Issue - meetings

To receive a report regarding the review of the Audit Committee Effectiveness.

Members considered a report regarding the effectiveness of the Audit Committee.

During the discussion of this item, the following points were made:

·       CIPFA provided detailed guidance on the features of an effective local authority audit committee. 

·       The Assistant Director Governance took the Committee through the 5 action points identified by the Committee following the self-assessment.

Ø  Annual evaluation – it was good practice to look at the effectiveness of the Committee.  As part of the preparation and consideration of the Committee’s annual report, this evaluation would be formalised.

Ø  Any areas beyond the core functions of the Committee – to consider whether the Committee’s terms of reference require amendment.  Members needed to be mindful of the role of Overview and Scrutiny, and to ensure that there was not duplication in work programmes.

Ø  CIPFA guidance set out the benefits of having at least one independent member of the Audit Committee – to be considered for 2022/23.

Ø  Individual Committee members knowledge and skill set – the Assistant Director Governance proposed that he meet with committee members individually to discuss training needs and knowledge.

Ø  Adding value.  It was noted that the annual report to Council would specifically address how the Audit Committee had added value during the year.

·       Councillor Ross questioned whether an independent member would have voting rights.  The Assistant Director Governance confirmed that they would in principle but would provide more detail to a future meeting before any decision.  Typically, independent members came from a specialist technical background.

·       Councillor Gee questioned whether the CIPFA guidance advocated that the independent member be the Chairman of the Audit Committee.  The Assistant Director Governance confirmed that this was not specifically referenced but that some councils had chosen to follow this course of action.

·       It was proposed that the Assistant Director Governance bring a paper to the November of February Committee meetings outlining the implications of an independent member on the Committee.  Should this approach be agreed by the Committee, the terms of reference within the Constitution would require amendment.

·       It was highlighted that Point 19 did not have an action assigned to it. The Assistant Director Governance suggested that the Committee receive feedback on its effectiveness from key stakeholders and other councillors as part of the annual evaluation process.

RESOLVED:  That

1)     the self-assessment of our Audit Committee arrangements against the good practice guidance recommended by CIPFA, attached as Annex A be considered and endorsed;

2)     the Action Points included in Annex B to help ensure that all aspects of CIPFA’s good practice can be reflected, be noted;

3)     it be agreed that the self-assessment undertaken will form the basis of an annual report from Audit Committee, which will be prepared for presentation to Council in March 2022, demonstrating how Audit Committee meets its Terms of Reference and providing a summary of the work of the committee during the year.