Agenda and minutes

1.1

An apology for absence was received from Councillor Martin Lawton.

2.1

No items were identified where resolutions may be moved to exclude the press and public from the meeting.

3.1

There were no declarations of interest.

4.1

The minutes of the meeting of the Committee held on 9 July 2013 were approved as a correct record.

5.1

The Deputy Director of Finance introduced a report of the Executive Director, Resources that communicated any relevant matters arising from the audit of the 2012/13 Statement of Accounts. Appended to the report were the Statement of Accounts and the External Auditor’s Report to Those Charged with Governance (ISA 260). The Deputy Director indicated that the overall financial position had not changed to that indicated in the Summary of the Accounts considered by the Committee on 9 July 2013. An unqualified opinion was expected from the external audit of the Accounts.

External Auditor’s Report to those Charged with Governance (ISA 260)

5.2

The Council’s External Auditor, John Prentice, Director KPMG, introduced his ‘Report to Those Charged with Governance’ (ISA 260) that summarised the key issues identified during the audit of the Council’s financial statements for the year ended 31 March 2013 and his assessment of the Council’s arrangements to secure value for money in its use of resources. He highlighted the headline messages and anticipated issuing an unqualified audit opinion and value for money conclusion by 30 September 2013. A certificate could not be issued to close the 2012/13 audit before the work on the objections to the 2011/12 accounts was completed in approximately 8 weeks’ time.

5.3

Mr Prentice outlined the proposed audit opinion and audit differences, the key risks affecting the financial statements (these included the Council’s savings plans, Digital Region Limited and the Highways Private Finance Initiative), accounts production and audit process, the control environment, completion of the audit, specific value for money risks, the key issues and recommendations from the audit relating to Digital Region and the follow-up of the recommendations from the 2011/12 audit.

5.4

In respect of the outstanding objection to the accounts relating to the former South Yorkshire Trading Standards Unit, the Chief Executive outlined the current legal position with the other three local authorities and indicated that he would be able to confirm the course of action to be taken at the next meeting of the Committee.

5.5

In response to questions from Members of the Committee relating to Digital Region and the recommendations in the External Auditor’s report, the Chief Executive indicated that he did not wish for the proposed independent review to affect the winding up of the organisation. The review should involve the four South Yorkshire local authorities and the Government. It was not possible at this time to provide details of potential timescales as the terms of reference for the review had not yet been drafted. However, the Chief Executive would be in a position to provide further information to the next meeting of the Committee.

5.6

Officers responded to further questions from members of the Committee relating to earmarked reserves and the control environment.

Statement of Accounts

5.7

In response to questions from members of the Committee on the Communities’ budget position and Adult Social Care, the Chief Executive indicated that the Directors of Resources and Communities were implementing a recovery plan and this would bring significant  ...  view the full minutes text for item 5.

6.1

The Senior Finance Manager (Internal Audit) introduced a report that highlighted the role of Internal Audit and the work undertaken during 2012/13 and which supported the Council’s Annual Governance Statement. The report provided an executive summary of audit opinion and information on the planning process, audit reporting and services reviews. Appended to the report were the Internal Audit Charter, structure and Protocol and a client questionnaire.

6.2

Officers responded to questions from members of the Committee relating to the process where management did not agree to recommendations from Internal Audit reports and the reporting routes for the Senior Finance Manager acting as the Chief Audit Executive.

6.3

Resolved: That the Committee:-

(a)

notes the contents of the report now submitted and the opinion of the Chief Audit Executive (Senior Finance Manager);

(b)

approves the revised Internal Audit Charter as required by the Public Sector Internal Audit Standards; and

(c)

requests that arrangements are made for:-

(i)

a private meeting to be held before meetings of the Committee with the External Auditor and Internal Audit to discuss any issues of concern, with the meetings held at the request of the External Auditor or the Committee and

(ii)

a private meeting between the External Auditor and the Committee to be held at least once a year.

7.1

The Director of Legal and Governance submitted a report that provided details of a proposed draft work programme for the Committee for 2013/14.

7.2

Resolved: That the Committee approves the work programme for 2013/14 with the inclusion of items on Digital Region and South Yorkshire Trading Standards.

8.1

It was noted that meetings of the Committee would be held at 6.00 p.m. on:-

·         Thursday 14 November

·         Thursday 12 December (additional meeting if required)

·         Thursday 9 January 2014

·         Thursday 13 February (additional meeting if required)

·         Thursday 13 March (additional meeting if required)

·         Thursday 10 April