4 December 2008

Present:

Councillors Date (Chairman), Button, Clatworthy and Owen.

Apologies:

Councillors Fowler, Sir Simon Day and Shadrick

*70 Minutes

RESOLVED that the Minutes of the meeting held on 25 September 2008 be signed as a correct record.

*71 Audit Commission Report on the Statement of Accounts

The Committee considered the report by the Acting Executive Director of Finance, IT and Trading (FI/08/74 - text only | pdf FI/08/74) on the actions taken in response to the Audit Commission report and the recommendations of the Working Group set up to review the issues relating to capital accounting. Members asked questions in relation to the effect of market conditions on valuations in the report.

It was MOVED by Councillor Date, SECONDED by Councillor Clatworthy and

RESOLVED

(a) that the actions taken in response to the Audit Commission Report on the Financial Statements for 2007 08, be noted;

(b) that the recommendations of the Working Group set up to review the issues relating to capital accounting be endorsed.

*72 International Financial Reporting Standards (IFRS)

The Committee considered the report of the Acting Executive Director of Finance, IT and Trading (FI/08/73 - text only | pdf FI/08/73) together with the PricewaterhouseCoopers document More than just numbers which was enclosed separately with the agenda. The report outlined preparations required to make the 2010/11 accounts IFRS compliant. Making the accounts IFRS compliant would have complex and wide reaching implications. Members asked questions in relation to the retrospective impact of the application of the new standards, carry forward of flexitime, difference between market value and fair value and the effect that making the accounts IFRS compliant would have on Council Tax.

It was MOVED by Councillor Date, SECONDED by Councillor Clatworthy and

RESOLVED

(a) that the accounting changes required and timescale for implementation be noted;

(b) that the Committee note that changes to Reserves and Balances would need to be managed through the Medium Term Financial Strategy.

*73 Review of 2007/08 Financial Statements and Key Financial Systems

The Committee considered the Review of the Audit Commission which was enclosed separately with agenda. The Review relates to matters arising on the audit of financial statements for 2007/08, which were on key financial systems and the audit of the statement of accounts. Ms Catherine Brown, Audit Manager, Audit Commission, presented the report and referred Members to the main conclusions.

It was MOVED by Councillor Date, SECONDED by Councillor Clatworthy and

RESOLVED that the Review and main conclusions be noted.

*74 Internal Audit Report - 2008/9 - Progress in First Half Year

The Committee considered the report of the Acting Executive Director of Finance, IT and Trading (FI/08/71 - text only | pdf FI/08/71) summarising progress to date against agreed plans in which satisfactory progress has been made. Of the planned audit days for the year, 42% have been delivered after 6 months. Mr Job, Head of Internal Audit, highlighted a number of issues in the report including managing absence, the new payroll system PRISM, business continuity, FMSIS for schools, ACS Directorate and shared service with Plymouth and Torbay. Members and the external Auditor raised questions in relation to managing absence, Youth Offending Team loss of information and the Business Continuity Plan.

It was MOVED by Councillor Date, SECONDED by Councillor Clatworthy and

RESOLVED that the Committee note

(a) the satisfactory progress against the agreed internal audit plans for 2008/09 during the first six months of the year;

(b) the key issues arising from those audits highlighted in this report;

(c) the continued high levels of achievement of Devon Audit Services (DAS) in terms of performance measures and quality standards.

*75 Risk Management Update

The Committee considered the report of the Acting Executive Director of Finance, IT and Trading (FI/08/72 - text only | pdf FI/08/72) summarising actions taken since the Committee received its previous update report in September 2008, together with the Corporate Risk Register Review by Service with History. Members asked questions in relation to whether the Review document was in the public domain, failure to deliver modernisation and efficiency savings, Value for Money Board and the installation and testing of the new County Hall generator.

It was MOVED by Councillor Date, SECONDED by Councillor Clatworthy and

RESOLVED that the Committee

(a) note activity in the last quarter across the County Council in respect of risk management arrangements;

(b) consider information and reports to be brought forward to future meetings to assist them in monitoring risk management arrangements;

(c) receive an update on the Shaw Homes issue if it is not resolved by the next meeting.

*DENOTES DELEGATED MATTER WITH POWER TO ACT

The meeting started at 2.15pm and finished at 3.15 pm.

The Minutes of the Committee are published on the County Council s Website at:-