Agenda item

This report summarises the key messages, findings and conclusions set out in the Annual Governance Report of the District Auditor in respect of the 2006/07 audit year and advises Members of the action plan arising from the report for forward monitoring and reporting purposes.

Members received a report which summarised the key messages, findings and conclusions set out in the Annual Governance Report of the District Auditor in respect of the 2006/07 audit year and advised them of the action plan arising from the report for forward monitoring and reporting purposes.

The Audit Manager drew Members’ attention to the main issues in the Report.

The Annual Governance Report was generally positive and importantly concluded that the Council’s arrangements for the Statement of Internal Control (SIC) and for securing Value for Money (VFM) were satisfactory and that the District Auditor anticipated issuing an unqualified opinion on the accounts.  These matters were crucial to the Council scoring well in the annual Use of Resources Comprehensive Performance Assessment (CPA) refresh exercise for 2007.  The specific matters raised by the District Auditor at paragraphs 12-31 in relation to the final accounts audit were of immediate concern and Members sought the necessary assurances from the relevant officers that all due remedial work had been and/or would be undertaken in accordance with the action plan set out in Appendix 1 of the District Auditor’s report.

Members discussed the control weaknesses identified relating to the car parking system and officers confirmed that these had also been raised following a review of the service by Internal Audit.  Members requested that a written explanation of the current situation be circulated to them and that a report be brought to the next meeting setting out the Internal Audit recommendations and progress made in implementing them.  They also requested that the appropriate Assistant Director be invited to attend this meeting.

Officers clarified that the presence of an auditorium on the Barbican site was not subject to negotiations, as implied in the report on the Statement of Accounts 2006/07, but that the mode of delivery was.  Members requested a written explanation to further clarify the position in respect of this issue.

RESOLVED:(i) That the matters set out in the Annual Governance Report presented for discussion by the District Auditor be noted, in particular:

·  The matters raised in the report before the amended Statement of Accounts is approved;

·  The letter of representation to be signed by the Chair of the Committee on behalf of the Council and those charged with its governance;

(ii)That the action plan arising from the report, as set out in Appendix 1 to the District Auditor’s report, be noted and a report back on progress be brought to the April 2008 meeting of the Committee;

(iii)             That the letter of representation be approved for signature by the Chair of the Committee, having confirmed that it sufficiently reflects the views and beliefs of the Committee as those charged with governance at the Council.

REASON:(i) To ensure the proper consideration of the opinion and conclusions of the District Auditor in respect of the annual audit of accounts and review of the Council’s arrangements for ensuring Value for Money (VFM);

(ii)               To ensure appropriate action is being taken by officers to address any matters raised by the District Auditor further to his report;

(iii)To ensure compliance with International Auditing Standards and relevant legislative requirements.