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Members of the Audit and Corporate Governance Committee Councillors Professor StevenDiana Broomhead Terris To: All Members of the Audit and Corporate ChiefC hiefExecutive Executive Governance Committee TownTown HallHal lHall Councillors: SankeySankey Street Street WarringtonWarrington WA1WA1 1UH 1UH Chair: C Fitzsimmons P Bretherton, G Friend, J Joyce, J Kerr-Brown, L Morgan, S Parish, M Smith, B Axcell, I Marks and P Kennedy 17 September 2014 Audit and Corporate Governance Committee Thursday, 25 September 2014 6.00pm Informal meeting with the External and Internal Auditors – Room 1 6.30 pm – Council Chamber Town Hall, Sankey Street, Warrington. WA1 1UH Agenda prepared by Louise Murtagh, Democratic Services Officer – Telephone: (01925) 442111, Fax: (01925) 656278, Email: [email protected] AGENDA Part 1 Items during the consideration of which the meeting is expected to be open to members of the public (including the press) subject to any statutory right of exclusion. Page Number 1. Apologies To record any apologies received. 2. Code of Conduct – Declaration of Interests Members are reminded of their responsibility to declare any disclosable pecuniary or non-pecuniary interest which they have in any item of business on the agenda no later than when the item is reached. 3. Minutes To confirm the Minutes of the meeting of 23 June 2014 as a correct record. 4. Review of the May 2014 Elections Report of the Returning Officer 5. Review of the Annual Risk Management Report Report of the Deputy Chief Executive 6. Annual Ombudsman Letter 2013/2014 Report of the Solicitor to the Council and Assistant Director Corporate Governance 7. Academy School Liabilities Report of the Director of Finance and Information Services 8. Response to Grant Thornton’s Letter - Response to Grant Thornton Questions on Processes to Prevent and Detect Fraud and to Ensure Compliance with Laws and Regulations Report of the Director of Finance and Information Services 9. Response to Grant Thornton’s Letter - Understanding how the Audit and Corporate Governance Committee gains assurance from management Report of the Chair of the Audit and Corporate Governance Committee 10. Annual Findings Report To follow Report of Grant Thornton, External Auditor 11. Annual Governance Statement 2013/2014 Report of the Director of Finance and Information Services 12. Statement of Accounts 2013/2014 & Letter of Representation To follow Report of the Director of Finance and Information Services 13. Local Authority response to Grant Thornton Challenge Questions Report of the Director of Finance and Information Services 14. Treasury management quarterly monitoring report Report of the Director of Finance and Information Services 15. Southern Gateway Regeneration Scheme To Follow Report of the Director of Finance and Information Services 16. Internal Audit Monitoring Reports including Monitoring of Implementation of Recommendations Report of the Chief Internal Auditor 17. Produce annual report of the Audit and Corporate Governance Committee (to Full Council) Report of the Chairman of the Audit and Corporate Governance Committee 18. Work Programme 2014/2015 Report of the Audit and Corporate Governance Committee Part 2 Items of a “confidential or other special nature” during which it is likely that the meeting will not be open to the public and press as there would be a disclosure of exempt information as defined in Section 100I of the Local Government Act 1972. If you would like this information provided in another language or format, including large print, Braille, audio or British Sign Language, please call 01925 443322 or ask at the reception desk in Contact Warrington, Horsemarket Street, Warrington Agenda Item 3 AUDIT & CORPORATE GOVERNANCE COMMITTEE 23 JUNE 2014 Present: Councillor Fitzsimmons (Chairman) Councillors Axcell, Bretherton, Friend, Joyce, Kennedy, Marks, Morgan and Smith AG1 Apologies for Absence Apologies for absence were received from Councillors Parish and Kerr-Brown. AG2 Code of Conduct There were no declarations of interest made by Councillors. AG3 Minutes Decision - That the minutes of the meeting held on 24 April 2014 be approved as a correct record and signed by the Chair. AG4 Audit and Corporate Governance Committee Self-Assessment The Committee considered a report of the Solicitor to the Council and Assistant Director Corporate Governance which presented the completed self-assessment document and the evaluation of the effectiveness of the Committee to the Audit and Corporate Governance Committee for review and approval. Nominated members Councillors Fitzsimmons, Kennedy, Axcell and Parish had completed the self- assessment and evaluation at a workshop on 30 April 2014. The Solicitor to the Council and the Chief Internal Auditor assisted with the interpretation of the questions