100309 Audit mins

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MINUTES OF A MEETING OF THE AUDIT COMMITTEE HELD ON TUESDAY 10 MARCH 2009 AT 8.00am PRESENT: Trevor Cooper – Chair Delroy Brown Graham Charlton Tony Grady IN ATTENDANCE: David White – Interim Vice Principal Corporate Andrew Hartley – Executive Director of Funding and Financial Resources Ian Falconer – Grant Thornton Will Simpson – Grant Thornton Andy Bush - KPMG Claire Kay - Clerk to the Corporation The Chair welcomed Graham Charlton to his first meeting. 1. MEETING WITH AUDITORS WITHOUT MANAGEMENT PRESENT The members used this time to consult with auditors on issues arising from the agenda. There were no issues or concerns raised which auditors would not discuss with management present. Members of College management joined the meeting at 8.10 am. 2. APOLOGIES FOR ABSENCE Apologies for absence had been received from Ralph Tonge and Val Mattinson. 3. DECLARATIONS OF PERSONAL INTEREST IN AGENDA ITEMS Graham Charlton declared he had previously worked for one of the firms listed as possible firms for audit tendering. This was noted but did not lead to a conflict of interest. Grant Thornton and KPMG declared an interest in this agenda item. Auditors would be required to withdraw for the item. It was agreed that this item be moved to the end of the meeting to allow audit firms to leave. 4. MINUTES The minutes of the meeting held on 26 November 2008 were confirmed and signed. 5. MATTERS ARISING The Clerk updated ...

Informations

• Publié par: Nifor
• Nombre de lectures: 66
• Langue: English

Extrait

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MINUTES OF A MEETING OF THE AUDIT COMMITTEE

HELD ON TUESDAY 10 MARCH 2009 AT 8.00am

PRESENT:

Trevor Cooper – Chair

Delroy Brown

Graham Charlton

Tony Grady

IN ATTENDANCE:

David White – Interim Vice Principal Corporate

Andrew Hartley – Executive Director of Funding and Financial Resources

Ian Falconer – Grant Thornton

Will Simpson – Grant Thornton

Andy Bush - KPMG

Claire Kay - Clerk to the Corporation

The Chair welcomed Graham Charlton to his first meeting.

1.

MEETING WITH AUDITORS WITHOUT MANAGEMENT PRESENT

The members used this time to consult with auditors on issues arising from the agenda.

There were no issues or concerns raised which auditors would not discuss with

management present.

Members of College management joined the meeting at 8.10 am.

2.

APOLOGIES FOR ABSENCE

Apologies for absence had been received from Ralph Tonge and Val Mattinson.

3.

DECLARATIONS OF PERSONAL INTEREST IN AGENDA ITEMS

Graham Charlton declared he had previously worked for one of the firms listed as possible

firms for audit tendering.

This was noted but did not lead to a conflict of interest.

Grant

Thornton and KPMG declared an interest in this agenda item.

Auditors would be required

to withdraw for the item.

It was agreed that this item be moved to the end of the meeting to

allow audit firms to leave.

4.

MINUTES

The minutes of the meeting held on 26 November 2008

were confirmed and signed.

5.

MATTERS ARISING

The Clerk updated members on the actions taken to address the concerns expressed at the

last meeting regarding membership.

GH joined the meeting for agenda item 7.

6.

STUDENT UNION FUNDS AUDIT 2008/09

Members reviewed the accounts presented in the report and noted the unplanned deficit for

the year of £3,000.

The Student Union would be attending Audit Committee in June to

report on the implementation of the financial strategy discussed with the Committee in June

2008.

Members recognised the need to use surplus funds to reinvest in Union activities

whilst maintaining the financial stability year on year.

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Members noted the report and the financial statements for the year ended 31 July 2008.

7.

AUDIT AND RISK MANAGEMENT GROUP

The work of the ARM Group was reviewed.

Members noted the summary data of audit

recommendations and reviewed the 10 overdue recommendations.

Discussion focused on

those outstanding recommendations from 2005/06 audit reports, members were satisfied

that these were ongoing developments but considered management should be looking at

closing recommendations down sooner.

The final report from the LSC PFA audit during inspection was noted by the Committee.

