Agenda and minutes
Venue: Siambr Hywel Dda - Council Offices
Contact: Bethan Adams 01286 679020
No. | Item |
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APOLOGIES To receive apologies for absence. Minutes: Councillors Dilwyn Morgan, Michael Sol Owen and Glyn Thomas. |
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DECLARATION OF PERSONAL INTEREST To receive any declaration of personal interest. Minutes: No declarations of personal
interest were received from any members present. |
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URGENT ITEMS To note any items which are urgent business in the opinion of the Chairman so they may be considered. |
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The Chairman shall propose that the minutes of the meeting of this committee, held on 16 July 2015, be signed as a true record. Minutes: The Chairman signed the minutes of the meeting of this committee held on 16 July 2015, as a true record. |
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FINAL ACCOUNTS 2014/15 PDF 138 KB To submit the statutory
financial statements for 2014/15. a) To submit the revised statutory
financial statements by the Head of Finance for the Committee’s approval (copy
herewith – white paper) b)(i) To
submit the formal “ISA 260” report to “those charged with governance” by the Wales Audit Office on the 2014/15
Statement of Accounts for Gwynedd Council (copy herewith – grey paper) b)(ii) To authorise the Committee Chairman and the
Head of Finance to sign the “letter of representation” on behalf of the Audit
Committee, which is charged with governance in relation to approving the
statutory financial statements for Gwynedd Council (copy enclosed as Appendix 1
to the Wales Audit Office report in (b)(i) above) c)(i)
To submit the formal “ISA 260” report
to “those charged with governance” by the Wales Audit Office on the 2014/15
Statement of Accounts for the Pension Fund (copy herewith – lilac paper) c)(ii) To authorise the Committee Chairman and the Head of Finance to sign the “letter of representation” on behalf of the Audit Committee, which is charged with governance in relation to approving the statutory financial statements for the Pension Fund (copy enclosed as Appendix 1 to the Wales Audit Office report in (c)(i) above) Additional documents:
Minutes: i) Statement of the Accounts The
Head of Finance Department submitted the revised statutory financial statements
for approval by the committee. He noted that Appendix 3 in the reports that
followed by the Wales Audit Office (WAO) noted the main changes in the accounts
since the pre-audit version had been submitted to the Committee meeting of 16
July. ii) Report of the Appointed
Auditor on the Audit of Financial Statements a) The Council’s Accounts In
accordance with the Annual Audit procedure, namely the Appointed Auditor’s
report for those charged with governance, the report of the WAO was submitted.
The Engagement Leader and Local Manager, WAO, were present to submit the
information. It
was noted that WAO was responsible for undertaking an audit on behalf of the
Auditor General and for reporting whether it was of the view that the reports
presented the financial position of the Council accurately and fairly at the
end of every year. It was reported that the Appointed Auditor intended to issue
an unqualified audit report on Gwynedd Council’s accounts for 2014/15. The
WAO representatives noted the following main points: ·
That there would be a delay before the accounts
were certified as a member of the public had expressed an objection to the
accounts relating to the expenditure of the Trunk Road Agency. Consequently,
WAO could not formally conclude its audit responsibilities or issue the
certificate of audit closure until the matter had been addressed. ·
In the context of misstatements not corrected,
WAO had identified an overstatement of £825,000 in the provisions, namely: Ø A
provision of £490,000 to cover the future loss of Council tax as a result of
householders with properties that were not fully occupied throughout the year
transferring over to the National Non-Domestic Rate. Ø
A provision of £335,000 to contribute towards
the existing pension deficit. Whilst there was a past
obligation in relation to these costs, it was not appropriate to have a
provision in the accounts as the liability was already reflected in the
accounts through the International Accounting Standard 19 – Employee Benefits (IAS19) entries. ·
Although
it was appreciated that it was prudent to set aside these funds in budgetary
terms, they did not comply with the definition of ‘provisions’ from a technical
accounting perspective and it would be more appropriate for these sums to be
set aside in earmarked reserves. In response to the above observations, the Head of Finance
Department noted the following: ·
That he was not of the opinion that the
objection made by a member of the public was directly related to the accounts
for 2014/15. ·
In relation to the overstatements, these were
two technical accounting matters. Two funds had been set aside prudently;
however, the auditor suggested that they should not be treated as provisions.
