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Contact: Lynn Cain
Declarations of Disclosable Pecuniary or Personal Interests and Non Disclosable Pecuniary/Other Interests
No declarations of interest
Minutes PDF 150 KB
that the minutes of the meeting
of the Audit Committee held on 19th March, 2018, be
received and approved as a correct record.
Presentation by the Interim Corporate Finance Manager (and Section 151 Officer) - Statement of Accounts 2017/18
The Corporate Finance Manager
(and Section 151 Officer) gave a presentation to the Committee in
relation to the content of the audited 2017/18 Statement of
Audited Statement of Accounts 2017/18 including Letter of Representation PDF 157 KB
The Corporate Finance Manager
(and Section 151 Officer) presented the audited 2017/18 Statement
of Accounts and highlighted the primary changes made following the
outcome of the external audit as follows:-
Minor wording changes were made to the Accounting
Policies Notes; (3) Cash & Cash Equivalents, (15a) Operating
Leases, (17) Property, Plant & Equipment and (23) Collection
Fund to ensure they were in line with the Code of Practice on Local
Authority Accounting in the UK (2017/18).
The Financial Instruments Table for long term
liabilities included some short term loans which had to be
In accordance with the CIPFA code the Property,
Plant and Equipment revaluation table was restated to be shown on a
cost rather than net book value basis.
One immaterial audit difference was identified at a
value of £41k in respect of Property, Plant and Equipment.
This had not been corrected in the 2017/18 accounts and did not
impact on the primary financial statements. The net book value of
property, plant and equipment would remain the same, however the
depreciation and impairment and the gross book value would both
increase by £41k.
The Trade Union (Facility Time Publication
Requirements) Regulations 2017 required a disclosure on the
Council’s website by the 31st July in respect of Trade Union
Facility Time. At the suggestion of the External Auditors it was
considered to be appropriate to include this information within the
Narrative Report section of the Statement of Accounts.
Members’ attention was
also drawn to the draft letter of representation which outlined the
fundamental issues and considerations in preparation of the
accounts. The letter was submitted for Members to consider and
the findings of the Statement of Accounts external
audit, be received and noted;
the audited Statement of Accounts for 2017/18
including the associated Letter of Representation, be
To comply with statutory and
KPMG: External Audit ISA260 Report 2017/18 PDF 2 MB
Debbie Stokes, KPMG’s
Audit Manager, presented the ISA 260 report to those charged with
governance for 2017/18. KPMG had carried out an audit of the
Council’s Statement of Accounts which was now substantially
The headline messages were as
KPMG were anticipating issuing
an unqualified opinion on the Council’s financial statements
by the end of July 2018 and it was acknowledged that the
Council’s financial papers, as submitted, were of a high
Three significant audit risks
had been identified in relation to Valuation of PPE, Pensions
Liabilities and Faster Close Out. KPMG
had raised two recommendations following work being undertaken with
officers in relation to the risks and all necessary actions had
Two issues had been identified
following the audit work on the 2017/18 financial statements
regarding liquidity cash flow and procurement. Management’s response had been timely
with implementation dates set for September 2001 and November 2018
VFM Conclusion and Risk
KPMG concluded that the
Authority had made proper arrangements to secure economy,
efficiency and effectiveness in its use of resources. Two risks had
been identified regarding financial resilience and investment
On conclusion of the
presentation, the Chairman took the opportunity to thank those
involved in compiling the 2017/18 accounts for their continued hard
work and commitment.
that the ISA 260 report for 2017/18, as presented to
Committee by KPMG, be received and noted;
a letter of thanks be forwarded to the
Council’s former Corporate Finance Manager (and Section 151
Officer), Sharon Lynch, who had recently left the Authority but had
greatly contributed to the production of the 2017/18
(Following consideration of
this item, the Chairman of the Committee duly signed off the
Council’s Audited Statement of Accounts and the Letter of
Representation for 2017/18.)
Internal Audit Annual Report 2017/18 PDF 643 KB
Mandy Marples presented the
Internal Audit Annual Report for 2017/18. The Chief Audit Executive
had reached an overall opinion, as based on work undertaken
throughout the year, that there was currently a ‘satisfactory
system of internal control’ at the Council. Findings had
indicated that on the whole, controls were satisfactory and
management had accepted all of the issues raised within audit
reports and had implemented recommendations as required.
The opinion had been arrived at
by having regard for the following:-
The level of coverage provided by Internal Audit was
Regular meetings had been held with the Monitoring
Officer to discuss emerging issues, risk, governance and the
control environment at the Council.
All of the issues raised within the internal audit
reports had been accepted.
A significant piece of work had been undertaken by
the Council to improve its anti-fraud and corruption framework.
This work principally addressed the issues raised by an audit
assignment in this area.
Internal Audit has also been involved in the
Council’s Anti-Fraud group
the year and had observed the progress made against
from this work. Further work in relation to improving the
Council’s data matching had also commenced.
Following the restructure of the Corporate
Leadership Team last year, there was still uncertainties as to
whether the change in the role of the S151 Officer had been
effective and this role would continue to be reviewed.
Of the 29 assignments that had been significantly
completed, 7 attracted a
'Comprehensive' rating and 15 a 'Reasonable' assurance rating.
7, an assurance rating wasn’t applicable to 1 assignment and
a 'Limited' assurance rating.
The number of control issues formally raised by
Internal Audit from the audit assignments completed during 2017/18
as summarised in the report.
Committee were advised that CMAP were themselves subjected to an
external quality assessment every 5 years to ensure that their
activity conformed to the Definition of Internal Auditing and
Standards and whether or not they were satisfactorily applying the
Code of Ethics.
initial assessment had been undertaken in early 2017 and some
opportunities for further improvement and development were
identified. An update on this position
has been given in September 2017 and CMAP were found to be
conforming as per the regulations.
During the year, 29 pieces of
audit work had been completed with 7 receiving a
‘comprehensive’ assessment, 16 a
‘reasonable’ assessment and only 6 receiving a
‘Limited’ assurance. In
relation to the recommendations, 59% had been implemented during
2017/18 with the remaining recommendations being implemented in
accordance with agreed dates as appropriate.
To conclude, Committee Members
were advised that by the end of the 2017/18 year, 92% of the Audit
Plan had been completed against a target of 90%.
that the 2017/18 Annual Report
of Internal Audit and the Internal Audit Opinion that supports it,
be received and approved.
To approve the Annual Report as
part of the documentation supporting the Annual ...
view the full minutes text for item 6.
Audit Progress Report PDF 892 KB
Mandy Marples presented the
report and summarised audit progress between 1st March, 2018 and
30th June, 2018 with 10 assignments having reached their
conclusion during this period.
Since publication of the
agenda, a further 2 reports in relation to Commercial Property
Investment and Capital Accounting had been finalised with the Fixed
Assets audit review being the last piece of work to be completed
from the 2017/18 Audit Plan.
There had also been 2 changes
to the Audit Plan with the addition of audits relating to the
Council’s Fleetwave system and the Licensing function, as
requested by management. To allocate
adequate time to the new audits, the planned audits regarding
Leisure Centres and Partnership Governance had been duly withdrawn
from the 2018/19 Audit Plan
Members were given a brief
synopsis of the outcomes of the two assignments that has received
limited assurance, namely E-CINS Security Assessment and Pest
Control and Members also considered the recommendation tracker
whilst acknowledging that there had been some effective movement by
the Council to address outstanding recommendations since the agenda
had been printed.
that audit assignment progress
between 1st March, 2018 and 30th June, 2018,
as presented to Committee, be received and noted.
To ensure Members are kept
fully informed of progress against the agreed Audit