Audit Committee

Read the Minutes

Minutes of the meeting held on 22 March 2007

Present:

• Councillor Priest - In the Chair 
• Councillors Andrews, Clayton, Isherwood and Ramsbottom.
  

AS/07/4 Minutes

Decision

To approve the minutes of the meeting held on 25 January 2007 as a correct record.

AS/07/5 Corporate Risk Register

The Committee considered a report of the City Treasurer about the developing methodology and current status of the Corporate Risk Register, and the introduction of supporting risk management arrangement within business planning processes.

Members noted the progress made in terms of culturally embedding risk management, and the opportunities that the business planning process offered by way of cascading risk management awareness at all levels of the organisation. Difficulties were highlighted in terms of how risk management was approached by external agencies with which the Council was working in partnership, the importance of having a shared and sustainable approach to these issues, and the role of partnership Boards as a vehicle for ensuring consistency of approach

Whilst supporting the business planning model as the primary focus for risk management within services, members emphasised the importance of business plans and identified risks being continuously reviewed. A member also indicated that there needed to be a greater appreciation of the impacts of 'sovereign risk' resulting from changes introduced by central government.

Decision

To note the progress being made, to recognise that that this is slower than previously anticipated and to request the officers to report in the third quarter of the year to enable the Committee to continue to monitor progress.

AS/07/6 Annual Assurance Statement

The Committee considered a Statement of assurance based on Internal Audit activity during the year, and outlining the broad implications for future audit work. The report identified a number of areas of on-going work, governance in schools, SAP and FMSIS on which there would be a specific focus during the year ahead, together with wider issues about the effectiveness of delivering business plan objectives across all services.

Members turned to consider the incidence of fraud, indicating that more detailed information about past cases involving fraud should be reported to a future meeting. Officers indicated that the Budget Outturn report in July would include more detail but reassured members that any cases involving significant amounts would be separately reported to the Committee.

Officers then provided more information in response to questions regarding the roll-out of FMSIS and the extent to which Manchester schools would meet compliance with the national standard, and the implications for the further roll-out of FMSIS to primary schools over the next three years.

Members also highlighted the high proportion of Council Tax payers summoned, and the City Treasurer indicated that this was consistent with other authorities with significant levels of deprivation. He also added that the figures for 2006/2007 were slightly skewed as a result of the introduction of the new computer system which had delayed the issue of some summonses from the previous year.

Decision

To note the report and the priorities for future audit work.

AS/07/7 Statement of Internal Control

The Committee considered a report of the Deputy Chief Executive providing further background information to issues raised in the Statement of Internal Control relating to the contingent liability in the Council's accounts as a result of the potential claw back of ERDF grant by the European Commission, and informing the Committee of actions being taken to assess future liability for ERDF claw back and to safeguard the Council's financial position.

Officers outlined the robust project planning processes that were in place and the detailed work that was being done by the Capital Project Board in terms of reviewing processes and control mechanisms for the management of individual projects to safeguard the Council's position.

Decision

1. To note the report.

2. To request that the response from the EC to the City Council's representations be reported to a future meeting of the Committee.

3. To identify to the Finance and General Purposes Overview and Scrutiny Committee the need for more detailed scrutiny of the actions described in Section 5.2 of the report.

4. To request a full update report to this Committee in September.

5. To recommend the Executive Member for Finance and Human Resources to consider the usefulness of briefing the North West's Members of the European Parliament about the issues involved.