Issue - meetings

This report advises Members of the role, remit and key relationships of the new Audit and Governance Committee and asks them to consider a proposed Statement of Purpose for the Committee.

(See also under Part B Minutes)

Members considered a report which provided information on the role, remit and key relationships of the new Audit and Governance Committee.

The Committee had been introduced following the recent review of the Council’s Constitution and was constituted as a non-executive sub-committee of Full Council.  Guidance issued recently by the Chartered Institute of Public Finance Professionals (CIPFA) recommended that authorities formally approve a Statement of Purpose for their audit committees.  A suggested Statement of Purpose was set out in paragraph 5 of the report for Members’ consideration.  CIPFA’s definition of the core functions of an audit committee was outlined in paragraph 7.  These functions had been reflected in the delegations for the Committee included in the Constitution.

The Committee would play a key role in formally approving the Council’s overall audit strategy, reviewing work carried out by the Internal Audit Service and receiving and considering the work of the external auditor.  It would report to the Executive on major issues of non-compliance and contravention but must also retain the ability to challenge the Executive if necessary.  It was therefore essential that the Committee not be chaired by a member of the Executive.  The Committee shared some common concerns with the Standards Committee, but had a wider scope in that it would deal with the good governance and management of the organisation as a corporate entity, rather than matters relating specifically to elected Members.  To be effective, the Committee must have a knowledgeable and experienced Chair and membership.  Members’ views were sought on the establishment of a training programme to support them in discharging their responsibilities.

The nature of the relationship between the Audit & Governance Committee and the Internal and External audit functions was discussed.  It was noted that the development of a privacy/confidentiality protocol for the Committee required further consideration. In response to Members’ questions, Officers advised that it was their understanding that the Committee had authority to agree its own Statement of Purpose but could refer this to Council for endorsement if desired. Audit committees must remain independent of the scrutiny process, but this did not mean that cross-membership with scrutiny was prohibited.  With regard to training, it was noted that a Member training event on risk management had already been scheduled for 29 June.

RESOLVED: (i)         That the contents of the report be noted and that the following Statement of Purpose (as set out in paragraph 5) be adopted and referred to Council for endorsement:

                        “The purpose of the Audit and Governance Committee is to act as the responsible body charged with governance at the Council.  In doing so it will provide independent assurance of the adequacy of the risk management framework and the associated control environment, independent scrutiny of the authority’s financial and non-financial performance to the extent that it affects the authority’s exposure to risk and weakens the control environment, and will oversee the financial reporting process.”

REASON:      To ensure the effective management and operation of the Committee and promote understanding  ...  view the full minutes text for item 3