<div class="mgLinks">
<ul class="mgActionList">
<li><a href="http://committeedmz.dartford.gov.uk/mgMeetingAttendance.aspx?ID=1590&J=1" class="external" title="Link to attendance details for the meeting of Audit BoardWednesday 31 March 2010 7.00 pm">Attendance Details</a></li>
<li><a href="http://committeedmz.dartford.gov.uk/mgConvert2PDF.aspx?ID=1590&T=0&J=1" class="external" title="Link to agenda frontsheet pdf file">Agenda Frontsheet</a>
<span class="mgFileSize"> PDF 138 KB</span>
</li>
<li><a href="http://committeedmz.dartford.gov.uk/mgConvert2PDF.aspx?ID=1590&T=10&J=1" class="external" title="Link to agenda reports document pack pdf file">Agenda reports pack</a>
<span class="mgFileSize"> PDF 265 KB</span> </li>
<li><a href="http://committeedmz.dartford.gov.uk/mgConvert2PDF.aspx?ID=1590&T=1&J=1" class="external" title="Link to printed minutes pdf file">Printed minutes</a>
<span class="mgFileSize"> PDF 36 KB</span>
</li>
</ul>
</div><div class="mgContent">
Items
Note
No.
Item
<p></p>
<p class="mgAiTitleTxt"><a name="AI15151"></a>1.</p>
<p class="mgAiTitleTxt">Apologies for Absence.</p>
<p class="mgSubItemTitleTxt">Minutes:</p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">Apologies for absence were received from
Councillors D A Hammock and Councillor A Wells.</p>
<p class="MsoNormal"> </p>
</div>
</div>
<p></p>
<p class="mgAiTitleTxt"><a name="AI15152"></a>2.</p>
<p class="mgAiTitleTxt">Declarations of Interest.</p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">To receive any declarations of interests
Members may wish to make including the term(s) of the Grant of
Dispensation(s) by the Standards Committee.</p>
</div>
</div>
<p class="mgSubItemTitleTxt">Minutes:</p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">There were no declarations of interests.</p>
</div>
</div>
<p>MD </p>
<p class="mgAiTitleTxt"><a name="AI15153"></a>3.</p>
<p class="mgAiTitleTxt"><a href="http://committeedmz.dartford.gov.uk/mgConvert2PDF.aspx?ID=22422&J=1" title="Link to document 'Confirmation of the Minutes of the meeting held on 11 January 2010' pdf file" class="external">Confirmation of the Minutes of the meeting held on 11 January 2010</a> <span class="mgFileSize"> PDF 31 KB</span> </p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">To confirm the minutes of the Audit Board held
on 11 January 2010.</p>
</div>
</div>
<p class="mgSubItemTitleTxt">Minutes:</p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">The minutes of the meeting held on 1 January
2010 were confirmed as an accurate record.</p>
</div>
</div>
<p></p>
<p class="mgAiTitleTxt"><a name="AI15154"></a>4.</p>
<p class="mgAiTitleTxt">Urgent Items</p>
<ul class="mgActionList">
<li><a href="http://committeedmz.dartford.gov.uk/mgIssueHistoryHome.aspx?IId=12456&J=1" class="external" title="Link to issue details for item 4.">Find out more about item 4.</a></li>
</ul>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">The Chairman will announce his decision as to
whether there are any urgent items and their position on the
agenda.</p>
</div>
</div>
<p class="mgSubItemTitleTxt">Minutes:</p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">There were no urgent items.</p>
<p class="MsoNormal"> </p>
</div>
</div>
<p></p>
<p class="mgAiTitleTxt"><a name="AI15156"></a>5.</p>
<p class="mgAiTitleTxt">References from Other Committees, if any.</p>
<ul class="mgActionList">
<li><a href="http://committeedmz.dartford.gov.uk/mgIssueHistoryHome.aspx?IId=12457&J=1" class="external" title="Link to issue details for item 5.">Find out more about item 5.</a></li>
</ul>
<p class="mgSubItemTitleTxt">Minutes:</p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">There were no references from other
committees.</p>
<p class="MsoNormal"> </p>
</div>
</div>
<p></p>
<p class="mgAiTitleTxt"><a name="AI15161"></a>6.</p>
<p class="mgAiTitleTxt"><a href="http://committeedmz.dartford.gov.uk/mgConvert2PDF.aspx?ID=22535&J=1" title="Link to document 'External Audit' pdf file" class="external">External Audit</a> <span class="mgFileSize"> PDF 17 KB</span> </p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">To note the decision of the Audit Commission
<span class="GramE">which confirms the appointment of the
Commission as the Council’s new external auditor.</span></p>
</div>
</div>
<p class="mgSubItemTitleTxt">Minutes:</p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">The Chairman welcomed
Andy Mack from the Audit Commission to the meeting and informed
Members that Mr Mack had been confirmed as the Council’s new
external auditor by the Audit Commission. Although the Council had
been happy to continue to work with its existing External Auditor,
Baker <span class="SpellE">Tilly</span>, with whom it had developed
a good working relationship and understanding of methodology the
Audit <span class="GramE">Commission</span> had rejected the
Council’s request to continue with Baker <span class="SpellE">Tilly</span>.<span> </span>
The Audit Commission had recognised some of the Council’s
concerns about the transition period when the International
