23 March 2012

Present:

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

Apologies

Councillor Parsons

*94 Minutes

RESOLVED that the Minutes of the meeting held on 6 December 2011 be signed as a correct record.

*95 Audit Committee Progress Update Report

The Committee received the report of the District Auditor updating Members on the results of the walkthrough tests on the County Council s key financial systems and on the current position in respect of the externalisation of the Audit Practice following the Government s announcement in 2010 to bring forward legislations to abolish the Audit Commission and put in place a new framework for local public audit. The report also covered other areas of interest relating to the activities of the Audit Commission and concluded with a list of 8 key questions in respect of the issues raised in the update report.

Members commented on the externalisation of the audit practice and the appointment of Grant Thornton as the interim Auditor from September 2012 and whether the County Council had any choice in the matter. The Chairman also touched on the anti-fraud survey and the fraud probe at the Cotswold Water Park which featured recently in the media.

*96 Updated Audit Plan 2011/12 for Devon County Council and the Devon Pension Fund

The Committee received the reports of the District Auditor on the Audit Plan for the County Council and the Audit Plan for the Devon Pension Fund that set out the work for the 2011/12 audit. The Plans covered the proposed work, identifying value for money, identification of significant and inherent risks and the key milestones and deadlines. The Plans concluded with members of the audit team and the Commission s statement on its independence, objectivity and quality of Service. The District Auditor identified no significant risk to his audit opinion and no financially significant group components in the group accounts.

*97 Certification and Claims Returns - Annual Report

The Committee received the report of the District Auditor on the Commission s work that provides assurance to grant-paying bodies that claims for grants and subsidies are made properly or that information in financial returns is reliable. The report summarises the outcomes of the certification work on the County Council s claims and returns for 2010/12.

Members received confirmation that Academies would be paying for their own auditing costs.

*98 Internal Audit Plans for 2012/13

The Committee considered the report of the County Treasurer (CT/12/17 - text only | pdf | supplementary information CT/12/17) on the Plan for 2012/13, the key objectives of which are to provide assurance to officers and Members on the adequacy and security of those systems which the County Council relies on for its internal control and to provide advice and assurance to managers and staff within client directorates. The programme of internal audit work for the year was described in a summary appended to the report.

Members asked for explanations in respect of dangerous trees, risks to the security of electronic data, deviant purchasing and the risk of fraud and error.

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

RESOLVED

(a) that the Internal Audit Plans for 2012/13 be approved;

(b) that officers prepare a brief report for information on the Cotswold Water Park fraud case.

*99 Future of Public Audit

The Committee received the report of the County Treasurer (CT/12/18 - text only | pdf CT/12/18) on the proposed appointment of Grant Thornton LLP as the interim External Auditors of Devon County Council from 2012/13 and the key elements of the new local pubic audit framework beyond April 2017 when public bodies, assuming legislation in place, would be allowed to appoint their own auditors. The Head of Devon Audit Partnership explained the mechanism by which an Independent Panel would advise on the appointment of the County Council s own Auditor in December 2016. Members expressed their concerns about this process.

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

RESOLVED that the County Treasurer draft a letter for the Chairman to send to Eric Pickles MP, Secretary of State for Communities and Local Government, copy to Devon MPs, expressing the Committee s concerns regarding the proposed role of the Independent Auditor Appointment Panel.

*100 Date of Next Meeting

The Committee noted that its next meeting would be held on Friday 28 June 2012 at 2.15pm.

*DENOTES DELEGATED MATTER WITH POWER TO ACT

The meeting started at 2.15pm and finished at 3.30pm.