Agenda and minutes

At this point Members are asked to declare any personal, prejudicial or disclosable pecuniary interests they may have in the business on this agenda.

At this point in the meeting Members were asked to declare any personal, prejudicial or disclosable pecuniary interests they may have in the business on the agenda.  The following interests were declared:

·        Councillor Barnes declared a personal interest in agenda item 5a (minute 20 refers) (Statement of Accounts 2011/12) as a trustee of York Museums Trust, which was referred to in the report.

·        Councillor Brooks declared a personal interest in agenda item 5a (minute 20 refers) (Statement of Accounts 2011/12) as a member of the Teachers’ Pension Fund, which was referred to in the report.

To approve and sign the minutes of the meeting of the Audit & Governance Committee held on 25 July 2012.

RESOLVED:       That the minutes of the meeting of 25 July 2012 be approved and signed by the Chair as a correct record.

At this point in the meeting members of the public who have registered their wish to speak regarding an item on the agenda or an issue within the Committee’s remit can do so.  The deadline for registering is 5:00 pm on Wednesday 26 September 2012.

It was reported that there were no registrations to speak at the meeting under the Council’s Public Participation Scheme.

This paper presents the future plan of reports expected to be presented to the Committee during the forthcoming year to July 2013.

Consideration was given to a paper which presented the future plan of reports expected to be presented to the Committee during the forthcoming year to July 2013.  Members noted the four amendments that had been made to the plan since it had last been considered by the Committee, as detailed in paragraphs 3-6 of the report.

Members were asked to identify any further items they wished to add to the Forward Plan.

RESOLVED:       That the Committee’s Work Plan be approved.

REASON:            To ensure the Committee can seek assurances on any aspect of the council’s internal control environment in accordance with its roles and responsibilities.

(i)           Final Annual Financial Report – Statement of Accounts

2011 -12

Members considered a report that presented a revised and final set of Accounts for 2011/12, which reflected the changes that had been made since the draft pre-audit accounts were presented to Audit and Governance Committee for review on 25 July 2012.

The following issues were raised:

·        Clarification was sought as to whether the increased frequency of meetings with accountants across all Directorates to prepare the Statement of Accounts  would have financial implications for the Council.  Members were informed that there should be no additional cost as, by carrying out more preparatory work, there should be greater accuracy and hence less time needed to address errors.

·        Clarification was sought as to whether there would be an increased cost to the Council for the appointment of the new external auditors (Mazars).  Members were informed that the new arrangements should be more efficient and result in significant savings.

·        Members asked about progress in ensuring that there was a consistent approach from all accountants when the accounts were prepared.  Officers stated that regular meetings were being held with the accountants to ensure a common approach.  Work was also taking place to see how the financial system could be better used.  When the move to West Offices took place all accountants would be working in the same area which would also be beneficial.

·        Clarification was sought as to the accounting in respect of ward budgets.  Officers stated that, as with other expenditure, the purchasing of goods and services should be in accordance with procurement procedures and the finance processes set up across the Council.

·        At the request of Members, details were given as to the arrangements that were in place when the Authority borrowed for capital purposes.  An update was also given on the situation in respect of surpluses i.e. reserves held on the Balance Sheet.

·        Members requested that in the Annual Financial Report – Statement of Accounts, Note 49 – Defined Benefit Pension Schemes, the first paragraph be reworded to ensure greater clarity.

·        Councillor Runciman sought clarification of the Annual Financial Report – Statement of Accounts, Note 1 Accounting Policies section XIV – Interests in Companies and Other Entities – York Business Development Ltd regarding Accounting Policies XIV - York Business Development Ltd. She asked whether CYC still had an interest.  Officers agreed to email this information to her following the meeting.¹

·        Referring to section XVII of Note 1 in the Annual Financial Report – Statement of Accounts, Members asked if account had been taken of the fact that a number of leases were due to come to an end in the next few years.  Confirmation was given that this had been taken into account.