Financial Reporting Standards would apply for the first time and
when the Audit Commission lead officer would have been on maternity
leave, and had therefore decided to appoint Mr Mack from the outset
to ensure greater continuity during this period.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">The Head of Finance
and Resources reminded the Board of the background to the
appointment and stressed that the Council had always developed good
working relationships with its External Auditors and looked forward
to working closely with Mr Mack and his team. To this end the
Executive Director and Head of Finance and Resources had met with
Mr Mack to discuss the Council’s expectations and
transitional arrangements. It was confirmed that the Audit
Commission would take over from 1<sup>st</sup> April but that the
finalisation of the 2009/10 accounts and Use of Resources
assessment would be completed by Baker <span class="SpellE">Tilly</span> and that the Audit Commission would start to
take a more prominent role towards the late Autumn. The Head of
Finance and Resources was confident that a smooth transition would
take place but that the Audit Commission would need to recognise
the Council’s expectations as a low cost, high performing
authority and that there could be issues around finalising the
audit fee for Baker <span class="SpellE">Tilly</span> and the
future fees that the Audit Commission might charge.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">Mr Mack introduced
himself to the Board and detailed his work with the Audit
Commission. He explained that he was the District Auditor for 8
authorities in Kent and worked closely with the KCC District
Auditor, and Claire Bryce- Smith (the CAA lead). Mr Mack would be
supported by a strong audit team including Elizabeth Robinson who
would be the Council’s External Audit Manager and who was
also the external auditor for Gravesham and <span class="SpellE">Harpsal</span> Singh a final year CIPFA student. Mr Mack
explained that he had been reassured by the meeting with Council
officers as many of the objectives and expectations discussed had
been commonly held and he was confident that there would be a
smooth transition from Baker <span class="SpellE">Tilly</span>. He
fully appreciated the Council’s concerns about external audit
fees but noted that the fees charged by Baker <span class="SpellE">Tilly</span> were amongst the lowest in the country and
were 15% below the Audit Commission’s recommended benchmark
fee level, it was therefore very likely that the fee charged by the
Commission would be higher, possibly by around 6%. However this
would clearly be subject to discussion and could change if future
public funds were significantly reduced, as seemed likely, and
according to any changes in reporting requirements which a new
government might introduce.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">The Head of Resources
explained that this was a significant issue for the Council and
pointed out that more work had been required on the Use of
Resources assessment in the previous year and that it was likely
that Baker <span class="SpellE">Tilly’s</span> fee for this
would actually be lower this year. In view of this any increase in
fees charged by the Audit Commission for doing the same work in
future years would not be accepted.</p>
<p class="MsoNormal">The Chairman stressed
that any increase in fees would not be acceptable at a time when
the Council was diverting resources to front line services and that
the Council would be particularly upset given that it had been
required to change its external auditor against its wishes. He
asked for clarification on how the Audit Commission managed the
apparent conflict of interest between its role in appointing
external auditors and in carrying out external audit <span class="GramE">work</span> itself in competition with other private
companies and how it demonstrated its competitiveness.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">Mr Mack explained that
the Audit Commission carried out market testing every 5 years to
establish its competitiveness with the private sector, was audited
by the National Audit Office and overseen by parliament. He agreed
to send the Council benchmarking data which he believed would show
that the audit service the Council would receive would be
competitively priced.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">The Chairman thanked
Mr Mack for attending the meeting and looked forward to working
with him and his team in future.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal"> </p>
</div>
</div>
<p></p>
<p class="mgAiTitleTxt"><a name="AI15163"></a>7.</p>
<p class="mgAiTitleTxt"><a href="http://committeedmz.dartford.gov.uk/mgConvert2PDF.aspx?ID=22418&J=1" title="Link to document 'Progress Report on Internal Audit Plan' pdf file" class="external">Progress Report on Internal Audit Plan</a> <span class="mgFileSize"> PDF 30 KB</span> </p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">To consider audits issued during the year and
