Please Contact: Mary Howard
Please email: mary.howard@north-norfolk.gov.uk
Please Direct Dial on: 01263 516047
8 June 2012
A meeting of the Audit Committee of North Norfolk District Council will be held in the
Council Chamber at the Council Offices, Holt Road, Cromer on Tuesday 18 June 2012 at
2.00 pm
Members of the public who wish to ask a question or speak on an agenda item are
requested to arrive at least 15 minutes before the start of the meeting. It will not always be
possible to accommodate requests after that time. This is to allow time for the Committee
Chair to rearrange the order of items on the agenda for the convenience of members of the
public. Further information on the procedure for public speaking can be obtained from
Democratic Services, Tel: 01263 516047, Email: democraticservices@north-norfolk.gov.uk
Sheila Oxtoby
Chief Executive
To: Mr N D Dixon, Mr B Jarvis, Mrs A Moore, Mr R Oliver, Mr S Ward and Mr D Young
All other Members of the Council for information.
Members of the Management Team, appropriate Officers, Press and Public
If you have any special requirements in order to attend this meeting, please let us
know in advance
If you would like any document in large print, audio, Braille, alternative format or in a
different language please contact us
Chief Executive: Sheila Oxtoby
Strategic Directors: Nick Baker and Steve Blatch
Tel 01263 513811 Fax 01263 515042 Minicom 01263 516005
Email districtcouncil@north-norfolk.gov.uk Web site northnorfolk.org
AGENDA
AGENDA NOTE:
For Item 9 Summary reports are attached at Appendix D. The full reports are available to
Members on request. Please contact Mary Howard (Tel.01263 516047 or email
mary.howard@north-norfolk.gov.uk).
1.
TO RECEIVE APOLOGIES FOR ABSENCE
2.
PUBLIC QUESTIONS
To receive public questions, if any
3.
ITEMS OF URGENT BUSINESS
To determine any items of business which the Chairman decides should be
considered as a matter of urgency pursuant to Section 100B(4)(b) of the Local
Government Act 1972.
4.
DECLARATIONS OF INTEREST
Members are asked at this stage to declare any interests that they may have in any
of the following items on the agenda. The Code of Conduct for Members requires
that declarations include the nature of the interest and whether it is a personal or
prejudicial interest.
5.
MINUTES
(Page 1)
To approve as correct records, the minutes of the meeting of the Audit Committee
held on 6 March 2012.
6.
AUDIT UPDATE AND ACTION LIST
(Page 9)
To monitor progress on items requiring action from the meeting of 6 March 2012.
7.
THE FUTURE PROVISION OF EXTERNAL AUDIT
(Page 10)
(Appendix A, page 12)
Summary:
Since the demise of the Audit Commission was
announced by the Coalition Government in August 2010
there has been a great deal of work by both the Audit
Commission and the Department for Communities and
Local Government to ensure a smooth transition. That
work is now coming to a conclusion and the Council
have recently received notification of a consultation on
the appointment of its External Auditors from September
2012.
Conclusions:
The recent letter from the Audit Commission indicates
that PricewaterhouseCoopers LLP will be reappointed
as External Auditors to the Council.
Recommendations:
Members are asked to note the content of this
report.
Cabinet Member(s)
Ward(s) affected
All
Contact Officer, telephone number and email:
Karen Sly: 01263-516243, Karen.Sly@North-Norfolk.gov.uk
David Ablett: 01263-516055, David.Ablett@North-Norfolk.gov.uk
8.
REVIEW OF THE ANNUAL EFFECTIVENESS OF INTERNAL AUDIT 2011/12
(Page 13)
(Appendix B – page 16)
Summary:
Conclusions:
Recommendations:
Cabinet member(s):
Wards:
Contact Officer,
telephone number, and
e-mail:
This report sets out the results of an annual review of the
effectiveness of Internal Audit, undertaken to satisfy criteria
in the Accounts and Audit Regulations 2011.
