Agenda and minutes

RESOLVED that the minutes of the meeting dated 30 October 2019 be agreed as a correct record.

Apologies for absence were received from Geraldine Chadwick and Richard Harbord.

None.

None.

Details of the questions asked and the answers provided were published and circulated at the meeting. Verbal responses were given to supplementary questions at the meeting.

None.

The Head of Internal Audit introduced the report which detailed the progress against the internal audit recommendations and work completed to date on the Internal Audit & Corporate Anti-Fraud Team (CAFT) Plan 2019-20 and high and medium priority internal audit recommendations.

She reported that during this quarter Q3, 16 reviews were completed delivering 72% of the 2019/20 internal audit programme for the year. There were no reports issued with a ‘No’ Assurance rating

With regards to high priority actions at total of 36 high priority actions had been followed up this quarter.

She provided a summary on the status set against the remaining GT actions set out on page 18. Progress against these actions was still being assessed.

The Committee were further provided with a detailed summary on each one of the following issued with Limited Assurance:

·       Mosaic Application Review – Limited Assurance

·       Accounts Receivable – Limited Assurance

·       Cash and Bank – Limited Assurance

RESOLVED – That the Committeenoted the work completed to date on Internal Audit Q3 progress report - 1^st October to 30th December 2019.

The External Auditor from BDO introduced the report which advised the Committee of BDO’s audit plan for 2019/20.

It summarised the planned audit strategy for the year ending 31 March 2020 in respect of BDO’s audit of the financial statements of the Council and consolidated entities (together the ‘Group’) and use of resources; comprising materiality, key audit risks and the planned approach to these, together with timetable and the BDO team.

The report also provided and overview of the key audit matters BDO believed to be important to the Audit Committee in reviewing the planned audit strategy.

With regards to the concerns expressed by the Committee around meeting the deadline the Vice-Chairman proposed that an update time table is brought back to the next meeting clearly setting out the targets and milestones that are being worked towards. [Action: Director of Finance & BDO] 

RESOLVED – That the Committee;

1.     Noted BDO’s audit plan for 2019/20; and

2.     Noted the final audit fee of £168,741 for 2018/19 audit and the fee of £29,250 for certification of the housing benefits subsidy return, as set out in the Audit Planning Report (Appendix A); and

3.     Noted the 2019/20 proposed audit fee of £170,919 (including fee variation request of £40,000) and the fee for certification of the housing benefits subsidy return, as set out in the Audit Planning Report (Appendix A) and presented by BDO LLP; and

4.     Provide comments on the Audit Plan.

This item was taken together with item 8. The Chairman agreement that the following item is added to the work programme.

RESOLVED -  That the Committee note the forward Work Programme with the following updates;

The Head of Counter Fraud Operations introduced the report which provided an update of the work undertaken by the Corporate Anti-Fraud Team (CAFT) during the period 1st October – 31st December 2019.

He provided the Committee with a summary of ‘International Fraud Awareness Week’ which ran from 17th – 23rd   November 2019 and some of the activities undertaken to (i) raise fraud awareness and (ii) give advice on how to report concerns both internally, for members of staff and externally for members of the public.

With regards to the increase in corporate fraud numbers for this quarter, the Head of Counter Fraud Operations clarified that a significant number those are due to the National Fraud Initiative (NFI). At the end of January/February 2019 the team receives the NFI report which provides all the matches, in this case there were 12000 matches. By the time these are filtered through and its identified which case to start investigating, it’s the new year and quarter. As a result, it’s this quarters figures that are impacted as opposed to last years. The NFI exercise is undertaken every 2 years

He further provided the Committee with summary of the proactive reviews set in table 2 and the performance indicators in table 3.

With regards to the Financial investigations he explained that they are limited as to what details can be reported to the committee as these are ongoing crown court cases.

RESOLVED – That the Committee

1.     Noted the CAFT Progress Report covering the period 1st October – 31st December 2019 attached at Appendix 1.

2.     That the Committee note the outcome of the Capita review, the details of which are set out in the Internal Summary Report attached at exempt Appendix 2.

None.

That under Section 100A (4) of the Local Government Act 1972 the public be excluded from the meeting for the following item of business on the grounds that it involves the disclosure of exempt information as defined in paragraph 7 of Part 1 of Schedule 12A of the Act (as amended) – Information relating to any action taken or to be taken in connection with the prevention, investigation or prosecution of crime.

RESOLVED that under Section 100A (4) of the Local Government Act 1972 the public be excluded from the meeting for the following items of business on the grounds that they involve the likely disclosure of exempt information as defined in paragraphs 1 and 7 of Part 1 of Schedule 12A of the Act (as amended)

RESOLVED that the Committee note the information set out in the exempt report

None.