progress against the Audit Plan for 2009/10.</p>
</div>
</div>
<p class="mgSubItemTitleTxt">Minutes:</p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">Members received a report which summarised the
audits issued during the year and detailing progress against the
Audit Plan for 2009/10. It was noted that 14 reviews had been
finalised whilst a further 4 reviews were at the draft report stage
making a total of 67% at draft or final report stage. Of the
remaining 33% of planned reviews, 2 were at feedback stage (7%), 5
(19%) were at the final field work stage and a further 2 (7%) were
at an early stage of completion. Members were advised that the
Internal Audit Team had spent a good proportion of its time on
planned audits with less time being spent on administration and
unplanned activities and the internal audit team was on course to
deliver the audit plan in time to give an overall satisfactory
assurance for the financial year. The Board also noted that the
team had received a clean bill of health from the British Standards
Institute following its inspection in January 2010.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal"><span> </span>
RESOLVED:</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">That the contents of the report reviewing
progress against the 2009/10 Audit Plan be noted.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal"> </p>
</div>
</div>
<p></p>
<p class="mgAiTitleTxt"><a name="AI15165"></a>8.</p>
<p class="mgAiTitleTxt"><a href="http://committeedmz.dartford.gov.uk/mgConvert2PDF.aspx?ID=22541&J=1" title="Link to document 'Internal Audit Plan 2010/11' pdf file" class="external">Internal Audit Plan 2010/11</a> <span class="mgFileSize"> PDF 31 KB</span> </p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal"><span class="GramE">To consider and approve
the proposed Internal Audit Plan for 2010/11.</span></p>
</div>
</div>
<p class="mgSubItemTitleTxt">Minutes:</p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">The Board was asked to consider the proposed
Internal Audit Plan for 2010/11 for approval. The Plan had been
prepared in accordance with the relevant Regulations and Codes of
Practice and was designed to give reasonable assurance to the
Council on the effectiveness of internal control, governance and
risk management processes in fulfilment of the Council’s
statutory responsibilities. The Strategic Audit Plan and Audit
Needs Assessment had been reviewed to reflect current priorities to
ensure that audit resources would be targeted in the Internal Audit
Plan on the areas which would benefit most from improving internal
controls and improving service efficiencies and delivery. The Plan
for 2010/11 contained 21 key reviews which included all key
financial systems and cut across the whole range of Council
services and was sufficiently flexible to be responsive to changing
needs throughout the year.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">RESOLVED:</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">That the Internal Audit plan for 2010/11
outlined in the report be approved.<span> </span></p>
<p class="MsoNormal"> </p>
</div>
</div>
<p></p>
<p class="mgAiTitleTxt"><a name="AI15157"></a>9.</p>
<p class="mgAiTitleTxt"><a href="http://committeedmz.dartford.gov.uk/mgConvert2PDF.aspx?ID=22419&J=1" title="Link to document 'Reports Issued Since Last Meeting of the Board' pdf file" class="external">Reports Issued Since Last Meeting of the Board</a> <span class="mgFileSize"> PDF 39 KB</span> </p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">
<span>To inform Members of
outcomes of the audits completed since the previous report to the
Board on 11 January 2010 and to provide Members with the
opportunity to request clarification or further information, if
considered necessary.</span></p>
</div>
</div>
<p class="mgSubItemTitleTxt">Minutes:</p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">Members considered a report which informed
them of the outcomes of audits completed since the last meeting of
the Board on 11 January 2010. It was noted that 16 reports had been
finalised during 2009/10, of which 2 were carried forward from the
2008/09 Audit Plan and 14 were in the 2009/10 Audit Plan. With the
exception of three reviews where the opinion was
“adequate” all of the opinions were “good”
or “satisfactory” indicating that there were effective
controls in place within the scope of the areas reviewed. The
overall balance of audit opinions for reports completed in 2009/10
was “satisfactory”. The Audit Manager advised the Board
that management received feedback on all of the audits with
attention focusing on those where the audit opinions was lower than
“good”.</p>
<p class="MsoNormal"><span> </span></p>
<p class="MsoNormal"><span> </span>
RESOLVED:</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">That the report and summary details of the
completed audits be received.<span> </span></p>
<p class="MsoNormal"> </p>
</div>
</div>
<p></p>
<p class="mgAiTitleTxt"><a name="AI15164"></a>10.</p>
