Agenda and minutes

Venue: Hastings & Knepp, Parkside, Chart Way, Horsham

Contact: Email: CommitteeServices@horsham.gov.uk  Direct Line: 01403 215465

Items
No. Item

AAG/70

Minutes pdf icon PDF 82 KB

To approve as correct the minutes of the meeting held on 25th July 2017

(Note: If any Member wishes to propose an amendment to the minutes they should submit this in writing to committeeservices@horsham.gov.uk at least 24 hours before the meeting.  Where applicable, the audio recording of the meeting will be checked to ensure the accuracy of the proposed amendment.)

Minutes:

The minutes of the meeting held on 25 July 2017 were approved as a correct record and signed by the chairman.

AAG/71

Declarations of Members' Interests

To receive any declarations of interest from Members of the Committee

Minutes:

There were no declarations of interest.

AAG/72

Announcements

To receive any announcements from the Chairman of the Committee or the Chief Executive

Minutes:

The Chairman noted that he and the Vice-Chair would be attending a CIPFA training course on audit committees in January 2018.

AAG/73

Annual Audit Letter pdf icon PDF 2 MB

To receive the Annual Audit Letter – to be presented by the External Auditor

Minutes:

The external audit manager presented the Annual Audit Letter with the purpose of identifying key issues arising from the audit.

 

Members noted the contents of the letter and that the Audit was on schedule to be completed before July 2018.

 

AAG/74

Audit Plan 2017/18 pdf icon PDF 5 MB

To receive the Audit Plan for 2017/18 – to be presented by the External Auditor

Minutes:

The Audit Director, Ernst & Young, presented the External Auditors Plan in respect of the 2017/18 audit. The plan set out the audit work proposed for the audit of financial statements; the statutory conclusion on the Council’s arrangements to secure value of money; and the review of the Whole of Government Accounts return.

 

Members noted the key risks that would be assessed during the audit, these included the introduction of the new finance management software; the value of land and buildings owned by HDC; and under the value for money conclusion risk, the purchase of The Forum.

 

Members suggested that the External Auditor consider whether the scope of the external audit on the value for money risk should be expanded to include: ‘The Bridge’ leisure centre, Hop Oast Depot, and the new Waste, Recycling and Cleansing fleet and staffing options.

 

 

 

 

AAG/75

Progress Report pdf icon PDF 118 KB

To receive the HDC Audit Progress Report – to be presented by the External Auditor

Minutes:

The External Audit Manager gave an overview of the plan for the 2017/18 audit.

 

Members noted the report, especially the summary of Grant Certification Work.

 

AAG/76

Treasury Management Strategy 2018/19 pdf icon PDF 239 KB

To receive the report of the Director of Corporate Resources

Minutes:

The Group Accountant (Technical) presented the report to Members.

 

The report indicated that investment criteria and limits were largely unchanged due to an expected fall in investments and the potential of some borrowing.

 

CIPFA and the DCLG would be reviewing the Strategy that may change it significantly, the results of this review were expected to be published early 2018.

 

            RESOLVED

 

i)              That the Treasury Management Strategy for 2018/19 be noted

 

            RECOMMENDED TO COUNCIL

 

i)              That the Treasury Management Strategy for 2018/19 be approved

 

ii)             That the Treasury Management Indicators for 2018/19 be approved

 

REASONS

 

i)              The council has adopted the Chartered Institute of Public Finance and Accountancy’s Treasury Management in the Public Services: Code of Practice 2011 Edition (the CUPFA Code) which required the Council to approve a treasury management strategy before the start of each financial year

 

ii)             The Department for Communities and Local Government (DCLG) issued revised guidance on local authority investments in March 2010 that requires the Council to approve an investment strategy before the start of each financial year

 

AAG/77

Treasury Management Activity and Prudential Indicators mid-year report 2017/18 pdf icon PDF 185 KB

To receive the report of the Director of Corporate Resources

Minutes:

The Group Accountant (Technical) presented a report on treasury management activity and prudential indicators for the first half of 2017/18.

 

Members noted that the Council’s external debt was £9m and investments totalled £56.3m, both having increased since 31 March 2017.

 

            RESOLVED

 

i)              That the treasury management stewardship report for the first half of 2017/18 be noted

 

ii)             That the mid-year prudential indicators for 2017/18 be noted

 

REASONS

 

i)              This mid-year report is a requirement of the Council’s reporting procedures

 

ii)             This  report meets the requirements of the relevant CIPFA Codes of Practice for Treasury Management and Prudential Indicators in Capital Finance

 

 

AAG/78

Risk Management - Quarterly Update pdf icon PDF 117 KB

To receive the quarterly report of the Director of Corporate Resources on risk management.

 

Additional documents:

Minutes:

The Director of Corporate Resources presented the latest quarterly update of the Corporate Risk Register.

 

The Senior Leadership Team had reviewed all outstanding actions on the corporate risk register and updated the comments to reflect the current position for each risk.  Two emerging risks had been added relating to a change of the Financial Management System (CRR20) and Waste Collection (CRR24).

 

            RESOLVED

 

            That the report be noted.

 

            REASON

 

To ensure that the Council has adequate risk management arrangements in place.

 

AAG/79

Internal Audit - Quarterly Update Report pdf icon PDF 165 KB

Additional documents:

Minutes:

The Chief Internal Auditor submitted a report summarising the work of the Internal Audit Department since 25 July 2017.

 

The report summarised the findings of six internal audits that had been undertaken: Use of Consultants; Forward Plan; Commercial Rents; New Finance System – Data Migration; Taxi Licences; and Community Link. The Audit opinion on each of these was of reasonable assurance.

 

The report also summarised other work being undertaken by the Internal Audit team and gave a progress update in respect of the Audit Plan. Members noted that ‘Cloud Computing’ and ‘Rural Car Parking’ would be removed from the Audit plan.

 

Members requested that the Director of Corporate Resources raise the subject of the increase of rent arrears on accounts that are managed by the Management Agents with the responsible Head of Service and that a briefing on the matter be issued to Members early 2018.

 

            RESOLVED

           

That the summary of audit and project work undertaken since July 2017 be noted

 

REASONS

 

i)              To comply with the requirements set out in the Public Sector Internal Audit Standards 2013 (amended April 2017)

 

ii)             The Audit Committee is responsible for reviewing the effectiveness of the Council’s system of internal control

 

AAG/80

Urgent Business

Items not on the agenda which the Chairman of the meeting is of the opinion should be considered as urgent because of the special circumstances

Minutes:

There were no urgent matters to be considered.

AAG/81

Exclusion of the Press and Public

Minutes:

            RESOLVED

 

That, under Section 100A(2) of the Local Government Act 1972, the press and public be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information, as defined in Part I of Schedule 12A of the Act, by virtue of the paragraph specified against each item, and in all the circumstances of the case, the public interest in maintaining the exemption outweighs the public interest in disclosing the information.

AAG/82

Internal Audit - Quarterly Update on Audit Follow-ups

Minutes:

The Chief Internal Auditor submitted a report summarising progress since July 2017 on the implementation of actions in respect of audits undertaken in 2016/17, 2015/16, 2014/15 and 2013/14.

 

            RESOLVED

 

i)              That the progress in terms of agreed actions implemented since June 2017 be noted

 

ii)             That the position in respect of the specific areas highlighted by the Chief Internal Auditor be noted

 

REASON

 

The Audit Committee is responsible for reviewing the effectiveness of the Council’s system of internal control