Meeting documents

SSDC Audit Committee
Monday, 29th September, 2014 10.00 am

Venue: Main Committee Room, Council Offices, Brympton Way, Yeovil. View directions

Contact: Anne Herridge 01935 462570  Email: anne.herridge@southsomerset.gov.uk

Items
No. Item

23.

Minutes

To approve as a correct record the minutes of the previous meeting held on Thursday 28th August 2014.

Minutes:

The minutes of the meeting held on 28th August 2014, copies of which had been circulated, were taken as read and, having been approved as a correct record were signed by the Chairman.

24.

Apologies for absence

Minutes:

Apologies for absence were received from Cllrs Terry Mounter, David Norris and John Richardson.

25.

Declarations of Interest

In accordance with the Council's current Code of Conduct (adopted July 2012), which includes all the provisions relating to Disclosable Pecuniary Interests (DPI), personal and prejudicial interests, Members are asked to declare any DPI and also any personal interests (and whether or not such personal interests are also "prejudicial") in relation to any matter on the agenda for this meeting.  A DPI is defined in The Relevant Authorities (Disclosable Pecuniary Interests) Regulations 2012 (SI 2012 No. 1464) and Appendix 3 of the Council’s Code of Conduct. A personal interest is defined in paragraph 2.8 of the Code and a prejudicial interest is defined in paragraph 2.9.

Minutes:

There were no declarations of interest.

26.

Public question time

Minutes:

There were no members of the public present.

27.

Date of the Next Audit Committee Meeting

The next scheduled meeting of the Audit Committee will be held on Thursday 23rd October 2014 at 10.00am in the Main Committee Room, Council Offices, Brympton Way, Yeovil.

Minutes:

Members noted that the next scheduled meeting of the Audit Committee would be held on Thursday 23rd October 2014.

28.

Treasury Management Strategy Statement and Investment Strategy 2014/15 - Mid year review. pdf icon PDF 152 KB

Additional documents:

Minutes:

The Principal Accountant Exchequer presented the report as detailed in full in the agenda.  She explained that there had been no major changes to the Treasury Management Strategy Statement and welcomed members comments.

In response to a question the Assistant Director–Finance and Corporate Services advised that SSDC now made more long term investments (for up to 5 years) which yielded a better return.  In general these were for a period between 1 and 2 years rather than 5.

The chairman thanked the officer for the comprehensive report.

RESOLVED:That the mid-year review of the Treasury Management Strategy be recommended to Council.

29.

The Audit Findings Report pdf icon PDF 100 KB

Additional documents:

Minutes:

The Director - Grant Thornton presented the report that summarised the findings from the 2013/14 work of the Audit Commission relating to governance, as detailed in full in the agenda. He apologised for the delay in completing the report.

He pointed out that an objection to the accounts for 2013/14 had been received which related to the legal costs of a planning application and the renegotiation of another planning obligation. He explained that the audit could not be determined until the complaints had been dealt with, that in such cases the process can be expensive, lengthy and time consuming. The certificate closing the audit would therefore be delayed; however he expected to be able to give an unqualified opinion on the financial statements by the deadline of 30th September.

The Director - Grant Thornton explained the process of dealing with a complaint by a local authority elector, and in response to a question, he explained that it should not be assumed that the name of the complainant would be made public during the process and the total costs incurred would be reported at the end. 

Reference was made to the ‘amber’ assessment regarding the authorities rolling programme of revaluations.  Discussion ensued regarding the best way forward on this matter.

In response to a question about the reduction in the in-year collection rates of Council Tax for 2013/14, the Assistant Director (Finance & Corporate Services) explained that the figure was not a final figure and the arrears were still being collected. SSDC were not out of sync with the rest of the country as many Local Authorities had had a dip in their collection rates mainly due to the introduction of the Council Tax Reduction Scheme as more people were now liable to pay council tax.  The extra work involved also had an impact on the staffing levels.

One member questioned whether the lean process for the Revenues and Benefits Service had been cost effective. It was explained that there had been significant changes to the service since the lean review.

In conclusion the Chairman asked that extra resources were given to the Revenues and Benefits Service.

The Assistant Director (Finance & Corporate Services) confirmed that a report was due to be presented to Management Board regarding the request for extra resources within the Revenues and Benefits Service.

Members were content to approve the recommendations.

RESOLVED: That the Audit Committee

1.    Considered the matters raised in the report;

2.    Noted the draft audit findings as outlined in Section 2 and the one adjusted error and amended disclosure within the Statement of Accounts

3.    Noted the Value for Money criteria has been met.

4.    Noted the additional fee of £900 will be charged

5.    Agreed the recommended actions in Appendix A.

30.

Summary Statement of Accounts 2013 -14 pdf icon PDF 93 KB

Additional documents:

Minutes:

(This Agenda Item was considered after Agenda Item 9 – Approve the Annual Statement of Accounts 2013-14.)

The Finance Manager presented the report requesting comments on the 2013/14 Summary of Accounts which would now be available on the Internet and at Local Council offices.

The Chairman commented that the Summary Statement of Accounts was now a simple, clear and easy to read document covering most aspects of the Council’s 2013/14 Statement of Accounts.

Members were content that the 2013/14 Summary of Accounts be approved for publication.

RESOLVED:

That the 2013/14 Summary of Accounts be approved for publication.

 

31.

Approve Annual Statement of Accounts 2013-14 pdf icon PDF 189 KB

Additional documents:

Minutes:

(Audit Committee members considered Agenda Item 9, before Agenda Item 8 - Summary Statement of Accounts.)

The Finance Manager presented the 2013/14 Annual Statement of Accounts for approval by the Audit Committee

In response to a question, the Finance Manager informed members that the deficit of £1.96million of retained business rates had been based on assumptions and due to the change in Government funding; the new system had been a steep learning curve. This year, there would, in all probability, be a surplus

The Assistant Director Finance and Corporate Services reiterated the above point and further explained that the level of prospective business rate appeals had been an unknown entity and a reserve had been set up for that purpose.

Having examined the document and commented on the information presented, the 2013/14 Annual Statement of Accounts was approved by the Committee by the Chairman signing and dating the balance sheet.

The Chairman, on behalf of the Audit Committee, recognised the hard work and dedication of the small and competent Finance Team

RESOLVED:

(a)   The 2013/14 Statement of Accounts be approved. (A copy of the Statement of Accounts had been circulated separately with this agenda.)

(b)  The unqualified opinion on the financial statements be noted.

(c)  That the Assistant Director (Finance and Corporate Services) be authorised to sign the Letter of Representation.

32.

Audit Committee Forward Plan 2014/15 pdf icon PDF 95 KB

Minutes:

On reviewing the Audit Committee Forward Plan, a report was requested to update members on the Annual Fraud Programme and that an update should be included regarding the transfer of the majority of fraud work to the DWP.