Agenda and minutes

RESOLVED that Mr A M Thomas be elected Chair for the 2014/15 Municipal Year.

 

(Mr A M Thomas presided)

 

RESOLVED that Councillor J W Jones be elected Vice-Chair for the 2014/15 Municipal Year.

 

Apologies for absence were received from Councillors P R Hood-Williams, J A Raynor and L V Walton.

 

In accordance with the Code of Conduct adopted by the City and County of

Swansea, no interests were declared.

 

To approve the Minutes of the meeting of the Audit Committee held on 24 April 2014.

RESOLVED that the Minutes of the meeting of the Audit Committee held on

24 April 2014 be agreed as a correct record subject to the following

amendments.

 

Minute No. 85 - Replace “od” with “of” in the second paragraph.

 

Minute No. 86 - Amend in paragraph 2, line 8 the word “audit” to “audits”.

 

The Chief Auditor provided a report which outlined the background to the

Public Sector Internal Auditing Standards (PSIAS) which were introduced with

effect from 1 April 2013 and provided the Internal Audit Charter for approval.

 

The Internal Audit Charter was provided at Appendix 1.  Details provided

within the Charter included the definition, role and function, scope,

independence, consultancy role, fraud, bribery and corruption, role within

internal audit, the internal audit resources and the Quality Assurance and

Improvement Programme.

 

Members asked a number of questions of the Officer who responded

accordingly. 

 

RESOLVED that the Internal Audit Charter be approved.

 

The Chief Auditor presented a report which provided an update on the

recommendations made following the Fundamental Audits 2012/13 which had

not been fully implemented when the Recommendations Tracker Report was

presented to the Audit Committee on 9 January 2014.

 

It was outlined that the January 2014 report identified the recommendations

which had not been fully implemented as either partly implemented, not

implemented or not yet due.  Appendix 1 showed, for each Fundamental

Audit, the number of recommendations made following the 2012/13 Audit and

whether they had been implemented, partly implemented or not implemented

as at 31 March 2014.  The position on 31 March 2014 on the 89 agreed

recommendations compared to those at 30 November 2013 were summarised

as follows:

 

	Recommendations	30 November 2013		31 March 2014
		No.	%	No.	%
	Implemented	68	76	79	89
	Partly Implemented	6	7	3	3
	Not implanted	6	7	7	8
	Not yet due	9	10	0	0
	TOTAL	89	100	89	100

 

Overall, the implementation rate was now 89% with the only areas where

recommendations were outstanding being payroll and accounts receivable.

An analysis of the recommendations, which had been partly or not

implemented over the classification of audit recommendations used by the

Internal Audit Section was provided at Appendix 2.  Appendix 3 provided the

management explanation for the ten recommendations which were not fully

implemented by 31 March 2014.  This showed that there were some

recommendations when an implementation date early in 2014/15 was

indicated and also instances where progress had been delayed due to other

priorities, mainly due to issues linked to the need to address the Council’s

significant budget deficit in future years.

 

It was concluded that whilst it was disappointing that some recommendations

arising from the 2012/13 Fundamental Audits remained outstanding, it was

also necessary to recognise the staff responsible for implementing the

recommendations were also heavily involved in a number of projects linked to

the Sustainable Swansea - Fit For The Future Programme which is aimed at

addressing the significant budget deficit faced by the Council.  Any

outstanding recommendations will have been picked up during the 2013/14

Fundamental Audits and monitoring of their implementation will form part of

the Recommendations Tracker exercise in the current year.

 

Key issues arising from discussions included:

 

·         Setting a time limit for the recommendations to be implemented. 

 

·         Listing of authorised signatories.

 

·         Recoverability of lifeline debts.

 

·         Overdue school debts not being paid.

 

RESOLVED that the progress in implementing the recommendations be

noted. 

 

The Chair presented a report which provided the Draft Audit Committee

Annual Report 2013/14.  It was outlined that the purpose of the report was to

allow the Audit Committee to discuss, review and contribute to the Draft Audit

Committee Annual Report 2013/14 prior to the report being presented to

Council.

 

RESOLVED that:

 

(1)       the contents of the report be noted;

 

(2)       the Annual Report 2013/14 be forwarded to Council.

 

S Barry, Wales Audit Office presented a letter that had been forwarded to the

Chief Executive of the Council outlining the 2014-15 performance audit work

and fees.  It was explained that this work was delivered under the Local

Government (Wales) Measure 2009, the Local Government Act 1999 and the

Public Audit (Wales) Act 2013. 

 

It was explained that the Wales Audit Office will be carrying out a Corporate

Assessment as part of a four year rolling programme of assessments at all

Welsh councils.  The Corporate Assessment will provide a position statement

of the Council’s capacity and capability to deliver continuous improvement.  It

will, by its nature, examine track records of performance and outcomes, as

well as examining the key arrangements that are necessary to underpin

improvements in services and functions.  The Wales Audit Office will publish a

Corporate Assessment Report that states whether the Auditor General

believes that the Council is likely to comply with the requirements of the

Measure.  Carrying out the Corporate Assessment will not require any

additional fee from the Council as it will be funded by Welsh Government

Grant to the Wales Audit Office.

 

It was added that in addition to the Auditor General’s audit and assessment

work under the Measure, the Wales Audit Office will undertake a programme

of local government studies as set out in the Auditor General’s letter of 28

April 2014.  These and the specific elements of the audit and assessment

work were provided.  It was explained that the performance audit fee from

April 2014 to March 2015 was £107,555.  However, if any additional work is

identified as being necessary, additional fees may be incurred.

 

The Wales Audit Office will publish a Corporate Assessment Report

incorporating the Annual Improvement Report for the Council, summarising

the work and that of relevant regulators and will issue a reports setting out the

findings of the audit and assessment work.

 

The Committee asked questions of the Wales Audit Office representative,

who responded accordingly. 

 

RESOLVED that the contents of the report be noted.

 

Further to Minute No. 88 of the Audit Committee held on 24 April 2014, the

Head of Finance and Delivery updated the Committee on progress made with

regards to the management of all regional projects.  He added that in future all

grant applications will be dealt with by an External Funding Panel. 

 

The Committee raised a number of questions in relation to the Coastal Project

and the governance of the External Funding Panel, which were responded to

accordingly. 

 

RESOLVED that:

 

(1)       the content of the update be noted;

 

(2)       the appropriate Director/Head of Service provide a briefing report to the next scheduled meeting;

 

(3)       the terms of reference of the External Funding Panel be provided to the next scheduled meeting.

 

The Audit Committee Work Plan was provided for information. 

 

RESOLVED that the contents of the report be noted.

 

NOTED that the next meeting be scheduled for 4.00 p.m. on Thursday 10 July

2014.