Apologies were received from Councillors Tony Brett and David Rundle (Councillor Mark Mills attended as a substitute for Councillor Rundle).

Councillor Roy Darke declared a personal interest in agenda item 3 (Statement of Accounts for the year ending 31^st March 2012) as he is a Member of the Oxfordshire County Council Pensions Committee.  (Minute 8 refers).

The Head of Finance has submitted a report which presents the Statement of Accounts for the year ending 31^st March 2012.

The Committee is asked to note the contents of the Statement of Accounts certified by the Executive Director (Organisational Development and Corporate Services) prior to their submission to the external auditors.

The Head of Finance submitted a report (previously circulated, now appended) which presented the Statement of Accounts for the year ending 31^st March 2012.

Councillor Roy Darke declared a personal interest as he was a Member of the Oxfordshire County Council Pensions Committee.

Nigel Kennedy Head of Finance introduced the report.

In response to questions concerning heritage assets, Anna Winship explained that they had always been included in the accounts, but now had to be split out as a specific heading and included the civic regalia, Town Hall Organ, paintings etc and as at 31^st March 2012 were valued just short of £2.4m.  Anna Winship confirmed that they were covered by insurance.

Councillor Fry asked questions concerning the pension deficit.  In response Jackie Yates said that the valuation was a point in time, and so would change.  She added that the tri-annual valuation would look at the assets and liabilities of the fund and make recommendations for managing the deficit over the long term.  She further added that there had been recent changes to the pension scheme including employees making contributions based on their salary, rather than a flat rate percentage.

Councillor Simmons asked how Members could find out more information on the Council’s acquired company, specifically on the partnership with Grosvenor Developments Limited and the Barton Oxford LLP.  In response Jackie Yates said that the agreement between the Council and Grosvenor Developments Limited was a matter of public record and so could be viewed.  She added that she was one of three Directors from the Council on the Partnership Board and the Lead Officer on this was David Edwards.  Various Members of the Committee agreed that it would be useful to have a briefing session on this partnership.

Councillor Simmons asked questions concerning interest payments from funds held in Icelandic Banks.  In response Anna Winship said that the Council had funds in two Icelandic Banks, of these one was paying interest up to 2009, while the other was not. 

Councillor Mills asked questions concerning the Group Accountants and the liabilities in relation to the LLP.  In response Jackie Yates explained that there would be an upfront financial outlay by Grosvenor to provide the infrastructure for the development before the income from sales were realised and any profit generated.  She further added that the LLP accounts had been prepared by Grosvenor and audited by Grant Thornton, the Auditors appointed by the LLP.

The Committee agreed:

(a)       To thank Officers for their work in producing the Statement of Accounts;

(b)       To note the Statement of Accounts as certified by the Executive Director (Organisational Development and Corporate Services) for submission to the Councils external auditors;

(c)        To request the Executive Director, City Regeneration to arrange for a briefing session for Members of the Audit and Governance Committee on the financial structure of the Barton Oxford LLP.

The Head of Law and Governance has submitted a report, which presents the 2011/12 Annual Governance Statement for approval.

The Committee is asked to approve the 2011/12 Annual Governance Statement.

The Head of Law and Governance submitted a report (previously circulated, now appended) which presented the 2011/12 Annual Governance Statement for approval.

Jeremy Thomas introduced the report and said that while it had been presented as a separate agenda item, the Annual Governance Statement formed part of the Statement of Accounts.

In response to questions from various Members of the Committee, Officers explained that the Council’s Collection Fund position was comparable with other authorities and that Officers were working hard to ensure that monies due were collected and the amount of arrears reduced.

The Committee agreed to approve the 2011/12 Annual Governance Statement.

The Head of Finance has submitted a report on behalf of the Audit Commission which details the progress made in delivering the work set out in the 2011/12 audit plan.

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

The Head of Finance submitted a report (previously circulated, now appended) on behalf of the Audit Commission which detailed the progress made in delivering the work set out in the 2011/12 Audit Plan.

Maria Grindly from the Audit Commission introduced the report and said that good progress had been made with improvements in controls for 2011/12.  She further highlighted that being able to conduct early work on the Statement of Accounts had been beneficial.

In response to questions concerning reconciliations and car parks, Anna Winship said that the same level of work would be required whether there was a daily or weekly reconciliation as the pay machines were emptied on a daily basis.

The Committee agreed to note the report.

The Head of Finance has submitted a report on behalf of the Council’s Internal Auditors, Pricewaterhousecoopers (PWC), which provides a commentary of internal audit activity for the 2011/12 year.

