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BABERGH DISTRICT COUNCIL
OVERVIEW AND SCRUTINY
(STEWARDSHIP) COMMITTEE
MINUTES OF A MEETING OF THE OVERVIEW AND SCRUTINY (STEWARDSHIP) COMMITTEE HELD IN THE COUNCIL CHAMBER, COUNCIL OFFICES, CORKS LANE, HADLEIGH ON TUESDAY, 30 SEPTEMBER 2008
PRESENT: Mr D M Busby – Chairman
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Mr J C Brand
Mrs M O Munson
Mr B Riley
Mr C A Roberts |
Mr H N Todd
Mr D M Walton
Mr L H Young |
Mrs J Antill and Mr D G Grutchfield were unable to be present.
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33 Substitutes
34 Declaration of Interests
35 Minutes
36 Petitions
37 Questions from Members
38 External Auditors Annual Governance Report
39 2007/08 Internal Audit Outstanding High/Medium Risk Recommendations
40 Code of Corporate Governance
41 Annual Report - Capital and Asset Management Strategy
42 Work Plan
It was noted that in accordance with Council Procedure Rule No.5 a substitute was in attendance as follows:
Mrs M O Munson (substituting for Mr D G Grutchfield).
None declared.
RESOLVED
That the Minutes of the meeting held on 12 August 2008 be confirmed and signed as a correct record.
None received.
None received.
The Director of Finance submitted a report (Paper H113) relating to the external auditors Governance Report, which included a review of the Council’s 2007/08 Financial Statements and associated matters.
Mr David Eagles, Partner and Ms Zoe Thompson, Manager of the Council’s auditors PKF were in attendance at the meeting and presented the Governance report (Appendix B to Paper H113).
The Director of Finance presented Paper H113 and advised Members on the key issues particularly in relation to the material misstatement issue and the associated risks.
Members agreed that they would focus on the material misstatement issue and that the other issues raised by the external auditors would be discussed at the next meeting of the Committee and that the Director of Finance would provide a Management Action Plan to address these.
Circulated at the meeting for Members information, were copies of the March 2008 LAAP Bulletin 72, extracts from the SORP and the relevant pages from the 2007/08 Statement of Accounts showing, shaded in grey, the possible changes to various figures had the LAAP Bulletin been followed.
During the course of the discussion both David Eagles and the Director of Finance answered various questions from Members.
RESOLVED
That the issues raised in the Auditors Governance Report, other than the material misstatement referred to in sections 3.26 to 3.33, be accepted and that the Director of Finance submit a report to the next meeting of the Committee setting out a Management Action Plan to address these.
RECOMMENDED TO COUNCIL
(1) That, whilst fully accepting that the Council did not follow the detailed accounting guidance relating to Overhanging Premiums and Discounts in the way that the 2007/08 accounts are presented, it is not accepted that the requirements of the SORP have been contravened or disregarded.
(2) That, based on the above, the Council’s Accounts for 2007/08 should not be amended.
(3) That further discussions be held with the Auditor to seek additional clarification and, if appropriate, an independent review of the matter.
The Director of Finance submitted a report (Paper H114) updating Members with the progress made on implementing high and medium risk recommendations from the 2007/08 Internal Audit work programme.
Elfreda Walker, Audit Manager, presented the report and answered Members questions on it.
During consideration of this report Members raised concerns and expressed disappointment as to the amount of recommendations that are still ongoing or outstanding as at September 2008.
It was agreed that any outstanding recommendations still not completed by the end of October would be reported to the November meeting and that the responsible officers would be expected to prepare a brief report setting out why any recommendations are still outstanding and to attend the meeting to answer Members questions.
RESOLVED
(1) That the progress on implementing the Internal Audit recommendations as detailed in Appendix A to Paper H114 be noted.
(2) That any recommendations still outstanding by the end of October be the subject of a report to the November meeting and that the responsible officers be requested to attend that meeting.
The Director of Finance and the Director of Corporate Services submitted a report (Paper H115) presenting a proposed new Code of Corporate Governance (Appendix A) prepared in accordance with the Corporate Governance Framework produced in 2007 by CIPFA/SOLACE.
RECOMMENDED TO STRATEGY COMMITTEE
That, subject to the word “Members” being added before the word “staff” in the second line of the second bullet point of the Supporting Principle “Ensuring that an effective risk management system is in place” under Principle 4, the Code of Corporate Governance attached as Appendix A to Paper H115 be adopted.
The Director of Finance and the Head of Contract and Asset Management submitted a report (Paper H116) reporting on key issues relating to the Council’s Capital and Asset Management Strategy over the last 12 months and future plans in terms of planning and the ongoing review of Babergh’s approach to capital investment and asset utilisation.
RESOLVED
(1) That the review of progress and actions taken on the Capital and Asset Management Strategy as detailed in Appendix A to Paper H116 be noted.
(2) That a further report be submitted to Committee in 12 months time.
The Director of Corporate Services submitted a report (Paper H117) which provided details of the Committees anticipated work for the remainder of 2008/09 including items that may be the subject of call-in procedures.
RESOLVED
That the Work Plan submitted as Paper H117 be noted.
The Committee adjourned for refreshments between 11.00 a.m. and 11.20 a.m.
The business of the meeting was concluded at 12.15 p.m.
Chairman
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