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Audit and Standards Committee AUDIT AND STANDARDS COMMITTEE Meeting Papers Thursday, 25 September 2014 at 19:00 Page 1 of 186 Members of Audit and Standards Committee Dorcas Binns - Member, Paul Carter - Member, Margaret Wigzell - Member, Colin Fryer - Member, Thomas Williams - Vice Chairman, Karon Cross - Member, Nigel Studdert-Kennedy - Chairman, Keith Pearson - Member, Martin Baxendale - Member FIRE EVACUATION PROCEDURES FOR VISITORS AT EBLEY MILL • Upon hearing the fire alarm, visitors should immediately evacuate the building by the nearest fire exit. These are located at the rear of the chamber, and the side door leading to the roof garden, marked as Fire Exits. • Proceed to the main staff car park, and assemble at the NB sign. • DO NOT stay, or return, to collect personal belongings. • DO NOT use the lifts when the alarm is sounding • Visitors must remain at the assembly points until permission is given to leave. • Visitors must not leave the site until instructed to do so. For details of future meetings please see the website – www.stroud.gov.uk ALL MOBILE PHONES/PAGERS SHOULD BE SWITCHED OFF OR SET TO SILENT MODE BEFORE THE START OF THE MEETING. Page 2 of 186 15 SEPTEMBER 2014 AUDIT AND STANDARDS COMMITTEE A meeting of the Audit and Standards Committee will be held on THURSDAY, 25 SEPTEMBER 2014 in the Council Chamber, Ebley Mill, Ebley Wharf, Stroud at 19:00 . David Hagg Chief Executive A G E N D A Please Note: This meeting will be filmed for live or subsequent broadcast via the Council’s internet site ( www.stroud.gov.uk ). The whole of the meeting will be filmed except where there are confidential or exempt items, which may need to be considered in the absence of the press and public. The images and sound recording may be used for training purposes within the Council. Whilst the public seating areas are not directly filmed, particular camera shots around the Chamber may capture persons seated in the public areas. If you ask a question in accordance with the procedu res in the Council’s Constitution and use a microphone for this purpose, then you will be deemed to have consented to being filmed. By entering the Council Chamber and using the public seating areas, you are consenting to being filmed and to the possible use of those images and sound recordings for webcasting and/or training purposes. If you have any queries regarding the above, please contact Democratic Services. Page 3 of 186 Audit and Standards Committee Agenda Published: 15 September 2014 1 APOLOGIES 2 DECLARATIONS OF INTEREST To receive declarations of interest. 3 MINUTES - 15 JULY 2014 To confirm and sign the minutes of the meeting held on 15 July 2014. 4 PUBLIC QUESTION TIME The Chair of the Committee will answer any questions from members of the public, submitted in accordance with the Council's procedures. DEADLINE FOR RECIEPT OF QUESTIONS Noon on Monday 22 September 2014, Questions must be submitted in writing to the Chief Executive, Democratic Services, Ebley Mill, Ebley Wharf, Stroud, and sent by post, by fax (01453 754957), or by Email: [email protected] . 5 WORK PROGRAMME 2014 -15 To consider items for the Committee’s work programme for 2014/15. 6 HRA OUTTURN 2013 -2014 To inform Committee of variance within the HRA Outturn for 2013/14 7 KPMG - REPORT TO THOSE CHAR GED WITH GOVERNANCE - ISA 260 To note the report. 8 STATEMENT OF ACCOUNT S REPORT To seek approval of the audited Statement of Accounts for the year ending 31 March 2014. 9 INTERNAL AUDIT PLAN MONITORING REPORT To accept the above report. 10 INTERNAL AUDIT CHART ER To approve the revised Internal Audit Charter. 11 ANNUA L REPORT ON FRAUD AN D CORRUPTION 2013 -14 To note the above report. Page 4 of 186 Audit and Standards Committee Agenda Published: 15 September 2014 12 REVIEW OF PROCUREMEN T PROCESS To resolve to support the actions being taken on improvements to the current procurement processes. 13 MEMBERS' QUESTIONS See Agenda Item 4 for deadline for submission. Page 5 of 186 Audit and Standards Committee Agenda Published: 15 September 2014 2014/15 AUDIT AND STANDARDS COMMITTEE 3 15 July 2014 7.00 pm - 9.50 pm Council Chamber, Ebley Mill, Stroud Minutes Membership Councillor Nigel Studdert-Kennedy * P Councillor Karon Cross P Councillor Tom Williams** P Councillor Colin Fryer A Councillor Dorcas Binns P Councillor Keith Pearson P Councillor Paul Carter P Councillor Rhiannon Wigzell P * Chair ** Vice-Chair P = Present A = Absent Other Councillor Present Councillor Nigel Cooper Officers in attendance Strategic Head (Finance & Business Services) Principal Accountants Internal Audit Manager Democratic Services Assistant AC.001 APOLOGIES An apology for absence was presented on behalf of Councillor Colin Fryer. AC.002 DECLARATIONS OF INTEREST There were none. AC.003 MINUTES RESOLVED That the Minutes of the