Venue: Committee Room, Council Offices, Urban Road, Kirkby-in-Ashfield
Contact: Lynn Cain
Declarations of Disclosable Pecuniary or Personal Interests and Non Disclosable Pecuniary/Other Interests
No declarations of interest
Minutes PDF 145 KB
that the minutes of the meeting
of the Audit Committee held on 24th July, 2018, be
received and approved as a correct record.
KPMG: Annual Audit Letter 2017/18 PDF 1 MB
KPMG Manager, John Cornett,
presented the Annual Audit Letter for 2017/18. The Letter provided
a summary of the key findings from the 2017/18 audit of the
Council’s financial statements and the Value for Money (VFM)
conclusion and confirmed the issuing of an unqualified opinion and
conclusion in respect of both issues.
There had been four key risks
identified as part of the 2017/18 audit in respect of Management
Override of Controls, Valuation of PPE, Pensions Liabilities and
Faster Close, however management had accepted all the
recommendations arising from the audit work and had ensured that a
suitable mitigation plan had been duly implemented. With regard to
the Faster Close, it had been recommended to the Council that it
worked more closely with its third parties in future to ensure they
were aware of the revised deadlines and had a suitable programme in
place to ensure timely output of work as required.
In relation to the VFM
conclusion, only one high priority recommendation had been
identified in relation to the Authority’s liquidity position
following work being carried out on two significant matters namely,
Delivery of Budgets and Investment Properties. Notwithstanding the fact that KPMG had accepted
that the Council’s cash flow position had significantly
changed since the audit work had been carried out earlier in the
year, a high risk recommendation had still been included to ensure
the Authority regularly reviewed its cash flow/borrowing
requirements to provide for adequate cash balances throughout the
Committee were asked to note
that there would be a further audit fee of £1,500 in addition
to the set scale fee of £56,036 (excluding VAT) due to some
additional work being undertaken in respect of the new VFM risk
identified in 2017/18 as part of the planning process and as
identified in the Audit Plan.
Following presentation of the
Audit Letter, the Chairman took the opportunity to thank John and
KPMG, on behalf of the Committee, for their excellent service to
the Authority over the past few years.
In return, John thanked the Finance Team and Members (through the
work of the Audit Committee) for their staunch support in ensuring
the external audit process was undertaken each year in a proficient
and resolute manner.
To conclude, the Chairman
welcomed Helen Brookes, Audit Manager for Mazars, to the Committee
and Members. Mazars had been
commissioned to provide external audit services to the Council from
the 2019/20 financial year onwards.
that the Annual Audit Letter
for 2017/18, as presented to the Committee by KPMG, be received and
Annual Review of the Local Code of Corporate Governance PDF 283 KB
The Director of Legal and
Governance (and Monitoring Officer) presented the report and
requested Members to consider the revised Local Code of Corporate
Governance and note the improvement actions as outlined in the
2017/18 Annual Governance Statement.
A detailed piece of work had
been undertaken in the previous year in relation to anti-fraud
measures which had formed part of the Local Code of Corporate
Governance, setting out the Council’s governance arrangements
based on guidance published by CIPFA.
It was agreed that the Code would be subject to an annual review
and would inform the governance framework and the Annual Governance
Statement for the forthcoming year.
the recent review of the Local Code of Corporate
Governance be noted;
approval be given to the suggested changes to the
Code as set out in the report and Appendix 1;
the progress made in relation to the actions
outlined in the 2017/2018 Annual Governance Statement be received
the proposed process for the preparation of the
2018/2019 Annual Governance Statement be also noted.
It is best practice for the
Local Code of Governance to be reviewed annually to inform the
Governance Framework for the following year.
Audit Progress Report PDF 829 KB
Mandy Marples, CMAP’s
Audit Manager, presented the report and summarised the audit
progress as at 31st October, 2018 with 6 assignments having reached
their conclusion during the period. With the agreement of the
Director of Legal and Governance (and Monitoring Officer), a change
was made to the Audit Plan in October 2018 to enable Internal Audit
to assist the Council with an investigation.
As a result of the change, the
audits on Strategic Housing, Outdoor Recreation, Customers
Services, the Corporate Improvement Programme and Digital
Transformation had been withdrawn from the 2018/19 Internal Audit
Plan but it was acknowledged that this change would not affect the
overall positive coverage of Council services via the Audit
Members were advised that of
the 6 completed assignments, the Contract Management review has
only received a Limited assurance and as a result, 4 actions had
been agreed by management, with a completion date of 1st
December, 2018, to address the issues raised.
Members took the opportunity to
ask questions concerning the outstanding significant and moderate
risk recommendations and what actions were taken by management to
escalate and address the issues to ensure compliance as
that audit assignment progress
as at 31st October, 2018, as presented to Committee, be received
To ensure Members are kept
fully informed of progress against the agreed Audit