and provided advice on best practice. The checklist and the evaluation document were taken from the Chartered Institute of Public Finance and Accountancy (CIPFA) Practical Guidance for Audit Committees December 2013. These provided the Committee with an opportunity to assess the performance and effectiveness of the Committee and to identify any areas where development was needed. Decision – That the Audit and Corporate Governance Committee reviewed and approved the completed self-assessment document and the evaluation of the effectiveness of the Committee and the action points noted: • Amend the Terms of Reference of the Committee to refer to the CIPFA guidance • To discuss with the External Auditors their work to support their Value for Money (VFM) opinion. Include assurance on VFM in the Committee’s workplan – need to receive assurance from the organisation and from partners organisations. The VFM report of the external auditor would be presented at the next Audit and Corporate Governance Committee meeting. Agenda Item 3 AG5 Annual Report of the Officers’ Governance Group and Implementation of AGS Action Plan (2013/2014) Items The Committee considered a report of the Deputy Chief Executive which briefed Members on the work undertaken by the Officer Governance Group in relation to corporate governance for the year 2013/14. The report also provided details of the progress against the actions from the 2012/13 Annual Governance Statement. The report also provided information that allowed members: • To receive assurance that the governance group provided adequate and effective challenge and scrutiny to the Strategic Management Team (SMT) in respect of the governance and risk management arrangements of the Council; • To consider and approve the Council’s Annual Governance Statement with a full understanding of the risk the Council faced and what it was doing to reduce these risks; and • To demonstrate that those charged with governance had a full understanding of management’s processes with regard to governance and risk management arrangements and internal control. During the ensuing conversation members requested that details relating to complaints and comments from customers be included in the information that they receive. Decision – That the Audit and Corporate Governance Committee consider and note the report as part of its monitoring role. AG6 Strategic Risk Report – Quarter 4 2013/2014 The Committee considered the report of Councillor Hitesh Patel, Executive Board Member Personnel and Communications which provided a high level summary of the Council’s strategic risk environment as at the end of quarter 4, 2013/2014. It outlined activity undertaken during the period to manage strategic risks and detailed amendments to the register. This provided Members with an opportunity to review and comment on the Council’s current evaluation of its strategic risks and to suggest new risks to be considered for the inclusion in the register. Risks had been continually reviewed and refocused during 2013/14 and specifically related to the ability to deliver the Council pledges. Decision – That the Audit and Corporate Governance Committee reviewed and commented on the Council’s Strategic Risk Register Q4 (2013/2014) monitoring report as part of its monitoring role. AG7 Anti-Fraud, Bribery and Corruption Annual Report: 2013/2014 The Committee considered the report of the Director of Finance and Information Services which presented the work carried out during the past year to minimise the risk of fraud, bribery and corruption occurring in the Council. This supported the requirements of the Accounts and Audit regulations (England) 2011, which stated that the Council must have measures in place “to enable the prevention and detection off inaccuracies and fraud” (including bribery and corruption). Agenda Item 3 The report also set out planned work for 2014-15, highlighted some of the current areas of fraud risk and provided a conclusion on the effectiveness of controls in place to minimise the risk of fraud occurring in the Council. Members discussed the annual policy and made the following observations – • That the benefit fraud team had identified that £477,791 had been fraudulently overpaid. This represented 0.68% of overall Council funding • That data matching and analysis had identified 3 contracts had not been subject to competition as they should have been. Details relating to these contracts would be brought to a future committee meeting • The potential for fraud within academies in the borough. Academies were responsible for their own budgets but their accounts were public documents. As such the headline figures could be presented to the committee for scrutiny Decision – That the Audit and Corporate Governance Committee considered and comments upon
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