BOROUGH OF POOLE

REPORT TO SERVICE PROVISION SCRUTINY & AUDIT COMMITTEE

30 JUNE 2005

TERMS OF REFERENCE FOR AND REPORTING ARRANGEMENTS TO THE AUDIT COMMITTEE FOR AUDIT COMMISSION, INTERNAL AUDIT AND RISK MANAGEMENT REPORTS

PART OF PUBLISHED FORWARD PLAN: NO

STATUS – GENERAL

1.PURPOSE AND POLICY CONTEXT

1.1 To review the Terms of Reference of the Service Provision Scrutiny & Audit Committee to include Audit Committee (and risk management) functions, and agree reports to be considered by it.

2. DECISION REQUIRED

2.1 Members are asked to agree to request Cabinet/Council approval to the change in Terms of Reference for the Committee.

2.2 Members are asked to agree the Reports to be received by the Committee as set out in Appendix A.

2.3 Members are asked to agree the style/content of future reports from Internal Audit.

  1. BACKGROUND

3.1The Audit Commission previously recommended that the Council consider setting up an Audit Committee.

3.2The Council agreed that the Service Provision Scrutiny Committee be so designated, and renamed the Service Provision Scrutiny & Audit Committee.

3.3The Audit Commission has also recommended that the new Audit Committee receives reports from Internal Audit in more detail than was given previously to the Scrutiny Committee.

  1. NEW TERMS OF REFERENCE

4.1The current Terms of Reference for this Committee are:

“All aspects of Poole’s sustainability and environment including the development of the town, leisure and recreation provision and waste strategies. Greening the Council. The economic well being of the town including economic development, town centre partnership, tourism and working with partner organisations, Transportation and parking. The efficient operation of Council work including Financial, IT, Personnel, Property and Democratic strategies. To monitor the operation of the Constitution.

To be responsible for the audit functions of the Council”

4.2It is suggested the final line becomes:

“To be responsible for the audit committee and risk management functions of the Council”

  1. REPORTS TO BE RECEIVED BY THE AUDIT COMMITTEE

5.1Members are asked to consider the Audit Commission, Internal Audit and risk management reports to be received by the Committee as set out in Appendix A.

  1. STYLE AND CONTENT OF FUTURE REPORTS FROM INTERNAL AUDIT

6.1The Audit Commission have recommended that reports from Internal Audit to the newly-constituted Audit Committee should be more detailed than previous reports from Internal Audit to the Scrutiny Committee.

6.3An ‘old-style’ report from Internal Audit is on the Committee’s Agenda this evening.

6.2Members are asked to consider the level of detail, style and content of future reports from Internal Audit.

R L Jackson

Head of Financial Services

Name and Telephone Number of Officer to Contact:Keith McCormick 633123

File:metis/committee reports/other/SPSAC – Audit Plan 2005 06

Appendix A Reporting Arrangements to the Committee for Audit Commission, Internal Audit and Risk Management Reports

1

DRAFT

SERVICE PROVISION SCRUTINY & AUDIT COMMITTEE SCHEDULE (SPS&AC)

Reporting Arrangements to Audit Committee for Audit Commission, Internal Audit and Risk Management Reports

– Draft Paper for Discussion

* Denotes those reports which must be received by a Committee with delegated responsibility for approval of the financial statements

SPS&AC
Date 2005/06 / Audit Commission Reports / Internal Audit Reports / Risk Management / Statement of Internal Control
Report Title / Current Arrangements / Proposed Arrangements / Presenter / Current & Probable Arrangements / (Not Currently Reported)
Probable Arrangements
30 June 2005 /
  • Audit & Inspection Plan, and Fee
/
  • Cabinet (May)
/
  • Cabinet – presentation, no questions
  • SPS&AC
/
  • Audit Commission
  • Management Team (& Audit Commission to support)
/
  • Annual Plan
  • Activity
  • Year End Performance
/
  • Agreement of Implementation Approach, and Timetable for Risk Management and SIC
  • Review & Monitoring

  • Statement of Final Accounts
/
  • Cabinet (28 June) & Full Council (28 June)
/
  • 2004/05 accounts – as current arrangements
  • 2005/06 accounts – SPS&AC & Full Council – subject to decision by Head of Financial Services and SPS&AC being given delegated responsibility to approve financial statements/ accounts. Ensure SPS&AC are able to make recommendation to Full Council. Dates must be set at end June ’06 to facilitate timetable.
/
  • Head of Financial Services