Internal
Audit’s performance and quality assurance framework has
been examined to enable the Audit Committee to confirm
whether Internal Audit Services are effective, and that the
assurances provided in the Internal Audit Annual Report
and Opinion can be relied upon, and used to inform the
Council’s Annual Governance Statement for 2011/12. The
outcomes of the review are attached at Appendix B.
The report seeks to demonstrate that due processes have
been followed in relation to conducting an annual review of
the effectiveness of Internal Audit and on the basis of
information provided, it has been confirmed that reliance
can be placed on the opinions expressed by the Head of
Internal Audit, which can then be used to inform the
authority’s Annual Governance Statement.
It is recommended that the Committee note the findings
of the review, and the evidence gathered in support of
the effectiveness of the Internal Audit Service, and take
these into consideration when receiving the Head of
Internal Audit’s Annual Report and Opinion, and the
Council’s Annual Governance Statement
All
All
Sandra King, Head of Internal Audit
01508 533863
scking@s-norfolk.gov.uk
9.
HEAD OF INTERNAL AUDIT’S ANNUAL REPORT AND OPINION FOR 2011/12
(Page 23)
(Appendix C – p 30, appendix D – p 31, appendix E – p 47, appendix F – p 49)
Summary:
Conclusions:
Recommendations:
This report has been developed to satisfy the requirements
of the Accounts and Audit Regulations 2011 ‘to undertake
an adequate and effective internal audit of its accounting
records and of its system of internal control in accordance
with the proper practices in relation to internal control,” and
to meet the Head of Internal Audit’s annual reporting
obligations as set out in the CIPFA Code of Practice for
Internal Audit in Local Government. To confirm that the
organisation has complied with the above, the Head of
Internal Audit has produced an Annual Report and Opinion,
which examines and utilises the outcomes of Internal Audit
work undertaken in 2011/12 to formulate an opinion on the
overall internal control environment which has been
operating at the Council over the last twelve months.
On the basis of Internal Audit work performed during
2011/12, the Head of Internal Audit is able to confirm that
overall standards of internal control at the Council were
adequate and so too were Corporate Governance
arrangements and systems of Risk Management.
It is recommended that the Committee:
1) Receive and note the Annual Report of the Head
of Internal Audit;
2) Note the overall standards of internal control at
the Council were adequate for the year ended 31
March 2012.
3) Notes that an adequate assurance has been
given in respect of Corporate Governance
arrangements and systems of Risk Management
for the year ended 31 March 2012.
4) Note that the opinions expressed have been
given due consideration when developing the
Council’s Annual Governance Statement.
Cabinet member(s):
Wards:
Contact Officer,
telephone number, and
e-mail:
All
All
Sandra King, Head of Internal Audit
01508 533863
scking@s-norfolk.gov.uk
10.
THE STATUS OF AGREED AUDIT RECOMMENDATIONS DUE FOR
IMPLEMENTATION BY 31 MARCH 2012
(Page 50)
(Appendix G – page 53)
Summary:
This report seeks to update members as to the progress
made in implementing the agreed audit recommendations
due for completion by 31 March 2012. The report provides
an overview as to how recommendations have progressed
since our previous report was presented to Committee on 6
December 2011, and also draws attention to the efforts
made by management throughout 2011/12 to ensure that
ongoing improvements to the internal control environment
are taking place.
Conclusions:
Following on from our previous status update report, we are
once again able to confirm that no high priority issues due
at this stage remain outstanding; however our year end
follow up work has indicated that the overall number of
outstanding items has increased, whereas previously, the
numbers involved had been falling. The Council’s Interim
Accountancy Manager was appreciative of this situation and
following our verification work in April 2012, had embarked
on an exercise in May 2012, to obtain further updates from
senior management regarding the very latest position in
relation to their outstanding audit recommendations.
`Recommendations:
It is recommended the Committee notes the current
position regarding the overall status of audit
recommendations as at 31 March 2012, and the areas
where further work is required.
Cabinet member(s):
All
Contact Officer, telephone number,
and e-mail:
11.
