30 June 2009

Present:

Sir Simon Day (Chairman), Councillors Greenslade, Hannon, McMurray and Pennington

Members attending in accordance with Standing Order 25

Councillor Leadbetter

Apologies:

Councillor Parsons

*1 Minutes

RESOLVED that the Minutes of the meeting held on 25 March 2009 be signed as a correct record.

*2 External Audit Progress Report and Briefing

The Committee considered and noted the report of the District Auditor updating the Committee on the external audit programme of work set out in the 2008/09 and 2009/10 audit plans.

Members noted that an updated report would be submitted to each future meeting of the Committee outlining progress made in achieving those plans and the status of the work programme .

It was MOVED by Councillor Greenslade, SECONDED by Councillor Sir Simon Day and

RESOLVED that the report be noted but the Committee place on record its disquiet at the proposed 10% increase in the Scale of Audit Fees to be levied by the Audit Commission for 2009/10 and that the Director of Finance be therefore asked to explore with the Commission the reasons for that increase and the possibility of any discounted rates or reductions being applied, reflecting the level of risk involved in auditing a 4 Star Authority such as the County Council, and report back.

*3 Annual Statement of Accounts 2008/09

The Committee considered the report of by the Director of Finance (CR/09/18) together with the unaudited Statement of Accounts for 2008/09.

In presenting the Statement of Accounts, the Director of Finance reported:

that the Statement of Accounts was a statutory document which all local authorities were required to produce and make available for public inspection;

on changes over previous years in the presentation of and reporting arrangements for the Statement of Accounts introduced in line with Chartered Institute of Public Finance and Accountancy (CIPFA) requirements, particularly in relation to valuation of pension fund investments for pension liability disclosures; and

on significant events during the year reflected in the Statement and salient points in each section of the Statement.

The accounts would be available for public inspection from 10 August 2009, for 20 working day, as required by the Accounts Audit Regulations.

The Director of Finance reported that the 2008/09 Outturn had been reported to and approved by the Councils Executive on 29 June 2009 and responded to queries and comments from members.

Members acknowledged that the County Council had once again been able to maintain its financial health against a background of increased demand for services and the need to provide enhanced value-for-money. The changes set out in the Report reflected the changing landscape of financial reporting and that both the Annual Statement and Governance Statement would be reviewed through the use of resources element of the Comprehensive Performance Review.

The Director re-affirmed nonetheless that there was no room for complacency and arrangements and practices would continue to be reviewed to ensure that continuous improvement was achieved.

It was MOVED by Councillor Sir Simon Day, SECONDED by Councillor Pennington and

RESOLVED

(a) that the Annual Statement of Accounts be approved;

(b) that the Chairman of the Audit Committee be authorised to sign the Statement of Responsibilities, confirming approval by the Committee this day.

*4 Annual Internal Audit Report 2008/09

The Committee considered a Summary Report on the performance of Devon Audit Services against the approved internal audit plans for 2008/09 designed to assess the adequacy and security of the County Council s systems for maintaining internal control together with an introductory report by the Director of Finance (CR/09/17).

Members noted that the work of Devon Audit Services and its contribution to both risk management and anti-fraud arrangements within the County Council showed that the Council had an effective framework of control which provided reasonable assurance regarding the effective, efficient and economic achievement of its objectives.

It was MOVED by Councillor Sir Simon Day, SECONDED by Councillor Pennington and

RESOLVED

(a) that the internal audit opinion that the County Council s systems contain a satisfactory level of internal control be noted;

(b) that the satisfactory performance and achievements of Devon Audit Services during 2008/09 be noted;

(c) that the Council s continuing commitment to the maintenance and enhancement of an anti-fraud culture be endorsed;

(d) that the attention of the Children Young People s Services Scrutiny Committee be brought to the difficulties being experienced by Schools (and in particular smaller rural schools) in complying with the new national Financial Management Standards in School (FMSiS) and be invited to look at this issue and any corresponding impact that and other national requirements may be having upon the recruitment of school governors; and

(e) that the Devon Audit Service be asked to undertake a review of the introduction of Prism and look at its potential wider use and benefit for the County Council as a whole.

*5 Date of Next Meeting

Monday 28 September 2009 at 2.15pm at County Hall, Exeter.

*DENOTES DELEGATED MATTER WITH POWER TO ACT

The meeting started at 2.15pm and finished at 3.27pm.

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