Agenda and minutes

Apologies for absence were submitted from Councillor Tim O’Kane, Mark Beard, Joe McIntyre and Andrew Smith- Grant Thornton, External Auditors.

There was no substitute representative for Councillor O’Kane.

There were no reported declarations of interest or dispensations.

To submit the minutes of the last meeting of the Audit Committee held on the

30^th July 2018 for approval as a correct record.

Recommended          -           That the minutes be received and approved as a

correct record.

The minutes of the last meeting held on the 30^th July 2018 were submitted for approval.

Resolved        -           That the minutes be received and approved as a correct

record.

To inform Audit Committee of the outcome of the review of the Strategic, Generic and Operational Risk Registers and the annual review of partnerships.

Recommended          -           That the report be noted for informational

purposes.

The Corporate Performance Manager, Mike Walker, presented a report which informed the Committee of the outcome of the review of the Strategic, Generic and Operational Risk Registers along with the annual review of partnerships.

There had been no major changes to the Strategic Risk Register but a number of minor changes had been made which were detailed in Appendix 1 of the report.

There had been two new risks added to the Generic Risk Register during the review. The new risks were summarised in the report and detailed in Appendix 2.

There had been three new risks submitted for inclusion in the Operational Risk Register and were detailed in Appendix 3 of the report.

A summary of all risks contained in the Generic, Operational and Strategic Risk Registers were detailed in Appendix 4 of the report.

Appendix 5 also contained details on the partnership register with the latest status listed.

Councillor Michael Miller asked if the partnership agreement between Barnfield and Hyndburn had to submit their accounts via HBC or were they audited independently. At the last meeting documents showed there had been losses and what liability falls upon HBC and the risks if they ceased trading. The Chair asked for this matter to be investigated and a reply provided.

The Chair on behalf of the Audit Committee thanked the Corporate Performance Manager for all his hard work over the years as this was his last HBC meeting before he left the authority at the end of the month.

Resolved        -           That the report be noted for informational purposes.

The Head of Audit and Investigations submitted a report to inform members of the Audit Committee of Audit Reports issued during the period July- October 2018 and bring to the attention of the Committee what the key issues were.

Recommended          -           That the report be noted for informational

purposes.

The Head of Audit and Investigations submitted a report to inform members of the Audit Committee of Audit Reports issued during the period July - October 2018 and bring to the attention of the Committee what the key issues were.        

The HBC Senior Auditor, Angela Kelly reported there was a target of 98% of the audit plan to be completed by the end of the current financial year in terms of audit days completed. The figures contained in the report gave updated details to the end of October 2018 (54.58% of the plan completed) and the projected out turn position for 2018/19 (93.56% of the plan completed).

A summary of the main issues arising from audits carried out between July- October 2018 was attached to Appendix 1 of the report and detailed both substantial and comprehensive audit assurance in the following areas:

Substantial Assurance

·                     Debtors

·                     Software Maintenance Contracts

·                     Capital Programme

·                     External Body Nominations

Comprehensive Assurance

·                     Planning Fees

·                     Waste Collection & Recycling

Resolved         -           That the report be noted for informational purposes.

The Head of Audit and Investigations submitted a report to inform members of the Audit Committee of the outcome of routine follow-ups following the previously agreed action plans for completed Audit Records. The follow-ups detailed within the report are those carried out during the period August- October 2018.

Recommended          -           That the report be noted for informational

purposes.

The Head of Audit and Investigations submitted a report to inform members of the Audit Committee on the outcome of routine follow-ups following previous agreed action plans for completed Audit Records. The follow-ups detailed within the report were those carried out during the period August- October 2018.

The information on the following follow-ups were carried out during the period August to October 2018 and were detailed within Appendix 1 of the report.

·                     Car Allowances

6 actions agreed and 6 actions had been implemented

·                     Training Budgets incorp PDR process

            1 action agreed and 1 action had been implemented

·                     Disabled Facility Grants

1 action agreed and 1 action had been implemented

·                     Civic Regalia

5 actions agreed, 4 actions had been implemented and 1 not implemented

·                     Creditors

1 action agreed and 1 action had been implemented

Resolved        -           That the report be noted for informational purposes.

The Deputy Chief Executive submitted a report to inform members of the Audit Committee of the outcome of the Local Government Association Independent Financial Peer Review, which was undertaken over the Summer of 2018.

Recommended          -           That the report be noted for informational

purposes.

The Deputy Chief Executive, Joe McIntyre had submitted a report to inform Audit Committee of the outcome of the Local Government Association Independent Financial Peer Review which was undertaken over the summer of 2018.

The HBC Head of Accountancy, David Donlan provided the Audit Committee with a summary and that the report from the Local Government Association was attached as Appendix 1 in the report.

The Chair commented that the report was positive and no questions were raised by Members.

Resolved        -           That the report be noted for informational purposes.

To inform members of the Annual Audit Letter which summarises the key findings arising from the work carried out at Hyndburn Borough Council for the year ended 31 March 2018. The letter is intended to communicate the results of their work to the council and external stakeholders. It also highlights issues that they wish to draw to the attention of the public.

Recommended          -           That the report be noted for informational

purposes.

Grant Thornton submitted a report to inform members of the Annual Audit Letter which summarised the key findings arising from the work carried out at Hyndburn Borough Council for the year ended 31 March 2018.

Helen Stevenson from Grant Thornton reported that the letter was intended to communicate the results of their work to the council and external stakeholders. It also highlighted issues that they wished to draw to the attention of the public.

The executive summary provided the committee with the main messages and the reports issues and fees were all in line with the plan.

Resolved                    - That the report be noted for informational purposes.

The report informed members of the Audit Committee with an update on progress as of November 2018 in delivering Grant Thornton’s responsibilities as external auditors to the Council. It included a summary of emerging national issues and developments that may be relevant and a number of challenge questions in respect of emerging issues which the Committee may wish to consider.

Recommended          -           That the report be noted for informational

purposes.

Grant Thornton submitted a report which informed members of the Audit Committee with an update on progress as of November 2018 in delivering Grant Thornton’s responsibilities as external auditors to the Council. It included a summary of emerging national issues and developments that were relevant and a number of challenging questions in respect of emerging issues which the Committee considered.

Helen Stevenson of Grant Thornton went through the report with a summary of details for each section, which included:

·                     Progress at November 2018

·                     Audit deliverables

·                     Sector update

·                     CIPFA Consultation

·                     MHCLG Social Housing Green Paper

·                     MHCLG Business rate pilots

·                     Institute of Fiscal Studies

·                     The health & Social care interface

·                     Care home for the elderly

·                     Links

A training event had been arranged for the finance team to attend in the new year and the Chair asked if this was open to Members. It was reported that normally only a couple of places are allocated for Officers from each authority.

Resolved        -           That the report be noted for informational purposes.

Resolved                    - That the next meeting of the Audit Committee be held on

Monday 11^th March 2019 at 5.00pm in Scaitcliffe House.