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(Public Pack)Agenda Document for Assurance, Audit and Risk

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(Public Pack)Agenda Document for Assurance, Audit and Risk Meeting Pack Derry City and Strabane District Council Dear Member of Assurance, Audit and Risk Committee You are hereby summoned to attend the monthly meeting of the Assurance, Audit and Risk Committee to be held in the Chamber, Guildhall, Derry, on Thursday 9 March 2017 at 4.00 pm. Yours faithfully John Kelpie Chief Executive AGENDA 1 Notice and Summons of Meeting 2 Apologies 3 Declarations of Members' Interests Open for Decision 4 Chairperson's Business 5 Confirmation of the Open Minutes of the Assurance, Audit and Risk Committee held on Thursday 2 February 2017 (Pages 1 - 6) 6 Matters Arising 7 NIAO Audit Strategy (Pages 7 - 26) 8 Western Emergency Preparedness Group Multi-Agency Flood Response Plan (Pages 27 - 90) 9 Review of Winter Flooding (Pages 91 - 234) Open for Information 10 Role of Elected Members (Pages 235 - 238) 1 March 2017 Agenda Item 5 Derry City and Strabane District Council Open Minutes of Assurance, Audit and Risk Committee held in the Council Chamber, Guildhall on Thursday 2 February 2017 at 4.00pm. _______________________ Present: - Councillor McGinley (in the Chair); Aldermen Hamilton, Ramsey and Thompson; Councillors Carlin, Donnelly, Duffy, Gallagher, Hastings, McHugh, McKeever, and Robinson. Non-Members of Committee: - Aldermen Devenney and Hussey; Councillor Carr; Mr Tony Jackson. In Attendance: - Director of Environment and Regeneration (Mrs K Philips), Lead Assurance Officer (Mrs D McDonnell), Internal Audit Manager (Mr J Harrigan), Fleet Manager (Mr Bertie Magee) Risk Manager (Mrs Annmarie Begley),and Committee Clerk (Mrs T Johnstone). ______________________________ AAR13/17 Notice and Summons for Meeting The Lead Assurance Officer read the Notice and Summons for the Meeting. AAR14/17 Apologies Apologies of absence were received from Alderman M Hamilton and Councillor Reilly. AAR15/17 Declarations of Members’ Interests There were no declarations of interests. Open for Decision AAR16/17 Deputations There were no deputations. AAR17/17 Chairperson’s Business Page 1 There was no Chairperson’s Business. AAR18/17 Confirmation of the Open Minutes of the Assurance, Audit and Risk Committee held on 5 January 2017 The Open Minutes of the Assurance, Audit and Risk Committee held on 5 January 2017 (AAR1/17 – AAR11/17) were confirmed and signed by the Chairperson as correct. Matters Arising AAR19/17 DCSDC Annual Audit Letter (AAR09/17) A non-committee Member of the UUP grouping referred to the section on absenteeism where the Chief Executive had advised Members that the topic was discussed every six months at the Governance and Strategic Planning Committee where a full detailed report was presented. He enquired as to when a report had been last presented and when the next one will be presented. The Chair advised the Member he will check on this matter and forward a response. AAR20/17 Internal Audit Report The Internal Audit Manager presented the above report to update Members on the Internal Audit work carried out within Derry City and Strabane District Council in the period December 2016 to January 2017 A Member of the Sinn Fein grouping enquired about Fraud Awareness Training for Members as she had not received any notifications. The Chair advised her that an email had been sent out with a reminder for Members diaries. Mr Tony Jackson commented with regard to Strabane Council purchasing their fuel across the border because of the reduced price and asked officers to advise on the matter. The Director for Environment and Regeneration reported that the systems currently in use were from the two legacy Councils and officers were now in the process of looking at the cost benefit analysis of both to consider a combined approach. Page 2 The Internal Audit Manager commented that there were two different systems operating when the new Council began and they were in the process of reviewing and amalgamating the two systems. He added that there had been a number of recommendations with regard to theDiesel Card Ireland (DCI ) system which was also part of the overall review. The Lead Assurance Officer reported that before the merge of the two councils, Members may recall a number of issues identified previously with the DCI. A significant number of improvements have been made since that time and Council are now in the process of reviewing and amalgamating the two areas. An Independent Member of Council thanked officers for the report but stated that he wished to highlight concerns which were previously raised regarding security at Skeoge Depot. He added that Members were aware of the history of the depot including the issue of a single tender action for a security contract and the concerns surrounding this and was pleased to note that the Internal Audit tem had reviewed this area as part of the audit. The Director of Environment and Regeneration commented that the issues had been noted regarding Skeoge Depot. The Committee Recommended that the contents of the Internal Audit