Minutes of Audit Working Group of 11 August 2006

Rhona Moir/Chris Nicoll

Description

NORTHERN JOINT POLICE BOARD AUDIT WORKING GROUP Minute of Meeting of the Audit Working Group held in Committee Room 3, Council Headquarters, Glenurquhart Road, Inverness on Friday 11 August 2006 at 10.30 a.m. Present Representing Comhairle nan Eilean Siar Mr D MacLean Representing The Highland Council Mr W J Ross Representing Orkney Islands Council Mr A Drever Representing Shetland Islands Council Mr J Nicolson (Substitute) Officials in attendance: Chief Superintendent L Stewart Mr P Fraser, Force Head of Finance Mrs E Ward, Force Budget Accountant Ms M Bruce, Senior Audit Manager, Audit Scotland Mr D Robertson, Head of Accounting, Treasurer’s Office Mr G Munro, Head of Internal Audit and Risk Management, Treasurer’s Office Mrs C Nicoll, Clerk’s Office Mr D MacLean in the Chair 1. Apologies Apologies were intimated on behalf of Mr P Corbett, The Highland Council, and Mr W Tait, Shetland Islands Council. 2. Statement of Unaudited Accounts 2005/06 There had been circulated Report No. Aud4/06 comprising the Statement of Unaudited Accounts for 2005/2006. In speaking to the report, the Treasurer informed Members that the Board’s actual expenditure in 2005/06 had been £53.267M compared with the budgeted expenditure of £52.988M, resulting in an overspend of £0.279M. However, there had been a small overall increase of £0.52M in revenue reserves arising from an increase in the sum held as an earmarked balance for ...

Informations

• Publié par: Phawyor
• Nombre de lectures: 74
• Langue: English

Extrait

NORTHERN JOINT POLICE BOARD

AUDIT WORKING GROUP

Minute of Meeting of the Audit Working Group held in Committee Room 3, Council

Headquarters, Glenurquhart Road, Inverness on Friday 11 August 2006 at 10.30 a.m.

Present

Representing Comhairle nan Eilean Siar

Representing The Highland Council

Representing Orkney Islands Council

Representing Shetland Islands Council

Mr D MacLean

Mr W J Ross

Mr A Drever

Mr J Nicolson (Substitute)

Officials in attendance:

Chief Superintendent L Stewart

Mr P Fraser, Force Head of Finance

Mrs E Ward, Force Budget Accountant

Ms M Bruce, Senior Audit Manager, Audit Scotland

Mr D Robertson, Head of Accounting, Treasurer’s Office

Mr G Munro, Head of Internal Audit and Risk Management, Treasurer’s Office

Mrs C Nicoll, Clerk’s Office

Mr D MacLean in the Chair

1.

Apologies

Apologies were intimated on behalf of Mr P Corbett, The Highland Council, and Mr W

Tait, Shetland Islands Council.

2.

Statement of Unaudited Accounts 2005/06

There had been circulated Report No. Aud4/06 comprising the Statement of Unaudited

Accounts for 2005/2006.

In speaking to the report, the Treasurer informed Members that the Board’s actual

expenditure in 2005/06 had been £53.267M compared with the budgeted expenditure of

£52.988M, resulting in an overspend of £0.279M.

However, there had been a small

overall increase of £0.52M in revenue reserves arising from an increase in the sum held as

an earmarked balance for commuted pension payments, due to police officers who had

been eligible to retire in 2005/06 but had chosen not to do so.

Total revenue reserves at

31 March 2006 were £2.984M, comprising a general reserve of £1.75M and £1.099M for

commuted sums. The Balance Sheet was negative due to the application of Financial

Reporting Standards 17 on retirement benefits, but this was not unusual for a small public

sector body and preparation of the accounts on a going concern basis had been previously

accepted by External Audit.

In conclusion, the Working Group was advised that the full

Board accounts would be finalised towards the end of September 2006.

In response to a query raised regarding the increase in support staff in 2005/06, Chief

Superintendent Stewart explained that 15 support staff members had been recruited in

2005/06, including Operations Centre, Registration Monitoring and Northern Camera

Safety Partnership staff.

Thereafter, the Working Group

NOTED

the report.

3.

Audit Scotland Briefing Note 2005/06

There had been circulated Report No. Aud5/06 by Audit Scotland outlining

the Audit

Briefing Note for 2005/06.

