19 November 2015

Present

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

*72 Minutes

RESOLVED that the Minutes of the meeting held on 22 September 2015 be signed as a correct record.

*73 Annual Audit Letter 2014/15

The Committee considered the Annual Audit Letter from Grant Thornton (CT/15/110 - supplementary information CT/15/110) which issued an unqualified opinion on the Council s 2014/15 financial statements and on the Pension Fund financial statements, and an unqualified value for money conclusion 2014/15, noting the improvements made in the area of Children s Services.

The Annual Audit Letter recommended that Council identify savings plans further ahead and to consider increasing the period of its annual savings plan to fully cover two to three years. The Council has responded, recognising that that although it recognised that longer term savings plans would be helpful, it would be easier to implement this when Government funding plans were known.

In response to Members questions the County Treasurer advised that:

plans were being developed to balance the budget this financial year;

the issue of foundation school assets being recorded on both the school s and the Council s balance sheet was being investigated, although the Council and the external auditor were satisfied that the Council has accounted for this correctly.

Grant Thornton advised that some assets which had been written down to a value of zero had been investigated during the audit, but that this was mainly in relation to buildings which the Council were no longer delivering a service from, and that they were therefore satisfied that none of the Council s assets were undervalued.

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

RESOLVED

(a) that an update on the treatment of foundation school assets be brought to a future meeting of the Committee;

(b) that if double counting on balance sheets was found to be in existence, the issue be raised with CIPFA and the National Audit Office.

*74 External Audit Update

The Committee received a Report from Grant Thornton (CT/15/111 - supplementary information CT/15/111) outlining progress made in delivering the responsibilities of the external auditors and giving a summary of relevant emerging national issues and developments.

Grant Thornton updated the Committee on the new criteria for the Value for Money Conclusion which focused on informed decision making, sustainability in resource planning and partnership working.

*75 Six Month Internal Audit Report 2015/16

The Committee considered the Report of the Head of Devon Audit Partnership (CT/15/103 - text only | pdf | supplementary information CT/15/103) providing a six month audit opinion of the Council's Internal Audit Service and progress to date against the internal audit plans for 2015/16. This opinion was that an effective framework of control was in place, providing reasonable assurance regarding the effective, efficient and economic achievement of its objectives.

In response to Members questions, the Head of Devon Audit Partnership advised that:

an audit opinion of full assurance was considered difficult to achieve for County Councils due to the wide range and complexity of the services they deliver, and would only be given overall, if each of the service areas audited were given a full assurance opinion;

for areas where the opinion given was improvements required , the audit team had provided suggested actions to improve the issues or weaknesses identified;

the follow up audit of Consultants and Employment Status focussed on the processes followed and adherence to policy, which was common for all persons employed by the Council on a consultancy basis.

It was MOVED by Councillor Edgell, SECONDED by Councillor Clarance 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 2015/16 be noted;

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

*76 Annual Report of the Corporate Risk Management Group

The Committee considered the Report of the Head of Services for Communities (SC/15/24 - text only | pdf | supplementary information SC/15/24) providing an update on risk management practice in the Council. A revised Risk Management Strategy would be implemented from 2016 and, whilst retaining much of the current strategy, it would build on best practice from the UK office of Government Commerce and the Management of Risk Guidance. The revised strategy would be brought to a future meeting of the Committee for information.

Members discussed:

the importance of ensuring that risk management information was held in an accessible format and could be easily interrogated;

the value of reviewing service areas in the context of risk management, rather than solely performance indicators.

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

RESOLVED

(a) that the effective development and operation of risk management in the Council continue to be monitored by the Committee, and the updates to the risk register be noted;

(b) that an update on the options for holding and making accessible risk management information, be brought to a future meeting of the Committee.

*77 Future Meetings

Members heard that Grant Thornton had requested that the Committee consider changing the date of its meeting in September 2016, to allow the Director to attend the meeting.

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

RESOLVED that this matter be considered at the next meeting, following consultation with all Members of the Committee.

*DENOTES DELEGATED MATTER WITH POWER TO ACT

The meeting started at 2.00pm and finished at 3.20pm.

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