Agenda item

The Committee will receive a draft Cabinet Report from the Audit Manager.

In presenting the draft Cabinet report, the Assistant Director explained that the report provided Cabinet with the results of the ‘Review of the Effectiveness of the Audit and Risk Committee’ for 2014/2015 and confirmed that the Committee was fulfilling its stated purpose which was ‘to provide independent assurance of the adequacy of the risk management framework and the associated control environment, independent scrutiny of the Council’s financial and non-financial performance to the extent that it affected the Council’s exposure to risk and weakened the control environment, and to oversee the financial reporting process.’

The Committee’s attention was drawn to the following sections of the report:

·         Background.

·         Review Details.

·         Items considered during 2014/2015.

·         Outcomes.

·         Conclusions.

In conclusion the Assistant Director explained that during 2014/2015 the Audit and Risk Committee received and commented on all relevant reports and actively monitored risk and internal controls.  As a result it was therefore continuing to perform effectively and the Council was meeting its requirements under the Accounts and Audit Regulations 2011.

In response to questions from Councillor Devereux regarding previous decisions of the Audit and Risk Committee to change the actions proposed by officers, the Chairman, Councillor Humphrey explained that there was an opportunity for the Committee to ask for amendments to reports and to ask questions and challenge the contents of reports.

Following comments from Councillor Devereux on the Committee’s Work Programme and the potential risks being identified to enable more interaction, the Leader explained that a Working Group would be set up to look at the working arrangements of the Panels.

In response to questions from Councillor Gourlay on independent checks being carried out in departments, the Assistant Director explained that the Audit Manager and the Internal Audit Team audited all areas of work involving core systems and gave the ledger as an example.  An initial meeting would be held with relevant officers and the reports setting out the outcomes were circulated to the Service Manager, Executive Director and Management Team.

The Chief Executive added that he received all audit and follow up reports and operated an ongoing bring forward system to monitor all actions until completion.

Councillor Morrison referred to action 1.15 – Are members sufficiently independent of other key committees of the Council? and commented “independent in what way” from other committees.  In response, the Chairman, Councillor Humphrey referred to the report received from the Centre of Public Scrutiny recommending that the Audit and Risk Committee be a separate committee and to appoint an independent person as a member.  The Chairman commented that training undertaken by the Audit and Committee was also open to all Members to attend.

In response to comments made by Councillor Blunt regarding Members’ training, the Assistant Director explained that at the Audit and Risk Committee on 7 September, the meeting would commence at 5.30 pm and there would be a briefing/training session on the closing of the accounts to which all Members of the Council would be invited to attend.

Councillor Middleton referred to 5.2 Does the Audit Committee hold periodic private discussions with the External Auditor?  The Chairman, Councillor Humphrey explained that if a particular issue arose then a private meeting would be scheduled.  However, private meeting with the External Auditor were not held on a regular basis.

RESOLVED:  The Committee noted the contents of the report