Agenda /

AGENDA for the AUDIT COMMITTEE meeting to be held in Committee

Room B, County Hall, Hertford on WEDNESDAY25 MARCH 2009 AT

10.00 A.M.

MEMBERS OF THE COMMITTEE (10) - QUORUM 3

D Beatty, D E Billing,N K Brook, M D Colne, D W Cullen, P V Goggins, B N W Hammond, D B Lloyd,L J B Spencer (Chairman), R Thomas.

AGENDA

PART ONE (PUBLIC) AGENDA

Meetings of the Committee are open to the public (this includes the press) and attendance is welcomed. However, there may be occasions when the public are excluded from the meeting for particular items of business. Any such items would be taken at the end of the public part of the meeting and listed under “Part Two (‘closed’) agenda”.

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1. / MINUTES
To confirm the minutes of the Committee held on 24 September 2008 (previously circulated.)

2.PRICE WATERHOUSE COOPERS (PWC) REVIEW OF TREASURY MANAGEMENT PROCEDURES

Report of the CountySecretary

The Cabinet at their meeting on 19 January 2009 received the attached (doc 1) PWC review of treasury management procedures in light of increased uncertainty on the deposit markets and the County Council’s exposure to Icelandic banks. They also received the attached covering report (doc 2) from the Director of Finance, Information and Commercial Services.

The Cabinet:-

“1.noted that PWC recognise that the County Council consciously amended its Investment Strategy for 2008/09 in the light of more volatile market conditions including the recognition that Glitnir was an unsuitable counterparty for future investments.

2.noted the assurances of the Director of Finance, Information and Commercial Services that the specific recommendations made by PWC have been implemented

3.noted with consternation that investments were made with Landsbanki when that bank was not a suitable counterparty within the terms of the Investment Strategy

4.noted with concern that it appears that in 28 instances there is evidence of review of transactions by only one person and not two as the procedures required

5.instructed the Chief Executive to ensure that any disciplinary or competence issues arising from 3 and/or 4, above (or otherwise arising from this issue) are addressed

6.referred the report to the Audit Committee for its detailed scrutiny

7.agreed to consider the report on the second phase of work by PWC as soon as it is available.”

Recommendations and an Action Plan arising from the first PWC report are attached (doc 3).

A second report from PWC dealing with Treasury Management functions was issued subsequently. That too is attached (doc 4), along with a covering report from the Director of Finance (doc 5). This went to the Policy & Resources Panel on 12 March and to Cabinet on 16 March 2009.

Recommendations and an Action Plan arising from the second PWC report are attached (doc 6).

Also attached is the draft Treasury Management Strategy for 2009/10 (doc 7), which reflects the findings of both PWC reports. This has been to Policy & Resources on 12 March and Cabinet on 16 March 2009, and is due to be formally accepted by the Council on 31 March.

In accordance with the Cabinet resolution, the Audit Committee are invited to undertake their detailed scrutiny.

3.AUDIT COMMISSION REVISED ANNUAL GOVERNANCEREPORT 2007/8

To consider the report from the District Auditor together with a response from the Director of Finance. (to follow)

4.AUDIT COMMISSION USE OF RESOURCES JUDGEMENT REPORT 2008

(to follow)

5.AUDIT COMMISSION ANNUAL AUDIT AND INSPECTION LETTER 2007/8

(to follow)

6.ANNUAL REVIEW OF THE SYSTEM OF INTERNAL AUDIT

Report from the Chief Internal Auditor (attached)

7.INTERNAL AUDIT PLAN 2009/10

Report from the Chief Internal Auditor (attached)

8.FUTURE WORK PROGRAMME

The Committee are invited to agree their future rolling work programme; suggested as follows:-

Wednesday 24 June 2009 at 10am /
  • Election of Chairman and Vice-Chairman
  • Response to Annual Audit and Inspection Letter 2007/08 and update on progress re Annual Governance Report issues
  • Audit Commission Audit and Inspection Plan Letters 2009/10
  • Internal Audit Annual Report 2008/09
  • Annual Statement of Accounts 2008/09
  • Annual Governance Statement 2008/09
  • Annual Report on the Treasury Management Service and Prudential Indicators 2008/09
  • Risk Management Update

Wednesday 23 September 2009 at 10am /
  • Risk Management Update
  • Annual Governance Report 2008/09

Thursday 3 December 2009 at 10 am /
  • Audit Commission Use of Resources Judgement 2009
  • Annual Audit Letter 2008/09
  • Risk Management Update

Please note thatfull papers have been dispatched to Committee members only.

All other members may view these on

Copies of any of the reports are available in hard copy from David Roberts

Tel: 01992 555562or Fax: 01992 555518.

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