Part One
ITEM NO. 9
REPORT OF THE CITY TREASURER
TO THE:
AUDIT & ACCOUNTS COMMITTEE
ON:
Wednesday 27th January 2010
TITLE: AUDIT & ACCOUNTS COMMITTEE SELF-ASSESSMENT
RECOMMENDATION:
That Members consider the following self assessment questionnaire.
EXECUTIVE SUMMARY:
The purpose of this report is to suggest that the Audit & Accounts Committee consider this
self-assessment questionnaire as a method by which Committee Members can discharge
their collective responsibility to assess the effectiveness of the Committee on an annual
basis.
BACKGROUND DOCUMENTS:
(Available for public inspection)
CIPFA Code of Practice for Internal Audit in Local Government (2006)
KEY DECISION:
DETAILS:
NO
See report attached
KEY COUNCIL POLICIES: N/A
EQUALITY IMPACT ASSESSMENT AND IMPLICATIONS: N/A
ASSESSMENT OF RISK:
The effectiveness of the Audit & Accounts Committee could be inhibited by the reluctance of
Members to complete the questionnaire which may lead to inaccurate decisions being made
about this Committee.
SOURCE OF FUNDING: Existing revenue budget
LEGAL IMPLICATIONS Supplied by
N/A
FINANCIAL IMPLICATIONS Supplied by
N/A
OTHER DIRECTORATES CONSULTED: N/A
CONTACT OFFICER: Nikki Bishop
WARD(S) TO WHICH REPORT RELATE(S): N/A
TEL. NO. 0161 607 6958
Annual review of the Effectiveness of the Audit and Accounts
Committee
CIPFA guidance on best practice for Audit & Accounts Committees, as laid
down in the “Audit Committees – Practical Guidance for Local Authorities” and
the “CIPFA code of practice for Internal Audit in Local Government (2006)”,
suggests that an Audit & Accounts Committee should review its effectiveness
on an annual basis.
The guidance suggests that a self-assessment questionnaire approach may
be utilised. Members will recall that a self-assessment exercise was first
conducted in the financial year 2007/8 and was repeated in 2008/9.
Appendix A contains a self-assessment questionnaire that has been tailored
to meet the needs of the Salford City Council Audit & Accounts Committee.
Committee Members are requested to take part in this exercise by completing
this questionnaire and returning it to Internal Audit where the results will be
collated for discussion at the next meeting.
Appendix A
Audit and Accounts Committee effectiveness
Self Assessment Questionnaire for Committee members
Assessment scores:
N/A = not applicable
1 = hardly ever/ poor
3 = most of the time/
satisfactory
4 = all of the time/ good
2 = occasionally/
inadequate
DK = don’t know
N/A
1
2
3
4
DK
Processes
1 Members with appropriate skills and experience
The Audit and Accounts Committee comprises members
with an appropriate mix of skills and experience,
including some relevant financial experience
     
2 Clear terms of reference
There are clear, up to date terms of reference, with
clarity as to the Committee’s role in relation to the
Council and other Committees
     
3 Clear as to risk management responsibilities
The Audit and Accounts Committee is clear about its role
in relation to risk management
     
4 Structured and appropriate annual agenda
There is a structured annual agenda of matters to be
covered, with focus on the right areas
     
5 Sufficient number of meetings and access to
resources
The number and length of meetings and access to
resources is sufficient to allow the Committee fully to
discharge its duties
     
6 Concise, relevant and timely information
Audit and Accounts Committee papers are concise,
relevant and timely and are received sufficiently far in
advance of meetings
     
7 The right people invited to attend and present at
meetings
Senior officers and others are asked to present on
issues as appropriate
     
8 Attendance and contribution to meetings
All Audit and Accounts Committee members attend and
actively contribute at meetings
     
N/A
9 Meetings are free and open
Committee meetings are free and open without political
influences being displayed.
10 Sufficient time and commitment to undertake
responsibilities
All Audit and Accounts Committee members have
sufficient time and commitment to fulfil their
responsibilities
11 On-going personal development
Audit and Accounts Committee members have access to
on-going development activities to update their skills and
knowledge
12 Private meetings with internal and external
auditors
A private meeting, or portion of the meeting, of the Audit
and Accounts Committee, and not just its Chair, are held
at least annually with both the external auditors and
internal audit
13 Role in relation to whistle-blowing
The Audit and Accounts Committee is informed of the
whistle-blowing procedures and anti-fraud strategies in
place within the Authority
1
2
3
4
DK
     
     
     
     
     
Activities
14 Understanding the Authority’s business
All Audit and Accounts Committee members have a
good understanding of the different risks inherent in the
Authority’s business activities
     
15 Focus on appropriate areas
The Audit and Accounts Committee focuses on the right
questions and is effective in avoiding minutiae
     
16 Quality of interaction with external auditors
The Audit and Accounts Committee actively engages
with the external auditors regarding the scope of their
work and audit findings
     
17 Quality of interaction with internal audit
The Audit and Accounts Committee demonstrates an
appropriate degree of involvement in the work of internal
audit and its findings
     
18 Understanding of key financial issues
The Audit and Accounts Committee has a good
understanding of the key financial issues, critical
accounting policies and complex transactions
     
19 Understanding of how assurance is gained
The Audit and Accounts Committee understands the
interaction between the various sources of assurance
available to it
     
N/A
1
2
3
4
DK
20 Rigour of debate
Audit and Accounts Committee meetings encourage a
high quality of debate with robust and probing
discussions
     
21 Encouraging an open environment
The Audit and Accounts Committee responds positively
and constructively to difficult issues, which encourages
future transparency
     
22 Quality of chairmanship
The Chair promotes effective and efficient meetings, with
an appropriate level of involvement outside the formal
meetings
     
23 Frank, open working relationship with senior
officers
Audit and Accounts Committee members have a frank
and open relationship with senior officers.
     
24 Statement on Internal Control (SIC)/ Annual
Governance Statement
The committee understand their role in ensuring that the
AGS (formerly know as the SIC) accurately reflects the
risk and control environment of the Authority
25 Open channels of communication
The Audit and Accounts Committee has open channels
of communication with officers and other members to
keep it aware of topical/ regulatory issues
     
     
Question
Comments
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