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

The Head of Finance submitted a report (previously circulated, now appended) on behalf of the Council’s Internal Auditors, Pricewaterhousecoopers (PWC), which provided a commentary of internal audit activity for the 2011/12 year.

Christopher Dickens from Pricewaterhousecoopers (PWC) introduced the report and highlighted that there had been a significant reduction in the number of audits with a high risk rating.

The Committee agreed to welcome the reduction in the number of high risk ratings and to note the report.

The Head of Finance has submitted a report which updates the Committee on both corporate and service risks as at the end of quarter 4, 31^st March 2012.

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

The Head of Finance submitted a report (previously circulated, now appended) which updated the Committee on both corporate and service risks as at the end of quarter 4, 31^st March 2012.

Nigel Kennedy from Finance introduced the report.

The Committee agreed to note the report.

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

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

The Head of Finance submitted a report (previously circulated, now appended) which updated the Committee on the progress on the implementation of internal and external audit recommendations.

Anna Winship from Finance introduced the report and said that no new recommendations had been added as we were now at the end of the 2011/12 year.  She added that with the current 2012/13 year now underway new recommendations would be added.

The Committee agreed to note the report.

The Head of Finance has submitted a report the purpose of which is to report to the Committee the Investigation Team’s performance for the period 2011/2012 and to update Members on Fighting Fraud Locally.

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

The Head of Finance submitted a report (previously circulated, now appended) the purpose of which was to report to the Committee the Investigation Team’s performance for the period 2011/12 and to further update the Committee on fighting fraud locally.

Carol Quainton introduced the report and in response to questions said that in early 2013, the Council should know initially how much funding the Department for Work and Pensions (DWP) would provide for investigators under the single fraud investigation service.  She added that the Council employees would remain under the management of the Council, but their work allocation, performance targets etc. would not and information on this had not been forthcoming from the DWP.

Committee Members asked further questions concerning internal fraud work and the quality of investigations due to the changes.  In response Carol Quainton said that the Council was working with other authorities to see where the risk areas generally were on internal fraud.  Regarding the quality of investigations she said that there was concern that the Crown Prosecution Service (CPS) had instigated a 28 day file review which was not a legal requirement, which had resulted in cases not being pursue, which might otherwise be in the public interest to pursue.

Carol Quainton said in response to questions concerning targets that these had been reduced by 25% due to an Officer being moved to deal specifically with tenancy fraud, however the number of cases had not reduced as had been the expectation.

The Committee agreed:

(a)       To note the report;

(b)       To request the Head of Finance write to the Department for Work and Pensions (DWP) with the comments and concerns of the Committee and asking for reassurance that reporting lines between the Single Fraud Investigation Service and the Audit and Governance Committee would be maintained;

(c)        To request the Head of Finance write to the Crown Prosecution Service (CPS) and the Department for Work and Pensions (DWP) expressing the Audit and Governance Committee’s concern at the 28 day file review limits which would result in cases not being pursued which otherwise may have been.

Minutes of the meetings held on 16^th April and 23^rd May 2012.

The Committee agreed to approve the minutes (previously circulated) of the meetings held on 16^th April and 23^rd May 2012.

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

Thursday 27^th September 2012

Thursday 29^th November 2012

Thursday 28^th February 2013

Thursday 18^th April 2013

The Committee agreed to note the dates of future meetings as detailed on the agenda pages and that the next meeting of the Committee would take place on Thursday 27^th September 2012 at 6.00pm in the Town Hall.

If the Committee wishes to exclude the press and the public from the meeting during consideration of any of the items on the exempt from publication part of the agenda, it will be necessary for the Board to pass a resolution in accordance with the provisions of Paragraph 21(1)(b) of the Local Authorities (Executive Arrangements) (Access to Information) (England) Regulations 2000 of the on the grounds that their presence could involve the likely disclosure of exempt information as described in specific paragraphs of Schedule I2A of the Local Government Act 1972.

The Committee agreed to exclude the press and public form the meeting during consideration of items on the exempt for publication part of the agenda.

This item is exempt from publication by virtue of paragraphs 2,3 and 7, Schedule 12A, Local Government Act 1971

(2)       Information which is likely to reveal the identity of an individual

(3)       Information about someone’s finances or business

(7)       Information about action to deal with a crime

The Head of Finance submitted a report (previously circulated, now appended), which detailed recent investigations and outcomes of cases of alleged fraud involving Oxford City Council staff. 

The Committee agreed to note the report.