Agenda and minutes

Audit Committee - Wednesday, 13th December, 2017 5.00 pm

Venue: Committee Room 4 - Civic Centre, High Street, Uxbridge UB8 1UW. View directions

Contact: Anisha Teji  01895 277655

Items
No. Item

31.

Apologies for absence

Minutes:

Apologies recieved from Cllr Scott Seaman - Digby.

32.

Declarations of interest

Minutes:

There were no declarations of interest.

33.

To confirm that all items marked Part I will be considered in Public and that any items marked Part II will be considered in Private

Minutes:

It was agreed that all the items on the Agenda be considered in public with the exception of Agenda Item 9 - Business Assurance - Corporate Risk Register for Quarter 2 2017/18.

 

34.

Minutes of the meeting held on 31 October 2017 pdf icon PDF 107 KB

Minutes:

The minutes from 31 October 2017 were agreed as an accurate record.

35.

External Annual Audit Letter pdf icon PDF 46 KB

Additional documents:

Minutes:

The Committee was provided with the Ernst Young (EY), the External Auditor, Annual Audit Letter and a cover report.

 

The cover report summarised the key areas of EY's audit work, their findings and the focus of their work going forward, which included; The Council's Financial Statements; Value for Money conclusion; Whole of Government Accounts and Grants Certification.

 

The Annual Audit Letter detailed the expected conclusions from EY's audit work undertaken for the year ended 31 March 2017.  The Committee was informed that quantifications could not be provided at this time in relation to pension disclosure, but work was ongoing to resolve any issues. The Committee was informed that updates would be provided at future meetings.

 

The Committee commented that the report was clear and there was a good result.

 

RESOLVED -

 

That the Audit Committee noted the External Audit Annual Audit Letter.

 

36.

Business Assurance - Internal Audit Progress Report for 2017/18 Quarter 3 (including the Quarter 4 IA Plan) pdf icon PDF 53 KB

Additional documents:

Minutes:

The Senior Internal Audit Manager presented the report which provided summary information on all Internal Audit Work covered in relation to 2017/18 Quarter 3, together with assurance levels in this respect. The Committee was also asked to consider and approve the Quarter 4 Internal Audit Plan.

 

The progress report summarised information on IA assurance, consultant and grant claim verification work covered during the period between 19 September to 4 December 2017. The Committee was informed that since the last progress report to Audit Committee on 18 September 2017 there had been 7 assurance reviews concluded, three consultancy reviews finalised and three grant claims certified. There was therefore reasonable progress being made against the programme of IA work for Quarter 1, 2 and 3. The Committee was also informed that IA continued to monitor all high and medium risk recommendations raised, through to the point where the recommendation had either been implemented or a satisfactory alternative risk response had been proposed by management.

 

Following Member questions, officers confirmed that there were two partly implemented risk recommendations in relation to HMO registration. Two had not been implemented but action was being undertaken, there had been senior management input and management response had been positive.  Officers confirmed that they were satisfied that management would take action to resolve any issues and they were actively taking matters forward.

 

RESOLVED –

 

1.  That the Internal Audit progress report for 2017/18 Quarter 3 be noted and approval be given to the Quarter 4 Internal Audit Plan for 2017/18.

 

2.  That the Committee noted that the coverage, performance and results of Business Assurance Internal Audit activity within this quarter. 

 

 

 

37.

Business Assurance - Counter Fraud Progress Report for 2017/18 Quarter 3 (including the Quarter 4 Counter Fraud Plan) pdf icon PDF 60 KB

Additional documents:

Minutes:

The Committee was provided with a report which gave details on the work being undertaken by the Business Assurance Counter Fraud Team (BACFT; formerly known as the Corporate Fraud Investigations Team).

 

The Committee was informed that there had been successful recruitment of the new Counter Fraud Manager. There was a major review of the BACFT structure and there would be a period of significant change with an aim to move to a more risk based approach. It was accepted that more work needed to be undertaken in relation to housing, schools, asylum and preventative work as much of the work undertake at the moment related to housing. The Committee was informed that it was hoped that there would be a team in place by 1 February 2017.

 

Officer confirmed that performance had dipped but this was expected. The Committee was informed that the proposed restructure would focus on three hubs namely intelligence, verification and investigations. There was an aim of putting in less resource in investigations and more into intelligence and verification.

 

In response to Member questions, officers confirmed that they were confident about back filling posts and there was an intention to recruit people with a wide range of skills across the team, including trainees and apprentices. Officers also confirmed that although there was a perception of one team, officers would lead on two different areas, one manager would look after CF and the other would focus on IA. IA was a valued added services and there was a lot of request for auditors to review services across the Council.

 

 

RESOLVED -

 

1.    That the Counter Fraud Progress Report for 2017/18 Quarter 3 be noted and approval be given to the Quarter 4 Counter Fraud Plan.

 

2.    That the Committee noted that the coverage, performance and results of BACFT activity within this quarter. 

 

38.

Audit Committee Forward Programme pdf icon PDF 57 KB

Minutes:

The Audit Committee Forward Programme was noted.

 

Democratic Services were asked to look into changing the meeting date proposed on 23 January 2019 to allow sufficient time for reports to be prepared.  

39.

Business Assurance - Corporate Risk Register for Quarter 2 2017/18

Minutes:

This item was discussed as a Part II item without the press or public present as the information under discussion contained confidential or exempt information as defined by law in the Local Government (Access to Information) Act 1985.  This was because it discussed ‘information relating to the financial or business affairs of any particular person (including the authority holding that information)’ (paragraph 3 of the schedule to the Act).

 

The report presented to Members the Corporate Risk Register for Quarter 2 (July to September 2017). The report provided evidence about how identified corporate risks were being managed and the actions which were being taken to mitigate against those risks.

 

 

RESOLVED –

 

1.    That the Committee reviewed the Corporate Risk Register for Quarter 2 (July to September 2017), as part of the Committee's role to independently assure the risk management arrangements in the Council.