6 December 2011

Present:

Councillors Moulding (Vice-Chairman, in the Chair), Greenslade, McMurray and Pennington

Apologies

Councillors Parsons and Hannon and Sir Simon Day

*87 Minutes

RESOLVED that the Minutes of the meeting held on 23 September 2011 be signed as a correct record.

*88 Audit Progress Summary

The Committee received the report of the District Auditor which set out the reports issued by the Commission since the last meeting of the Committee, work in progress and Audit Commission events and national reports.

*89 Annual Audit Letter

The Committee received the report of the District Auditor summarising his findings from his 2010/10 audit under two heading: the audit of the County Council s financial statements and District Auditor s assessment of the Council s arrangements to achieve value for money in the use of its resources. He issued an unqualified opinion on 27 September 2011 on the financial statements which identified some errors most of which the Council had subsequently been amended. He also issued an unqualified value for money conclusion and was satisfied that the Council had appropriate arrangements in place against nationally set criteria. Members offered their congratulations to the Finance Team.

*90 Update on the Procurement of Audit Services

The Committee received the report of the District Auditor updating Members on the progress of the current procurement exercise to outsource the work of the Commission s in-house audit practice and to provide further details of the timetable. The Commission had issued Invitations to Tender (ITT) to 13 potential providers which were listed in the report and the potential suppliers had until 16 December 2011 to submit tenders. The report went on to detail the three key stages:

making decisions about the award of contracts;

determining the length of contracts;

appointing auditors to individual bodies.

The new auditor appointments for 2012/13 would take effect from 1 September 2012.

*91 Six Month Internal Audit Report 2011/12

The Committee considered the report of the County Treasurer (CT/11/33) providing the six month audit opinion of the Council s Internal Audit Service (Devon Audit Partnership) and describing the progress to date against internal audit plans for 2011/12 that were approved by the this Committee in March 2011. This work, and the continuing contribution of Devon Audit Partnership to both risk management and anti-fraud arrangements within the Council, led to an opinion that the Council continued to have an effective framework of control which provided reasonable assurance regarding the effective, efficient and economic achievement of its objectives. Members raised issues in relation to the financial management of schools, steps taken to address tree safety, possible duplication in the work of the Youth Offending Team, the number of irregularities where fraud was proven, managing change in the County Council to ensure controlling systems in place and referring to the Corporate Risk Register to direct audit work.

It was MOVED by Councillor Moulding, SECONDED by Councillor McMurray and

RESOLVED

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

(b) that the satisfactory performance and achievements of Devon Audit Partnership during the first six months of 201/12 be noted;

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

*92 Risk Management

The Committee considered the report of the Corporate Risk Management Group on the annual reports from each of the major specialisms outlining progress made and giving them the opportunity to voice concerns. The Group plans to monitor risk management arrangements with Council partnerships, reassessment of risk appetite during economic downturn, risk management training and an update on the Corporate Risk Register. Copies of the Corporate Risk Register were distributed at the meeting.

Members asked questions and made comments on the Risk Register in relation to failure to achieve effective political relationships with District Councils, inadequate financial planning and rising energy costs and carbon management.

It was MOVED by Councillor Greenslade, SECONDED by Councillor Moulding and

RESOLVED that the Committee receive an update on the Corporate Risk Register at its next meeting.

*93 Date of Next Meeting

The Committee noted that its next meeting would be held on Friday 30 March 2012 at 2.15pm.

*DENOTES DELEGATED MATTER WITH POWER TO ACT

The meeting started at 2.15pm and finished at 3.35pm.