27 March 2015

Present:

Councillor Edgell (Chairman), Channon, Clarance, Hannan, Hannon and B Hughes.

*50 Minutes

RESOLVED that the Minutes of the meeting held on 1 December 2014 be signed as a correct record.

*51 Devon County Council External Audit Plan

The Committee received the Report of Grant Thornton (CT/15/36 - supplementary information CT/15/36) setting out the external auditors audit plan covering 2014/15, including challenges and opportunities for the Council, wider developments relevant to the Council s business, significant risks, the value for money conclusion, results of interim audit work, key dates for the audit work and the external auditors fees.

One additional risk identified in the Report was accounting for school buildings on or off the balance sheet which had come to light as a consequence of new CIPFA Code issued in December 2014. Interpretation of the guidance in the Code had been ambiguous and open to different interpretations, but the County Treasurer confirmed that her team were currently working to identify the status of Voluntary Controlled, Voluntary Aided and Foundation Schools across the County.

The Committee discussed:

the benefit to the authority of the exercise in identifying the control and ownership of assets;

the status of Academy buildings, which were unlikely to be assessed as being on the balance sheet;

the impact of the Better Care Fund which would be considered by the external auditors under the Value for Money conclusion.

*52 Devon Pension Fund External Audit Plan

The Committee received the Report of Grant Thornton (CT/15/34 - supplementary information CT/15/34) setting out the external auditors audit plan covering 2014/15, including challenges and opportunities for the Council, wider developments relevant to the Council s business, significant risks, results of interim audit work, key dates for the audit work and the external auditors fees.

The Committee discussed the treatment of dividends and the reinvestment of these monies.

*53 External Audit Update

The Committee received the Report of Grant Thornton (CT/15/35 - supplementary information CT/15/35) outlining the progress made in delivering their responsibilities as the Council s external auditors. The Report also included a summary of emerging national issues and developments that may be relevant to the Council.

The Director of Grant Thornton also advised Members that a member of staff had recently left the employment of Grant Thornton to work for the County Council and described the strict guidelines that were adhered to, to ensure their continued independence over this period.

The Committee discussed the impact of recent legislation which would bring forward the deadlines for the preparation and audit of all local government financial statements from 2017/18.

*54 Internal Audit Plan 2015/16

The Committee considered the Report of the County Treasurer (CT/15/33 - text only | pdf | supplementary information CT/15/33) outlining key challenges and opportunities arising from the Council s corporate goals and strategic risk registers, overview of audit coverage, core activity including coverage days, annual governance framework, proposed reviews and associated risks and deferred reviews.

In response to Members questions the Head of Devon Audit Partnership advised that in areas such as Children s Safeguarding, the role of the internal auditor was to ensure that the correct systems were in place and that policies were being adhered to.

It was MOVED by Councillor Edgell, SECONDED by Councillor Clarance and

RESOLVED that the Internal Audit Plan for 2015/16 be agreed.

*55 Internal Audit Charter and Strategy 2015/16

The Committee considered the Report of the County Treasurer (CT/15/32 - text only | pdf CT/15/32) and the accompanying Internal Audit Charter and Internal Audit Strategy, outlining the purpose, authority and principal responsibilities of the Council s internal audit service, provided by the Devon Audit Partnership. The Charter and Strategy had been produced to meet the requirements set by the Public Sector Internal Audit Standards.

It was MOVED by Councillor Hannon, SECONDED by Councillor Edgell and

RESOLVED that the Internal Audit Charter Strategy for the year 2015/16 be agreed.

*56 Report of the Corporate Risk Management Group

The Committee considered the Report of the Head of Services for Communities (SC/15/6 - text only | pdf SC/15/6) providing an update on risk management practice within the Council. Although the Report did not show an Accountable Officer for Health and Safety, this had now been identified as being the Head of Services for Communities.

The Committee discussed:

the management of flood risk across the County and the criteria that applied for additional funding;

the relevance of the work of the South West Regional Flood and Coastal Committee to the Council s risk management practice;

the impact of unknown levels of government funding for 2016/17 onwards, on the Council s financial planning and consequently, ability to provide priority services.

*57 Future Meetings

The Director of Grant Thornton requested that the Committee consider moving the September meeting date later in the month, to allow adequate time for the external auditor to complete their work and discuss the audit findings with the County Treasurer, prior to the Committee meeting.

It was MOVED by Councillor Edgell, SECONDED by Councillor Clarance and

RESOLVED that the Audit Committee will meet on Tuesday 30 June 2015, Tuesday 22 September 2015, Thursday 19 November 2015 and Wednesday 23 March 2016 at County Hall at 2 pm.

*DENOTES DELEGATED MATTER WITH POWER TO ACT

The meeting started at 2.00 pm and finished at 3.15 pm.

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