1 September 2005 /
  • Interim Audit Report – Core Process Review & Financial Aspects of Corporate Governance
/
  • Officers only (July)
/
  • SPS&SC
/
  • Head of Financial Services
/
  • Activity
  • Interim Performance
/
  • Review & Monitoring

3 November 2005 /
  • * Final Accounts Memorandum (SAS 610)
/
  • Cabinet (October)
/
  • SPS&SC
/
  • Audit Commission
/
  • Activity
  • Interim Performance
/
  • Review & Monitoring

  • Final Accounts Matters Arising
/
  • Cabinet (October)
/
  • SPS&AC
/
  • Head of Financial Services

  • BVPP Opinion & PI Audit Memorandum
/
  • Cabinet
/
  • SPS&AC
/
  • Audit Commission (Corporate Performance Manager?)

5 January 2006 /
  • Activity
  • Interim Performance
/
  • SIC and Business Plan Production
  • Review & Monitoring

16 March 2006 /
  • * Annual Audit & Inspection Letter
/
  • Cabinet (January)
/
  • Cabinet
/
  • Audit Commission
/
  • Annual Plan
  • Activity
  • Interim Performance
/
  • SIC and Business Plan Production
  • Review & Monitoring

  • SPS&SC
/
  • Chief Executive (Head of Paid Service) or Representative
  • Audit Commission (support)

  • Auditor Judgement Scores
(replaced by ‘Use of Resources Judgement’ from 2005, supplemented by ‘VFM Opinion’ from 2006) /
  • SPS&AC
/
  • Audit Commission (Head of Financial Services?)

  • Draft Audit & Inspection Plan, and Fee
/
  • SPS&SC
/
  • Audit Commission

Date / Other Audit Commission Work: / Proposed Arrangements / Presenter
Local Performance Work
#To Be Confirmed (TBC) / Full Sail Ahead / *SPS&AC / Audit Commission
#TBC / Schools for the Future / *SPS&AC / Audit Commission
#TBC / Customers First / *SPS&AC / Audit Commission
#TBC / Children’s Trusts / *SPS&AC / Audit Commission
#TBC / Sports Facilities and Partnership Arrangements / *SPS&AC / Audit Commission
Audit Commission Inspections
N/A / None Planned (2005/06) / *SPS&AC / Audit Commission

# C Rockey (Audit Commission) to confirm dates when these are available

* to receive, consider and forward to relevant Scrutiny Committees

Note: Future agendas for SPS&AC to be clearly divided between “Audit Issues” and “Other Scrutiny Matters”

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SPASC300620053 Appendix.doc

Last printed 17/06/2005 14:36

DRAFT

Key to Internal Audit & Risk Management Reports:

Chief Auditor’s Reports:
Annual Plan /
  • Audits to be brought forward
  • Audits planned for current period
  • Audits to be carried forward

Activity /
  • Audits completed / in progress
  • Special reviews completed / in progress
  • Investigations completed / in progress
  • Analysis of recommendations by Service Unit (new, implemented, outstanding, followed-up)
  • Key issues arising
  • Audits planned for next period

IA Performance - Interim /
  • Percentage of Audit Plan Completed
  • Percentage time spent v planned
  • Auditee satisfaction score
  • Budgeted vs actual audit days for ytd + variance analysis (using forecasts where necessary)

IA Performance – Year End /
  • Year End Position on Above, plus:
  • BoP55: Cost per Audit Day (Actual & Target)
  • Audit Commission judgement on Internal Audit (Use of Resources)

Risk Management / Statement of Internal Control Reports:
Agreement of Implementation Approach, and Timetable of Risk Management and SIC /
  • Agree risk management implementation approach and timetable (including process and timetable for production of SIC)
  • Review draft SIC and supporting evidence

Review and Monitoring /
  • Report on progress of risk management implementation
  • Review of Consolidated Risk Register – key risks, mitigating actions and acceptability of risk exposure
  • Report on progress of development of strategic risks

SIC and Business Plan Production /
  • Report on progress of risk management implementation (including SIC production and Risk Assessments for Summary Business Plans)

Notes

Internal Audit Reports:

2005/06 Audit Plan has been agreed with Head of Financial Services, Audit Commission and Service Unit Heads.

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SPASC300620053 Appendix.doc

Last printed 17/06/2005 14:36