Agenda and minutes

To receive any apologies for absence.

Apologies for absence were received from Councillors Margaret Lishman, Ann Royle and Jeff Summer and also from Louise Gaskell and Gill Smith.

To approve as a correct record the minutes of the previous meeting.

The minutes of the meeting held on 26^th July 2017 were approved as a correct record and singed by the Chair.

To receive any declarations of interest from Members relating to any item on the agenda, in accordance with the provisions of the Code of Conduct.

To receive the Annual Audit Letter from the external auditors.

The Committee received for information the Annual Audit Letter for 2016/17 which summarised the key findings of the audit.

The letter confirmed that the Council had in place proper arrangements to ensure economy, efficiency and effectiveness in the use of its resources during the year ended 31 March 2017 and there were no issues identified that required any action.

The External Auditor explained that the work to certify the Council’s Housing Benefit Subsidy claim on behalf of the Department for Work and Pensions was not yet complete but would be finalised by 30 November 2017 and the results would be included in the Annual Certification Letter.

Colin Crowther asked how the audit of the pension fund was carried out and the external auditor explained that this work was assisted by a separate specialist team within Grant Thornton whose findings were fed into the Audit.

IT WAS AGREED

That the Annual Audit Letter 2016/17 be noted.

To inform members of the report from the external review of Internal Audit against the Public Sector Internal Audit Standard.

The Internal Audit Manager informed members of the external review of the Internal Audit against the Public Sector Internal Audit Standard (PSIAS).

Internal Audit is required to comment annually on its compliance with the standards and at least once in every five years the compliance must be externally assessed.  This assessment, in the form of a Peer Review, had been undertaken in June 2017 by the Heads of Internal Audit in Hyndburn and Pendle.

The main outcome of the review was that the Council had complied 95% with the PSIAS requirements and there were no major areas of non-compliance.

Points that had been raised by the reviewers along with the Council’s measures to be taken in response to them were detailed in Appendix 2 to the report and relevant items would be included in the internal audit’s Quality Assurance and Improvement Programme (QAIP).

An issue that had been raised was the independence of the Head of Internal Audit and the potential of a conflict of interest with his role as S151 Officer and Head of Finance.  This had been addressed and an officer outside of Internal Audit would act as the Chief Audit Executive instead of the Head of Finance where the potential conflict could be seen.

Colin Crowther asked at what point the actions would be implemented and Ian Evenett said that he would report back on this.

IT WAS AGREED

That the report be noted.

To inform members of the progress in the appointment of an External Auditor for  5 years  commencing 2018/19.

Members were informed of the progress in the appointment of the External Auditor for 5 years commencing 2018/19.

Full Council had agreed to opt-in to the sector led body operated by PSAA and the procurement exercise had been conducted and consultation with appointment authorities was being carried out and a final decision was expected at the end of 2017.

The Chief Executive, Head of Finance and the Chair of Audit and Standards had been consulted and all were satisfied with the appointment of Grant Thornton (UK) LLB as the Council’s external auditor for the five years commencing 1 April 2018.

Colin Crowther asked if there would be an annual review during the 5 year period of the contract and Ian Evenett said he was not aware that there would be, but confirmed that any compliance issues during the contract would be dealt with.

Arrangements for the potential removal of an appointed external auditor are addressed within the Local Audit  (Auditor Resignation and Removal) Regulation 2014.  This was to protect the external auditor’s independence.

IT WAS AGREED

That the report be noted.  

To inform members of the work undertaken by Internal Audit for the period 1st April to 30th June 2017.

Members received for information details of the work undertaken by Internal Audit for the period 1^st April to 20^th June 2017.

IT WAS AGREED

That the report be noted.

To consider the Work Programme for the current year.

Members gave consideration to the work programme for 2017/18 and noted the slippage of the Partnership Governance and Monitoring Arrangements (Liberata Contract) to the January meeting.

IT WAS AGREED

That the work programme be noted.