Agenda a Chofnodion

The Chair welcomed the attendees to the virtual meeting of the Audit Committee and an apology for absence was received from County Borough Councillor K Jones.

Derbyn datganiadau o fuddiannau personol gan Aelodau, yn unol â gofynion y Cod Ymddygiad.

Nodwch:

1.    Mae gofyn i Aelodau ddatgan rhif a phwnc yr agendwm mae eu buddiant yn ymwneud ag ef a mynegi natur y buddiant personol hwnnw; a

2.   Lle bo Aelodau'n ymneilltuo o'r cyfarfod o ganlyniad i ddatgelu buddiant sy'n rhagfarnu, rhaid iddyn nhw roi gwybod i'r Cadeirydd pan fyddan nhw'n gadael.

In accordance with the Council’s Code of Conduct, there were no declarations made pertaining to the agenda.

Mr C Rees, Audit Wales provided the Audit Committee with an update in respect of the Audit of the Draft Statement of Accounts for 2019-2020.

Members were informed that as a result of the current climate, Audit Wales and the finance team had to adapt and work differently to previous years. Members learned that the positive progress had been made in respect of the Statement of Accounts and to date, no significant areas of concern had arisen for the Committee to be aware of.

The Audit Committee RESOLVED to acknowledge the update.

The Head of the Regional Audit Service provided the Audit Committee with  the Regional Internal Audit Service Charter for 2020/21, a report which is presented on an annual basis to ensure compliance with the Public Sector Internal Audit Standards (PSIAS).

The officer advised Members that  the purpose of the Regional Internal Audit Service Charter is to define the purpose, authority and responsibilities of the Regional Internal Audit Shared Service across Bridgend, Merthyr Tydfil, Rhondda Cynon Taf and the Vale of Glamorgan Councils. 

The officer continued, explaining that the Charter is split into the following sections:

·       Purpose, Authority and Responsibility;

·       Independence and Objectivity;

·       Proficiency and Due Professional Care; and

·       Quality Assurance and Improvement Programme.

Members were informed that the roles of the Audit Committee in relation to internal audit are to:

·       Oversee its independence, objectivity, performance and professionalism;

·       Support the effectiveness of the internal audit work process; and

·       Promote the effective use of internal audit within the assurance framework.

The Lay Member was pleased to note that although the Charter applies to all four Local Authorities, the work supports the delivery of the priorities contained within the Council’s Corporate Plan 2020-2024 ‘Making a Difference’.

One Member commented that it would be beneficial if a copy of the Internal Audit Charter were to be made available to all Elected Members for their information.

The Audit Committee RESOLVED:

1.    To approve the Regional Internal Audit Service Charter for 2020/21 as attached as Appendix A to the report; and

2.    That a copy of the Internal Audit Charter 2020/21 is made available to all Elected Members for information purposes.

The Audit Committee were provided with a summary of audit assignments completed between 21^st January 2020 and 15^th September 2020.  Members were asked to consider the following Audit Assignments:

Finance & Digital Services

•    General Ledger

•    Treasury Management

Community & Children’s Services

•     Registration Services

Prosperity, Development & Frontline Services 

•   Street lighting

Education & Inclusion Services

•   Maes y Coed Primary School

•   Pengeulan Primary School

•   YGG Aberdar

•   Penyrenglyn Community Primary School

•   Ynyshir Primary School

•   Trealaw Primary School

•   Maesgwyn Special School

•   YGG Tonyrefail

•   YGG Bodringallt

•   Attendance: Referrals & Intervention

•   Ysgol Hen Felin

In respect of the Audit Assignment for YGG Aberdar, one Member spoke of the private school fund, which had been utilised for inappropriate purposes and requested that officers undertake a follow up. The Group Audit Manager explained that many of the assignments detailed before Members, were included in the Head of Internal Audit’s Annual Report in July 2020, and as such, assurance had been given that where an insufficient evaluation provided for primary schools, officers would request supplementary information. The officer acknowledged that not all areas of concern would be deemed an ‘insufficient’ evaluation, but assured the Committee that the schools would be provided with a target date to complete a check list and would need to provide evidence that the controls were in place.