Ward(s) affected:
All
Sandra King, Head of Internal Audit
01508 533863, scking@s-norfolk.gov.uk
MONITORING OFFICER ANNUAL REPORT 2011/12
(Page 54)
(Appendix H – page 62)
To receive the Monitoring Officer Annual Report 2011/12.
12.
LOCAL CODE OF CORPORATE GOVERNANCE AND ANNUAL GOVERNANCE
STATEMENT 2011/12
(Page 64)
(Appendix I page 67, appendix J page 84)
Summary:
The Corporate Governance framework is made up of
the systems and processes, culture and values by which
an organisation is directed and controlled. For local
authorities this includes how a council relates to the
community it serves. The Local Code of Corporate
Governance is a public statement of the ways in which
the Council will achieve good corporate governance. It
is based around six principles which were identified in
the joint publication by the Chartered Institute of Public
Finance and Accountancy (CIPFA) and the Society of
Local Authority Chief Executives (SOLACE). The
Annual Governance Statement is prepared following a
review of all the evidences available to the Council in
seeking compliance with its Local Code.
Conclusions:
The arrangements set out in the Local Code of
Corporate Governance and the Annual Governance
Statement will allow the Council to move ahead with its
corporate planning processes confident that it can
address the issues of governance and risk.
Recommendations:
Members are asked to review the evidences and
approve the Annual Governance Statement along with
the updated Local Code of Corporate Governance and
associated action plan.
Cabinet Member(s)
Ward(s) affected
All
All
Contact Officer, telephone number and email:
Karen Sly, 01263 516243, Karen.sly@north-norfolk.gov.uk
13.
BUSINESS CONTINUITY
Summary:
(Page 125)
Six monthly update on business continuity planning, the
progress made to date, ability to respond to any disruptive
events that have recently occurred and the outline of
future objectives.
Conclusions:
Recommendations:
That members note the contents of the report.
Cabinet member(s):
All
Contact Officer, telephone number,
and e-mail:
14.
Ward(s) affected:
All
Richard Cook
01263 516269
richard.cook@north-norfolk.gov.uk
PERFORMANCE MANAGEMENT FRAMEWORK INCLUDING PERFORMANCE
MANAGEMENT OF THE ANNUAL ACTION PLAN 2012/13
(Page 130)
(Appendix K – page 133, appendix L – page 137)
Summary:
This report presents the revised Performance
Management Framework. In addition a draft set of
performance measures being developed to performance
manage delivery of the Annual Action Plan are
presented for approval.
Conclusions:
A robust performance management framework is
essential for the delivery of the council’s objectives as
set out in the Corporate Plan 2102-15.
Recommendations:
I recommend that you
a) approve the revised Performance
Management Framework, and
b) approve the performance measures for the
Annual Action Plan 2012/13
Cabinet Member(s)
Ward(s) affected
All
All
Contact Officer, telephone number and email:
Helen Thomas, 01263 516214, Helen.Thomas@north-norfolk.gov.uk
15.
UPDATE ON REVIEW OF TEN SYSTEM
(Page 153)
To receive an update on the review of the TEN System.
Contact Officer, telephone number and email:
Helen Thomas, 01263 516214, Helen.Thomas@north-norfolk.gov.uk
16.
CORPORATE RISK REGISTER
(Page 164)
To discuss the Corporate Risk Register.
Contact Officer, telephone number and email:
Karen Sly, 01263 516243, Karen.sly@north-norfolk.gov.uk
17.
AUDIT COMMITTEE WORK PROGRAMME
(Page 179)
To review the Audit Committee Work Programme
18.
EXCLUSION OF THE PRESS AND PUBLIC
To pass the following resolution, if necessary:
“That under Section 100A(4) of the Local Government Act 1972 the press and public
be excluded from the meeting for the following items of business on the grounds that
they involve the likely disclosure of exempt information as defined in paragraphs 3
and 4 of Part I of Schedule 12A (as amended) to the Act.”