Issue - meetings

At its meeting on 18 September 2018, the Audit Committee resolved as follows:

It is RECOMMENDED that the Terms of Reference of the Audit Committee be amended to include:

      i.        Other assurance bodies including partnerships and collaboration arrangements.

    ii.        Ethical framework

That recommendation has been through Full Council, but the precise wording was not clear at the time.  The following changes to the Terms of Reference are therefore suggested and there is no intention that the Audit Committee take over any of the functions of the Standards Committee.  The purpose of the changes was to reflect the guidance from CIPFA in relation to corporate governance, but also to emphasise that the Audit Committee can support the functions of the Standards Committee in driving up standards. 

It is therefore RECOMMENDED that the Terms of Reference of the Audit Committee at Article 9 in the Constitution be amended by added the words in bold below:

9.1(a)    Providing independent assurance of the adequacy of the risk management framework and the associated control environment, including (from the perspective of the Council) those partnership or joint working arrangements the Council has with other bodies and how their risk management and controls might impact the Council;

9.2) (q)  Consider the Council’s compliance with its own and other published standards and controls, including supporting the Council’s adopted ethical standards framework and the work of the Standards Committee

Arising from a * report of the Audit Manager, the Audit Committee at its meeting on 18 September 2018, resolved as follows:

It is RECOMMENDED that the Terms of Reference of the Audit Committee be amended to include:

      i.        Other assurance bodies including partnerships and collaboration arrangements.

    ii.        Ethical framework

The Monitoring Officer explained that the recommendation had been through Full Council, but the precise wording was not clear at the time.  The following changes to the Terms of Reference were therefore suggested and there was no intention that the Audit Committee would take over any of the functions of the Standards Committee.  The purpose of the changes was to reflect the guidance from CIPFA in relation to corporate governance, but also to emphasise that the Audit Committee could support the functions of the Standards Committee in driving up standards. 

It was recommended that the Terms of Reference of the Audit Committee at Article 9 in the Constitution be amended by added the words in bold below:

9.1(a)    Providing independent assurance of the adequacy of the risk management framework and the associated control environment, including (from the perspective of the Council) those partnership or joint working arrangements the Council has with other bodies and how their risk management and controls might impact the Council;

9.2) (q)  Consider the Council’s compliance with its own and other published standards and controls, including supporting the Council’s adopted ethical standards framework and the work of the Standards Committee

It was therefore RECOMMENDED to Council that:

(Proposed by the Chairman).

Note:  * Report previously circulated copy attached to minutes.

To receive a report from the Deputy Head of the Devon Audit Partnership considering the Chartered Institute of Public Finance and Accountancy (CIPFA) self-assessment checklist for Audit Committees.

The Committee had before it a report * from the Audit Manager considering the Chartered Institute of Public Finance and Accountancy (CIPFA) self-assessment checklist for Audit Committees. This was designed for Members to acknowledge their performance in their role as the Audit Committee against the CIPFA checklist and to decide in which areas they have evidence of their effectiveness and which areas they would suggest could be developed further.

The CIPFA Position Statement listed core areas that needed to be addressed by an Audit Committee’s Terms of Reference. One of these related to the ‘Assurance framework including partnerships and collaboration arrangements’. The TOR’s within the Council’s Constitution in relation to the Audit Committee did not currently say this, however, the AGS referred to ‘Monitoring Reports from Key Partnerships and other External Bodies’. The Audit Charter and Strategy referred to ‘Audit Partnership in support of the assurance framework.

Another core area related to ‘Supporting the ethical framework’. Currently the TOR did not say this, however, DAP has taken Ethics and Values internal audit reports to the Audit Committee and the AGS has a section – ‘Demonstrating strong commitment to ethical values’.

Therefore:

It is RECOMMENDED that the TOR of the Audit Committee be amended to include:

      i.        Other assurance bodies including partnerships and collaboration arrangements.

    ii.        Ethical framework

(Proposed by the Chairman)

Consideration was given to the remaining suggested actions within the report:

·         Specific wider areas mentioned in the CIPFA Position Statement included Treasury Management and the requirement for all local authorities to make arrangements for the scrutiny of this. Treasury Management reports were currently referred directly to the Council’s Cabinet. CIPFA guidance suggested that further assurance regarding a Council’s Treasury Management arrangements would be provided if an Audit Committee had sight of them first and then made s a recommendation to the Cabinet. With the agreement of the Committee, the Chairman stated that he would seek the opinion of the Chief Executive, the Leader and the Deputy Chief Executive (S151) in relation to this as a proposal for suggested change. He would update the Committee once he had heard back from them and ensure that an item was placed on the agenda for the next meeting to formally acknowledge the preferred option in relation to this.

·         Regarding the suggestion to ‘Complete the Skills Self-Assessment and identify training needs’, the Committee felt that as there were only three meetings remaining before the election in May next year, therefore the issue of training ought to be deferred until the new Committee was in place.

·         It was AGREED that the Committee would undertake a review of how it ‘added value’ to the Council and whether it could improve on any areas of weakness as part of its on-going work programme.

Note: * Report previously circulated; copy attached to the signed minutes.