Referring to the Audit Assignment for Trealaw Primary School, one Member queried whether the checklist of non-chequebook primaries review had been carried out. The Group Audit Manager advised the Member that the review is an annual rolling process, which requires each individual school to review the standards as part of the annual self-assessment process and present their findings to its Governing Body and Internal Audit. The officer explained that the standards are looked at by Internal Audit each year to ensure the data is accurate and relevant, before sending each of the schools an updated checklist.

One Member spoke of vacancies on the Governing Body memberships, which was a continuous theme in a number of the Audit Assignments and a problem across the Board. The Head of the Internal Audit Service acknowledged the Member’s comments, stating that it is a recurring theme, which has been noted in previous Audit Assignments and other Local Authorities. The Service Director, Performance and Improvement recommended that the a future Education report is presented to the Audit Committee to provide Members with information on the work carried out to encourage individuals to sit on Governing Bodies and should the Committee find it to be inadequate, they may wish to refer it to the Children and Young People Scrutiny Committee.

(Note: At this point in proceedings, County Borough Councillor J Harries left the meeting)

Members also raised concerns in respect of the lack of Safeguarding Training for staff, which was another recurring theme throughout the Audit Assignments. Members agreed that safeguarding training was a high priority and vital given that children had been out of school for a number  ...  view the full Cofnodion text for item 11.

The Service Director, Performance and Improvement provided the Audit Committee with the report, which set out a draft work plan for the 2020/21 Municipal Year to enable the Committee to effectively fulfil its Terms of Reference and meet the requirements of the Chartered institute of Public Finance and Accountancy (CIPFA) publication ‘Audit Committees – Practical Guidance Note for Local Authorities & Police, 2018 Edition’.

Members were referred to Appendix 1 of the report, where the draft work plan was set out for consideration. The Service Director informed Members that the work plan would be subject to ongoing review throughout the year and should appropriate areas be identified by the Committee, they would be incorporated for further attention.

The Service Director drew Members’ attention to Section C and the item entitled ‘Audit Committee – Development and Support’, which was included within the draft work plan for November’s Audit Committee meeting. Members were informed of the proposal to bring forward a number of items to further reinforce Audit Committee’s arrangements and its effectiveness. The items would include developing a Learning and Development Programme, more visibility around the Council’s Strategic Risks and the range and depth of information the Committee receives.

The Service Director explained of another proposal, which was to provide the Committee with a Strategic Risk Register update at alternate meetings, which could involve a lead officer attending the Committee to provide detail on each of the Council’s 14 risks on the Risk Register.

One Member questioned the remit of the Audit Committee in terms of Section F of the work plan, which states ‘To receive reports in relation to proposed changes to the Authority’s Contract Procedure Rules and Financial Procedure Rules and where deemed appropriate, recommend their approval to Council’. The Service Director explained that the work plan had been tailored to ensure that at the end of the year, the Audit Committee is able to form an opinion on the Council’s overall governance arrangements and internal control. In respect of Section F, the Service Director to explained that its purpose is to provide the Audit Committee with an overview of the latest procedure rules to ensure that Members are well-equipped with the requirements when considering specific reports.

One Member spoke of the damage of the Council’s infrastructure as a result of the ‘Storm Dennis’ and queried whether a review of the damage would sit within the Audit Committee’s remit. The Service Director advised that financial implications such as those related to Covid-19, would be presented to Council and the Finance and Performance Scrutiny Committee as it falls within its remit, whereas Audit Committee would focus on the effectiveness of its controls and procedures. The Service Director acknowledged the overlap between the Audit Committee and the Scrutiny function and felt it would be beneficial for the Strategic Risk Register updates to be more clear around the responsibilities of the Audit Committee as part of the Learning and Development Programme.

Members debated whether the Cardiff City Deal governance arrangements could  ...  view the full Cofnodion text for item 12.