Meeting documents

Audit Committee
Tuesday, 12th June, 2018 9.30 am

Date: Tuesday 12th June 2018 Time: 9.30 a.m. Place: Council Chamber, Civic Centre, Ebbw Vale

Please note: all Minutes are subject to approval at the next Meeting

PresentAndReport toReport of
Mr. Peter Williams (CHAIR)
Item
No
Item/Resolution Status Action
PUBLIC
1. TUDALEN GLAWR AGENDA GYMRAEG/WELSH VERSION OF AGENDA COVERSHEET
Tudalen Glawr Agenda Gymraeg/Welsh Agenda Coversheet (171K/bytes)
Noted
2. SIMULTANEOUS TRANSLATION

It was noted that no requests had been received for the simultaneous translation service.

Noted
3. TIMING OF FUTURE MEETINGS

RESOLVED that future meetings continue to be held at 9.30 a.m.

Agreed
4. APOLOGIES

The following apologies for absence were reported:-

Councillors J. Collins, G. Paulsen, M. Cross, S. Thomas, Mike Davies WAO Representative

Noted
5. DECLARATIONS OF INTEREST AND DISPENSATIONS

No declarations of interest or dispensations were reported.

Noted
6. APPOINTMENT OF CHAIR

Nominations were sought for the appointment of Chair of the Audit Committee for 2018/2019.

A Member proposed that Mr. Peter Williams be appointed to the role, and this proposal was seconded.

Upon a vote being taken it was

RESOLVED that Mr. Peter Williams be appointed as Chair of the Audit Committee for 2018/2019.

Agreed
7. AUDIT COMMITTEE
Minutes (225K/bytes)
Cofnodion (172K/bytes)

The minutes of the Audit Committee held on 27th March, 2018 were submitted for accuracy points.

A Member said she had questioned whether the 2016/2017 Statement of Accounts had been finalised. The Head of Financial Services said she understood that WAO were still undertaking a review of the correspondence that had been received.

Following a brief discussion the Officer undertook to enquire as to progress of the 16/17 Statement of Accounts, and when sign off could be expected.

RESOLVED, subject to the foregoing, that the minutes be accepted as a true record of proceedings.

Agreed
8. CODE OF GOVERNANCE
B:\Wider CMT Support\Directorate Management Teams\Reports\Audit\2018-1 (337K/bytes)
B:\Wider CMT Support\Directorate Management Teams\Reports\Audit\2018-1 (294K/bytes)

Consideration was given to the report of the Head of Internal Audit.

The Head of Internal Audit spoke to the report which presented the Authority's revised Code of Governance which formed the basis against which the Annual Governance Statement was produced, and sets out the governance framework and how the Authority operates its governance arrangements.

The Audit Committee had been delegated responsibility for reviewing and approving the Code of Governance year on year. The document had been revised to reflect changes in the Authority's management structure and changes with the introduction of the Corporate Plan and links to the Well-being of Future Generations Act (Wales) 2015.

In response to a question raised the Corporate Performance Manager said the Well-being of Future Generations Act was the main legislation the Council had to follow. In order to meet the legislative requirements of the Act, the Council had developed the Corporate Plan which was agreed at Council in March, and included all the information the Council was required to report on. She also confirmed that the Public Service Board had a partnership plan which the Council reported into.

RESOLVED that the report be accepted and the Audit Committee approve and adopt the revised Code of Governance (Option 1).

Agreed
9. WALES AUDIT OFFICE CERTIFICATE OF COMPLIANCE FOR THE AUDIT OF BLAENAU GWENT COUNTY BOROUGH COUNCIL'S 2018-19 IMPROVEMENT PLAN
Report (75K/bytes)
Appex A (151K/bytes)

Consideration was given to the report of the Head of Governance & Partnerships.

