MEMORANDUMDate: 22 June 2006

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To:All Members of the Audit Panel FromCOUNTY SECRETARY’S

DEPARTMENT

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AUDIT PANEL

21 June 2006

MINUTES

ATTENDANCE

MEMBERS OF THE PANEL

N K Brook, M D Colne, R Mays, A Mitchell, S Quilty, H M Saunders (Chairman),

R Thomas.

Also in attendance:R I N Gordon, Executive Member for Performance and Resources.

Upon consideration of the agenda for the Audit Panel meeting on 21 June 2006 as circulated, copy annexed, action was taken or decisions were reached on individual items as recorded below:-

1. / MINUTES / ACTION
The minutes of the Panel held on 30 March 2006 were confirmed.
1A. / ANNOUNCEMENTS
The Chairman informed the Panel that this would be its last meeting as a Panel, because the County Council on 27 June 2006 were being asked to set up an Audit Committee in its place, in order to comply with new Government Regulations.
The remit for the new Committee would be included in the Council’s Constitution, but its membership and Chairmanship would remain the same as that of the Panel.
It was announced that this would be the last meeting for Rob Murray as District Auditor, who was moving on to a new position within the Audit Commission. The Panel thanked him for all his hard work on the Council’s behalf and wished him well for the future. Rob Murray introduced his likely successor, Debbie Hanson, and the Panel welcomed her.
2. / INTERNAL AUDIT ANNUAL REPORT 2005/6
The Panel received the report of the Chief Internal Auditor, commenting as follows:-
On page 5 of the report, the Panel asked for a further report to the December meeting on financial management operated by HCC’s strategic partners and the action taken to ensure that roles and communication processes are clear and effective. / Chris Kay to speak to David Moses
On pages 20/21 of the report, the Panel asked that the attention of the appropriate scrutiny committee be drawn to concerns raised in regard to Energy Management and Monitoring.
On page 22, the Panel asked for a report back to the September meeting as to whether the ‘nominal roll’ check with HCC departments had been done. / Chris Kay to raise with Director of People and Property
On page 23 the Panel asked how much of the figure of £41,190 of duplicate payments had been recovered. (The Chief Internal Auditor subsequently found that £30783 had been recovered, with the remainder being actively pursued.)
On page 31 the Panel were concerned that no progress had been made by the Chief Fire Officer in updating his Scheme of delegation, nor in revising/updating the service’s financial regulations, nor in introducing a gifts and hospitality register, nor on introducing performance management arrangements. They asked for a report to the September meeting on whether action has now been taken. / Chris Kay to raise with the Chief Fire Officer
3. / COUNTY COUNCIL REVENUE AND CAPITAL BUDGET MONITOR 2005/6
The Panel received the budget monitor, detailing the forecast outturn for Revenue and Capital budgets for 2005/6 (which had also been received by the Cabinet on 19 June 2006).
The Panel noted the differences between the year end budget monitor and the draft statutory accounts. They also noted that the budget monitor did not show any systematic problems.
The Panel thanked all the officers for their hard work in ensuring that the accounts could be approved by the end of June.
4. / ANNUAL STATEMENT OF ACCOUNTS
The Panel noted and commended the Annual Statement of Accounts, for County Council to approve on 19 July 2005.
It was noted the accounts were still subject to audit, and the District Auditor informed the meeting that he expected to conclude this by the end of September. He would present a report on the matter to the Audit Committee on 27 September.
There were also a few minor amendments which needed to be made and the Finance Director would present these as an Appendix at the Council meeting.
The Finance Director took the Panel through the report, highlighting where key changes had taken place during the year and explaining the consolidated balance sheet.
The Panel asked the following questions:-
Members questioned whether the notes to the balance sheet relating to borrowing should include an analysis of debt by interest rate bands. The finance director advised that this was not a requirement of the Statement of Recommended Practice for LA accounts.
Members asked whether more detail concerning the basis of the valuation of assets and the impact of valuation changes should be shown in the notes to the accounts. The Finance Director confirmed that the level of disclosure presented within the accounts was in compliance with SORP requirements, but that the note would be reviewed for the future.
Members queried what the provisions for insurance and legal charges shown in the notes to the accounts represented. The Finance Director confirmed that these related to the estimated value of known claims / cases in process.
5. / REVIEW OF AND STATEMENT ON INTERNAL CONTROL 2005/6
The Panel noted and commended the Annual Statement on Internal Control for County Council approval on 19 July 2005.
6. / THE COUNCIL’S RISK MANAGEMENT PROCESS – MONITORING UPDATE
The Panel received a report from the Finance Director detailing the risks in the Key Risks Register, including the movement of risks between monitoring periods.
7. / FUTURE WORK PROGRAMME
The Panel agreed the following work programme:-
Wednesday 27 September 2006 at 10 am /
  • Any outstanding audit issues
  • Risk Management update
  • Latest Financial Monitoring report
  • Report from District Auditor on the audit of the 2005/6 accounts
  • Report on ‘nominal roll’ checks with HCC departments
  • Report from Chief Fire Officer on issues highlighted in the Internal Audit Annual Report 2005/6

Thursday 14 December 2006 at 10 am /
  • Audit Commission Audit & Inspection Annual Letter 2006
  • Any outstanding audit issues
  • Risk Management update
  • Latest Financial Monitoring report
  • Further report on Financial Management issues highlighted in Internal Audit Annual Report 2005/6

Wednesday 28 March 2007 at 10 am /
  • Audit Commission Audit and Inspection Plan 2007/8
  • Internal Audit Plan 2007/8
  • Any outstanding audit issues
  • Risk Management update including Annual Report 2006/7
  • Latest Financial Monitoring report

Wednesday 20 June 2007 at 10 am /
  • Internal Audit Annual Report 2006/7
  • Annual Statement of Accounts 2006/7
  • Review and Statement of Internal Control 2006/7
  • Any outstanding audit issues
  • Risk Management update
  • Latest Financial Monitoring report

ANDREW LAYCOCK

CountySecretary

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Audit 210606 Mins