MINUTES OF A MEETING OF THE AUDIT PANEL HELD AT COUNTY HALL, NEWPORT, ISLE OF WIGHT ON MONDAY, 24 FEBRUARY 2003 COMMENCING AT 2.00 PM
Present :
Mr M J Cunningham (Chairman), Mr P D Joyce, Mrs M J Lloyd, Mr G S Kendall, Mr G P Price, Mr I R Stephens
Apologies :
Mrs D Gardiner
Also Present (Non Voting) :
Miss H L Humby, Mrs M A Jarman, Mr D G Williams
1. ELECTION OF CHAIRMAN
RESOLVED :
THAT Mr M J Cunningham be elected Chairman for the ensuing year.
2. AUDIT PANEL - TERMS OF REFERENCE
RESOLVED :
THAT the Terms of Reference be accepted.
3. DISTRICT AUDITOR’S ANNUAL AUDIT LETTER
The Panel received the Annual Audit Letter which had already been considered by the Executive at its meeting on the 15 January 2003.
Members were advised that there were several key messages within the letter, including :
Performance Management
Best Value and Performance Information
Building blocks for Improvement
Monitoring and testing of ethical framework
Internal Audit
It was considered that the role of the Panel was to monitor the outcomes arising from the Audit letter and to ensure that recommendations arising from the letter be taken forward to ensure continuous improvement.
During discussion members considered the delivery of the e-government agenda. The District Auditor (DA) advised members that the fundamental hurdle to overcome was the financial strategy. The DA considered that options of partnership to achieve the delivery of e-government would be worth exploring.
It was noted that within the Best Value Review areas of weakness had been identified with regard to accuracy and reliability of information within the Best Value Improvement Plan. Members were advised that seventeen Performance Indicators (PI) had been identified as being inaccurate and it was thought that eight of those could be misleading. The problem had been discovered through the Comprehensive Performance Assessment where by the PI’s had been tested with much more vigour. The Compliance and Risk Manager advised the Panel that the inaccuracy lay with the Council’s data collection system. The quality of PI’s was subsequently being addressed
RESOLVED :
THAT the Panel accept the report and that its progressed be reviewed in May 2003.
4. ISLE OF WIGHT COUNCIL AUDIT OF ACCOUNTS 2002/2003 - OUTLINE AUDIT PLAN AND PROGRESS WITH PLANNING FOR 2003/04
The Panel received a presentation from the District Auditor which included audit of accounts 2003/03, outline audit plan, progress with planning for 2003/04 and new roles for members in relation to control systems and the audit opinion.
Members were reminded that at the Panels’s meeting held on 10 December 2002 they had been advised of a change to the current year. The audit year had previously run from November to October and would be changed to run from 1 April to 31 March. It had originally been proposed to run a transitional 5 month audit plan from November 2002 to March 2003, however it had now been decided to include this 5 month period within the next audit year.
Consideration was given to the audit planning for 2003/03 and 2003/04. It was advised that the standard programme would be undertaken and in addition the new accounting and reporting requirements, whole of government accounts, new accounts and audit regulations and prudential framework. In discussion members were advised that the Council had a good track record for its accounting systems. With regard to governance in addition to the standard programme it would include the Housing Benefits Best Value Review, contract and tendering controls and health scrutiny arrangements. It was noted that areas raised by the CPA were also being addressed.
It was agreed that the Panel should be advised of any relevant matters relating to the audit of the financial statements with sufficient time to enable appropriate action.
RESOLVED :
THAT the Panels Terms of Reference be amended so that the Panel are required to make recommendations straight to full Council and not the Resources Select Committee.
5. STRATEGIC PLAN FOR INTERNAL AUDIT
Consideration was given to the Strategic Plan for Internal Audit which set out the proposed internal audit activity for the coming financial year. It was noted that the Audit Plan was tabled by using three specific criteria, including :
Experience of the Council’s range of activities and systems
Risk Assessment
Consultation with all of the Council’s Service Heads.
During discussion members were advised that the lack of resources within Internal Audit was beginning to be addressed and they had been successful in obtaining another full time employee. Members considered that a appropriate growth bid should be submitted accordingly for 2003/04 budget process to further support the service.
RESOLVED :
THAT the report be noted.
6. INTERNAL AUDIT CHARTER AND TERMS OF REFERENCE
The Panel received the report of the Compliance and Risk Manager which sought agreement from the Panel as to its role, scope, reporting protocol and responsibility of the Internal Audit function.
The Panel supported the Internal Audit Charter and its terms of reference. A minor amendment was made to reflect the decision taken earlier in the meeting that the Audit Panel should report directly to full Council and not the Resources Select Committee.
RESOLVED :
THAT the report be noted.
CHAIRMAN