·        In the Annual Financial Report – Statement of Accounts, Note 1 Accounting Policies section XIV Councillor Runciman sought clarification as to this year’s contribution from the Yorkshire Purchasing Organisation.  Officers agreed to email this information to her following the meeting¹.

·        Members requested that  ...  view the full minutes text for item 20.

This paper presents an update on the key corporate risks and highlights any emerging risk issues.

Members considered a report that gave an update on the key corporate risks, and highlighted in more detail any emerging risk issues with a view to Members considering any further information they would wish to receive.

It was noted that the two critical Key Corporate Risks (KCRs) had not changed since Monitor 1 - i.e. Safeguarding and Financial Pressures.  Views were expressed that the KCR in respect of safeguarding should encompass adults and not focus solely on children.  Members also stressed the wider risks associated with adult social care, including the financial implications associated with the demographic.   They requested that the Committee receive regular updates on the risks associated with social care.

Members noted that the number of high KCRs had increased due to the inclusion of some new high level risks around the Community Stadium project. 

Consideration was given to the risks relating to the Accommodation Programme, as detailed in paragraphs 7 to 11 of the report.

Consideration was also given to the directorate risk reporting agenda set out at paragraph 17 of the report.

RESOLVED:       (i)      That the risks relating to the

                             Accommodation Programme be noted.

                             (ii)      That the directorate risk reporting agenda

set out in paragraph 17 of the report be approved.

(iii)     That the Committee receive regular updates on the risks associated with social care¹.

REASONS:         (i)      To provide assurance that the authority is

effectively understanding and managing its key risks.

                             (ii)      To ensure that directorates bring forward

updated risk reports providing assurance that risk is being properly managed through 2012/13.

This is the regular six monthly report to the committee setting out progress made by Council departments in implementing actions agreed as part of internal audit work.

Members received a report that was presented on a six monthly basis to set out progress made by council departments in implementing actions agreed as part of internal audit work.

Clarification was sought regarding the issue that had now been escalated to the relevant director.  Officers stated that this was a priority 3 action.  The action related to a Human Resources issue and would be brought to the Committee’s attention if the situation escalated.

RESOLVED:       That the progress made in implementing internal

                             audit agreed actions, as reported in paragraphs                          5-12 of the report, be noted.

REASON:            To enable Members to fulfil their role in providing

                             independent assurance on the council’s control                           environment.

This report provides an update on progress made in delivering the internal audit workplan for 2012/13 and on current counter fraud and information governance activity.

Members considered a report that provided an update on progress made in delivering the internal audit work plan for 2012/13 and on current counter fraud and information governance activity.

Officers reported that good progress was being made on the delivery of the Audit Plan.  Members noted that, in line with the situation in other local authorities, there had been an increase in the number of Freedom of Information requests.

Members expressed concern about the weaknesses identified in respect of health and safety issues.  Officers confirmed that action plans were in place to address the issues and to ensure that health and safety was given sufficient priority.

Clarification was sought in respect of the weaknesses that had been identified regarding debt chasing for the Commercial Waste service.  Officers stated that there had been instances when the service had continued to be delivered although payments had ceased.  Action had now been taken to address this matter.  There were no concerns regarding the general arrangements that the Council had in place for debt recovery.

RESOLVED:       That the progress made in delivering the 2012/13 internal audit work programme and current counter fraud and information governance activity be noted.

REASON:            To ensure that Members are aware of the implications of audit and fraud findings.

This report provides an update on action taken by officers to address weaknesses identified in monitoring direct payments during a 2011/12 audit.

Members considered a report that provided an update on action taken by officers to address weaknesses identified in monitoring direct payments during a 2011/12 audit.

Officers stated that there had been an improvement in the situation although there was still work to be done.  They would be assisting  the department to further develop the systems that were in place.

RESOLVED:       (i)      That the progress made to date to

implement actions agreed following the audit of personalisation and direct payments in 2011/12 be noted.

(ii)      That a further report be presented to the Committee to update them on progress¹.

REASON:            To enable Members to fulfil their role in providing independent assurance on the council’s control environment.