Agenda and minutes

Audit Committee - Tuesday, 10th March, 2020 6.00 pm

Venue: Council Chamber, Penns Place, Petersfield, GU31 4EX. View directions

Contact: Cynthia Haveron  Democratic Services Officer

Items
No. Item

13.

Apologies for Absence

Minutes:

Apologies for absence were received from Councillors T Denton and T Maroney.

14.

Minutes of the Last Meeting pdf icon PDF 189 KB

To approve the minutes of the last meeting held on 26 November 2019, previously distributed.

 

                                       

Minutes:

The minutes of the meeting held on 26 November 2019, were agreed and signed as a correct record.

15.

Chairman's Announcements

Minutes:

There were no Chairman’s announcements.

16.

Declarations of Interest

To receive and record any declarations of interest from members

present in respect of any of the various matters on the agenda for this

meeting.

Minutes:

There were no declarations of interest.

17.

Statement of Accounts: Accounting Policies 2019/20 pdf icon PDF 198 KB

For Decision

Additional documents:

Minutes:

The Interim Head of Finance introduced the report. The report presented the Accounting Policies that would be used in the preparation of the 2019/20 Statement of Accounts and summarized the changes from 2018/19 introduced as a result of the amendments to the Code of Practice on Local Authority Accounting 2019/20 (the Code) or as part of the Council’s annual review process. In addition, the report also explained the requirement to include notes on the critical judgements used in production of the Statement of Accounts.

 

She explained that the changes introduced by the 2019/20 code would be relevant to the financial statements of the Council in respect of IFRS 16 Leases that required local authorities were leases to recognise most leases on their balance sheets as right-of-use assets with corresponding lease liabilities. CIPFA/LASAAC had deferred implementation of IFRS for local government to 1 April 2021.

 

Councillors noted some confusion over the date of the implementation of IFRS 16, as in KPMGs report it said 1 April 2020 not 1 April 2021 and the Interim Head of Finance agreed with KPMG the correct date of the implementation was 1st April 2020 and she would amend the accounting policies in the statement of accounts.

 

In response to a question on Expected Credit Loss Model – Group 3 other loans to local businesses were there any loans? The Interim Head of Finance agreed to provide the answer outside of the meeting.

 

Following a discussion, it was RESOLVED that

 

a.     The proposed Accounting Policies to be adopted in completing the 2019/20 Statement of Accounts be APPROVED; and

 

b.     The critical judgements be NOTED.

18.

External Audit Plan 2019/20 pdf icon PDF 109 KB

For Decision

Additional documents:

Minutes:

The Director, KPMG introduced the report. He explained that the plan set out the approach that would be taken for the financial year 2019/20. He referred the Committee to pages 30 and 31 of the agenda (pages 2 and 3 of the report) which set out the “financial statements” and the “value for money arrangements work”. Three areas of significant risk had been identified and he talked through them. He asked the Committee to note the new accountancy standards although there was no significant risk attached to them. In respect of significant risk 2 – valuation of investment property – significantly less that budgeted had been spent, although the coronavirus might have an effect on these figures.

 

In respect of value for money KPMG had not completed their detailed risk assessment regarding the council’s arrangements to secure value for money (VFM). However, they had identified two significant VFM risks to date, which they would be focusing on.

 

He confirmed that in respect of shared services with Havant Borough Council, KMMG contacted the External Auditors for HBC via Officers and not directly with Ernst & Young. The had contact with the pension fund auditors when needed.

 

Following a discussion, it was RESOLVED that the External Audit Plan 2019/20 be APPROVED.

 

19.

Internal Audit 19-20 Progress Report (January 2020) pdf icon PDF 283 KB

Additional documents:

Minutes:

The Deputy Head of Partnership from the Southern Internal Audit Partnership introduced the report. He explained that the report showed progress against the delivery of the 2019/20 Internal Audit Plan. The figures were as at January 2019, he referred Councillors to the Performance Dashboard on page 5 of the report and explained that 31% of the audit was now completed. He was pleased to say that no fraud and irregularities had been reported.

 

Following a discussion, it was RESOLVED that the Internal Progress Report 2019-20 be NOTED.

 

 

 

                                               

20.

Internal Audit Plan 2020-21 pdf icon PDF 219 KB

For Decision

Additional documents:

Minutes:

The Deputy Head of Partnership from the Southern Internal Audit Partnership introduced the report. He explained that The Internal Audit Plan would remain fluid and subject to on-going review, and amended in consultation with the relevant officers, to ensure it continued to reflect the needs of the Council.   Amendments to the plan would be identified through the Chief Internal Auditor’s continued contact and liaison with those responsible for the governance of the Council.

in response to a number of questions he confirmed that the 300 days work in the report was flexible.

 

In respect of page 76 and the reference to Projects / Programme Management reviews that Local Authorities had significant projects that could reflect on the reputation of the Council or have financial implications. An example of a project they had reviewed in the last year had been the waste arrangements for the transfer to NORSE SE.

 

Internal Auditors had a conductive arrangement with Executive Board an

d they would on occasions approach the Internal Auditors to ask for a review of a project.

 

Following a discussion, it was RESOLVED that the Internal Audit Plan 2020-21 be APPROVED.

21.

Internal Audit Charter 2020-21 pdf icon PDF 273 KB

For Decision

Additional documents:

Minutes:

The Deputy Head of Partnership from the Southern Internal Audit Partnership introduced the report. He explained that this was the sixth Internal Audit Charter that had been submitted to the Committee for approval. There were no changes to the Charter to that of last year.

 

Following a discussion, it was RESOLVED that the Internal Audit Charter for2020-21 be APPROVED.