Accounts and Governance Committee Minutes: 23 September 2010

Eden District Council

Date: 23 September 2010, Venue: Town Hall, Penrith, Time: 6.45pm

Present:

Mr Ian Boit from the Audit Commission attended for agenda items 2, 8 and the urgent item. The District Auditor, Karen Murray, had sent her apologies as she was unable to attend.

The Chairman announced that an urgent item had been received for consideration and that this would be considered between items 7 and 8 on the agenda.

AGc/10/9/10 Apologies for Absence

An apology for absence had been received from Councillor B Metz.

AGc/11/9/10 Minutes

Minutes AGc/1/6/10 to AGc/9/6/10 of the meeting of this Committee held on 30 June 2010 were approved as a correct record of those proceedings.

AGc/12/9/10 Declarations of Interest

None

AGc/13/9/10 Implementation of Internal Audit Recommendations

The Committee considered report F66/10 of the Director of Finance which set out the progress on implementing the agreed recommendations from the internal audit reports.

Councillor Mrs M Wilcox joined the meeting at 6.50pm

RESOLVED that the progress against the agreed recommendations be noted

AGc/14/9/10 Abolition of the Audit Commission

The Committee considered report F72/10 of the Director of Finance which advised Members of the decision of the Secretary of Sate for Communities and Local Government, Eric Pickles, to abolish the Audit Commission. The Department of Communities and Local Government had also recently announced the scrapping of the Use of Resources and Comprehensive Area Assessment (CAA). The new arrangements would take effect from the 2012-13 audit year.

Members were informed that there should be a saving on the audit fee, although this would mainly arise from the end to the Use of Resources and CAA. The Council would also need to commission its own external auditors. It may be possible to reduce costs by undertaking a joint procurement with other authorities.

Ian Boit informed members that the current tendering process for auditors for Cumbrian Authorities would go ahead. He said there may be difficulties for authorities which had made extensive use of consultancy in the past as there could be a conflict of interest. He also said that rural councils could encounter problems with audit firms being reluctant to provide the service in remote areas.

Members would be kept informed of any further information as it becomes available.

RESOLVED that the report be noted

AGc/15/9/10 Internal Audit - Completed Audit Reports

The Committee considered report F73/10 of the Director of Finance which advised Members of the findings and recommendations of reports that had recently been completed by the Council’s Internal Audit Service.

RESOLVED that the report be noted

AGc/16/9/10 Implementation of External Audit Recommendations

The Committee considered report F74/10 of the Director of Finance which set out the progress on implementing the recommendations from external audit reports.

RESOLVED that the report be noted

The Chairman considered that the following item should be considered as a matter of urgency at this meeting because a delay of one committee cycle would not be in the best interests of the efficient running of the service.

AGc/17/9/10 External Auditor: 2009-2010 Audit Opinion Plan

The Committee considered report F77/10 of the Director of Finance which set out the external auditor’s plan for arriving at her opinion on the Council’s annual accounts. As the Committee responsible for approving the annual accounts, and receiving the external auditors reports thereon, it is appropriate that the Committee see the auditor’s plan which sets out how the audit will be undertaken.

RESOLVED that the 2009-10 audit opinion plan be noted

AGc/18/9/10 Audit of Accounts 2009-10: Report of the External Auditor

The Committee considered report F75/10 which set out the results of the 2009-10 audit and the report of the external auditor, the Audit Commission, on the accounts (also known as ‘financial statements’).

The Finance Services Manger thanked Mr Boit for the professional manner in which the Audit Commission team had carried out the audit.

Members congratulated the Council’s finance team on meeting the value for money criteria in the audit report, especially given the challenging economic situation.

RESOLVED that:

1. The Financial Statements be approved and formally adopted on behalf of the Council
2. The adjustments to the financial statements be noted PDF: 4 pages / 60 Kb
3. The following reasons be set out in the letter of representation for not amending errors which management has declined to amend PDF: 7 pages / 90 Kb

a.    The adjustments have no impact on the Council’s revenue surplus or deficit for the year
b.    The adjustments set out in Appendix 2 are more conveniently adjusted in the 2010-2011 accounts
c.    They have little impact on the reader’s understanding of the accounts.

1. The Letter of Representation be approved PDF: 3 pages / 33 Kb
2. the proposed action plan be agreed PDF: 1 page / 26 Kb

AGc/19/9/10 Date of Next Scheduled Meeting

Members were informed that the next scheduled meeting of the Accounts and Governance Committee will take place on 9 December 2010.

The meeting closed at 7.45pm