meeting of the Audit and Standards Committee held on 25 March 2014, are approved as a correct record and signed by the Chair. AC.004 PUBLIC QUESTION TIME None received. Page 6 of 186 Audit and Standards Committee Subject to approval 15 July 2014 at the next meeting 2014/15 AC.005 AUDIT AND STANDARDS TERMS OF REFERENCE AND WORK PROGRAMME The Committee considered a report on the Audit and Standards Terms of Reference and Work Programme. In introducing the report the Strategic Head (Finance & Business Services) explained that the Committee could not approve its own terms of reference as this can only be approved by full Council. However it could agree to its Core Functions set out at Appendix ‘A’ as a ‘Guide as to the Audit and Standards Committee Work’. A summary of the points raised during discussion is set out below: The ‘Guide’ should include reference to Review Hearings where tenants have been served with a Notice of Possession Proceedings. Monitoring of the Councils Codes and protocols should be added to the Work Programme. Reference was made to the significant variations in the recent Housing Outturn 2013/14 report which suggested there were issues with financial monitoring and control. It was suggested that the Committee should undertake a monitoring role and requested a report be presented to the Committee in September 2014 explaining the number of variations. The Constitution should include reference to the Committees ‘Guide as to Your Work’. RESOLVED a) To Approve the ‘Guide to the Audit and Standards Committees work’ as set out in Appendix A. b) To note the Work Programme set out in Appendix B, subject to the following amendments: i) Report to a future meeting on Codes and Protocols. ii) Report to the meeting in September 2014 on significant budget variations in the Housing Outturn 2013/14 report. AC.006 KPMG – AUDIT FEE LETTER 2014-15 The Committee considered the audit work and fee proposed for the 2014/15 financial year. RESOLVED To note the letter. AC.007 KPMG – INTERIM AUDIT LETTER The Committee considered a letter from the external auditors confirming that the planning and interim audit work had been completed in line with the timetable set out in the External Audit Plan. It was reported that the audit work had gone smoothly and had not identified any significant issues. RESOLVED To note the Interim Audit Letter. Page 7 of 186 Audit and Standards Committee Subject to approval 15 July 2014 at the next meeting 2014/15 AC.008 STATEMENT OF ACCOUNTS The Committee considered a report on the unaudited Statement of Accounts 2013/14. A summary of the points raised during discussion is set out below: There were a number of suggestions were phrases in the statement could be reworded for clarity and consistency including i) page 7 references to ‘cuts in government funding’ could be amended to be consistent with the later descriptions to ‘changes to government funding’ ii) page 6 references to risks associated with business rates retention scheme which appeared negative and iii) page 6 the reference to investment of HRA into a renewable heating programme could be extended to include what the investment was about. Changes as a result of the discount factor. It would be helpful to have narrative explaining the pay increase of Senior Officers set out on Page 60. RESOLVED To note the presentation of the unaudited Statement of Accounts for the year ending 31 March 2014. AC.009 ANNUAL REPORT ON TREASURY MANAGEMENT ACTIVITY AND ACTUAL PRUDENTIAL INDICATORS 2013/14 The Committee considered a report on i) the treasury management activities in 2013/14, in accordance with the Council’s Treasury Policy Statement and ii) actual 2013/14 Prudential Indicators in accordance with the requirements of the Prudential Code. A summary of the points raised during discussion are set out below: The definition of fixed term investments was up to 1 year. Officers had considered options for accessing funds held by the Glitnir Icelandic Bank and had taken advice from the LGA but were content at the moment with leaving the funds in the account given the high interest rate applied. In terms of choosing accounts for depositing money advice was provided to the Local Authority by Capita Asset Services. Some accounts with current day access had offered a better rate of late. An account currently returning a low rate of interest which had a small balance of £35 had remained open for cash flow purposes. RESOLVED To accept the treasury management activity annual report for 2013/2014, and approves the actual Prudential Indicators. Page 8 of 186 Audit and Standards Committee Subject to approval 15 July 2014 at the next meeting 2014/15 AC.010 1ST QUARTER TREASURY MANAGEMENT ACTIVITY REPORT 2014/15 The Committee considered an update to the treasury management activity as at 30 June 2014.
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