| Number | Item |
| | Minutes for this Meeting  |
| | Agenda Front Sheet |
| | Agenda Papers |
| 1. | Apologies/Substitutes |
| 2. | Declarations of Interest |
| 3. | Minutes – To approve the Minutes of the Meeting of this Committee held on the 6th March 2012 |
| 4. | Part I – For Decision |
| | This report provides an update to the work of the Fraud and Visiting Team sets out a summary of the Team’s work for the financial year 2011/12 and the team’s future priorities. An extremely productive year for the small resourced team (majority of the financial year with only 1 Investigator) that has generated results in a number of areas in particular Tenancy Fraud where the team have been applauded for its successes by the Audit Commission. A year that created over £170000 of overpayments due to fraudulent benefit claims but also a year that produced increased income from recovery of overpayments. Proactive work undertaken on investigating Council Tax discounts and exemptions has resulted in proven outcomes and generated further Council Tax income. The zero tolerance to fraud message has further been conveyed to Ashford Borough residents. Fraud Awareness to high risk areas to ensure prevention is maximised to create an anti-fraud culture and reduce the impact on the Council. Continual review of the service reflecting the future changes and impacts ahead with Single Fraud Investigation Service (SFIS) a new Council Tax Discount scheme changes to National Non-Domestic Rates (NNDR) and Universal Credits in the coming year leads to further discussions with the Audit team on joint fraud issues reflecting all areas for the Council. |
| | Fraud Annual Report 2011/12 |
| 5. | The report sets out the draft Strategic Risk Register for adoption by the Council. The risks shown are ‘pre-mitigation’ in other words they represent the scenario that might occur should the risk not be managed. In practice a number of controls are already in place to help to prevent the scenario occurring.The risks have been allocated to ‘risk owners’ who are responsible for taking the necessary action to manage the risks. Management Action Plans are currently being completed and will be compiled to sit next to the Register. Audit Committee is asked to endorse the Register and the process that is set out in the report for the ongoing management and reporting of the risks. |
| | Strategic Risk Register |
| 6. | The report sets out the Annual Report of the Audit Committee for 2011/2012 |
| | Annual Report of the Audit Committee 2011/12 |
| 7. | To consider the work of the Internal Audit Team over the financial year 2011/12 and the opinion of the Head of Audit Partnership in relation to the Council’s control environment in the context of the Annual Governance Statement.To decide whether the outcomes of the Internal Audit work and the other matters referred to in this report provide evidence of a substantial level of internal control within the Authority which supports the findings and conclusions shown in the Annual Governance Statement for 2011/12. |
| | Internal Audit Annual Report 2011/12 |
| 8. | Each year the council must produce and approve an Annual Governance Statement. The statement summarises the approach to governance shows how its approach fulfils the principles for good corporate governance in the public sector and draws a conclusion about the effectiveness of its arrangements for the past financial year. The Statement will be published alongside the council’s formal audited financial statements which will be considered by the committee in September though it is not necessary to approve the governance statement alongside the accounts. The Statement is updated from last year (largely following a similar format) and is presented for the Audit Committee to approve for the council. The report highlights that last year reported areas of governance needing review have been considered with work in hand to complete the necessary work this year. Just one area of significance for review is highlighted on matters arising from an internal audit of full compliance with the council’s Data Protection Act arrangements.The conclusion is that governance arrangements are appropriate effective and adaptive to change as circumstances dictate. Our external auditors continue to regard financial governance and internal controls as a strength.The Portfolio Holder (Councillor Robert Taylor) has commented that the Statement is a good summary and reflects an excellent record of achievement over the past year and supports the conclusions in the Statement. |
| | Approval of Annual Governance Statement |
| 9. | Part II – Monitoring/Information Items |
| | The external auditor’s report (from the Audit Commission) provides information about its audit work over the past year the progress with the outsourcing of its work to the private sector and a number of matters of other relevance and interest.Further backgrounda) 2011/2012 financial statementsThese are being finalised by the Finance Manager for sign-off by myself as Section 151 Officer by the end of June (regulations now require members’ approval post audit of the accounts). The Audit Committee will receive the accounts and the audit opinion for approval at its September meeting.b) Outsourcing of the Audit CommissionAs explained in the auditor’s report the council had the opportunity of meeting the proposed new external auditor (Grant Thornton UK) in May. Through the chairman the council has responded to the consultation stating there are no reasons for the council to object to the proposed appointment – see attached letter. We look forward to meeting the ‘new’ team in October or November though we are pleased that most of the current audit team will continue to provide the audit service for at least the next year.Fees for the next five years are effectively fixed and achieve a 40% reduction on budgeted costs.c) Capital Finance system proposed changesOfficers will report the implications of changes to regulations to the next meeting of the committee.d) Pay policy statementAs required by regulations the cabinet approved a pay policy statement for 2012/2013 in March following recommendations by the Head of Personnel and Development after work completed by a mini-PAG on this issue. |
| | External Auditor’s Update |
| 10. | A significant reduction in external audit fees for this andthe next four years follows on from the outsourcing of theaudit commission’s local government and other publicsector work. This report provides the details of the newfee scales for the council. |
| | Annual Audit Fee Letter 2012/13 (to follow) |
| 11. | In the context of the International Standards on Auditing and the current work on the Council’s accounts for 2011/12 the external auditors require an understanding of how those charged with governance (the Audit Committee):• exercise oversight of management’s processes for identifying and reporting the risk of fraud and possible breaches of internal control in the Council• gain assurance that all relevant laws and regulations have been complied withAnd whether the Committee is aware of any actual or potential litigation or claims that would affect the financial statementsAnd whether the Committee has carried out a preliminary assessment of the going concern assumption and if so has identified any events which may cast significant doubt on the Authority’s ability to continue as a going concern.The Audit Committee need to consider and agree a letter to the external auditors which provides assurances in the areas concerned. |
| | Compliance with International Standards for Auditing – Letter of Assurance (To Follow) |
| 12. | Report Tracker and Future Meetings |