The quorum for this Committee is three Members and substitutes are allowed.

Apologies for absence were received from Councillor Mike Rowley. Councillor David Henwood attended as substitute.

The committee noted apologies from Jacqueline Yates, Executive Director.

Members are asked to declare any disclosable pecuniary interests they may have in any of the following agenda items. Guidance on this is set out at the end of these agenda pages.

There were no declarations of interest.

Annual Result Report from External Auditors.

Ernst and Young as the council’s external auditors submitted their audit results report for the year ending 31^st March 2014.

Alan Witty and Mick West, from Ernst and Young, stated that they intended to issue an unqualified opinion on the accounts following conclusion of the audit. The audit had uncovered a number of misstatements subsequently corrected by officers although it was noted that these had no effect on the overall financial position of the council. They had also identified a further two misstatements which officers had not corrected.

In response to questions around the uncorrected misstatements within the accounts, Nigel Kennedy, Head of Finance, stated that the provision made in the accounts for business rates appeals was in his opinion sufficient and did not require any notes or additions to the accounts. In respect of an uncorrected presentational misstatement relating to pensions he advised that he saw no merit in further complicating the Statements for changes which made no overall difference to the council’s financial position. This position was further explained in the officer’s report (minute 20 refers) and the Letter of Representation to be signed by both the Head of Finance and the Chair of Audit and Governance.

The committee noted that resourcing issues which arose during the audit had delayed the audit, and that Nigel Kennedy had made representations to Ernst and Young who had apologised and given assurances that the situation would be improved next time.

The committee agreed:

1.    to note the report; and

2.    to note the comments from the external auditors and the Head of Finance.

The Head of Finance has submitted a report which details the Council’s Statement of Accounts for approval and authorisation.

Recommendations: That the Committee:

1 Approve the audited 2013/14 Statement of Accounts and authorise the Head of Finance

and Chair of the Committee to sign the Statement of Accounts

2 Approve the Letter of Representation to enable the opinion to be issued

The Head of Finance submitted a report detailing the Council’s Statement of Accounts for the year ending 31 March 2014. The letter of representation is appended to these minutes.

The Committee agreed:

1.    to approve the audited 2013/14 Statement of Accounts and to authorise the Head of Finance and the Chair of the Audit and Governance Committee to sign the Statement of Accounts, which they duly did; and

2.    to approve the Letter of Representation (appended to these minutes) to enable the Opinion to be issued and to authorise the Chair of the Audit and Governance Committee to sign the Letter of Representation.

The Chairman signed the letter and passed this to the representatives from Ernst and Young, the Council’s External Auditors.

The Head of Finance has submitted a report on behalf of the Council’s Internal Auditors, Pricewaterhousecoopers, which details the progress made in delivering the work set out in the 2014/15 audit plan.

The Committee is asked to comment on and note the report.

The Head of Finance submitted a report on behalf of the Council’s internal auditors, PWC, setting out progress in delivering the 2014/15 audit plan.

Christopher Dickens, PWC, updated the committee on the audit team and their work. There would be a combined audit of the sports pitch and cash collection because of the overlap of these services. Members suggested there was merit in reviewing the existing contracts with IT suppliers to inform the drafting of future contracts.

The committee agreed to note the report.

The Head of Finance has submitted a report which updates the Committee on the progress made on the implementation of internal and external audit recommendations.

Recommendation: That the Committee note the report.

The Head of Finance submitted a report setting out progress on the implementation of internal and external audit recommendations.

Anna Winship, Finance, introduced the report and with Christopher Dickens, PWC, answered questions from the committee. Work on reducing the outstanding high risk (business continuity) was complete. Scott Warner, Investigations Manager, advised that a report on the implementation of the DWP Single Fraud Investigation Service for the investigation of Housing Benefit Fraud would be brought to the next meeting.

The committee noted the work on several aspects of community centre leases, progress in implementing the audit recommendations, and the on-going work to reduce the risks in leasing the centres and to renew leases or agreements. They asked for a separate report about the regularisation and renewal of community centre leases and agreements at the February meeting.

The committee noted the campaign to stop tenants fraudulently sub-letting of the council’s housing stock, and that housing associations were taking part in this.

The committee agreed:

1.    to note the report and comments;

2.    to note that progress on the recommendations for Asset Management would be submitted to the next meeting; and

3.    to ask for a separate report on the regularisation of community centre leases.

The Head of Finance has submitted a report which details a review of the Council’s Risk Management Strategy for comment prior to its consideration by the City Executive Board.

Officer Recommendation: That the Committee consider the revised Risk Management Strategy and Operating Framework attached at Appendices 1 and 2 and, if the Committee wishes, convey recommendations to  the City Executive Board.

The Head of Finance submitted a report containing a revised risk management strategy and operating framework for the Council. The City Executive Board will consider the strategy at its meeting on 15^th October.

The committee agreed to note the risk management strategy and operating framework, and make no comments to the City Executive Board.

The Head of Finance has submitted a report which outlines the corporate and service risks as at the end of Quarter 1, 30^th June 2014.

Recommendation: The Committee is asked to note the contents of this report.

The Head of Finance submitted a report outlining the corporate and service risks at the end of Quarter 1, on 30^th June 2014.

Anna Winship, Finance, presented the report and said that the high risks shown had been mitigated and the risks reduced. The Scrutiny Finance Panel continued to monitor specific risks to major projects.

The committee agreed to note the report.

Minutes of the meeting held on 26^th June 2014.

The committee agreed to approve the minutes of the meeting held on 26^th June 2014 as a true and accurate record.

The Committee will meet at 6.00pm in the Town Hall on the following dates:

Thursday 18^th December 2014

Thursday 26^th February 2015

Thursday 23^rd April 2015

The committee noted the dates and times of future meetings.