The 3 recommendations made in the report were reviewed and the actions being taken by

management noted.

An in-year review of the risk register had been undertaken and the changes made were

highlighted.

Members discussed the usefulness of the register for the purposes of the

Committee and considered the risks and controls detailed may be too managerial.

IAS

considered the register a key document which appropriately reviewed the unmitigated risks

of the organisation and recommended the process remain in place.

In conclusion the

Committee requested the reporting of the risk register to the Committee and Corporation be

reviewed with the possibility of improving the understanding of the organisational risks at

the residential in May.

One of the main risks to be included was the effect of the capital delays.

Members noted

this would be discussed at F&R and also at Board.

The Principal considered the need to

reassign the internal audit days planned for capital to address the risks resulting from the

delays and the effect on the College’s asset base and borrowing position.

This would be

discussed under agenda item 8.

Members noted the report.

GH left the meeting.

8.

INTERNAL AUDIT REPORT

The Committee reviewed 4 internal audit reports from the second cycle of audit work.

Annual Review of Risk Management

The annual review confirmed a good level of understanding throughout the College of risk

management and the report concluded the controls were suitably designed and operating

with sufficient effectiveness to achieve the objectives of the College.

Annual Review of Corporate Governance

The annual review considered the governance arrangements of the College mapped

against the Good Governance Standards for Public Services.

The report highlighted the

areas of good practice in all six core principles and concluded the controls were suitably

designed and operating with sufficient effectiveness to achieve the objectives of the

College.

Framework for Excellence

The audit was undertaken before the publication of the major changes in the Framework for

Excellence.

The positive assurances given in the report were still relevant for the

monitoring of key performance indicators.

The report concluded the controls were suitably

designed and operating with sufficient effectiveness to achieve the objectives of the

College.

Treasury and Cash Management

The report noted the College Treasury Management Policy was risk averse and therefore

the organisations cash balances had not been placed at risk during the recent economic

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crisis.

The report recommended a review of the Treasury Management Policy; this was

being undertaken and would be reported to the May F&R Committee for consideration.

the report concluded the controls were suitably designed and operating with sufficient

effectiveness to achieve the objectives of the College.

Progress Report

Grant Thornton reported on the progress to date with the 2008/09 IAS plan.

It was agreed

by the Committee to delegate to the Executive Team how to redeploy the days set aside

within the plan for auditing the capital programme, taking account of the comments made

by the Principal in the previous agenda item.

Members were reminded that the reports

from the third workflow would be sent on completion of the work for information and

comment and then formally noted at the June meeting.

The reports were noted by the Committee.

9.

GOVERNMENT OFFICE AUDIT REPORTS – ESF FUNDING

Members considered the two reports received from GOEM following audits relating to ESF

funded projects.

The positive audit opinions on both the New Dimensions Project

(completion date June 2004) and the Enterprise Hatcheries Project (completion date

February 2005) were noted.

10.

RISKS ASSIGNED TO THE COMMITTEE

The update on the mitigation of the risks of inoperability of core systems, financial

irregularity and poorly operating internal and external control systems was reviewed.

Members considered these risks adequately controlled and no additional risks were

identified as a result of the meeting.

Members of the audit firms withdrew from the meeting.

11.

DRAFT TENDER PROCESS FOR AUDIT SERVICES

The tender proposal was reviewed by the members.

Consideration was given to the criteria

for invitations to tender. It was considered essential to have sector experience, more so in

internal audit services than external audit services.

Having debated the inclusion of

smaller, more local audit firms it was agreed that the invitations to tender would remain as

detailed in the report, as it was considered that the benefit of the larger more experienced

firms in understanding the sector issues was important at this time.

Members considered

the experience audit firms had with local authorities would also be important.

Members were assured that the tender did not cross the threshold for OJUE regulations.

Members noted the tender document and approved the criteria for invitations to tender.

12.

CONFIDENTIALITY OF BUSINESS

There were no items of confidential business to record.

13.

DATE OF NEXT MEETING

The next scheduled meeting was 22 June 2009.

The Chair closed the meeting at 9.25am.

SIGNED: ___________________________________________________

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DATE:

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