30 June 2015

Present

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

Apologies

Councillors Biederman and Hannon

*58 Minutes

RESOLVED that the Minutes of the meeting held on 27 March 2015 be signed as a correct record.

*59 Annual Governance Statement

The Committee considered the Report of the Corporate Leadership Team (CS/15/11 - text only | pdf | supplementary information CS/15/11) on the governance statement which the Council was required to publish in accordance with CIPFA/SOLACE guidance and to comply with Regulation 4(2) and 4(3) of the Accounts and Audit (Amendment) (England) Regulations 2011.

The Council s external auditors Grant Thornton advised that in their view the current presentation of the Annual Governance was appropriate in length and detail.

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

RESOLVED that the Annual Governance Statement be approved and Chairman be authorised to sign the Statement.

*60 Annual Internal Audit Report 2014/15

The Committee considered the Report of the Head of Devon Audit Partnership (CT/15/54 - text only | pdf | supplementary information CT/15/54) on the performance of Devon Audit Partnership against the internal audit plans for 2014/15, concluding that internal audit was able to provide reasonable assurance on the adequacy and effectiveness of the Council s internal control framework.

In response to Members questions relating to counter-fraud arrangements the Head of Devon Audit Partnership confirmed that no reports this financial year had been identified as malicious but that concerns could be reported anonymously through the Council s Whistle Blowing policy.

It was MOVED by Councillor Hughes, SECONDED by Councillor Berry 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 2014/15 be noted;

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

*61 Control Environment

The Committee considered the report of the County Treasurer (CT/15/52 - text only | pdf | supplementary information CT/15/52) on the annual requirement of the Audit Committee and S151 Officer to respond to enquiries from the external auditors (Grant Thornton) regarding the overall control environment of the Council, with particular focus on arrangements to ensure that the production of the financial statements were free of material error. The Committee was required to authorise the accounts after careful consideration of the external auditor s report. The letters, attached to the report, from the Chairman and the S151 officer set out the details of the control environment that contributed to the establishment of the audit opinion.

In response to Members questions the County Treasurer advised that the County Council maintained a record of all instances of fraud and corruption which it made available to the Council s external auditors, and that all unidentified duplicate payments referred to in the report had now been recovered.

Members discussed the reasoning behind and the potential impact the revaluing of local authority assets inline with CIPFA and government requirements, which involved valuing highway assets at the gross replacement cost, rather than as was previously the case, using historical costs and applying depreciation.

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

RESOLVED

(a) that the report be noted and the letter from the Chairman to the external auditor be endorsed;

(b) that the conclusion of the County Treasurer that the authority s accounts should be prepared on a Going Concern basis be endorsed;

(c) that the Chairman write to CIPFA and the Secretary of State for Communities and Local Government expressing the Committee s concerns over changes to CIPFA s Code of Practice, causing a significant increase in the value of the Council s highway infrastructure assets from 425 million to an estimated value of 8-9 billion.

*62 External Audit Update

The Committee received the Report of Grant Thornton (CT/15/55 - supplementary information CT/15/55) outlining progress on the delivery of their responsibilities as the Council s external auditors and included a summary of emerging national issues and development relevant to the Council.

*63 Corporate Risk Management Group Report

The Committee received the Report of the Head of Services for Communities (SC/15/13 - text only | pdf | supplementary information SC/15/13) providing an update on risk management practice within the Council, including work being undertaken to specifically identify the Council s strategic risks and where appropriate to include these on the risk register.

*64 Future Meetings

The Audit Committee will meet on 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 3.10 pm.

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