Archived decisions

HAMPSHIRE COUNTY COUNCIL

Decision Report

Decision Maker:

Audit Committee

Date of Decision:

23 September 2009

Decision Title:

Framework for bringing External Audit Reports to the Audit Committee

Decision Reference:

952

Report From:

The Chief Executive and County Treasurer

Contact name:

Barbara Beardwell / Paul Carey-Kent

Tel:

01962 847525

Email:

[email protected]

This note sets out the proposed approach for bringing reports to the Audit Committee in order to ensure that members and those who might wish to submit Reports to the Audit Committee have a clear understanding of the Audit Committee's approach.

1. Considerations

1.1. The Audit Committee has, in consistence with the previous practice of the Governance Committee, an expectation that it will receive regular reports on:

      · Internal and External Audit planning for the year ahead

      · A half yearly progress report from Internal Audit

      · The Annual Internal Audit opinion

      · The Annual Governance Statement prepared by the Monitoring Officer and the County Treasurer

      · The Annual Accounts for the County Council and the Pension Fund

      · The External Auditors' Annual Governance Report

1.2. In addition, as was the case with the previous Governance Committee, the terms of reference of the Audit Committee enable it to "receive and consider reports from the external auditor and any national agencies as may report on the County Council's performance, inspection or audit", it might be appropriate to clarify, in practice, what this means.

1.3 In this context, reports from the External Auditor are the Audit Committee Annual Governance Report on the County Council accounts and the Pension Fund accounts which the Audit Committee must receive prior to 30 September each year in order to allow the External Auditor to finalise his opinion on the County Council and Pension Fund Accounts.

1.4 However, some reports will relate to the political leadership and management of the County Council, the performance of the Executive and the management of services, which are the responsibility of the Leader, Cabinet, Chief Executive and Corporate Management Team. In these cases, it is proposed that the report should first and always be reported to the Executive and the Head of Paid Service and thereafter forwarded, where appropriate, to the Audit Committee with the relevant commentary and analysis.

      Specifically this applies to the Annual Use of Resources / Organisational Assessment report due under the Comprehensive Area Assessment, which sets out the External Auditors' conclusions on the overall value for money being achieved by the Council. This report is a matter for the Cabinet to deal with, but given its relevance to audit issues it would be appropriate for this report to be considered subsequently by the Audit Committee.

1.5 It is however considered appropriate that the External Auditor might also wish to submit to the Audit Committee from time to time an ongoing summary of external audit activity. Such summary should be submitted in the first instance to the County Treasurer for comment, in accordance with the County Council's established business practices and lead-in timetable for the submission of reports and may thereafter be presented by the County Treasurer to the Audit Committee with any appropriate officer commentary

      Such reports might cover two perspectives:

      · Significant findings from the previous period's External Audit reports (analogous to the half yearly update on internal audit work)

      · A list of future planned External Audit reports, their timing and by whom they are due to be considered

1.6 This would provide the information for the Audit Committee to follow up on issues raised in external Audit Reports (as it can already do from Internal Audit summaries of findings) and to flag up a particular interest in any future reports which might include requests to see specific reports in full. This would ensure that members of the Audit Committee are well placed to consider significant issues raised by the External Auditor.

2. Recommendation

      It is recommended that the Committee agrees the proposed Framework for receiving reports from External Audit, and that this is communicated to the External Auditor.

CORPORATE OR LEGAL INFORMATION:

Links to the Corporate Strategy

Hampshire safer and more secure for all:

yes/no

Corporate Business plan link number (if appropriate):

Maximising well-being:

yes/no

Corporate Business plan link number (if appropriate):

Enhancing our quality of place:

yes/no

Corporate Business plan link number (if appropriate):

OR

This proposal does not link to the Corporate Strategy but, nevertheless, requires a decision because:

of the significance of audit to the good governance of the County Council.

Section 100 D - Local Government Act 1972 - background documents

 

The following documents discuss facts or matters on which this report, or an important part of it, is based and have been relied upon to a material extent in the preparation of this report. (NB: the list excludes published works and any documents which disclose exempt or confidential information as defined in the Act.)

 

Document

Location

None

  

IMPACT ASSESSMENTS:

1. Equalities Impact Assessment:

1.1. Equalities objectives are not considered to be adversely affected by the proposals within this report.

2. Impact on Crime and Disorder:

2.1. The proposals in this report are not considered to have a direct impact on the prevention of crime.

3. Climate Change:

a) How does what is being proposed impact on our carbon footprint / energy consumption?

    No specific changes.

b) How does what is being proposed consider the need to adapt to climate change, and be resilient to its longer term impacts?

    No specific proposals affecting adaptation to climate change.