Agenda and minutes
Venue: Conference Room, Parkside, Chart Way, Horsham
Contact: Email: CommitteeServices@horsham.gov.uk Direct Line: 01403 215465
To approve as correct the minutes of the meeting held on 12th July 2018
(Note: If any Member wishes to propose an amendment to the minutes they should submit this in writing to firstname.lastname@example.org 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.)
There was a small typographical change to be made to minute AAG/6. The word ‘they’ would be changed to the word ‘he’.
Following the above amendment, the minutes of the meeting held on 12th July 2018 were approved as a correct record and signed by the Chairman.
Declarations of Members' Interests
To receive any declarations of interest from Members of the Committee
There were no declarations of interest.
To receive any announcements from the Chairman of the Committee or the Chief Executive
The Chairman announced that a forward plan for Audit Committee had been created. It would be included on future Agendas.
The vast majority of previously restricted items i.e. ‘Internal Audit – Quarterly Update on Audit Follow-Ups’ would now be available to the public going forward.
To receive the Annual Audit Letter – to be presented by the External Auditor
The external audit manager presented the Annual Audit Letter with the purpose of identifying key issues arising from the 2017/18 audit.
The letter detailed potential impacts regarding new accounting standards coming in to effect in the financial years 2018/19 and 2019/20
Members noted the contents of the letter and the potential impacts of the incoming IFRS 9, IFRS 15, and IFRS 16.
To receive an update on the Council’s Risk Register.
The Director of Corporate Resources presented the latest quarterly update of
the Corporate Risk Register.
Two new risks had been added to the register since the publication of the previous update:
· CRR28 – Systems not fully operational on resumption of power supply forcing need for HDC Disaster Recovery Implementation.
· CRR30 – Increase in costs of homelessness, housing services, recycling, transport and anti-social behaviour.
Risk CRR30 was considered to be high risk. There was only one other high risk on the register: CRR01b – Funding from Government is less generous than assumed in the Medium Term Financial Strategy (MTFS) from 2020. CRR28 – the shutdown had taken place without incident and the risk would be removed at the next review.
Members asked the Director of Corporate Resources to provide an indicative cost for the provision of a replicate site for Disaster Recovery.
That the report be noted.
To ensure that the Council has adequate risk management arrangements in place.
To receive the report of the Chief Internal Auditor.
The Chief Internal Auditor presented Members with the Internal Audit Progress Report for quarter 1 2018/19.
A number of audits had been completed during quarter 1, however, they related to the previous financial year and the outcomes were included in the annual audit report at the previous committee meeting.
Orbis had established the Orbis Counter Fraud Team in April 2018 and there had been a focus in quarter 1 to ensure a consistent approach be adopted across the Orbis partnership. Implementation of an integrated Fighting Fraud Plan across Orbis partners in quarter 2 would be taking place and internal audit had been liaising with relevant departments in preparation for the forthcoming National Fraud Initiative data matching exercise.
All high and medium priority actions agreed with management as part of individual audit reviews are subject to action tracking. As at the end of quarter 1, 95% of high priority actions due had been implemented within agreed timescales. Internal Audit would continue to work with senior management to ensure that sufficient attention be given, and regular updates would continue to be given at Audit Committee meetings.
Members noted the progress of ongoing and recently completed individual audit reviews.
Three new reviews had been added to the audit plan:
· Housing Benefits Subsidy - Lessons Learnt
· Review of bomb / lockdown procedures for Parkside and buildings owned by Horsham D.C.
· Input to the review of the Council’s Constitution
One audit had been removed from the audit plan:
· Contracts (Procurement)
Members noted that all previously agreed performance indicators had been met by Internal Audit.
That the Audit Committee noted the report.
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 systems of internal control.
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
The External Auditor, Paul King, announced that he would no longer be the Ernst & Young representative for HDC and his colleague, Andrew Brittain, would be replacing him. He also thanked the Finance team for their hard work and cooperation during the last five years.
The Chairman thanked Paul for his hard work and dedication throughout the previous years.