Audit Committee

Read the Minutes

Minutes of the meeting held on 29th September 2006

Present:

Councillor Priest - In the Chair

Councillors Andrews, Isherwood, Ramsbottom, Sandiford and Trotman.

AS/06/12 Minutes

Decision

To approve the minutes of the meeting held on 29th June 2006 as a correct record.

AS/06/13 Committee Room 11

Members expressed concern at the continuing poor quality of the acoustics in the room and the lack of a proper loop system. The present arrangements were completely inadequate and fell below the levels expected in accordance with the Council's policies on inclusion to ensure that there is proper support to enable all members to take a full part in the business of the meeting.

Decision

To request that action be taken to ensure that provision complies with Council policies as a matter of urgency.

AS/06/14 Annual Accounts 2005/06 and Letter of Representation

A report was submitted informing members of adjustments to the annual accounts for 2005/06 and seeking approval and acknowledgment of the letter of representation to the District Auditor.

In addition, replacement pages 24, 48, 52, and 68 of the agenda were circulated. It was explained that these contained minor amendments and corrections but did not affect the overall net figures.

The District Auditor highlighted the main issues raised in the Audit Commission's Annual Governance Report and in response to a question from the Chair confirmed that the current position did represent an improvement over the previous year.

Questions were raised in connection with concerns expressed in the Governance Report about asset management and the effectiveness of the arrangements, which had been put in place to address these concerns. It was explained that the effect of the arrangements would take some time to assess but that the Commission would be looking over the next few weeks to examine their impact on outcomes and whether the relevant criteria were being satisfied. It was hoped to report with a reassessment of the position at the end of the calendar year, when the Commission would be in a better position to advise on achievements and direction of travel.

A member also asked about the increase of £43m in actual income over estimate and the City Treasurer undertook to provide detailed information on the breakdown.

Decision

1. To agree to the amendments made to the annual accounts for 2005/6 as set out in the report and as contained in the papers circulated at the meeting

2. To approve and acknowledge the letter of representation attached to the report.

AS/06/15 Internal Audit - Review of Activity

A report was submitted with an update on internal audit activity over the last 6 months and outlining the broad implications for the delivery of the Audit Plan for the rest of the year.

Members discussed the work being done in relation to the Financial Management Standards in Schools and asked that guidance to Governors about this should be clear and direct to help them understand their responsibilities in this area. The Head of Internal Audit undertook to speak to the Director of Children's Services about this.

In discussion of future arrangements for carrying out this work, the City Treasurer explained the options, including the establishment of a panel of accredited bodies from whom schools could draw, and that ultimately it was his responsibility, as City Treasurer, to ensure that whoever did the job met the relevant quality thresholds.

It was agreed that it would be helpful for the issues around Financial Management Standards in Schools to be subject to detailed scrutiny.

Concerns were also raised about the wider issues of governance in schools and the need for assurances that, as part of the restructuring exercise being undertaken through the MEP, arrangements would be put in place to ensure that the LEA was able to provide effective training and advice to schools on all questions of proper governance.

The Chair explained that the Finance and General Purposes and Children's and Young Peoples Overview and Scrutiny Committees were looking at reports on governance at future meetings and that the issues raised would also be looked at through the Joint Sub Group which had been established by the two committees to look at implementation of the MEP.

On concerns in relation to asset management and the use of resources it was agreed that the question of whether this issue should be referred for detailed scrutiny should be deferred pending the submission of the further report by the Audit Commission, when it would be possible for the Committee to see whether the action now being taken had been translated into improvements.

Decision

1. To note the report and agree the priorities.

2. To refer the introduction and implications of the requirements of the Financial Management Standards in Schools for detailed scrutiny, the appropriate Committee to be determined in consultation with the Chairs.