It was noted that there were grounds to consider the money set aside as either
provisions or as funds; however, the procedure would be re-considered by
2015/16. In response to a member’s observations regarding the provision relating to Council ... view the full minutes text for item 5. |
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TREASURY MANAGEMENT 2015/16 - MID YEAR REVIEW PDF 179 KB To submit, for
information, the report of the Head of Finance on the Council’s actual
borrowing and investment during the current financial year (copy herewith – blue paper) Minutes: The report of the Head of Finance Department was submitted on treasury management activity during the current financial year. The Investment Manager confirmed that during the five months between 1 April and 31 August 2015, the Council’s borrowing activity had remained within the restrictions originally placed and there were no banks where the Council had deposited money that failed to repay. It was reported that 98% of the Council’s investment in Heritable Bank had been reclaimed, with only £80,376 remaining unpaid, and that it was likely that a further apportionment would be received. RESOLVED to accept the
report for information. |
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REPORT OF THE CONTROLS IMPROVEMENT WORKING GROUP PDF 525 KB To submit the report of
the Chair of the Audit Committee outlining the feedback from the meeting of the
Working Group on 20 August 2015. (copy herewith – pink paper). Minutes: Submitted
– the report of the Chairman of the Audit Committee regarding a meeting of the
above-mentioned working group held on 20 August 2015 to consider seven audits
that had received a category C opinion during the period between 1 February
2015 and 30 June 2015, namely - a) IT Backups and
Service Continuity Arrangements b) Health and Safety - Lone Working c) First Aid Payments ch) Jobs System d) Travelling
Costs of Community Care Workers dd) Children Services - Commissioning Care e) Gwynedd Museum and Gallery Development Plan
It
was noted that consideration had also been given to the ‘Parking Enforcement’
audit that had received opinion category B, as well as a matter raised by a member
at the Committee’s meeting on 16 July in connection with the Rhyd Ddu Outdoor Centre Leasing
Arrangements to Antur Nantlle
Cyf. Senior
Managers had been invited to attend the meeting to discuss the matters arising
from the audits and the work that had been completed since the audit reports
had been published to strengthen the internal controls in question. It
was noted that assurance had been received from the Working Group that the
issues highlighted by the Internal Audit Section were receiving due attention
and that steps were being taken. A
member noted that it had not been possible for him to attend the Working Group
meeting for the discussion on the Rhyd Ddu Outdoor Centre Leasing Arrangments
to Antur Nantlle Cyf. as he had been away on holiday.
In
response to a member’s observation regarding risk assessments, the Audit
Manager noted that Internal Audit had checked the Departments' risk assessments
last year, as well as confirm that the Health and
Safety Service checked the Departments’ risk assessments. Enquiries
were made regarding the financial obligations for the Council in connection
with the Community Care Staff Travelling Costs audit, following a European
decision whereby the working time of community care staff commenced when they
left their home. It was noted that the matter was being addressed by the Human
Resources Service. In
response to a member’s question in terms of monitoring the Services’ progress
on the recommendations, the Audit Manager noted that follow-up audits had been
planned. RESOLVED to accept the
report. |
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OUTPUT OF INTERNAL AUDIT PDF 600 KB To submit the report of
the Audit Manager outlining the work of Internal Audit for the period between 1
July and 11 September 2015
(copy herewith – green paper). Minutes: The work of the Internal Audit Section for
the period up to 11 September 2015 The
report of the Audit Manager was submitted, outlining the work of the Internal
Audit Section for the period between 1 July and 11 September 2015. It was noted
that there had been eight reports regarding audits from the operational plan
with the appropriate opinion categories shown completed during the period, as
well as two follow-up audits. Consideration
was given to all the reports individually. Consideration was given to each
individual report and during the discussion reference was made to the following
matters – Chairman's Fund In
response to a member’s enquiry, it was explained that the “fund” in fact was an
annual budget. Main Accounting System – A Review of Key
Controls A member
drew attention to an issue highlighted in the Employment Appeals Committee on
18 September 2015 in terms of one Department's use of another’s Department’s
expenditure codes. In response, it was noted that it was not uncommon for an
individual to be employed in more than one Department and that there was a duty
on managers to verify the information. The member noted that she would discuss
the matter with the officers at the end of the meeting. RESOLVED: (a)
to
accept the reports on the work of the Internal Audit Section for the period 1
July 2015 to 11 September 2015 and to support the recommendations that have
already been submitted to the managers of the relevant services for
implementation. (b)
that the
Chairman of the committee, along with Councillors Tom Ellis, John B. Hughes and
Angela Russell serve on the Working Group to consider the audits that have
received opinion category ‘C’. (c)
that
it is the responsibility of any member who is unable to be present in the
Working Group to arrange a substitute. |
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INTERNAL AUDIT PLAN 2015/16 PDF 354 KB To submit the report of the Audit Manager on the
progress made on the 2015/16 Internal Audit Plan (copy herewith – salmon paper). Minutes: The report of the Senior
Audit and Risk Manager was submitted, providing an update on the current
situation in terms of completing the 2015/16 internal audit plan. It was reported that the Internal Audit Unit had surpassed the target of quarter 2, with 23.81% of the planned audits released in final draft, compared to a target of 20% by the end of the quarter. RESOLVED to note the
contents of the report as an update of progress against the 2015/16 audit plan. |