1. ELECTION OF CHAIRMAN

It was agreed that Mr M J Cunningham be elected Chairman for the day

2. PRESENTATIONS WRE RECEIVED ON :

(a) The Role of Internal Audit

The Panel received a presentation by Mr Bob Streets, the Council’s Compliance and Risk Manager. During the presentation Mr Streets identified the distinction between the role of the internal and external audit teams.

(b) The Role of External Audit

The Panel received a presentation from Mr Steve Goodyear from District Audit which highlighted the role of external audit within the Council. Mr Goodyear explained that the current Audit year ran from November to October this was currently changing to run from the 1 April to 31 March. This had created a transitional 5 month audit plan for 2002/03 which would run from November 2002 to March 2003.

The Panel considered the proposed Terms of Reference. During discussion some amendments and additional items were added to the Panels remit.

AGREED :

(i) That the Committees Terms of Reference be as follows :

Membership

To comprise 7 (4 Island First, 2 Con, 1 Lab) Select Committee members.

Terms of Reference

To make recommendations to the Resources Select Committee in relation to the following matters :-

Internal Control

a. The maintenance of an effective system of internal financial and management control.

b. The Council’s arrangements for securing value for money.

c. Corporate Governance

Internal Audit

a. The effective operation of the Council’s Internal Audit.

b. The Internal Audit programme, initial consideration of major findings of the Council’s Internal Audit investigations and management’s response, and co-ordination between the Council’s Internal and External Auditors.

External Audit

a. The effectiveness of the relationship with the Council’s External Auditors.

b. The process for the appointment of the Council’s External Auditors, as far as the Audit Commission’s rules permit.

c. The nature and scope of any audit by the Council’s External Auditors, before the audit commences, .

d. Any initial review of External Auditors reports and management letters.

Ownership of Anti-Fraud Culture

Procedures

The Panel to be subject to the Select Committee Procedure Rules as contained within the Council’s Constitution save that it will not have the power of call-in and there will be no public or member question time. The quorum will be 4 members.

The Panel will meet in February, to consider the Internal Audit Plan and December, to consider the Management Letter, and on two other dates to be agreed by the Chairman of the Select Committee and the Panel.

(ii) That the Audit Panel review the Annual Audit Plan and recommend straight to the Executive

(iii) That the Annual Audit Letter be considered by the Audit Panel prior to its consideration by the Executive

(iv) That the Panel view or confirm the Panel’s Work Programme priorities

(v) That monthly officer reports be circulated to members of the Panel.