The Senior Audit Manager informed Members that the main focus of the audit would be

the review of the financial statements and supporting working papers to enable the

Auditor to provide an independent opinion on the financial statements by 30 September

2006.

In addition, it was planned to review:

•

progress made in implementing the recommendations included in the 2004/05 Audit

Report

•

the arrangements for the provision of internal audit services within the Board,

including the collecting, recording and publishing of the statutory performance

indicators

•

the Board’s preparations for the 2006/07 National Fraud Initiative in Scotland, which

was to be undertaken throughout all Councils, police and fire authorities in Scotland

•

the Board’s arrangements for collecting, recording and publishing directed

performance information; the Auditor would also give an opinion on the reliability of

the indicators to enable compilation of national reports on performance.

The Auditor would also be required to audit the Civil Defence and Police Grant Claims as

part of the 2005/06 audit and submit the certified claims to the Scottish Executive.

The Working Group

NOTED

the report.

4.

Audit Scotland – Financial Statements Strategy 2005/06

There had been circulated Report No. Aud6/06 by Audit Scotland outlining the Financial

Statements Strategy for 2005/06.

In speaking to the report, the Senior Audit Manager reported that, following the

introduction of new international audit standards, auditors were now required to advise

the Board of the scope of any forthcoming audit, outlining the approach that would be

taken and advising that consideration would be given to the ‘materiality’ of the

information (information defined as “material” ‘if its omission or misstatement could

influence the economic decisions of users taken on the basis of financial statements’).

The audit would also consider national and local issues that would impact on the financial

statements for 2005/06 and would include:

•

operation of the Prudential Code in funding capital investment

•

development in international accounting standards

•

accounting for commuted sums for officers eligible to retire but who had yet to do so

•

disclosures relating to FRS17 (Retirement Benefits)

•

the application of capital accounting

•

disclosures in the Statement on the System of Internal Financial Control.

The Working Group

NOTED

the report.

5.

Internal Audit Annual Report 2005/06

There had been circulated Report No. Aud7/06 dated 14 July 2006 by the Head of Internal

Audit and Risk Management, The Highland Council, comprising his Annual Report for

2005/06 and summarising the operations undertaken by the Internal Audit Section on

behalf of the Board and the Constabulary.

The Head of Internal Audit and Risk Management reported that the Force’s key operating

systems were operating soundly, there were no fundamental breakdowns of control and he

was satisfied that reasonable assurance could be placed upon the adequacy and

effectiveness of the Force’s internal control system.

There were still a number of areas

where improvements could be made, including:

•

Creditors: Corporate Credit Cards

•

Procurement: Central Stores

•

Corporate Governance

•

Financial Regulations

•

Performance Indicators.

The report also informed Members of the Audit Section’s performance against the

planned activity for 2005/06 and identified the tactical plan for the year 2006/07. The

Force Head of Finance reported that updated revisions to the Board’s Financial

Regulations would be submitted for consideration to the Board meeting in November and

that the existing Corporate Governance arrangements were currently being reviewed

against the CIPFA/SOLACE framework.

Members were also informed that work was

ongoing on e-procurement.

It was intended that the new e-procurement system would

address both the utilisation of the Corporate Credit Cards and the provision of an adequate

recording system for the Central Stores.

The Working Group

NOTED

the terms of the report, including the tactical plan for

2006/07.

6.

Internal Audit Review

There had been circulated Report No. Aud8/06 dated 27 July 2006 by the Head of Internal

Audit and Risk Management, The Highland Council, outlining work undertaken by the

Internal Audit Section since the previous meeting of the Working Group held on 28

November 2005.

There had also been circulated confidential final internal audit reports

on Operational Support – Road Policing Section, Statutory Performance Indicators,

Provision of Service, Central Stores and Budget Monitoring – Overtime.

The Head of Internal Audit and Risk Management commented on issues arising from the

final internal audit reports and confirmed that the Force had satisfactory procedures in

place to address the required action plans.

The Force Head of Finance reported that work

was ongoing to address the recommendations arising from the review and thanked the

audit staff for their valuable assistance during the review process.

The Working Group welcomed the positive outcome of the audit review and thereafter

NOTED

the position.

7.

Monitoring of Retirements

There had been circulated and

NOTED

Report No. Aud9/06 dated 26 June 2006 by the

Payroll and Pensions Manager, The Highland Council, advising Members on the number

of retirements of Northern Joint Police Board members of the Local Government Pension

Scheme for the year to 31 March 2006.

The meeting ended at 11.30 a.m.