<p class="mgAiTitleTxt"><a href="http://committeedmz.dartford.gov.uk/mgConvert2PDF.aspx?ID=22420&J=1" title="Link to document 'Review of Internal Audit Recommendations - Follow up' pdf file" class="external">Review of Internal Audit Recommendations - Follow up</a> <span class="mgFileSize"> PDF 41 KB</span> </p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">To update Members on progress with the
follow-up exercise on the implementation of recommendations agreed
with management and to report on outstanding recommendations due
for implementation by 31 January 2010.</p>
</div>
</div>
<p class="mgSubItemTitleTxt">Minutes:</p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">The Board received a report which provided an
update on progress with the audit recommendations follow-up
exercise and reported on outstanding recommendations due for
implementation by 31 January 2010. The report also contained
details of recommendations made where implementation had been
delayed or where management did not intend to implement the
recommendations and the reasons for this in each case. Enquiries
with management in each case had indicated that satisfactory
progress was being made or proposed in each case and that there
were no major audit concerns about the management response to
recommendations. The Audit Manager confirmed that outstanding
recommendations from the 2006/07 Business Continuity audit were
scheduled for completion in September 2010 and that the outcome
would be reported to the Audit Board following completion.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal"><span> </span>
RESOLVED:</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">(1) That the report following up on Internal
Audit Recommendations be noted;</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">(2) That the Board notes the reasons for
delayed implementation and endorses the revised dates for
implementation provided by management as contained in Appendix B to
the report.</p>
<p class="MsoNormal"> </p>
</div>
</div>
<p></p>
<p class="mgAiTitleTxt"><a name="AI15158"></a>11.</p>
<p class="mgAiTitleTxt"><a href="http://committeedmz.dartford.gov.uk/mgConvert2PDF.aspx?ID=22421&J=1" title="Link to document 'Selective Invoice Checks' pdf file" class="external">Selective Invoice Checks</a> <span class="mgFileSize"> PDF 23 KB</span> </p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">During the meeting of the Board on 11 January
2010 Members selected three payments for checking. This report
summarises the findings and provides the opportunity to select
further payments for checking, if required.</p>
</div>
</div>
<p class="mgSubItemTitleTxt">Minutes:</p>
<div class="mgWordPara"><div class="Section1">
<p class="MsoNormal">At its last meeting the Board selected three
creditor payments to be spot checked in order to provide Members
with assurance that goods and services are properly ordered,
authorised, received and paid for. The following payments were
selected:</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">
<span>
<span>·<span> </span></span></span>
National Cradle Maintenance Ltd - £1,224.36 (Gross)</p>
<p class="MsoNormal">
<span>
<span>·<span> </span></span></span>
National Taxi Association - £65.00 (Gross)</p>
<p class="MsoNormal">
<span>
<span>·<span> </span></span></span>
Newsquest North London Ltd - £633.94(Gross)</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">The Audit Manager reported that procedures
were correctly applied and that all supporting documentation was
available and no concerns were highlighted regarding the payments.
In response to Members questions it was confirmed that management
do check that the services to which the payments relate are
delivered and that checking was not merely confined to checking
processes. The Board selected three further payments to be
investigated with the findings to be reported to the next
meeting.<span> </span></p>
<p class="MsoNormal"> </p>
<p class="MsoNormal"><span> </span>
RESOLVED:</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal">That the contents and findings of the report
on Selective Invoice checks be noted.</p>
<p class="MsoNormal"> </p>
<p class="MsoNormal"> </p>
</div>
</div>
<div class="mgHelpLine">
</div>
</div>
2010-05-01T21:07:11+01:00
28841
Meeting
Minutes
28826
Attendance Details
Agenda Frontsheet
PDF 138 KB
Agenda reports pack
PDF 265 KB
Printed minutes
PDF 36 KB
Items
Note
No.
Item
1.
Apologies for Absence.
Minutes:
Apologies for absence were received from
Councillors D A Hammock and Councillor A Wells.
2.
Declarations of Interest.
To receive any declarations of interests
Members may wish to make including the term(s) of the Grant of
Dispensation(s) by the Standards Committee.
Minutes:
There were no declarations of interests.
MD&nbs...
Minutes for Audit Board meeting, Mar 31 2010, 7.00PM
2010-07-08T07:29:25+01:00
http://committeedmz.dartford.gov.uk/ieListDocuments.aspx?CId=286&MId=1590&Ver=4&J=1
Minutes for Audit Board meeting, Mar 31 2010, 7.00PM
http://openlylocal.com/documents/28826-Minutes-for-Audit-Board-meeting-Mar-31-2010-7-00PM