Agenda and minutes

Apologies for absence were received from Cllr J Ward.

To confirm the minutes of the meeting held on 24 January 2020 as a correct record.

That the minutes of the meeting held on 24 January 2020 be signed by the Chairman as a correct record

To note any declarations of interest made by members in connection with an agenda item.  The nature of the interest must also be specified.

Members are asked to discuss any possible interests with Democratic Services prior to the meeting.

No declarations of interest were made in connection with any agenda item.

To note any issues raised during the public participation period.

There was no public participation at the meeting.

To note the Annual Internal Audit Report and Opinion for 2019/20.

The Committee noted the Annual Internal Audit Report and Opinion for 2019-20.

The audit plan had been completed in all planned areas, with the exception of the leisure centres, due to their closure during March as a result of COVID-19. 

The Committee received detailed updates from the officers responsible for Lift Maintenance and Fleet Management operations,  which had received ‘Limited’ assurance ratings in recent audits.

It was noted that all audit actions relating to the Lift Maintenance audit had been completed. These included a centralised database which had now been compiled to ensure consistent control measures and inspection and maintenance regimes for lifts at housing sites, together with a related policy. In addition, dedicated compliance staff  had regular meetings with the contractor and audit and reporting arrangements revised. The function was now fully under the control of the Housing service and sufficient resources in place to ensure compliance.

The Committee received a presentation on progress with audit actions relating to aspects of Fleet Management operations. The audit had been requested by the Service Manager, Waste & Transport, as there were concerns as to whether TRANMAN (fleet management software) was being fully utilised for recording and monitoring all the costs associated with each vehicle.  A copy of the presentation slides is attached to these minutes.

To receive an update on fraud reduction activities for 2019/20. 

The Committee received and noted the Fraud Annual Report for 2019 / 20.

To consider the Final Accounts Bad Debts Write-offs Report for 2019/20.

This Committee noted the total bad debts written off during the financial year 2019/20.

Given the Covid impact, it was likely that there would be an increase in arrears in 20/21.

To receive an update on waivers to Procurement Rules, Regulations & Contract Standing Orders approved during 2019/20.

The Committee received and noted the annual summary of Procurement Rules, Regulations and Contract Standing Orders Waivers for 2019/20.

To review the Treasury Management outturn for 2019/20.

The Committee received and noted the treasury management outturn report for 2019/20.

Members acknowledged the negative market impacts relating to the Covid epidemic.

To note the assessment carried out by the Monitoring Officer and the Chief Finance Officer and the actions set out in the report concerning the annual Code of Good Governance review.

The Committee noted the assessment carried out by the Monitoring Officer and the Chief Finance Officer, together with actions arising from the annual Code of Good Governance review for 2019/20.

Members requested an update on the PCI accreditation issue.  It was explained that the new finance system and telephony and payments systems had recently been implemented, and this now paved the way for securing accreditation.

Members were pleased to note the view of the Monitoring Officer and Chief Finance Officer that the Council was able to have confidence in the effectiveness of its governance arrangements, which was illustrated by the few and relatively minor areas identified in the report for review.

To consider the draft Annual Governance Statement for the Financial Year ended 31 March 2020.

The Committee received and noted the draft Annual Government statement. The Leader of the Council and the Head of Paid Services (Chief Executive) were required to sign the AGS and be satisfied that the document was supported by reliable evidence. It would be published with the Annual Financial Report and provided to the External Auditor for review.

It was explained that a review of workflows in the new finance system was being undertaken as part of the 2020/21 Audit Plan. 

RESOLVED:

That the draft Annual Governance Statement for the Financial Year ended 31st March 2020 as reported in Appendix 1 be approved.

To consider the draft Annual Financial Report for 2019/20.

The Committee received the Draft Annual Financial Report for 2019/20. The report  detailed progress with key issues in the planned full report within required timescales, and sought approval for changes to certain Accounting Policies.

Members noted that due to the pandemic the accounting and audit timelines had been extended this year.  Officers reported pandemic - related significant reductions in planning and leisure incomes as well as a sizeable variation in homelessness costs, in the context of a significantly disrupted 2020/21 budget overall.

The Committee also noted that from 2020/21, the Council’s new Finance System supported a more accurate costing methodology for the issue of stock form the Council’s central store. The previous policy of issuing stock at average price will be replaced with the more commonly used FIFO method, representing ‘First in First Out’. Business units will be charged for items removed from stores based on the value the Council paid for those specific items.

RESOLVED:

That the Committee note the draft Accounting Statements set out in Appendices 1-6 of the Annual Financial Report that will be certified by the Responsible Financial (S151) Officer for submission to the external auditor by the deadline of 31 August.

To consider the Audit Committee’s Work Plan.

The Committee noted its future work programme.