The Corporate Performance Manager presented the Wales Audit Office Certificate of Compliance following the audit of the Council's 2018/2019 Improvement Plan, which was approved by Council in March 2018. As part of the Local Government (Wales) Measure the Wales Audit Office are required to undertake an annual audit of our Improvement Plan against the LG Measure. On the 2nd May, 2018 WAO reported that the Council had sufficiently discharged its duties and acted in accordance with legislative requirements.

RESOLVED that the report be accepted and the Audit Committee note the compliance certificate dated May 2018.

Agreed
10. RESPONSE TO WAO ENQUIRY TO THOSE CHARGED WITH GOVERNANCE AND MANAGEMENT
report (85K/bytes)
Appex A (109K/bytes)

Consideration was given to the report of the Head of Internal Audit.

The Head of Financial Services presented the report and confirmed that on an annual basis WAO sought the Council's written consideration and understanding of the management and governance arrangements in place for the Authority with regard to detection and prevention of fraud. This report informed Members of the Management response to WAO in respect of some of the queries raised.

The Management response was attached at Appendix 1 and the Officer confirmed that this had been agreed by CLT. Also provided was the 2016/17 and 2017/18 response for comparative purposes.

In response to a question raised regarding incidents of fraud within the last 12 months, the Head of Internal Audit said some minor incidents had been reported, and the outcome of one particular investigation would be reported to Committee in due course.

RESOLVED that the report be accepted and the Audit Committee endorse the attached Management response to the WAO enquiries.

Agreed
11. AUDIT PLAN OUTTURN 2017-18
Report (99K/bytes)
Appex A - B (106K/bytes)

Consideration was given to the report of the Head of Internal Audit.

The Head of Internal Audit presented the report which updated the Audit Committee on the outturn position of the Audit Plan for 2017/18. The Audit Plan for 2018/19 would be reported to the next meeting.

The Officer referred to section 5.4 of the report which outlined the staffing position for the year relevant against the outturn percentage. The Section had a full complement of six full-time posts, during the year a service review was undertaken and as a result 2 junior posts were removed from the structure and a new post of Senior Auditor was added. Initial attempts to recruit to the Senior Auditor post were unsuccessful and an agency worker was employed in order to maximise audit coverage, and the Senior Auditor post was eventually filled at the end of February 2018.

She concluded that 70.32% of the Audit Plan was completed against a target of 83% and this was due to staffing changes throughout the year.

Members referred to Appendix A and enquired as to the following:-

Accountancy Services
Treasury Management - Bank Reconciliation (Reasonable Assurance)

The Officer explained that reasonable assurance status meant that issues had been identified but they were not significant just that certain controls needed to be 'tightened up'.

ICT - ICT User Access (No Assurance)

The Officer pointed out that this was still a provisional grading. However, the majority of the findings of report related to the allocation of roles within the SRS and needed to be refined. A response to the internal audit summary would be received in due course.

A discussion ensued regarding ICT when a Member requested that the full audit report be presented to Committee. In response the Head of Internal Audit said this report looked at user access which was picked up every year as part of the financial systems. However, the ICT collaboration would be looked at as part of the 2018/19 Plan.


The Deputy Leader confirmed that a report on the SRS would be submitted to Council in due course.

Organisational Development - Social Care Workforce Development (Reasonable Assurance)

The Head of Financial Services explained that this was in relation to systems within the service area and not staffing matters.

The Head of Internal Audit said the Social Care Workforce Development was run jointly with Blaenau Gwent and Caerphilly CBC. The area looked at was budget control in terms of the function and how it was managed.

The Member said greater explanation should be provided within the report, and the Officer undertook to bring the full report back to the Committee.

Technical Services - Income Property Services Professional Services (No Assurance)

The Head of Internal Audit said this was a provisional grading, and the finalised audit would be reported to Committee as a summary report.

RESOLVED that the report be accepted and the Audit Committee note the levels of audit coverage in each service area and the plan outturn for the financial year.

Agreed
DECISIONS UNDER DELEGATED POWERS