Reports for Derry City & Strabane District Council be endorsed. AAR21/17 Assurance, Audit and Risk Committee Terms of Reference The Lead Assurance Officer read the above report on the Committee’s Terms of Reference A Member of the UUP grouping enquired on the monitoring of the work of other committees and to what level this would be envisaged. Page 3 The Lead Assurance Officer stated that the Governance and Strategic Planning Committee will be presented with reports in relation to performance improvement and assessment. However, it is the role of the Assurance, Audit and Risk Committee to provide assurance that the Council’s arrangements for performance improvement are operating effectively and to actively assist the Council with monitoring the activity of any Committee charged with the scrutiny of performance improvement. The Committee Recommended that the contents of the Report on Terms of Reference for Derry City & Strabane District Council be endorsed. AAR22/17 Risk Review Processes and Update on Council Service Risk Registers The Insurance and Risk Manager presented the report regarding ongoing risk review processes in accordance with Council’s Risk Management Strategy. Mr Tony Jackson commented that a number of the high-scoring risks on the community planning risk register where subject to external variables, and therefore may effectively be outside of Council’s control. The Insurance and Risk Manager reported that the risk register has been prepared in conjunction with the Business Support and Change Manager and was also reviewed and agreed by the Transition Community Planning Partnership. At this stage it was recognised that there were many external factors which would impact on the community plan, and therefore risks related to securing adequate capital funding, accommodating foreign direct investment, and the skills deficit were currently scored highly. The risk register did however include actions which to some extent were within the control of Council and these were subject to ongoing monitoring and review by the Community Planning Partnership. Page 4 A non-committee Member of the UUP grouping referred to the number of high-scoring risks on the Register and enquired when the relevant committee will address the concerns which had been identified. The Director of Environment and Regeneration reported that the risk register had an action plan highlighting the risks which will be presented at the next committee meeting. The non-committee Member of the UUP grouping then enquired as to when the actions would be completed and also if the matter should be presented to Assurance, Audit and Risk Committee or go to the committee that effectively dealt with the issues. The Lead Assurance Officer relayed that a further report in relation to the delivery of actions will be presented to the Governance and Strategic Planning Committee. The Director of Environment and Regeneration reported that the community plan was about to go out into public consultation and although there were controls starting to gather together they were not fully agreed and signed off. She added that a report would be generated on the community plan and forwarded to Governance and Strategic Planning specifically highlighting the risk register. A Member of the SDLP grouping stated that with regard to community planning there were too many variables at work, therefore it would be difficult to come to an exact figure to measure the risk as each of the areas relate to another organisation other than the Council. He added that if a target was set then risk could be measured against that and also the non-completion of tasks. He stated that he was aware that there will always be issues as every community within the DCSDC area had a community plan and would be measuring our performance against that. The Committee Page 5 Recommended that the contents of Risk Review Processes and update on Council Service Risk Registers for Derry City & Strabane District Council be endorsed. The Meeting terminated at 4.25 pm Page 6 Agenda Item 7 Title of Report: Officer presenting: NIAO Audit Strategy Lead Assurance Officer Author: Lead Assurance Officer 1 Purpose of Report/Recommendations 1.1 To purpose of this report is to seek Members endorsement of the Northern Ireland Audit Office's Audit Strategy for Derry City and Strabane District Council for 2016/2017 - refer to Appendix 1. 2 Background 2.1 The purpose of this document is to highlight to the Chief Financial Officer and Audit Committee of the Council: 2.1.1 How the NIAO plan to audit the financial statements for the year ending 31st March 2017, including how they will be addressing significant risks of material misstatement to transactions and balances; 2.1.2 Matters of interest and developments in financial reporting and legislation; 2.1.3 The planned timetable, fees and audit team; and 2.1.4 Matters which the NIAO are required to communicate to the Council under International Standards on Auditing (UK and Ireland) (ISAs), including the scope of the audit, the NIAO's respective responsibilities, and how the NIAO maintain independence and objectivity.
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