted)

Report by Internal Audit Manager

A report advising on progress with the Annual Audit Plan for 2008-2009 was considered.

Decision

To approve the progress made with the Annual Audit Plan for 2008-2009.

(Reference: Report by Internal Audit Manager, submitted)

Report by Internal Audit Manager

The audit plan for 2009-2010 details year 2 of the 3 year Strategic Audit Plan approved by the Audit Committee on 27 March 2008 and ensures that Internal Audit resources are effectively planned and controlled.  The plan, which outlines in detail the areas that will be audited in 2009-2010 and complies with a good practice CIPFA guideline to provide additional information to management was considered.

Decision

To approve the Annual Audit Plan for 2009-2010.

(Reference: Report by Internal Audit Manager dated 12 February 2009, submitted)

Report by Chief Executive’s Unit

A report providing a summary of the Service quarterly reports for the period October – December 2008, consisting of exceptional performance sections only was considered.

Decision

1.      To note the contents of the report and that this will be last time the report will be before the Audit Committee in this format; and

2.      To note that under the Democratic Services Governance heading the reported error rate of 80% correct was a typing error and should have read “98% correct”

(Reference: Report by Chief Executive’s Unit, submitted)

Verbal report from Chair and Vice Chair of Audit Committee on their meeting with the Chief Executive

The Audit Committee noted at its meeting in December 2008 that the Chair and Vice Chair of the Audit Committee would be meeting with the Chief Executive to discuss performance management  The Chair reported on the outcome of this meeting which he attended with the Head of Strategic Finance on 23 January 2009 and advised that there had been a very good discussion and that the processes the Council have put in place to make future performance measuring and reporting more meaningful and less discretionary was very encouraging.

Report by Governance and Risk Manager

A report updating the Committee on progress being made with the implementation of the Council’s Risk Management and Business Continuity Strategy was considered.

Decision

1.      To note the contents of the report;

2.      To note that a demonstration on Risk Management within Pyramid would be provided to the next Audit Committee; and

3.      To note that a report will be brought to a future meeting of the Audit Committee on the outcome of the exercise to test the Business Continuity Incident Management plan taking place on 11 March 2009.

(Reference: Report by Governance and Risk Manager, submitted)

Councillor Chalmers left the meeting.

Report by Grant Thornton UK LLP, External Auditors

Grant Thornton UK LLP had been appointed by the Accounts Commission for Scotland as the external auditor of Argyll and Bute Council for the five year period commencing 2006-2007.  A Plan outlining how they will approach the audit of the Council in the third year of their appointment, reflecting their statutory duties and risk based approach, was considered.

Decision

To note the Audit Plan for 2008-2009.

(Reference: Report by Grant Thornton UK LLP dated January 2009, submitted)

Report by Head of Strategic Finance

A report advising the Committee on the plans in place for financial year end 31 March 2009 and the preparation of the Council’s Financial Statements for 2008-2009 was considered.

Decision

To note that the plans are in place to prepare the Council’s Annual Accounts, consistent with the Accounting Code of Practice, and submit them to Council prior to 30 June 2009 in line with the Scottish Government’s requirements.

(Reference: Report by Head of Strategic Finance dated 25 February 2009, submitted)

Presentation on International Financial Reporting Standards (IFRS)

The Head of Strategic Finance had prepared a presentation on the introduction  of International Financial Reporting Standards into Scottish Local Government and it was agreed that this would be presented to the Audit Committee at their away day.